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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 380 Introduced in Senate (IS)]

104th CONGRESS
  1st Session
                                 S. 380

To provide for public access to information regarding the availability 
                 of insurance, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

             February 9 (legislative day, January 30), 1995

Mr. Feingold (for himself and Mr. Simon) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 A BILL

 
To provide for public access to information regarding the availability 
                 of insurance, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Anti-Redlining in 
Insurance Disclosure Act of 1995''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Establishment of general requirements to submit information.
Sec. 4. Reporting of noncommercial insurance information.
Sec. 5. Study of commercial insurance for residential properties and 
                            small businesses.
Sec. 6. Reporting of rural insurance information.
Sec. 7. Waiver of reporting requirements.
Sec. 8. Reporting by private mortgage insurers.
Sec. 9. Use of data contractor and statistical agents.
Sec. 10. Submission of information to Secretary and maintenance of 
                            information.
Sec. 11. Compilation of aggregate information.
Sec. 12. Availability and access system.
Sec. 13. Designations.
Sec. 14. Improved methods and reporting on basis of other areas.
Sec. 15. Annual reporting period.
Sec. 16. Disclosures by insurers to applicants and policyholders.
Sec. 17. Enforcement.
Sec. 18. Reports.
Sec. 19. Task force on agency appointments.
Sec. 20. Studies.
Sec. 21. Exemption and relation to State laws.
Sec. 22. Regulations.
Sec. 23. Definitions.
Sec. 24. Effective date.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds that--
            (1) there are disparities in insurance coverage provided by 
        some insurers between areas of different incomes and racial 
        composition;
            (2) such disparities in affordability and availability of 
        insurance severely limit the ability of qualified consumers to 
        obtain credit for home and business purchases; and
            (3) the lack of affordable and adequate commercial 
        insurance for small businesses severely curtails the 
        establishment and growth of such businesses.
    (b) Purposes.--The purposes of this Act are--
            (1) to establish a nationwide database for determining the 
        availability, affordability, and adequacy of insurance coverage 
        for consumers and small businesses;
            (2) to facilitate the enforcement of Federal and State laws 
        that prohibit illegally discriminatory insurance practices; and
            (3) to determine whether the extent and characteristics of 
        insurance availability, affordability, and coverage require 
        public officials to take any actions--
                    (A) to remedy redlining or other illegally or 
                unfairly discriminatory insurance practices; or
                    (B) regarding areas underserved by insurers.
    (c) Construction.--Nothing in this Act is intended to, nor shall it 
be construed to, encourage unsound underwriting practices.

SEC. 3. ESTABLISHMENT OF GENERAL REQUIREMENTS TO SUBMIT INFORMATION.

    (a) In General.--The Secretary shall, by regulation, establish 
requirements for insurers to compile and submit information to the 
Secretary for each annual reporting period, in accordance with this 
Act.
    (b) Consultation.--In establishing the requirements for the 
submission of information under this Act, the Secretary shall consult 
with Federal agencies having appropriate expertise, the National 
Association of Insurance Commissioners, State insurance regulators, 
statistical agents, representatives of small businesses, 
representatives of insurance agents (including minority insurance 
agents), representatives of property and casualty insurers, and 
community, consumer, and civil rights organizations, as appropriate.

SEC. 4. REPORTING OF NONCOMMERCIAL INSURANCE INFORMATION.

