Discrimination Charges Alleged at Trial : Shun Minorities, Former Insurance Agent Claims He Was Told

A former agent for the Farmers’ Insurance Exchange testified Tuesday that a supervisor told him in 1978 not to do business with “blacks, Hispanics or Orientals.”

Michael Weilbacher made his claim--denied by the man whom he allegedly quoted and another representative of the firm--as his lawsuit against Farmers’ continued into a second week of trial in Orange County Superior Court.

“I was advised not to write blacks, Hispanics or Orientals,” Weilbacher testified. He said he was “concerned” about the directive and added that he called another Farmers’ executive to ask about it. He said he continued to write policies for minority customers until he was fired by the firm in 1979.

Lists Reasons for Firing

A lawyer for the firm said that Weilbacher was fired for failing to follow company policy in writing insurance, and for failing to quickly turn over premiums from customers.

Joe Conners, district manager for Farmers’, flatly denied that he had ever told Weilbacher to restrict his business with minorities.

Questioned by Eileen McGeever, the firm’s lawyer, Weilbacher acknowledged that he had made no such claim when he appealed his termination within the company.

“You never raised the claim at the hearing that the termination involved discrimination?” McGeever asked.

“No,” Weilbacher responded.

Under further questioning from McGeever, Weilbacher also acknowledged that he didn’t bring the discrimination issue up when the suit was filed or when it was amended, or during depositions.

Weilbacher refused to answer any questions outside the courtroom, even declining to give his age. His lawyers also refused to discuss the allegation.

Weilbacher’s testimony alleging discrimination comes less than a week after a new consumer advisory panel of the state Department of Insurance heard several agents allege that their firms practiced redlining--a refusal to sell certain types of insurance in some areas of Los Angeles.

Leroy Mobley, vice chairman of the panel, said the restrictions were contained in “unwritten rules” that were communicated by special agents sent out by the firms, which were not named.

Seeks Unspecified Damages

Weilbacher’s lawsuit seeks unspecified damages for Farmers’ alleged interference with his efforts to retain customers after he was fired. The firm acknowledged that it had attempted to contact his customers. Company officials said that when Weilbacher was hired as an agent, he understood that in the event of termination, he and the firm would both keep his customer list, and both could solicit business from them.

The trial is expected to last another two weeks before a jury in the courtroom of Judge Robert C. Todd.