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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 176 Introduced in House (IH)]

104th CONGRESS
  1st Session
                                H. R. 176

    To provide for disclosures for insurance in interstate commerce.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 4, 1995

   Mr. Collins of Illinois introduced the following bill; which was 
                 referred to the Committee on Commerce

_______________________________________________________________________

                                 A BILL

 
    To provide for disclosures for insurance in interstate commerce.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Anti Redlining in Insurance 
Disclosure Act''.

SEC. 2. FINDINGS AND CONSTRUCTION.

    (a) Findings.--The Congress finds that--
            (1) disparities in property and casualty insurance coverage 
        provided by insurers engaged in interstate commerce between 
        areas of different incomes and racial composition could 
        adversely affect interstate commerce and the cost and 
        availability of insurance for consumers, and
            (2) appropriate disclosures of information by insurers 
        would benefit consumers and insurance regulators.
    (b) Construction.--Nothing in this Act is intended to, nor shall it 
be construed to, encourage unsound underwriting practices.

SEC. 3. MAINTENANCE OF INFORMATION AND PUBLIC DISCLOSURE.

    (a) General Rule.--
            (1) Designated insurers.--
                    (A) In general.--Except as provided by subsection 
                (b)(7), each designated insurer shall, in accordance 
                with subsection (b), annually compile, submit to the 
                Secretary, and make available to the public for each 
                calendar year and for designated lines of insurance in 
                a designated MSA--
                            (i) the total number of policies, total 
                        exposure units (in car years and house years), 
                        and total earned premium of insurance policies 
                        by designated line which were issued by such 
                        insurer and the new written exposure units, 
                        exposure units canceled, and the exposure units 
                        not renewed by such insurer, and
                            (ii) the number of licensed agents of such 
                        insurer whose principal place of business is 
                        located in such designated MSA and the number 
                        within each 5-digit zip code in such designated 
                        MSA and with respect to each such agent, 
                        whether such agent is an employee, independent 
                        contractor working exclusively for such 
                        insurer, or an independent contractor appointed 
                        to represent such insurer on a non-exclusive 
                        basis.
                    (B) Submissions and availability.--The information 
                described in subparagraph (A) shall be--
                            (i) submitted to the Secretary in 
                        accordance with subsection (d), and
                            (ii) made available to the public, in 
                        accordance with subsection (b)(2), for 
                        inspection and copying, at cost, at the home 
                        office of the insurer and at a central 
                        depository, established under subsection (c), 
                        by the Secretary.
            (2) Non-designated insurers.--Except as provided in 
        subsection (b)(7), every insurer which sells an insurance 
        policy in a designated line of insurance in a designated MSA 
        and which is not a designated insurer in such MSA shall submit 
        to the Secretary for each calendar year in accordance with 
        subsection (d) and regulations of the Secretary the total 
        exposure units (in car years and house years) of insurance 
        policies in a designated line sold in such MSA. With respect to 
        such policies, the insurer shall report the designated MSA 
        where the insured risks are located for which such insurance is 
        issued and within such MSA report the 5-digit zip code where 
        the risk is located.
    (b) Requirements.--
            (1) Content.--The information required to be maintained and 
        made available under subsection (a)(1) shall be itemized in 
        order to clearly and conspicuously disclose the policies, the 
        exposure units, and the premium amount for each line of 
        insurance for which information is required and be itemized by 
        the 5-digit zip code where the risks are located.
            (2) Availability to the public.--The information required 
        to be maintained and made available under subsection (a) shall 
        be made available to the public on a timetable determined by 
        the Secretary but not later than October 1 of the calendar year 
        following the calendar year for which the information is 
        required to be made available, except that such information 
        shall not be made available to the public until it is available 
        in its entirety but it shall be made available if not all the 
        information required to be reported is available on such 
        October 1 or on the date determined by the Secretary.
            (3) Specification of data.--
                    (A) In general.--With respect to information which 
                is required to be maintained and made available under 
                subsection (a)(1), the Secretary shall by regulation 
                establish specifications for the collection and public 
                reporting of such information with respect to the 
                following lines of insurance: private passenger 
                automobile, homeowners, and dwelling fire and allied 
                lines. The specifications shall--
                            (i) provide that information be aggregated 
                        among similar policyholders and reported on 
                        that basis,
                            (ii) be designed to collect information 
                        with respect to the availability, cost, and 
                        type of insurance coverage between and among 
                        various geographic areas,
                            (iii) detail what data elements should be 
                        collected,
