A recent court decision also expanded the types of information that insurance companies can withhold under the financial institutions exception (§552.112). Over the past several years, the Legislature has developed a strong policy against insurance "redlining"-the practice of selective marketing that leaves poor and minority neighborhoods without adequate access to insurance coverage for a home or car.96 In order to determine which companies might be redlining, and which neighborhoods are most affected, the Texas Department of Insurance (TDI) recently implemented new reporting requirements in the Quarterly Market Reports filed by insurers.

Using the reports, the Center for Economic Justice (CEJ) analyzed data relating to the sale of mandatory auto insurance, and found problems with several companies, including Nationwide Ins. Co. The analysis also demonstrated that high-minority and low-income communities across the state had difficulty purchasing auto insurance coverage at standard rates.⁹⁷

When CEJ later asked for updated data, TDI referred the request to the Attorney General. After briefing by insurance companies and CEJ, the AG ruled the information public. After TDI notified insurers that it planned to release the information, several insurance companies filed for a temporary restraining order barring release. In October 1997, a district court granted insurers a temporary injunction,⁹⁸ which CEJ appealed.⁹⁹ In the meantime, insurers filed for a permanent injunction, which Travis County Judge Paul Davis granted in May 1998.¹⁰⁰ He based his decision on §552.112 of the Public Information Act, which exempts information from public disclosure "if it is.contained in or relating to examination, operating or condition reports prepared by or for an agency responsible for the regulation or supervision of financial institutions, or both." ¹⁰¹

Judge Davis' order relies on two assumptions: that insurance companies are financial institutions; and that the Quarterly Market Report data represent an examination, operation or condition report. The order does not outline the judge's analysis in reaching these conclusions, but the case sets poor precedents for public access to insurance redlining data, insurance data generally, and the approach taken by courts in interpreting open records exceptions.

Unless reversed on appeal, Judge Davis' decision will block public access to redlining data, undermining citizens' ability to ensure accountability in the insurance industry. TDI recently announced an enforcement action against Nationwide, alleging unfair discrimination and requesting that the commissioner impose a $10 million fine.¹⁰² Ironically, TDI's investigation and subsequent referral for enforcement action were prompted by the original CEJ report using Quarterly Market Report data.¹⁰³

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