GuideOne Mutual Insurance Co. and two of its authorized agents have reached a settlement on allegation that they discriminated against people because of religion by advertising special benefits and discounts on homeowners’ insurance only to “churchgoers” and “persons of faith.”

The settlement, which requires the approval of a federal judge, calls for the defendants to pay $29,500 to the victims of discrimination, another $45,000 to the government in penalties and to stop the alleged discriminatory practices.

The insurer, based on information on its website, writes policies in 19 states, including Maryland, Virginia, Pennsylvania, Delaware and New Jersey. The two agents were not identified in Justice Department statements on the case.

The revised complaint, filed in the U.S. District Court for the Western District of Kentucky as part of the settlement, alleges that the West Des Moines, Iowa-based company and the two agents offered a special endorsement to their homeowners and renters insurance policies at no extra charge. The special endorsement, called FaithGuard, provides special benefits and discounts only to “churchgoers” and “persons of faith.”

GuideOne offered the FaithGuard endorsement in at least 19 states and used an application form that included a space for applicants to indicate their “denomination.”

“Discrimination on the basis of someone’s religious faith is prohibited by the Fair Housing Act,” said Loretta King, acting assistant attorney general for the U.S. Justice Department Civil Rights Division. “All individuals have the right to secure homeowners and renters insurance without regard to their religious beliefs.”

The lawsuit also alleges that the defendants’ conduct constitutes a pattern or practice of discrimination or a denial of rights to a group of persons. The suit arose as a result of complaints filed with the U.S. Department of Housing and Urban Development (HUD) by two individuals, one an atheist and one an agnostic, and by the Lexington Fair Housing Council, a non-profit fair housing organization. After investigating the complaints, HUD issued a charge of discrimination, and after one of the complainants elected to have the case heard in federal court, the case was referred to the Justice Department.

The settlement also requires GuideOne to stop selling homeowners and renters insurance policies with the FaithGuard endorsement, train GuideOne insurance agents on their responsibilities under the Fair Housing Act and provide periodic reports to the Justice Department.

The Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status.