                            (iv) provide for the collection of 
                        information on an individual insurer basis,
                            (v) minimize burdens on insurance agents, 
                        including independent insurance agents,
                            (vi) provide the data required by clause 
                        (ii) with the least burden on insurers, 
                        particularly small insurers,
                            (vii) take into account the types of data 
                        collected under the Home Mortgage Disclosure 
                        Act of 1975,
                            (viii) take into account existing 
                        statistical reporting systems in the insurance 
                        industry,
                            (ix) require itemization by 5-digit zip 
                        code, and
                            (x) include information on policies written 
                        in a residual market.
                    (B) Consultations.--In developing the 
                specifications in subparagraph (A), the Secretary shall 
                consult with--
                            (i) other Federal agencies with appropriate 
                        expertise,
                            (ii) State insurance regulators,
                            (iii) representatives of the insurance 
                        industry, including statistical agents,
                            (iv) representatives of insurance 
                        producers, including minority insurance 
                        producers, and
                            (v) consumer, community, and civil rights 
                        groups who are representative of a diversity of 
                        geographic locations.
                    (C) Effective date.--The regulation under 
                subparagraph (A) shall be issued no later than 270 days 
                after the date of the enactment of this Act.
            (4) Commercial insurance study and pilot project.--
                    (A) Study.--The Secretary shall conduct a study 
                regarding the availability of commercial insurance 
                (other than professional liability insurance, workers 
                compensation insurance, and title insurance) with 
                special emphasis on the availability of commercial 
                insurance for small business. The study shall focus 
                on--
                            (i) an appropriate definition for small 
                        business; and
                            (ii) preliminary views regarding the 
                        availability, cost, and type of insurance 
                        coverage for small business, which may be based 
                        on surveys of members of the small business 
                        community.
                In conducting the study, the Secretary shall consult 
                with interested parties from a diversity of locations, 
                including State insurance regulators, consumer, 
                community, and civil rights groups, representatives of 
                small business, representatives of the insurance 
                industry, including statistical agents, and 
                representatives of insurance producers, including 
                minority insurance producers. The Secretary shall 
                submit a report detailing the findings of the study to 
                the Committee on Energy and Commerce of the House of 
                Representatives and the appropriate committee of the 
                Senate no later than 18 months following the date of 
                enactment of this Act.
                    (B) Proposal of pilot project.--Concurrent with the 
                conduct of the study under subparagraph (A), the 
                Secretary shall develop a proposed data collection 
                pilot project in the 5 largest MSA's to help determine 
                the need for any further data collection requirements 
                to evaluate the availability, cost, and type of 
                insurance coverage for small business. In developing 
                the proposed pilot project, the Secretary shall consult 
                with interested parties from a diversity of locations, 
                including State insurance regulators, consumer, 
                community, and civil rights groups, representatives of 
                small business, representatives of the insurance 
                industry, including statistical agents, and 
                representatives of insurance producers, including 
                minority insurance producers. The Secretary shall 
                submit a specific proposal for a pilot project to the 
                Committee on Energy and Commerce of the House of 
                Representatives and the appropriate committee of the 
                Senate no later than 18 months following the date of 
                enactment of this Act.
                    (C) Specifications for pilot project.--Immediately 
                following the submission of the proposal for a pilot 
                project, the Secretary shall, by regulation, establish 
                specifications for the collection and public reporting 
                of information with respect to commercial insurance for 
                the proposed pilot project. As part of the 
                specifications, the Secretary shall designate the 5 
                largest MSA's for purposes of the pilot project. The 
                specifications shall--
                            (i) provide that information be aggregated 
                        among similar policyholders and reported on 
                        that basis,
                            (ii) be designed to collect information 
                        with respect to the availability, cost, and 
                        type of insurance coverage between and among 
                        various geographic areas,
                            (iii) provide for the collection of 
                        information on an individual insurer basis,
                            (iv) provide the data required by clause 
                        (ii) with the least burden on insurers, 
                        particularly small insurers, and insurance 
                        agents, including independent insurance agents,
                            (v) take into account existing statistical 
                        reporting systems in the insurance industry and 
