Fair Auto Insurance Ratemaking Reporting to Allow a Transparent Evaluation of Statistics Act of 2018

Summary: Fair Auto Insurance Ratemaking Reporting to Allow a Transparent Evaluation of Statistics Act of 2018 or the FAIR RATES Act of 2018 This bill directs the Federal Insurance Office (FIO) of the Department of the Treasury to collect private passenger automobile insurance data from certain automobile insurers, federal and state agencies, or other intermediaries. FIO must report on any racial disparities in premium costs and claims payment amounts.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fair Auto Insurance Ratemaking 
Reporting to Allow a Transparent Evaluation of Statistics Act of 2018'' 
or the ``FAIR RATES Act of 2018''.

SEC. 2. DATA CALL.

    (a) In General.--Pursuant to the authority under section 313(e) of 
title 31, United States Code, the Director of the Federal Insurance 
Office shall collect from covered automobile insurers, aggregated on a 
census tract level basis based on the place of garaging of the insured 
vehicle, information for each of the three accident or calendar years, 
as applicable, most recently completed as of the date of the enactment 
of this Act, regarding private passenger automobile insurance as the 
Director considers necessary to prepare the report required under 
section 3, which shall include the following information for each such 
year:
            (1) Company name.--The name of the insurance coverage for 
        the vehicle.
            (2) Experience year.--The experience year for premiums and 
        exposures.
            (3) Census tract.--The census tract of the place of 
        garaging of the insured vehicle.
            (4) Paid loss adjustment expenses.--Total paid loss 
        adjustment expenses, reported by accident year.
            (5) Incurred loss adjustment expenses.--Total incurred loss 
        adjustment expenses plus case reserves, reported by accident 
        year.
            (6) Count of claims recorded.--The number of claims 
        reported for each coverage or type of loss, including claims 
        that included payment and claims that did not include payment.
            (7) Count of claims closed.--The number of claims closed 
        for each coverage or type of loss, including claims that were 
        closed that included payment and claims that were closed that 
        did not include payment.
            (8) Coverage type.--The type of coverage provided, 
        including liability, personal injury protection, collision, 
        comprehensive, and uninsured motorist bodily injury.
            (9) Premium written.--Total premium written, reported by 
        coverage type.
            (10) Premium earned.--Total premium earned, reported by 
        coverage type.
            (11) Exposure written.--Total exposures written, reported 
        by coverage type.
            (12) Exposure earned.--Total exposures earned, reported by 
        coverage type.
    (b) Method and Timing of Collection.--
            (1) From federal or state agency.--Not later than the 
        expiration of the 6-month period beginning on the date of the 
        enactment of this Act, the Director shall determine whether all 
        of the information required to be collected under subsection 
        (a) can be obtained in the manner provided under the first 
        sentence of section 313(e)(4) of title 31, United States Code, 
        in a timely manner. If the Director determines that all such 
        information is available, and may be obtained by such manner in 
        a timely manner, the Director shall so obtain all such 
        information.
            (2) From intermediary.--If the Director determines under 
        paragraph (1) that all of the information required to be 
        collected under subsection (a) cannot be obtained in the manner 
        provided under the first sentence of section 313(e)(4) of title 
        31, United States Code, and in a timely manner, the Director 
        shall provide that covered automobile insurers shall submit any 
        such information that is not so obtainable through--
                    (A) an appropriate intermediary, including the 
                National Association of Insurance Commissioners; or
                    (B) other appropriate intermediaries, including 
                advisory organizations and statistical agents licensed 
                by State insurance regulatory authorities.
            (3) From covered automobile insurers.--If the Director has 
        not received all of the information required to be collected 
        under subsection (a) before the expiration of the 12-month 
        period beginning on the date of the enactment of this Act, 
        before the expiration of the 18-month period beginning upon 
        such date of enactment, the Director shall collect from covered 
        automobile insurers, in accordance with the penultimate 
        sentence of section 313(e)(4) of title 31, United States Code, 
        any such information not so received.

SEC. 3. STUDY.

    (a) In General.--The Director shall conduct a study, using the 
information collected pursuant to section 2 and any other appropriate 
information available, to compare private passenger automobile 
insurance premium costs and claims payment amounts to identify any 
disparities in such premium costs and claims payment amounts between 
coverage for automobiles garaged in census tracts and areas having a 
majority of residents who are racial minorities and coverage for 
automobiles garaged in census tracts and areas having a majority of 
residents who are not racial minorities. Not later than the expiration 
of the 24-month period beginning on the date of the enactment of this 
Act, the Director shall submit to the Congress a report containing the 
analysis, findings, and conclusions of the study under this section.
    (b) Availability of Information.--Upon submitting the report to the 
Congress pursuant to subsection (a), the Director shall make publicly 
available all information collected pursuant to section 2 and all other 
information used in the conducting the study under this section, except 
that any information made publicly available may not contain any 
personally identifiable information regarding insureds under private 
passenger automobile insurance for which such information is collected.

SEC. 4. DEFINITIONS.

    For purposes of this Act, the following definitions shall apply:
            (1) Covered automobile insurer.--The term ``covered 
        automobile insurer'' means an insurer that--
                    (A) has a statutory surplus attributable to private 
                passenger automobile insurance coverage, as of December 
                31, 2016, in an amount that exceeds $500,000,000; and
                    (B) annually collects more than $500,000,000 in 
                premiums for private passenger automobile insurance 
                coverage.
            (2) Director.--The term ``Director'' means the Director of 
        the Federal Insurance Office of the Department of the Treasury.