Why might the premium for identical twins differ?

The correct answer is based on the fact that identical twins, while genetically the same, may still have different risk classifications when it comes to insurance premiums. Risk classification typically considers various factors that can affect an individual's likelihood of filing a claim, such as lifestyle choices, occupational hazards, and existing health conditions.

For example, one twin may engage in higher risk activities, have a pre-existing condition, or make life choices that put them at a greater risk for premiums to be adjusted accordingly. Insurance companies assess these risk factors to determine how likely a person is to incur costs that would lead to a claim.

While age, state of residence, and health history could influence premiums, in this scenario, twins would generally share similar ages and health histories. However, their individual risk classifications can certainly differ based on other behavioral and lifestyle factors, leading to variations in premium rates.