Louis Stokes: “May I also assume that my distinguished chairman is aware that some Members disagree with the assertion that the Fair…”

“May I also assume that my distinguished chairman is aware that some Members disagree with the assertion that the Fair Housing Act prohibition of discrimination in property insurance is barred by the McCarran-Ferguson Act of 1945? The fact is that McCarran-Ferguson states that a Federal law that does not specifically relate to insurance shall be construed so as not to invalidate, impair or supersede any State law regulating the business of insurance. Circuit court decisions have clearly established the applicability of the Fair Housing Act to discriminatory insurance practices and have not found them to be barred by McCarran-Ferguson. In the most recent appellate decisions on the issue, the Sixth Circuit followed the Seventh Circuit, joining a long line of courts that have upheld HUD's jurisdiction. On May 1, 1995, the court found that ``HUD's interpretation of the Fair Housing Act is consistent with the goals of the Fair Housing Act and a reasonable interpretation of the statute. We hold that the McCarran-Ferguson Act does not preclude HUD's interpretation of the Fair Housing Act.'' The Supreme Court has declined to review these cases.”