Men and women, it does differentiate. Fat or muscle, no.
And you could be a 250 lb body builder and get jacked up life insurance rates.
The faster we change from BMI to something more sane, the better. One thing amusing about BMI is that as you get taller, you have to be skinnier (have less % body fat) to be within the normal weight range. Some moron in the gov't thought volume increased by the square of the height rather than the cube.