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REDLINING CHARGE DISPUTED BY INSURANCE INDUSTRY GROUP

 NEW YORK, Feb. 5 /PRNewswire/ -- The insurance industry is committed to provide property insurance to every community in the United States, according to Dr. Sean Mooney, senior vice president and economist, Insurance Information Institute.
 In response to a study by ACORN which found obstacles to obtaining homeowners insurance in low-income neighborhoods, Mooney said:
 -- Redlining or any other form of discrimination based on race, ethnic origin or other arbitrary factor is prohibited by law and regulation. Any evidence of such a practice ought to be forwarded to the appropriate authorities for proper investigation.
 -- The insurance industry provides coverage to homeowners and businesses throughout the United States in cities, suburbs and rural areas. The portion of the population which has difficulty getting insurance in the private market is small and has been declining steadily.
 -- FAIR Plans or other government-supervised programs are available in many states to provide insurance coverage in these relatively few instances when a property is deemed to be uninsurable by the conventional market. Insurance companies support and participate in these programs.
 -- Insurance prices may differ from one community to another, because of differences in the expected cost of providing coverage in each location. The frequency and/or severity of burglary and theft claims may vary substantially; arson may be a problem in one neighborhood but not another; fire protection services may have different ratings. When regulators review insurance rates, these factors and others are considered, to make sure that insurance prices are fair and reasonable.
 -0- 2/5/93
 /CONTACT: Sean Mooney of Insurance Information Institute, 212-669-9200/


CO: Insurance Information Institute ST: New York IN: INS SU:

PS -- NY007 -- 3400 02/05/93 09:23 EST
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Publication:PR Newswire
Date:Feb 5, 1993
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