                        use existing data sources to the maximum 
                        practical extent,
                            (vi) include information on policies 
                        written in a residual market,
                            (vii) detail what data elements should be 
                        collected,
                            (viii) detail what insurers should be 
                        designated insurers for purposes of the pilot 
                        project,
                            (ix) detail what lines of commercial 
                        insurance should be designated for purposes of 
                        the pilot project, with particular 
                        consideration given to commercial fire and 
                        business owners lines,
                            (x) include an appropriate definition of 
                        small business, if necessary,
                            (xi) provide data representative of at 
                        least 2 years of experience and provide that 
                        the pilot project will terminate no later than 
                        2 years after its inception, and
                            (xii) provide adequate lead time to 
                        insurers designated under clause (viii) for the 
                        reporting to begin.
                The regulation shall be issued within 2 years of the 
                date of enactment of this Act.
                    (D) Reporting under pilot project.--Insurers 
                designated under subparagraph (C)(viii) shall report to 
                the Secretary with respect to lines of insurance 
                designated under subparagraph (C)(ix) in the 5 largest 
                MSA's, pursuant to the regulation issued by the 
                Secretary in subparagraph (C).
                    (E) Analysis of data under pilot project.--At the 
                conclusion of the pilot project, the Secretary shall 
                analyze the data collected. Within 1 year of the 
                conclusion of the pilot project, the Secretary shall 
                report to the Committee on Energy and Commerce of the 
                House of Representatives and the appropriate committee 
                of the Senate on--
                            (i) any conclusions of the Secretary 
                        regarding the data collected under the pilot 
                        project, particularly regarding the 
                        availability, cost, and type of commercial 
                        insurance for small business, and
                            (ii) the need for further data collection 
                        requirements to evaluate the availability, 
                        cost, and type of such coverage or to help 
                        ensure the availability of such coverage.
            (5) Period of maintenance.--Any information required to be 
        compiled and made available under subsection (a) shall be 
        maintained and made available for a period of 3 years after the 
        close of the first year during which such information is 
        required to be maintained and made available.
            (6) Format for disclosures.--Subject to subsection (c), the 
        Secretary shall prescribe a standard format for making 
        information available as required by subsection (a). Such 
        format shall encourage the submission of information in a form 
        readable by a computer.
            (7) Exemption.--
                    (A) Secretarial action.--If the Secretary 
                determines that a State has enacted a law, or otherwise 
                implemented a requirement under which--
                            (i) insurers operating in that State are 
                        subject to disclosure requirements on a 5-digit 
                        zip code basis substantially similar to those 
                        of subsection (a),
                            (ii) there are adequate provisions for 
                        enforcement, and
                            (iii) the information disclosed under the 
                        State law or requirement is made available to 
                        the Secretary and the public in a manner 
                        similar to other information disclosed under 
                        subsection (a),
                then the Secretary shall by regulation exempt insurers 
                operating in that State from complying with the 
                requirements of subsection (a) with respect to that 
                State's portions of the designated MSA's. If the 
                Secretary determines that the State law or requirement 
                no longer meets the criteria of clauses (i) through 
                (iii) or is no longer in effect, the Secretary shall by 
                regulation revoke the exemption.
                    (B) United states program.--Reporting shall not be 
                required under subsection (a) with respect to insurance 
                provided by a program underwritten or administered by 
                the United States.
    (c) Public Access System.--The Secretary shall implement a system 
to facilitate public access to information required to be made 
available to the public under subsection (a). Such system shall include 
arrangements for a central depository of information in each designated 
MSA and for a telephone number which can be used by the public, at 
cost, to request such information. Statements shall be made available 
to the public for inspection and copying at such central depository of 
information for all designated insurers within such MSA. The Secretary 
shall also make copies of such statements available in forms readable 
by widely used personal computers, such as in disc format. The 
Secretary may charge a fee for such information, which may not exceed 
the amount, determined by the Secretary, that is equal to the cost of 
reproducing the information.
    (d) Submission to Secretary.--With respect to the information 
required to be submitted under subsection (a) to the Secretary, the 
Secretary shall develop regulations prescribing the format and method 
for submitting such information. Such regulations shall ensure 
uniformity among insurers, to the extent practicable, in the format 
used for reporting, including the definitions of data elements. Any 
reporting insurer may submit in writing to the Secretary such 
additional data or explanations as it deems relevant to the decision by 
such insurer to sell insurance.

