I

104TH CONGRESS

1ST SESSION H. R. 113

To require automobile insurance insurers to provide rate setting information

and for other purposes

IN THE HOUSE OF REPRESENTATIVES

JANUARY 4, 1995

Mr. MFUME introduced the following bill; which was referred to the Committee

on Commerce

A BILL

To require automobile insurance insurers to provide rate

setting information and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Automobile Insurance

5 Information Act of 1995’’.

6 SEC. 2. FINDINGS.

7 The Congress finds that the current practice among

8 automobile insurance insurers engaged in interstate com9 merce of calculating exposure to loss costs used—
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1 (1) to determine premium rates and other

2 charges incidental to the purchase of automobile in3 surance, and

4 (2) to determine the geographical areas and

5 classification rating factors to determine where and

6 whom such insurers will insure,

7 adversely affects interstate commerce, insurer insolvency,

8 and the affordability of insurance, thereby impairing the

9 economic welfare of large number of consumers of auto10 mobile insurance who rely on such insurance for protec11 tion.

12 SEC. 3. INFORMATION.

13 (a) FACTORS AFFECTING RATES.—The Secretary of

14 Commerce shall, by contract or directly, require each auto15 mobile insurance insurer who is engaged in interstate com16 merce to provide to the Secretary in writing information

17 on—

18 (1) the means and methods employed by the in19 surer to determine insurance rates which relate to

20 demographic factors such as population density,

21 roads per square mile, frequency of accidents, claim

22 severity, health costs, auto theft rates, and auto re23 pair costs, and

24 (2) classification factors used by the insurer in

25 rate determinations, including race, sex, gender,
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1 marital status, type of automobile to be insured, use

2 of such automobile, and the place in which such

3 automobile will be used.

4 (b) PUBLICATION.—The Secretary of Commerce shall

5 provide for the publication of the information provided

6 under subsection (a).

7 (c) RECOMMENDATIONS AND REPORT.—On the basis

8 of the information submitted to the Secretary under sub9 section (a), the Secretary of Commerce shall make rec10 ommendations on making automobile insurance more af11 fordable and shall report such recommendations and such

12 information to the House of Representatives and the Sen13 ate.

14 (d) CONTRACT AUTHORITY.—The authority of the

15 Secretary of Commerce to enter into contracts to imple16 ment subsection (a) shall be effective for any fiscal year

17 only to such extent or in such amounts as are provided

18 in appropriations Acts.

19 SEC. 4. AFFECT OF LEGISLATION.

20 Section 3 shall not be deemed to affect the respon21 sibility and authority of the States to regulate the business

22 of insurance or any regulation or order of any State agen23 cy concerning or applicable to the business of insurance
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1 if such regulation or order does not prevent compliance

2 with section 3.

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