    (a) In General.--The requirements established pursuant to section 3 
to carry out this section shall--
            (1) be designed to ensure that information is submitted and 
        compiled under this section as may be necessary to permit 
        analysis and comparison of--
                    (A) the availability and affordability of insurance 
                coverage and the quality or type of insurance coverage, 
                by MSA and the applicable region, race, and gender of 
                policyholders; and
                    (B) the location of the principal place of business 
                of insurance agents and the race of such agents, and 
                the location of the principal place of business of 
                insurance agents terminated and the race of such 
                agents, by MSA and applicable region; and
            (2) specify the data elements required to be reported under 
        this section and require uniformity in the definitions of the 
        data elements.
    (b) Designated Insurers.--
            (1) Aggregate information.--The regulations issued under 
        section 3 shall require that each designated insurer for a 
        designated line of insurance under section 13(c)(1) compile and 
        submit to the Secretary, for each annual reporting period--
                    (A) the total number of policies issued in such 
                line, total exposures covered by such policies, and 
                total amount of premiums for such policies, by 
                designated line and by designated MSA and applicable 
                region in which the insured risk is located;
                    (B) the total number of cancellations and 
                nonrenewals (expressed in terms of policies or 
                exposures, as determined by the Secretary), by 
                designated line and by designated MSA and applicable 
                region in which the insured risk is located;
                  (C) the total number and racial characteristics of--
                            (i) licensed agents of such insurer selling 
                        insurance in the designated line, by designated 
                        MSA and applicable region in which the agent's 
                        principal place of business is located; and
                            (ii) such agents who were terminated by the 
                        insurer, by designated MSA and applicable 
                        region in which the agent's principal place of 
                        business was located; and
                    (D) for such designated line of insurance, 
                information that will enable the Secretary to assess 
                the aggregate loss experience for the insurer, by 
                designated MSA and applicable region in which the 
                insured risk is located.
            (2) Specification of information for itemized disclosure.--
                    (A) In general.--The regulations issued under 
                section 3 regarding annual reporting requirements for 
                designated insurers for a designated line of insurance 
                under section 13(c)(1) shall, with respect to policies 
                issued under the designated line or exposure units 
                covered by such policies, as determined by the 
                Secretary--
                            (i) specify the data elements that shall be 
                        submitted;
                            (ii) provide for the submission of 
                        information on an individual insurer basis;
                            (iii) provide for the submission of the 
                        information with the least burden on insurers, 
                        particularly small insurers, and insurance 
                        agents;
                            (iv) take into account existing statistical 
                        reporting systems in the insurance industry;
                            (v) require reporting by MSA and applicable 
                        region in which the insured risk is located;
                            (vi) provide for the submission of 
                        information that identifies the designated line 
                        and subline or coverage type;
                            (vii) provide for the submission of 
                        information that distinguishes policies written 
                        in a residual market from policies written in 
                        the voluntary market;
                            (viii) specify--
                                    (I) whether information shall be 
                                submitted on the basis of policy or 
                                exposure unit; and
                                    (II) whether information, when 
                                submitted, shall be aggregated by like 
                                policyholders with like policies, 
                                except that the Secretary shall not 
                                permit such aggregation if it will 
adversely affect the accuracy of the information reported;
                            (ix) provide for the submission of 
                        information regarding the number of 
                        cancellations and nonrenewals of policies under 
                        the designated line by MSA and applicable 
                        region in which the insured risk is located, by 
                        race and gender of the policyholder (if known 
                        to the insurer), and by whether the policy was 
                        issued in a voluntary or residual market; and
                            (x) provide for the submission of 
                        information on the racial characteristics and 
                        gender of policyholders at the level of detail 
                        comparable to that required by the Home 
                        Mortgage Disclosure Act of 1975 (and the 
                        regulations issued thereunder).
                    (B) Rules regarding obtaining racial information.--
                With respect to the information specified in 
                subparagraph (A)(x), applicants for, and policyholders 
                of, insurance may be asked their racial characteristics 
                only in writing. Any such written question shall 
                clearly indicate that a response to the question is 
                voluntary on the part of the applicant or policyholder, 
                but encouraged, and that the information is being 
                requested by the Federal Government to monitor the 
                availability and affordability of insurance. If an 
                applicant for, or policyholder of, insurance declines 
                to provide such information, the agent or insurer for 
                such insurance may provide such information.
            (3) Rule for reporting by designated insurers.--A 
        designated insurer for a designated line shall submit--
                    (A) information required under subparagraphs (A), 
                (B), and (D) of paragraph (1) and information required 
                pursuant to paragraph (2), for risks insured under such 
                line that are located within each designated MSA, any 
                part of which is located in a State for which the 
                insurer is designated; and
                    (B) information required under paragraph (1)(C) for 
                agents within such designated MSA's.
    (c) Nondesignated Insurers.--The regulations issued under section 3 
shall require each insurer that issues an insurance policy in a 
designated line of insurance under section 13(c)(1) that covers an 
insured risk located in a designated MSA and which is not a designated 
insurer for the line in any State in which any part of such MSA is 
located, to compile and submit to the Secretary, for each annual 
reporting period--
            (1) the total number of policies issued in such line;
            (2) the total exposures covered by such policies; and
            (3) the total amount of premiums for such policies;
by designated MSA and applicable region in which the insured risk is 
located.