SEC. 4. DESIGNATIONS.

    (a) Designations by the Secretary.--
            (1) Designations of msa's.--The Secretary shall designate 
        the MSA's for which reporting is required under section 3(a). 
        The Secretary shall designate the 25 MSA's having the largest 
        population.
            (2) Designation of insurers.--For each MSA designated under 
        paragraph (1), the Secretary shall take the following actions:
                    (A) The Secretary shall designate the insurers 
                transacting insurance business in such MSA for which 
                reporting is required under section 3(a). At a minimum, 
                the Secretary shall designate the 25 insurers in such 
                MSA having the largest premium volume in the designated 
                lines of insurance in each State in which such MSA is 
                located.
                    (B) In addition to the insurers designated under 
                subparagraph (A), the Secretary shall also designate 
                any entity primarily providing insurance in a 
                designated line of insurance as part of a residual 
                market established by State law.
                    (C) The Secretary shall also designate, in addition 
                to the insurers designated under subparagraphs (A) and 
                (B), insurers who specialize in selling insurance in 
                urban areas, including surplus lines insurers.
                    (D) The Secretary shall also designate, in addition 
                to the insurers designated under subparagraph (A), (B), 
                and (C) insurers such that insurers representing at 
                least 80 percent of the premium volume in each State in 
                which such MSA is located in the designated line of 
                insurance are designated in such MSA. The Secretary may 
                not designate additional insurers under this 
                subparagraph if their market share in the designated 
                line of insurance in the applicable States, as measured 
                by premium volume in each State in which such MSA is 
                located, is under 1 percent.
                    (E) In addition to the insurers designated under 
                subparagraph (A), (B), (C), and (D) the Secretary may 
                by regulation designate additional insurers in a MSA if 
                the designation of additional insurers is necessary to 
                provide valid data with respect to the availability, 
                cost, and type of insurance in the MSA.
                    (F) The Secretary shall revoke the designation of 
                an insurer designated under subparagraph (A) as 
                follows: If such designated insurer has a market share 
                in a designated line of insurance in a MSA, as measured 
                by premium volume in each State in which such MSA is 
                located, of under 1 percent, the Secretary shall revoke 
                the designation of such insurer beginning with the 
                insurer with the smallest market share of such 
                insurance if the remainder of the designated insurers 
                have a market share of at least 75 percent of such 
                insurance as measured by premium volume in each State 
                in which such MSA is located. In addition, the 
                Secretary may revoke the designation of any insurer 
                designated under subparagraph (A) with a market share 
                in a designated line of insurance in a MSA, as measured 
                by premium volume in each State in which such MSA is 
                located, of under 1 percent if such designation has not 
                been revoked under this subparagraph and if such 
                insurer primarily sells insurance in rural areas of 
                such MSA.
                    (G) For purposes of this paragraph, insurers which 
                are affiliated or are members of the same group shall 
                be considered together as one insurer.
            (3) Designation of lines of insurance.--For each MSA 
        designated under paragraph (1) the following are the designated 
        lines of property and casualty insurance for which reporting is 
        required under section 3:
                    (A) Private passenger automobile insurance.
                    (B) Homeowners insurance.
                    (C) Dwelling fire and allied lines of insurance.
            (4) Timing of designations.--
                    (A) Initial designations.--The Secretary shall make 
                initial designations required by paragraphs (1), (2), 
                and (3) no later than July 1 of the year preceding the 
                first year for which reporting is required under 
                section 3. Such initial designations shall be effective 
                for 5 calendar years from the date of designation.
                    (B) Subsequent designations.--Not later than July 1 
                of the year preceding the fifth year after a 
                designation under subparagraph (A) or this 
                subparagraph, the Secretary shall make another 
                designation to be effective upon the expiration of such 
                5 years and such designation shall be effective for 5 
                calendar years from the date of designation.
                    (C) Notice.--The Secretary shall notify persons 
                involved in the designations no later than the July 15 
                which follows the designation.
    (b) Obtaining Information.--The Secretary may obtain from insurers 
such information as the Secretary may require to make designations 
under subsection (a).

