The Kansas City Star, Mo., Dan Margolies column: Lawsuit ends GuideOne Mutual Insurance Co.'s discounts for churchgoers

Back in 2005, a story in The Kansas City Star's business section reported that GuideOne Mutual Insurance Co. was offering auto and homeowner policies with special discounts for churchgoers.

Well, scratch the homeowner discounts.

Earlier this month, the West Des Moines, Iowa, insurer settled a complaint by the Justice Department that its homeowner and renter insurance policies violated the Fair Housing Act by discriminating on the basis of religion.

The settlement was entered simultaneously with the department's complaint, which was brought on behalf of Nicolas Valenzuela, a Louisville, Ky., resident who is an agnostic, the Lexington (Ky.) Fair Housing Council and Anthony J. Baize, a Sellersburg, Ind., resident who is an atheist.

Valenzuela and Baize said they decided not to buy policies from GuideOne because the company "indicated a preference for religious persons in general, and Christians in particular."

The settlement calls for GuideOne to pay $7,000 to Valenzuela, $17,000 to the Lexington Fair Housing Council, $5,500 to Baize and a $45,000 civil penalty to the United States.

Although GuideOne did not admit fault, it also agreed to stop selling homeowners and renters insurance policies offering the discounts and to train its agents on their duties under the Fair Housing Act.

According to the Justice Department's complaint, from at least 2005 to March 2009, GuideOne offered special benefits and discounts at no extra charge to "churchgoers" and "persons of faith."

The special endorsement, called "FaithGuard," waived deductibles for policyholders involved in an accident going to or from church services. It also doubled medical limits for policyholders injured while involved in church-related activities in their home. And it paid church tithes or donations up to $740 if an injury at home led to loss of income.

The FaithGuard endorsement was offered in at least 19 states, including Missouri and Kansas.

GuideOne bills itself as one of America's largest church insurers, with nearly 43,000 church clients. The company sold its life insurance business some years ago as part of an alliance with Kansas City Life Insurance Co. under which it sells life insurance products underwritten by Kansas City Life.

Company officials could not be reached for comment. But after a similar lawsuit was filed against the company in Ohio two years ago, Tom Farr, GuideOne's general counsel, insisted that the insurer's home insurance was nondiscriminatory.

"GuideOne makes this product available to everyone," he said in a e-mail message to the Akron Beacon Journal. "No one has ever been denied the product based on church membership or attendance."

In honor

Last week's annual meeting of the Missouri Bar saw a local law professor and five area lawyers honored for their achievements.

David Achtenberg, who teaches at the University of Missouri-Kansas City School of Law, and Pat McLarney, a partner at Shook Hardy & Bacon, received the Spurgeon Smithson Award. The award recognizes lawyers, judges and teachers who "have rendered outstanding service toward the increase and diffusion of justice."

Susan Ford Robertson, a partner with the Robertson Law Group, and Mira Mdivani, founder of the Mdivani Law Firm, each received the President's Award. The award recognizes Missouri Bar members who have made significant contributions to the work of the bar.

Nikki Cannezzaro, a partner with Franke Schultz & Mullen, received the Lon Hocker Award, which recognizes lawyers under the age of 36 who have shown "unusual proficiency in the art of trial advocacy."

Charley German, a partner with Rouse Hendricks German May, received the Pro Bono Publico Award, which is given to lawyers who have provided outstanding services at no charge to the needy.

To reach Dan Margolies, call 816-234-4481 or send e-mail to dmargolies@kcstar.com.