Robert Detlefsen, “Disparate Impact” Theory Provides No Support For Banning Credit Scoring Insurance,” Washington Legal Foundation Legal Backgrounder, April 2005.
“The Legal Theory of Disparate Impact Does Not Apply to the Regulation of Credit-Based Insurance Scoring,” NAMIC Issue Analysis, July 2004.
Disparate Impact Theory [F/S]
The Department of Housing and Urban Development is seeking to impose a burdensome rule that could force insurers in the competitive homeowners marketplace to defend virtually any underwriting metric from litigation if it is found to have a negative effect on a protected class. The rule does not consider that discrimination was not intended and that insurers do not collect demographic information that would enable them to know if a disparate impact has occurred. NAMIC has challenged the rule, but if it is allowed to stand insurers will have to adjust rates to meet this added risk of litigation.
Posted: Thursday, July 05, 2012 1:44:56 PM. Modified: Monday, April 21, 2014 1:33:24 PM.
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