What does the Unfair Competition Law prohibit?

The Unfair Competition Law is designed to maintain fairness in the marketplace, particularly within the insurance industry. One of its primary focuses is to prevent unfair discrimination in insurance practices. This means that insurance providers must treat all policyholders and applicants fairly and avoid practices that would give one group an unfair advantage over another, ensuring that similar risks are treated alike. Significantly, this law helps protect consumers by promoting equitable treatment and preventing practices that could lead to unjust disparities in policy pricing or availability based on factors that should not influence risk assessment.

The other options presented do not directly relate to the central aim of the Unfair Competition Law. Offering bonuses for renewals, while potentially subject to scrutiny under different regulations, is not specifically prohibited by this law. Using personal data for marketing also raises privacy concerns but falls under different legal frameworks regarding consumer protection and data privacy rather than unfair competition. Hence, unfair discrimination is the core issue that the Unfair Competition Law specifically addresses, aligning with its purpose of fostering a fair competition environment in the insurance sector.