Law360, New York ( October 20, 2016, 2:05 PM EDT) -- In February 2013, the U.S. Department of Housing and Urban Development adopted a "Discriminatory Effects Rule," which established liability under the Fair Housing Act for conduct that is otherwise lawful, but which has a disproportionately adverse effect on racial minorities or other protected classes. 24 CFR § 100.500. Insofar as it applied to insurers, this rule was promptly challenged in two lawsuits brought by trade groups. In one, Property Casualty Insurers Assoc. of Am. v. Donovan, 66 F.Supp.3d 1018 (N.D. Ill. 2014) (PCI suit), a federal court in Illinois held that the agency had given inadequate consideration to the arguments of the insurance industry, and it remanded the rule to HUD....