From the Office of State Senator Rodney Ellis

For Immediate Release
May 28, 1999
Contact: Jeremy Warren, (512) 463-0113

Department of Insurance Cracks Down on Redlining in Texas
Following Nationwide Insurance Announcement to Increase Insurance Availability

"I am pleased that the Department of Insurance has stood up and forced insurance companies to do what they should have been doing all along, and that is stop redlining. I hope that, with this agreement, Nationwide will move forward to expand coverage into areas that they have deliberatley ignored."

"Redlining continues to be a problem in Texas, so every step that increases access to insurance for those left behind is a victory for Texas consumers. It's a shame that it has been such a long, difficult struggle just to get this modest agreement. Despite historic prosperity and economic growth in Texas, insurance companies have frozen minorities out of the mainstream market and forced them to purchase coverage -- when they can find it at all -- at far greater cost. That's wrong and we need to do all we can at the state level to put a stop to it."

"I think it is clear that insurance companies will do little to combat redlining unless the State of Texas holds their feet to the fire and tells them to stop. Nationwide deserves some credit for taking this step, but it should not have been such a struggle to get them to do the right thing."