Attorney General Michelle Henry has aligned with a coalition of 19 state Attorneys General to defend the Department of Housing and Urban Development's (HUD) Discriminatory Effects Rule. This rule is designed to ensure equitable access to insurance for homeowners across different classes and ethnicities.
The coalition submitted an amicus brief, urging a federal court to dismiss a challenge from the homeowners insurance industry against HUD's rule. The rule holds insurers accountable under the Fair Housing Act for discrimination 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," stated Attorney General Henry. "This coalition’s effort is about standing up for homeowners who could be harmed by discriminatory practices."
The initiative is spearheaded by Illinois Attorney General Kwame Raoul and District of Columbia Attorney General Brian Schwalb. Historically, courts have upheld that the Fair Housing Act prohibits discriminatory practices even if they are not overtly biased. However, some property and casualty insurance companies have challenged parts of HUD's Discriminatory Effects Rule, seeking its invalidation. They argue that HUD should have issued a blanket exemption concerning potential conflicts with state-level insurance laws instead of evaluating conflicts individually.
In several states, the HUD rule complements existing state anti-discrimination laws and regulatory efforts in the insurance market, particularly affecting homeowners' insurance policies. In Pennsylvania, the Pennsylvania Insurance Department oversees such matters to ensure fair practices within the industry.
Alongside Attorney General Henry in this legal action are Attorneys General from 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.