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Press Release May 12, 2000 |
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AUSTIN, TX -- District Judge Jeanne Muerer issued a key ruling
against Nationwide Insurance Co. on Friday, May 12 that could pave
the way for the release of all data filed by insurance companies with
the Texas Department of Insurance (TDI) that shows where they issue
their policies by zip code. The information is vital to the
detection of insurance discrimination, or redlining.
Judge Muerer's decision -- which Nationwide said it will not
appeal -- results in the immediate release of progress reports filed
by Nationwide for homeowners insurance.
After a 1997 Center for Economic Justice report, which used the
zip code data to show Nationwide Insurance was redlining in minority
neighborhoods, the company was required to increase its writings in
underserved areas and report to the TDI on its progress. CEJ
requested these reports on homeowners insurance, which like for auto
insurance are required to be released by Department rule, but
Nationwide sued to block release.
Since 1997, insurance companies have used the courts to block
public access to insurance redlining data, even though Insurance
Department rules require release. The Texas Supreme Court has
rejected the legal arguments of the companies, leaving one issue of
"fact" - whether the data can be considered a "trade secret."
Judge Meurer's decision on Friday is considered a bellwether for
future cases, scheduled for June, and may determine whether the data
will be finally released to the public.
"We applaud Judge Meurer's decision to require release of
Nationwide's insurance redlining data," said Rob Schneider, senior
staff attorney for the Southwest Regional Office of Consumers Union.
Consistent with the Public Information Act, release of this
information will assure that the public has the ability to monitor
the progress - or lack or progress - by the company in addressing
insurance redlining. Nationwide, both in Texas and Virginia, has
settled cases of alleged insurance redlining by agreeing to improve
their writings in minority zip codes. In both cases, it was the work
of public interest groups that first brought to light the allegations
of redlining.
"We hope public release of this information is a signal that
automobile insurance redlining data, tied up in litigation for nearly
four years, will also finally be released to the public," Schneider
said.
