MEDIA ADVISORY

January 19, 2000

Consumers Union's Southwest Office

 

 

Groups ask Texas Supreme Court to
reject insurers' attempts to keep data secret

AUSTIN, TX -- In a case called "fundamental to public oversight of government," four major public interest organizations today filed a brief with the Texas Supreme Court asking the court to reject an insurance industry attempt to block the release of automobile insurance data used to detect the presence of insurance discrimination - or "redlining."

Filing the brief were Consumers Union, the Texas State Conference of NAACP Branches, the National Council of La Raza, and Common Cause of Texas. A brief calling for the opening of the records was filed in late 1999 by the Freedom of Information Foundation of Texas.

The Texas Supreme Court is expected to rule soon on the matter. At issue is the release of "quarterly market reports" by the Texas Department of Insurance. Data from the reports was used in the past to identify auto insurers that are redlining low income and minority neighborhoods in Texas. But several insurance companies sued to block the release of the information and a District Court in Austin ruled in their favor, saying the information is exempted as an operation and condition report of a financial institution. The Third Court of Appeals overturned the District Court's decision and the insurers appealed that decision to the Texas Supreme Court.

The public interest groups cited the legislative history of the Texas Public Information Act in their brief to demonstrate that the insurers' argument is fundamentally flawed. Its adoption would likely result in the closing of a large volume of documents at the Texas Department of Insurance - such as annual statements - now available for public inspection.

"To deny public access to the information thwarts public oversight of state agencies and regulated industries, and threatens the fundamental right of the public to monitor the government entities it created," the groups said in the brief.

For more information, please contact Rob Schneider or Rafael Ayuso at (512) 477-4431.

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