Therein, lies the problem it does not specifically prohibit it, the wording is at best vague and therefore, if a corporation can use a legal "loophole" they can and do all the time. I agree the wording "suggests" that they shouldn't, but fails to put it into force. This is a "guideline" not a legal requirement. I am sure if someone challenged a broker or agent on it they would tell you it is not prohibited under the act. You can bet the insurance companies have had their lawyers look at every minute detail of the act to see what "legal work arounds" there are, and this looks like it is one of those.
remember the agent/broker merely types the answers to the questions they are told by their company are required they didn't write the policies nor the algorithms used to calculate the premiums. The system won't allow them to "override" this in the quotation process. So your chances of getting a lower premium even if one challenged them is likely non existent.
