The Battalion. (College Station, Tex.) 1893-current, August 31, 1993, Image 6

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Page 6
The Battalion
Tuesday, August 31,1993
Raising Old Glory
Varnell Hopkins IU/The Battalion
Cadets Matt McCool and Bin Islam of Company V-1 raise the flag major from Corpus Christi and Islam is a freshman chemical engi-
in front of the Academic Building. McCool is a sophomore history neering major from College Station.
State insurance board acts against discrimination
The Associated Press
AUSTIN - The State Board of
Insurance on Monday considered
anti-discrimination rules and a
consumer bill of rights in the face
of opposition from the insurance
industry.
Anticipating that the Insurance
Board would adopt the proposals,
insurance industry spokesman
Jerry Johns said the measures
were unnecessary and would cost
consumers more.
"Why should a government
agency interfere with a competi
tive system which seems to be of
fering consumers the lowest pos
sible rates?" Johns asked.
The proposals before the board
include banning discrimination
on the basis of race, color, reli
gion, national origin, geographic
location, age, sex or disability.
That prohibition would apply to
the sale, charge or continuation of
insurance.
Another proposal would estab
lish a bill of rights attached to au
tomobile, homeowners, and credit
life policies.
The board requested the anti-
discrimination rule after a study
showed low-income and minority
consumers pay higher rates for in
surance even if they are a lower
risk. This practice of charging
more or not making insurance
available in certain areas is called
redlining.
But the insurance industry said
that redlining was not an insur
ance problem, but a societal prob
lem of deteriorating property and
escalating crime.
"If premiums do not account
for those higher costs, then all in
surance customers will end up
subsidizing those in inner cities,"
according to a statement from the
National Association of Indepen
dent Insurers.
The NAII indicated that if the
proposed rules passed, it would
challenge them in court.
But some consumer groups
and minorities said the rules
would help policyholders and
prevent discrimination.
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©Hewlett-Packard Company. PG 12306B