Which factor is NOT allowed when rating an automobile policy in North Carolina?

In the context of rating an automobile policy in North Carolina, the factor that is not allowed is the age of the operator. The state's regulations govern how insurance companies can assess risk and set premiums for automobile insurance, and they place restrictions on certain criteria that can influence these ratings.

Age as a rating factor has been contested as it could lead to discrimination against younger or older drivers. Instead, insurers are encouraged to focus on other variables that are better indicators of risk and driver behavior, such as vehicle use, licensed driving experience, and the characteristics of the vehicle itself.

Vehicle use refers to how the vehicle is utilized, such as personal use versus business use, which can significantly affect risk levels. Licensed driving experience considers how long a driver has held their license and their driving record, which correlates with their proficiency on the road. The characteristics of the vehicle encompass aspects like its make, model, safety features, and likelihood of theft, providing insurers with pertinent information related to risks associated with a specific automobile.

By understanding these parameters, students can appreciate the regulatory framework that aims to ensure fairness in the rating process while still allowing insurers to assess risk accurately.