U.S. Looks Into Redlining Complaints

The Justice Department is looking into whether Nationwide Mutual Insurance Co. violated civil rights laws by instructing agents to avoid insuring homeowners in minority neighborhoods, the company said. The nation’s sixth-largest property and casualty insurer also faces lawsuits in at least seven states accusing it of refusing to write policies on the basis of race or residence in low-income areas. At least six Nationwide agents have said they were told not to do business in sections of cities where minorities were in the majority. John Millen, a spokesman for Columbus, Ohio-based Nationwide, said company executives have met with Justice Department officials about the complaints for several months. He said redlining is against company policy. He also said Nationwide is working on a plan to increase business in urban neighborhoods, but would not say whether that was in response to the inquiries. The department would not confirm or deny that it is investigating Nationwide.