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Foundations of Casualty Actuarial Science

constitutions. The federal equal protection clause forbids
the state to discriminate equal protection. Purely private
discrimination is usually not actionable under the EPC.
With insurance, the requisite state action is promulgation
of rates, and not mere approval of or acquiescence in
rates. If rates are not regulated at all, rating classifications
are probably exempt from the EPC.

Unequal treatment of basing premium differences on
demonstrable cost differences , is a requirement under
under EPC. Because of the requirement of governmental
action, constitutional challenges to insurance rating
classifications are unlikely to succeed.

Statutes, however, can impose restrictions on insurers.
In this case, it is the insurers who will try to invoke
constitutional provisions to invalidate the statutes. Several
clauses of US Constitution are applicable.

Generally, however, courts have been very deferential
towards insurance legislatures and their regulations.
Most likely, statutory regulations on rating variables

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