[R023]

redlining

The designation by an insurer of a certain geographical area considered unacceptable for the writing of insurance, usually illegal because it is considered to be unfair discrimination. Redlining is refusing to insure, refusing to renew, canceling, charging a higher rate, or limiting the amount or type of property insurance solely because of the geographic location of a risk. Further, redlining involves risk selection criteria that are not based on sound underwriting and actuarial principles, reasonably related to actual or anticipated loss experience of risk(s) having similar characteristics.

(See unfair discrimination.)