SEC. 5. STUDY OF COMMERCIAL INSURANCE FOR RESIDENTIAL PROPERTIES AND 
              SMALL BUSINESSES.

    (a) In General.--The Secretary shall conduct a study to determine 
the availability, affordability, and quality or types of commercial 
insurance coverage for residential properties and small businesses, in 
urban areas.
    (b) Submission of Information.--To acquire information for the 
study under this section, the Secretary shall, by regulation, establish 
requirements for insurers providing commercial insurance for 
residential properties and small businesses to compile and submit to 
the Secretary on an annual basis information regarding such insurance, 
as follows:
            (1) MSA's.--The Secretary shall carry out the study only 
        with respect to the 25 MSA's having the largest populations, as 
        determined by the Secretary and specified in the regulations 
        under this section.
            (2) Insurers.--For each of the MSA's specified pursuant to 
        paragraph (1), the Secretary shall designate the insurers 
        required to submit the information. The Secretary shall 
        designate a sufficient number of insurers to provide a 
        representative sample of the insurers providing such insurance 
        in each such MSA.
            (3) Lines of insurance.--The Secretary shall require the 
        submission of information regarding such lines, sublines, or 
        coverage types of commercial insurance as the Secretary 
        determines are necessary or important with respect to 
        establishing, operating, or maintaining residential properties 
        and each type of small business selected under paragraph (4), 
        and shall require submission of such information by such lines, 
        sublines, or coverage types.
            (4) Small businesses.--For purposes of paragraph (3), the 
        Secretary shall determine the types of businesses that are 
        typical of small businesses and shall select a representative 
        sample of such types.
            (5) Data elements.--The Secretary shall identify the data 
        elements required to be submitted.
            (6) Submission by location.--The Secretary shall require 
        the information to be submitted by designated MSA and 
        applicable region in which the insured risk is located.
            (7) Submission by insurer.--The Secretary shall require the 
        submission of information on an individual insurer basis and 
        shall specify whether information, when submitted, shall be 
        aggregated by like policies, except that the Secretary shall 
        not permit such aggregation if it will adversely affect the 
        accuracy of the information reported.
            (8) Sunset.--The Secretary shall require the submission of 
        information under this section only for each of the first 5 
        annual reporting periods beginning more than 3 years after the 
        date of enactment of this Act.
    (c) Considerations.--In establishing the requirements for 
submission of information under this section, the Secretary shall--
            (1) take into consideration the administrative, paperwork, 
        and other burdens on insurers and insurance agents involved in 
        complying with the requirements of this section;
            (2) minimize the burdens imposed by such requirements with 
        respect to such insurers and agents; and
            (3) take into consideration existing statistical reporting 
        systems in the insurance industry.
    (d) Report.--Not later than 6 months after the expiration of the 
fifth of the 5 annual reporting periods referred to in subsection 
(b)(8), the Secretary shall submit a report to the Congress describing 
the information submitted under the study conducted under this section 
and any findings of the Secretary from the study regarding disparities 
in the availability, affordability, and quality or types of commercial 
insurance coverage for residential properties and small businesses, in 
urban areas.

SEC. 6. REPORTING OF RURAL INSURANCE INFORMATION.

