Which of the following is illegal in terms of insurance rates and policy benefits?

Discrimination based on marital status is illegal in terms of insurance rates and policy benefits because it is considered unfair and discriminatory practice. Insurance companies are required to base their pricing and underwriting decisions on criteria that are relevant to risk assessment and not on personal characteristics that do not impact the actual risk of the insured event occurring. Marital status does not provide valid evidence of risk and therefore should not affect the cost of premiums or the availability of certain benefits.

In contrast, pricing based on geographical location, adjusting for age, and offering discounts for multiple policies are practices allowed within the insurance industry. Geographical location can influence risk because certain areas may experience higher rates of accidents or disasters. Age is a relevant factor in assessing risk, as it often correlates with life expectancy and health status. Offering discounts for multiple policies serves as an incentive for customers and encourages loyalty, which is a common practice in the industry.