Settlement Reached In Lawsuit Challenging FaithGuard Homeowners' Insurance

The U.S. Justice Department announced on Friday that it had reached a settlement with GuideOne Mutual Insurance Company and two of its agents in connection with the company's FaithGuard endorsements on homeowners policies. The endorsement offered special benefits and discounts only to churchgoers and "people of faith," a practice which the Department of Housing and Urban Development claimed violated the Fair Housing Act. A complaint was filed along with the proposed settlement on Friday in a Kentucky federal district court. Under the settlement, which still must be approved by the court, defendants will pay damages of $29,500 to three victims of discrimination and will pay a civil penalty to the government of $45,000. In addition, GuideOne will stop selling homeowners and renters insurance policies with the FaithGuard endorsement, train GuideOne insurance agents on their responsibilities under the Fair Housing Act and provide periodic reports to the Justice Department. (See prior related posting.) [Thanks to Scott Mange for the lead.]