Texas Top Court OKs Insurer Credit Checks In Bias Suit

Law360, New York (May 27, 2011, 5:20 PM EDT) -- The Texas Supreme Court ruled Friday that state law allowed insurers to use credit scores to set rates even if doing so disparately impacted minorities, striking a blow to a putative class action accusing Farmers Group Inc. of discrimination.

The Ninth Circuit has certified the question of whether state law allows credit scores in those circumstances, and the state Supreme Court's decision will determine the outcome of the suit accusing Farmers of violating the federal Fair Housing Impact Act by setting premiums based on a credit-scoring...
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