HUD Disparate-Impact Rule for Homeowners Insurance Held Valid

A US Department of Housing and Urban Development rule outlining a test to determine whether homeowners insurance has a disparate impact on minorities under the Fair Housing Act wasn’t arbitrary or capricious under the Administrative Procedure Act, a federal court said.

The court previously sent the original 2013 rule back to HUD after a legal challenge by the Property Casualty Insurers Association of America, saying that the agency didn’t adequately consider the issues at stake. The PCI argued that the substantially identical version of the rule HUD adopted in 2023, which refused to create an exemption for risk-based insurance practices, ...