26.1-40-11. Terminations - Declinations - Prohibited reasons

26.1-40-11. Terminations - Declinations - Prohibited reasons The declination of an application for, or the termination of, a policy by an insurer or insurance producer is prohibited if the declination or termination is: 1. Based upon the race, religion, nationality, or ethnic group of the applicant or named insured. 2. Based solely upon the lawful occupation or profession of the applicant or named insured, except that this provision does not apply to any insurer or insurance producer which limits its market to one lawful occupation or profession or to several related lawful occupations or professions. 3. Based upon the principal location of the insured motor vehicle unless such decision is for a business purpose which is not mere pretext for unfair discrimination. 4. Based solely upon the age, sex, or marital status of an applicant or an insured, except that this subsection does not prohibit rating differentials based upon age, sex, or marital status. 5. Based upon the fact that the applicant or named insured previously obtained insurance coverage through a residual market insurance mechanism or an insurance company that insures substandard risks. 6. Based upon the fact that another insurer previously declined to insure the applicant or terminated an existing policy in which the applicant was the named insured.