    (a) In General.--The Secretary shall, by regulation, establish 
requirements for insurers to annually compile and submit to the 
Secretary information concerning the availability, affordability, and 
quality or type of insurance in designated rural areas in the lines 
designated under section 13(c)(1).
    (b) Content.--The regulations under this section shall provide 
that--
            (1) the information to be compiled and submitted under this 
        section by designated insurers and insurers that are not 
        designated insurers shall be of such types, data elements, and 
        specificity that is as identical as possible to the types, data 
        elements, and specificity of information required under this 
        Act of designated and nondesignated insurers, respectively, for 
        designated MSA's and shall be subject to the provisions of 
        section 4(b)(2)(B); and
            (2) the information compiled and submitted under this 
        section shall be compiled and submitted on the basis of each 5-
        digit zip code in which the insured risks are located, rather 
        than on the basis of designated MSA and applicable region (as 
        otherwise required in this Act).
    (c) Designation of Rural Areas.--For purposes of this section, the 
term ``designated rural area'' means the following:
            (1) First 5 years.--With respect to the first 5 annual 
        reporting periods to which the reporting requirements under 
        this section apply, any of the 50 rural areas designated by the 
        Secretary and specified in regulations issued pursuant to 
        section 22, which shall not be amended or revised after 
        issuance. The Secretary shall (to the extent possible) 
        designate one rural area under this paragraph in each State of 
        the United States.
            (2) After first 5 years.--With respect to annual reporting 
        periods thereafter, a rural area for which a designation made 
        by the Secretary under this paragraph is in effect, pursuant to 
        the following requirements:
                    (A) The designations shall be made for each of the 
                successive 5-year periods at the time provided in 
                subparagraph (C), and the first such period shall be 
                the 5-year period beginning upon the commencement of 
                the sixth annual reporting period to which the 
                reporting requirements under this Act apply.
                    (B) The Secretary shall designate 50 rural areas as 
                designated rural areas for each such 5-year period and 
                shall designate such rural areas based upon the 
                information and recommendations made in the report 
                under section 18(b) relating to the period.
                    (C) The Secretary shall make the designation of 
                rural areas for an ensuing 5-year period by regulations 
                issued--
                            (i) not later than 12 months before the 
                        commencement of the 5-year period; and
                            (ii) not later than 6 months after the 
                        submission to the Secretary of the report under 
                        section 18(b) relating to such period.
                    (D) The designations of rural areas for a 5-year 
                period shall take effect upon the commencement of the 
                first annual reporting period of the 5-year period 
                beginning not less than 12 months after the issuance of 
                the regulations making such designations, and shall 
                remain in effect until the expiration of the 5-year 
                period.
Notwithstanding any other provision of this section, the designation of 
a rural area shall remain in effect until a succeeding designation of 
rural areas under paragraph (2) takes effect.

SEC. 7. WAIVER OF REPORTING REQUIREMENTS.

    (a) Waiver for States Collecting Equivalent Information.--
            (1) Authority.--Subject to the requirements under this 
        section, the Secretary shall provide, by regulation, for the 
        waiver of the applicability of the provisions of sections 4, 5, 
        and 6 for each insurer transacting business within a State 
        referred to in paragraph (2), but only with respect to 
        information required to be submitted under such sections that 
        relates to agents or insured risks located in the State.
            (2) Requirements.--The Secretary may make a waiver pursuant 
        to paragraph (1) only with respect to a State that the 
        Secretary determines has in effect a law or other requirement 
        that--
                    (A) requires insurers to submit to the State 
                information that is the same as or equivalent to the 
                information that is required to be submitted to the 
                Secretary pursuant to sections 4, 5, and 6;
                    (B) provides for adequate enforcement of such law 
                or other requirements;
                    (C) provides for the same annual reporting period 
                used by the Secretary under this Act and for submission 
                of the information to the Secretary in a timely 
                fashion, as determined by the Secretary; and
                    (D) provides that, to the extent statistical agents 
                are permitted to submit information to the State on 
                behalf of insurers, such agents are subject to the same 
                or equivalent requirements as provided under section 
                9(b).
            (3) Duration.--A waiver pursuant to paragraph (1) may 
        remain in effect only during the period for which the State law 
        or other requirement under paragraph (2) remains in effect.
    (b) Multiple-State MSA's.--In the case of any designated MSA that 
contains area within--
            (1) any State for which a waiver has been made pursuant to 
        subsection (a); and
            (2) any State for which such a waiver has not been made;
the provisions of this Act requiring submission of information to the 
Secretary regarding such MSA shall be considered to apply only to the 
portion of such MSA that is located within the State for which such a 
waiver has not been made.
    (c) Authority for Secretary To Obtain Information Directly From 
Insurers.--If the State for which a waiver has been made pursuant to 
subsection (a) does not submit to the Secretary the information 
required under subsection (a)(2)(A) or submits information that is not 
complete, the Secretary shall require the insurers transacting business 
within the State to submit such information directly to the Secretary.

SEC. 8. REPORTING BY PRIVATE MORTGAGE INSURERS.

