WHEREAS, insurance companies have been using credit scoring as an underwriting tool for discriminating against Hispanics. Charging higher insurance premiums because of someone's' inability to maintain anything less than perfect credit history,

WHEREAS, credit scoring acts much like a gatekeeper channeling Hispanics down highways of higher premium rates were U-turns are not allowed and insurance companies shamefully defend their gatekeeper scheme by claiming people with less than prefect credit are more likely to file more claims,

WHEREAS, insurance companies have historically redline Hispanic communities by refusing to provide sales and service neighborhood office facilitates. This lack of commitment by the insurance carriers creates a void enthusiastically filed by non-standard insurance companies at a higher cost to our communities,

WHEREAS, insurance companies have consistently refused disclosure and have litigated all attempts by individuals and non-profit groups their lawful right to review data used in calculating the Credit Scoring method rates,

WHEREAS, information that is ordinarily considered free of public review; powerful insurance companies, instead insists its credit scoring formula is a proprietary secret,

WHEREAS, there's something fundamentally wrong with using credit scoring to establish rates,

WHEREAS, we in LULAC fully understand that insurance companies are in the business for profit and there is nothing wrong in making a little money, but not on the backs of our country's poor and those less able to defend themselves,

WHEREAS, the insurance companies behavior is a serious breach of integrity and where this exist other moral lapses follow, the very sore and painful affliction of racial discrimination,

NOW THEREFORE, BE IT RESOLVED, that the League of United Latin American Citizens opposes the use of credit, credit reports, credit scoring and credit algorithms for any purpose other than the extension of credit. The involuntary segmentation of Hispanic Americans into separate classes so that insurance corporations and their other own entitles can manage us for profits is abhorrent and fundamentally wrong and un-American.

Submitted by:

Lourdes Rodriguez Henry Rodriguez
President of Council 4484J District XV Director

Passed at District 15 Convention-San Antonio, TX
Passed at State Conference Laredo, TX on June 3, 2001

Original Resolution Written by
Mr. Raymond Gonzalez, Jr.
Captive Agent
206 San Pedro Ave Suite #101
San Antonio, TX 78205
LULAC Member Council 4484J
National Board Member of the National Association of Professional Allstate Agents.

Approved this 9th day of June, 2001.

Rick Dovalina
LULAC National President