SEC. 5. TASK FORCE ON AGENCY APPOINTMENTS.

    (a) Establishment.--Within 90 days of the date of the enactment of 
this Act, the Secretary shall establish a task force on insurance 
agency appointments. The task force shall--
            (1) consist of representatives of appropriate Federal 
        agencies, property and casualty insurance agents, including 
        specifically minority insurance agents, property and casualty 
        insurance companies, State insurance regulators, and public 
        interest groups,
            (2) have a significant representation from minority 
        insurance agents, and
            (3) be chaired by the Secretary or the Secretary's 
        designee.
    (b) Function.-- The task force shall--
            (1) review the problems inner city and minority agents may 
        have in receiving appointments to represent property and 
        casualty insurance companies,
            (2) review the practices of insurers in terminating agents 
        and consider the effect such practices have on the availability 
        or cost of insurance, especially in underserved areas, and
            (3) recommend solutions to improve the ability of inner 
        city and minority insurance agents to market property and 
        casualty insurance products, including steps property and 
        casualty insurance companies should take to increase their 
        appointments of such agents.
    (c) Report and Termination.--The task force shall report to the 
Committee on Energy and Commerce of the House of Representatives and 
the appropriate Committee of the Senate its findings under paragraphs 
(1) and (2) of subsection (b) and its recommendations under paragraph 
(3) of subsection (b) within 2 years after the date of the enactment of 
this Act. The task force shall terminate when the report is submitted 
to the Committees.

SEC. 6. IMPLEMENTATION OF SECTION 3.

    (a) Regulations.--The Secretary shall promulgate such regulations 
as may be necessary to carry out section 3. Such regulations may--
            (1) contain such classifications, differentiations, or 
        other provisions, and
            (2) may provide for such adjustments and exceptions for any 
        class of transactions,
as in the judgment of the Secretary are necessary and proper to 
effectuate the purposes of such section and to prevent circumvention or 
evasion thereof or to facilitate compliance therewith.
    (b) Data Collection Contractor.--The Secretary may contract with a 
data collection contractor to carry out the Secretary's 
responsibilities under section 3 if the contractor agrees to collect 
and make available the data pursuant to the terms and conditions of 
such section. A statistical agent may also be a data contractor.
    (c) Role of Statistical Agents.--
            (1) Acceptance of data.--The Secretary and, if applicable, 
        the contractor under the subsection (b) contract may accept 
        data reported under section 3(a) by a statistical agent acting 
        on behalf of more than one insurer if--
                    (A) the statistical plan used by the statistical 
                agent for the reporting of data on insurance provides 
                for the reporting of data in a manner compatible with 
                section 3(a),
                    (B) the statistical agent reports such data on an 
                individual insurer basis, and, at the discretion of the 
                Secretary, on an aggregate basis,
                    (C) the statistical agent provides adequate 
                procedures to protect the integrity of the data 
                reported,
                    (D) the statistical agent has procedures in place 
                which ensure that data reported under the statistical 
                plan in connection with reporting under this Act and 
                submitted to the Secretary are not subject to 
                adjustment by the statistical agent or an insurer for 
                reasons other than technical accuracy and conformance 
                to the statistical plan,
                    (E) the statistical agent ensures that the data of 
                one insurer is not subject to review by other insurers 
                before public availability, and
                    (F) the statistical agent provides for the 
                reporting of data in a manner compatible with the 
                format prescribed by the Secretary under section 3(d).
            (2) Discontinuance of data acceptance.--The Secretary may, 
        after providing an opportunity for a hearing, discontinue 
        accepting data reported under section 3(a) by a statistical 
        agent acting on behalf of more than one insurer if the 
        Secretary determines the requirements for acceptance of data in 
        paragraph (1) are no longer met.
    (d) Role of GAO.--The Comptroller General shall have the authority 
to review and audit any data collection and reporting performed under 
section 3, whether by the Secretary, the contractor under the 
subsection (b) contract, or a statistical agent, to ensure that the 
integrity of the data collected and reported is protected.
    (e) Burdens on Insurance Agents.--In prescribing regulations under 
this Act, the Secretary shall take into consideration the 
administrative, paperwork, and other burdens on insurance agents, 
including independent insurance agents, involved in complying with the 
requirements of this Act and shall minimize the burdens imposed by such 
requirements with respect to such agents.