    (a) HMDA Reporting.--On an annual basis, the Federal Financial 
Institutions Examination Council (hereafter in this section referred to 
as the ``Council'') shall determine the extent to which each insurer 
providing private mortgage insurance is making available to the public 
and submitting to the appropriate agency information regarding such 
insurance that is equivalent to the information regarding mortgages 
required to be reported under the Home Mortgage Disclosure Act of 1975.
    (b) Reporting Under This Act.--
            (1) Certification of noncompliance.--If, for any annual 
        period referred to in subsection (a), the Council determines 
        that any insurer providing private mortgage insurance is not 
        making available to the public or submitting the information 
        referred to in subsection (a) or that the information made 
        available or submitted is not equivalent information as 
        described in subsection (a), then the Council shall notify the 
        insurer of such noncompliance. If, after the expiration of a 
        reasonable period of time, the insurer has not remedied such 
        noncompliance to the satisfaction of the Council, then the 
        Council shall immediately certify such noncompliance to the 
        Secretary.
            (2) Requirement.--Upon the receipt of a certification under 
        paragraph (1), the Secretary shall, by regulation, require such 
        insurer to submit to the Secretary information regarding such 
        insurance that complies with the provisions of section 4 that 
        are applicable to such insurance. Such regulations shall be 
        issued not later than 6 months after receipt of such 
        certification and shall apply to the first succeeding annual 
        reporting period beginning not less than 6 months after 
        issuance of such regulations and to each annual reporting 
        period thereafter.

SEC. 9. USE OF DATA CONTRACTOR AND STATISTICAL AGENTS.

    (a) Data Collection Contractor.--The Secretary may contract with a 
data collection contractor to collect the information required to be 
maintained and submitted under sections 4, 5, 6, 7, and 8(b), if the 
contractor agrees to collect the information pursuant to the terms and 
conditions of such sections and this Act and the regulations issued 
thereunder. Information submitted to such contractor shall be available 
to the public to the same extent as if the information were submitted 
directly to the Secretary.
    (b) Use of Statistical Agents.--
            (1) In general.--The Secretary shall provide, by 
        regulation, that insurers may submit any information required 
        under sections 4, 5, 6, and 8(b) through statistical agents 
        acting on behalf of more than one insurer.
            (2) Protections.--The regulations issued under this 
        subsection shall permit submission of information through a 
        statistical agent only if the Secretary determines that--
                    (A) the statistical agent has adequate procedures 
                to protect the integrity of the information submitted;
                    (B) the statistical agent has a statistical plan 
                and format for submitting the information that meets 
                the requirements of this Act;
                    (C) the statistical agent has procedures in place 
                that ensure that information reported under the 
                statistical plan in connection with reporting under 
                this Act and submitted to the Secretary is not subject 
                to any adjustment by the statistical agent or an 
                insurer for reasons other than technical accuracy and 
                conformance to the statistical plan;
                    (D) the information of an insurer is not subject to 
                review by any other insurer before being made available 
                to the public; and
                    (E) acceptance of the information through the 
                statistical agent will not adversely affect the 
                accuracy of the information reported.
            (3) Discontinuance of acceptance of information.--The 
        Secretary may discontinue accepting information reported 
        through a statistical agent pursuant to this subsection if the 
        Secretary determines that the requirements for such reporting 
        are no longer met or that continued acceptance of such 
        information is contrary to the goal of ensuring the accuracy of 
        the information reported.
            (4) GAO audits.--The Comptroller General of the United 
        States shall, at the request of the Secretary, audit 
        information collection and submission performed under this 
        subsection by data collection contractors or statistical agents 
        to ensure that the integrity of the information collected and 
        submitted is protected. In determining whether to request an 
        audit of a statistical agent, the Secretary shall consider the 
        sufficiency (for purposes of this Act) of audits of the 
        statistical agent conducted in connection with State insurance 
        regulation.
            (5) Liability.--Notwithstanding any use of a statistical 
        agent as authorized under this subsection, an insurer using 
        such an agent shall be responsible for compliance with the 
        requirements under this Act.

SEC. 10. SUBMISSION OF INFORMATION TO SECRETARY AND MAINTENANCE OF 
              INFORMATION.

    (a) Period of Maintenance.--Each insurer required by this Act to 
compile and submit information to the Secretary shall maintain such 
information for the 3-year period beginning upon the conclusion of the 
annual reporting period to which such information relates. The 
Secretary shall maintain any information submitted to the Secretary for 
such period as the Secretary considers appropriate and feasible to 
carry out the purposes of this Act and to allow for historical analysis 
and comparison of the information.
    (b) Submission.--The Secretary shall issue regulations prescribing 
a standard schedule (taking into consideration the provisions of 
section 12(a)), format, and method for submitting information under 
this Act to the Secretary. The format and method of submitting the 
information shall facilitate and encourage the submission in a form 
readable by a computer. Any insurer submitting information to the 
Secretary may submit in writing to the Secretary any additional 
information or explanations that the insurer considers relevant to the 
decision by the insurer to sell insurance.

