Ethics · 18% of the SAFE exammedium
Correct answer: No — flood insurance is a legitimate, non-discriminatory requirement based on actual environmental risk
This is NOT disparate impact discrimination. Flood insurance in flood zones is tied to objective, non-discriminatory risk factors (geography, hydrology) — not to any characteristic of the borrower or protected class. A requirement is not discriminatory simply because it affects some areas more than others if the basis is legitimate risk. Disparate impact requires that the policy's adverse effect fall disproportionately on a PROTECTED CLASS (race, ethnicity, religion, sex, etc.), not just a geographic area. Flood zones are an environmental reality, not a proxy for discrimination.
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