SEC. 7. RELATION TO STATE LAWS.

    This Act does not annul, alter, or affect, or exempt the obligation 
of any insurer subject to this Act to comply with the laws of any State 
or subdivision thereof with respect to public disclosure and 
recordkeeping.

SEC. 8. COMPILATION OF AGGREGATE DATA.

    (a) Scope of Data and Tables.--The Secretary shall compile each 
year, for each MSA, data aggregated by 5-digit zip code for all 
insurers who are subject to section 3 or who are exempt from section 3 
under subsection (b)(7)(A) of such section. The Secretary shall also 
produce tables indicating, for each MSA, insurance policies aggregated 
for various categories of 5-digit zip codes grouped according to 
location, age of property, income level, and racial characteristics of 
neighborhood.
    (b) Aggregation of Information.--Statistical agents may aggregate 
the data of insurers that report to them and may provide such 
information to the Secretary. The Secretary may also provide the 
individual company data submitted by insurers to statistical agents for 
aggregation.
    (c) Availability to Public.--The data compiled and the tables 
produced pursuant to subsection (a) shall be made available to the 
public on a timetable determined by the Secretary but not later than 
October 1 of the year following the calendar year on which the data and 
tables are based.

SEC. 9. ENFORCEMENT.

    (a) Civil Penalties.--Any insurer who is determined by the 
Secretary, after providing opportunity for a hearing on the record, to 
have violated the requirements of section 3 shall be subject to a civil 
penalty of not to exceed $5,000 for each day during which such 
violation continues.
    (b) Injunction.--The Secretary may bring an action in an 
appropriate United States district court for appropriate declaratory 
and injunctive relief against any insurer who violates the requirements 
of section 3.
    (c) Insurer Liability.--An insurer shall be responsible under 
subsections (a) and (b) for any violation of a statistical agent acting 
on behalf of the insurer.

SEC. 10. SUNSET.

    (a) Expiration.--Except as provided in subsection (b), this Act 
shall not be in effect after the expiration of 5 years from its 
effective date. Prior to the expiration of 4 years from such date, the 
Secretary shall report to the Commerce Committee of the House of 
Representatives and the appropriate committee of the Senate--
            (1) the quality of data received under section 3 and the 
        effectiveness of the data requirement, including the relation 
        between the cost of such data gathering and the benefits from 
        having such data available,
            (2) the appropriateness of the geographic data reporting 
        units,
            (3) the need for continued reporting by the designated 
        insurers in urban areas,
            (4) the efforts of insurers to meet the insurance needs of 
        minority and low-income neighborhoods, and
            (5) such other information as the Secretary determines will 
        assist in considering an extension of this Act.
    (b) Extension.--Based on the Secretary's report on the need 
described in subsection (a)(3) and the information described in 
subsection (a)(5), the Secretary may extend this Act for one period of 
2 years.

SEC. 11. STUDIES.

