Unisex Legislation

AAA

DEFINITION of 'Unisex Legislation'

A statutory law that prohibits insurance companies from taking into consideration gender when developing insurance classifications, rates or types of coverage for certain types of insurance. When unisex legislation applies, all people, regardless of gender, must be give the same rates and types of coverage. Not all types of insurance fall under unisex legislation. For example, most men pay higher rates than women for identical automobile insurance coverage.

INVESTOPEDIA EXPLAINS 'Unisex Legislation'

In 1978, the United States Supreme Court first prohibited gender-based divisions in insurance in City of Los Angeles, Department of Water and Power v. Manhart. In 1983, the courts again prohibited gender-based insurance distinctions in Arizona Governing Committee for Tax Deferred Annuity and Deferred Compensation Plans v. Norris. Insurance companies have resisted any legislation that would restrict their ability to use gender-based distinctions in developing insurance classifications, rates and coverages.

RELATED TERMS
  1. Income Inequality

    The unequal distribution of household or individual income across ...
  2. Actuarial Equity

    The calculation of an insurance premium based on crucial factors ...
  3. Actuarial Science

    A discipline that assesses financial risks in the insurance and ...
  4. Formal Tax Legislation

    The process by which a proposed tax rule or tax change may become ...
  5. Actuarial Risk

    The risk that the assumptions that actuaries implement into a ...
  6. Actuarial Analysis

    The examination of risk by a highly educated and certified professional ...
Related Articles
  1. Home & Auto

    Is Your Insurance Company Going Belly Up?

    When insurance companies go bankrupt or face financial difficulty, it's bad news for policy holders.
  2. Home & Auto

    How An Insurance Company Determines Your Premiums

    Find out how insurers use credit history to build an insurance score and how it could affect your bottom line.
  3. Home & Auto

    Insure Your Future With A Career As An Actuary

    If you've got excellent math skills, they can add up to a lucrative career as an actuary.
  4. Insurance

    Are You Protected If Your Insurance Company Goes Belly-Up?

    Consumer protection against insurance company failures actually falls into the hands of state governments. How much protection do you have?
  5. Active Trading Fundamentals

    Operational Risk: A Must-Know For Investors

    This type of risk is often overlooked, but it can mean the downfall of a company - and its investors.
  6. Insurance

    How to Use a Waiver of Subrogation

    A waiver of subrogation means that a party to a contract waives the right to allow someone (usually an insurance company) to sue the other party to the contract in case of a loss.
  7. Retirement

    What is an equity-indexed annuity?

    Understand what an equity-indexed annuity is, its advantages and disadvantages, and how it differs from other annuity investments.
  8. Insurance

    What are some examples of unexpected exclusions in a home insurance policy?

    Learn about commonly excluded perils with different standard insurance policies. Explore events that homeowners should consider when purchasing insurance.
  9. Insurance

    What are the tax implications of a life insurance policy loan?

    Learn the instances in which you are required to pay taxes on a life insurance policy loan, so you can avoid making a costly mistake.
  10. Insurance

    What's the difference between renter's insurance and homeowner's insurance?

    Renters insurance and homeowners insurance offer similar benefits for occupants and homeowners, but in different ways and for different reasons.

You May Also Like

Hot Definitions
  1. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  2. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  3. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  4. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  5. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  6. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
Trading Center