SEC. 11. COMPILATION OF AGGREGATE INFORMATION.

    (a) Insurance Information.--For each annual reporting period, the 
Secretary shall--
            (1) compile, for each designated MSA, by designated line 
        (and if such information is submitted, by subline or coverage 
        type)--
                    (A) information submitted under sections 4, 5, 7, 
                and 8(b) and loss ratios (if the submission of loss 
                information is required), aggregated by applicable 
                region for all insurers submitting such information; 
                and
                    (B) such information and loss ratios (if the 
                submission of loss information is required), aggregated 
                by applicable region for each such insurer; and
            (2) produce tables based on information submitted under 
        sections 4, 5, 7, and 8(b) for each designated MSA, by insurer 
        and for all insurers, by designated line (and if such 
        information is submitted, by subline or coverage type), 
        indicating--
                    (A) insurance underwriting patterns aggregated for 
                the applicable regions within the MSA, grouped 
                according to location, age of property, income level, 
                and racial characteristics of neighborhoods; and
                    (B) loss ratios based on the information obtained 
                pursuant to sections 4, 5, 7, and 8(b) (if the 
                submission of loss information is required), aggregated 
                for the applicable regions within the MSA, grouped 
                according to location, age of property, income level, 
                and racial characteristics of neighborhoods.
    (b) Agent Information.--For each annual reporting period and for 
each designated MSA, the Secretary shall compile, by designated line, 
the information submitted under section 4(b)(1)(C)--
            (1) by designated insurer by applicable region;
            (2) by designated insurer aggregated for the applicable 
        regions within the designated MSA, grouped according to 
        location, age of property, income level, and racial 
        characteristics; and
            (3) for all designated insurers that have submitted such 
        information for the designated MSA, aggregated for the 
        applicable regions within the designated MSA, grouped according 
        to location, age of property, income level, and racial 
        characteristics.
    (c) Rural Insurance Information.--For each annual reporting period, 
the Secretary shall--
            (1) compile for each applicable 5-digit zip code, by 
        designated line (and if such information is submitted, by 
        subline or coverage type)--
                    (A) information regarding insurance in rural areas 
                submitted under sections 6 and 7 and loss ratios, for 
all insurers for which such information is submitted; and
                    (B) such information and loss ratios, for each such 
                insurer; and
            (2) produce tables for each 5-digit zip code based on 
        information regarding insurance in rural areas submitted under 
        sections 6 and 7, by insurer and for all such insurers for 
        which information is submitted under such sections, by 
        designated line (and if such information is submitted, by 
        subline or coverage type), indicating--
                    (A) insurance underwriting patterns, aggregated by 
                zip codes, grouped according to location, age of 
                property, income level, and racial characteristics of 
                neighborhoods (where such demographic information is 
                available); and
                    (B) loss ratios, based on the information obtained 
                pursuant to sections 6 and 7, aggregated by zip codes, 
                grouped according to location, age of property, income 
                level, and racial characteristics of neighborhoods 
                (where such demographic information is available).

SEC. 12. AVAILABILITY AND ACCESS SYSTEM.