    (a) Study of Information on Insurance Applicants.--
            (1) In general.--The Secretary shall conduct a study to 
        determine the feasibility and utility of the collection of 
        information with respect to the characteristics of applicants 
        for insurance and reasons for rejection of applicants. The 
        study shall examine the extent to which--
                    (A) oral applications or representations are used 
                by insurers and agents in making determinations 
                regarding whether or not to insure a prospective 
                insured,
                    (B) written applications are used by insurers and 
                agents in making determinations regarding whether or 
                not to insure a prospective insured,
                    (C) written applications are submitted after the 
                insurer or agent has already made a determination to 
                provide insurance to a prospective insured or has 
                determined that the prospective insured is eligible for 
                insurance, and
                    (D) prospective insureds are discouraged from 
                submitting applications for insurance based, in whole 
                or in part, on--
                            (i) the location of the risk to be insured,
                            (ii) the race or ethnicity of the 
                        prospective insured,
                            (iii) the racial or ethnic composition of 
                        the neighborhood in which the risk to be 
                        insured is located, and
                            (iv) in the case of residential property 
                        insurance, the age and value of the risk to be 
                        insured.
            (2) Report.--The Secretary shall report the results of the 
        study under paragraph (1) to the Committee on Energy and 
        Commerce of the House of Representatives and the appropriate 
        Committee of the Senate within 18 months of the date of the 
        enactment of this Act.
    (b) Study of Insurer Actions To Meet Insurance Needs of Certain 
Neighborhoods.--The Secretary shall conduct a study of various 
practices, actions, programs, and methods undertaken by insurers to 
meet the property and casualty insurance needs of residents of low- and 
moderate-income neighborhoods, minority neighborhoods, and small 
businesses located in such neighborhoods. The Secretary may establish a 
task force of interested parties, including representatives of 
insurance companies, insurance agents, including minority agents, and 
consumer representatives to discuss additional practices, actions, 
programs, and methods to meet these needs. The Secretary shall report 
the results of the study, including any recommendations, to the 
Committee on Energy and Commerce of the House of Representatives and 
the appropriate Committee of the Senate no later than 2 years after the 
date of the enactment of this Act.

SEC. 12. DEFINITIONS.

    For purposes of this Act:
            (1) The term ``commercial insurance'' means any line of 
        property and casualty insurance, except private passenger 
        automobile and homeowner's insurance.
            (2) The term ``designated insurer'' means an insurer 
        designated by the Secretary pursuant to section 4(a)(2).
            (3) The term ``designated line'' means a line of insurance 
        specified in section 4(a)(3).
            (4) The term ``exposure units'' means units insured against 
        risk of loss by an insurer and the term ``units'' means an 
        automobile or the number of units in a building.
            (5) The term ``insurer'' means any corporation, 
        association, society, order, firm, company, partnership, 
        individual, or aggregation of individuals which is subject to 
        examination or supervision by any State insurance regulator, or 
        which is doing or represents an insurance business. Such term 
        does not include an individual or entity which represents an 
        insurer as agent for the purpose of selling or which represents 
        a consumer as a broker for the purpose of buying insurance.
            (6) The term ``MSA'' means a Metropolitan Statistical Area 
        or a Consolidated Metropolitan Statistical Area and the term 
        ``designated MSA'' means an MSA designated by the Secretary 
        pursuant to section 4(a)(1).
            (7) The term ``property and casualty insurance'' means 
        insurance against loss of or damage to property, insurance 
        against loss of income or extra expense incurred because of 
        loss of, or damage to, property, and insurance against third 
        party liability claims caused by negligence or imposed by 
        statute or contract.
            (8) The term ``residual market'' means an assigned risk 
        plan, joint underwriting association, or any similar mechanism 
        designed to make insurance available to those unable to obtain 
        it in the voluntary market.
            (9) The term ``Secretary'' means the Secretary of Commerce.
            (10) The term ``State'' means any State, the District of 
        Columbia, the Commonwealth of Puerto Rico, the Northern Mariana 
        Islands, the Virgin Islands, American Samoa, and the Trust 
        Territory of the Pacific Islands.

SEC. 13. EFFECTIVE DATE.

    The requirements of this Act shall take effect with respect to 
information on insurance described in section 3 and developed in and 
after calendar year 1995.
                                 <all>
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