The Coalition of Attorneys General Oppose a Challenge to the HUD Discriminatory Effects Rule
HARRISBURG – Attorney General Michelle Henry joined a coalition of 19 state Attorneys General defending the Department of Housing and Urban Development’s (HUD) Discriminatory Effects Rule which ensures homeowners of all classes and ethnicities have equitable access to insurance.
The Attorneys General filed an amicus brief urging a federal court to reject a challenge from the homeowners insurance industry to the HUDs rule, which holds insurers accountable under the Fair Housing Act, for discriminating against prospective clients based on race or nationality.
“Everyone deserves fair treatment when it comes to insuring their home, which for most Pennsylvanians, is their most treasured and valuable asset,” Attorney General Henry said. “This coalition’s effort is about standing up for homeowners who could be harmed by discriminatory practices.”
The Attorneys Generals’ filing is led by Illinois Attorney General Kwame Raoul and District of Columbia Attorney General Brian Schwalb.
In the past, courts have recognized that the Fair Housing Act prohibits practices that have a discriminatory effect, even if they are not overtly biased. However, a group of companies that sell property and casualty insurance sued to have portions of HUD’s Discriminatory Effects Rule declared invalid, arguing that HUD should have granted a blanket exemption to the rule when addressing potential conflicts with state-level insurance laws and regulations instead of considering conflicts on a case-by-case basis.
In many states, the HUD rule complements state anti-discrimination laws and state efforts to regulate the insurance market, extending to the homeowners insurance industry. In Pennsylvania, the Pennsylvania Insurance Department oversees insurance companies and is responsible for ensuring fair and non-discriminatory practices by those companies.
Joining Attorney General Henry in filing the brief are Attorneys General of Arizona, California, Colorado, Delaware, the District of Columbia, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont and Washington.
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