Which group may have different life insurance rate schedules based on age under ADEA?

Which group may have different life insurance rate schedules based on age under ADEA?

• A. Office workers
• B. Firefighters
• C. Senior management
• D. Sales personnel

Answer: (B)

Under the Age Discrimination in Employment Act (ADEA), employers are permitted to use age-based variations in life insurance rates because life insurance premiums can be directly tied to the age-related risk of mortality. Firefighters, due to the nature of their job which entails higher risks and is physically demanding, may have distinct life insurance rate schedules based on age. This practice is justified because life insurance companies assess risk based on various factors, including age, which is a legitimate criterion for determining premium costs given actuarial projections. High-risk professions often engage in more rigorous evaluation processes for insurance, allowing for variations that align with the inherent risks associated with those jobs. In contrast, other groups listed, such as office workers, senior management, and sales personnel, typically do not face the same level of risk associated with their roles, and thus their life insurance rates are less likely to vary significantly based on age under the same circumstances.

Under the Age Discrimination in Employment Act (ADEA), employers are permitted to use age-based variations in life insurance rates because life insurance premiums can be directly tied to the age-related risk of mortality. Firefighters, due to the nature of their job which entails higher risks and is physically demanding, may have distinct life insurance rate schedules based on age.

This practice is justified because life insurance companies assess risk based on various factors, including age, which is a legitimate criterion for determining premium costs given actuarial projections. High-risk professions often engage in more rigorous evaluation processes for insurance, allowing for variations that align with the inherent risks associated with those jobs. In contrast, other groups listed, such as office workers, senior management, and sales personnel, typically do not face the same level of risk associated with their roles, and thus their life insurance rates are less likely to vary significantly based on age under the same circumstances.