A federal court in New Orleans will soon hear the case of agroup of Allstate and State Farm policyholders who claim they wereunfairly discriminated against by the insurers' use of their credithistory to rate them.
Earlier this month, the seven-member Louisiana Insurance RatingCommission, which rules on carriers' rate requests, said it hadfound no evidence that State Farm and Allstate's use ofcredit-based insurance scores had unfairly discriminated againstauto and homeowner policyholders.
Policyholders had argued that the two insurers' use of creditinformation to compile insurance scores resulted in discriminationagainst minorities and low-income customers and resulted in policycancellations, nonrenewals or higher rates.
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