Does the law even matter here? If it's illegal to discriminate, then the insurance becomes unprofitable and is no longer available. If it's not illegal to discriminate, then the insurance can remain profitable by jacking up the price, but then is no longer available to the vast majority of those who suffer from it.

Insurance really only works when either 1) what it covers is truly unpredictable or 2) everybody is required to participate regardless of whether they really need it.