redlining


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Related to redlining: gentrification, reverse redlining

Red-Lining

A practice in which a company refuses to market its products in a certain area because it is disproportionately poor, has a high rate of default, and/or has a large minority population. Examples of products where a company may practice red-lining are health insurance and mortgages. Red-lining is illegal because these products should be offered based on individual creditworthiness. Those who support the illegality of red-lining argue that it promotes equality between races and classes, while critics contend that it leads to needless distortions in the market. See also: Fair Housing Act of 1968, Community Reinvestment Act.

redlining

Commonly used to communicate an illegal practice of refusing to make loans or sell insurance in certain areas.In reality,the practice is common and is legal,but only if the disqualifying criteria do not include race, religion, gender, family status, disability, or ethnic origin, or some disguised criteria intended to discriminate on those grounds. Many insurance companies will not sell insurance in entire states viewed as being plaintiff-friendly with outrageous jury awards. This is a form of permissible redlining.

References in periodicals archive ?
DeltaView is the ideal redlining tool for law firms," said Mark Hadfield, Chief Operating Officer at Workshare Technology.
There is no other redlining product we have used that can come close to DeltaView as in terms of accuracy, ease of use, reliability, and technical support," said Armstrong.
In just one year, 174 firms around the globe have chosen DeltaView as their redlining tool, making it the accepted standard in document comparison.
The Java redlining applet provides for any combination of text and graphics feedback on the engineering drawings.
Fernando Cheung of the Oakland Chinese Community Council, one of the plaintiffs, said: "We are pleased to hear that the Court is requiring the companies to file the redlining data.
The data collection is the first step in determining the extent of redlining.
The redlining regulation, which became effective on May 20, 1994, requires property and casualty companies selling certain types of automobile, homeowners, and commercial insurance, to report by zip code where they are accepting and declining applications for policies, as well as the race and gender of the applicants.