    (a) Availability to Public.--
            (1) In general.--The Secretary shall maintain and make 
        available to the public, in accordance with the requirements of 
        this section, any information submitted to the Secretary under 
        this Act and any information compiled by the Secretary under 
        this Act.
            (2) Timing.--The Secretary shall make such information 
        publicly available on a timetable determined by the Secretary, 
        but not later than 9 months after the conclusion of the annual 
        reporting period to which the information relates, except that 
        such information shall not be made available to the public 
        until it is available in its entirety unless not all the 
        information required to be reported is available by such date.
    (b) Public Access System.--
            (1) Implementation.--The Secretary shall implement a system 
        to facilitate access to any information required to be made 
        available to the public under this Act.
            (2) Bases of availability.--The system shall provide access 
        in the following manners:
                    (A) Access to itemized information.--To information 
                submitted under sections 4, 5, 6, 7, and 8(b) on the 
                basis of the insurer submitting the information, on the 
                basis of designated MSA and applicable region (or in 
                the case of rural information submitted under section 6 
                or 7, on the basis of 5-digit zip code), and on any 
                other basis the Secretary considers feasible and 
                appropriate.
                    (B) Access to aggregate information.--To aggregate 
                information compiled under section 11, on the basis 
                of--
                            (i) the insurer submitting the information;
                            (ii) designated MSA and applicable region 
                        (or in the case of rural information submitted 
                        under section 6 or 7, on the basis of 5-digit 
                        zip code); and
                            (iii) any other basis the Secretary 
                        considers feasible and appropriate.
            (3) Method.--The access system shall include a toll-free 
        telephone number that can be used by the public to request such 
        information and the address at which a written request for such 
        information may be submitted.
            (4) Form.--The Secretary shall, by regulation, establish 
        the forms in which such information may be furnished by the 
        Secretary. Such forms shall include written statements, forms 
        readable by widely used personal computers, and, if feasible, 
        on-line access for personal computers. The Secretary shall 
        provide the information available under this section in any 
        such form requested by the person requesting the information, 
        except that the Secretary may charge a fee for providing such 
        information, which may not exceed the amount, determined by the 
        Secretary, that is equal to the cost of reproducing the 
        information.
            (5) Analysis software.--The Secretary shall make available 
        to the public software that can be used on a personal computer 
        to analyze the information provided under this section. The 
        software shall be capable of analyzing the information by 
        insurer, designated line, race, gender, MSA, and applicable 
        region. It shall also contain data compiled by the Secretary 
        for each MSA and applicable region on income levels, age of 
        property, and racial characteristics that can be used to 
        evaluate the information provided under this Act by insurers. 
        The software and any accompanying data shall be made available 
        to the public without charge, except for an amount, determined 
        by the Secretary, which shall not exceed the actual cost of 
reproducing the software and the accompanying data.
    (c) Protections Regarding Loss Information.--
            (1) Prohibition of disclosure of loss information.--
        Notwithstanding any other provision of this Act, the Secretary 
        may not make available to the public or otherwise disclose any 
        information submitted under this Act regarding the amount or 
        number of claims paid by any insurer, the amount of losses of 
        any insurer, or the loss experience for any insurer, except--
                    (A) in the form of a loss ratio (expressing the 
                relationship of claims paid to premiums) made available 
                or disclosed in compliance with the provisions of 
                paragraph (2); or
                    (B) as provided in paragraph (3).
            (2) Protection of identity of insurer.--In making available 
        to the public or otherwise disclosing a loss ratio for an 
        insurer--
                    (A) the Secretary may not identify the insurer to 
                which the loss ratio relates; and
                    (B) the Secretary may disclose the loss ratio only 
                in a manner that does not allow any party to determine 
                the identity of the specific insurer to which the loss 
                ratio relates, except parties having access to 
                information under paragraph (3).
            (3) Confidentiality of information disclosed to 
        governmental agencies.--The Secretary may make information 
        referred to in paragraph (1) and the identity of the specific 
        insurer to which such information relates available to any 
        Federal entity and any State agency responsible for regulating 
        insurance in a State and may otherwise disclose such 
        information to any such entity or agency, but only to the 
        extent such entity or agency agrees not to make any such 
        information available or disclose such information to any other 
        person.

SEC. 13. DESIGNATIONS.

    (a) Designation of MSA's.--For purposes of this Act, the term 
``designated MSA'' means the following MSA's:
            (1) First 5 years.--With respect to the first 5 annual 
        reporting periods to which the reporting requirements under 
        this Act apply (pursuant to section 24), any of the 150 MSA's 
        selected as follows:
                    (A) The Secretary shall select the 50 MSA's having 
                the largest populations, as determined by the Secretary 
                and specified in regulations issued pursuant to section 
                22, which shall not be amended or revised after 
                issuance.
                    (B) The Secretary shall select 100 additional 
                MSA's, on a basis that provides for--
                            (i) geographic diversity among the 
                        designated MSA's under this paragraph; and
                            (ii) diversity in size of the populations 
                        among such MSA's.
            (2) After first 5 years.--With respect to annual reporting 
        periods thereafter, an MSA for which a designation under this 
        paragraph is in effect, pursuant to the following requirements:
                    (A) The designations shall be made for each of the 
                successive 5-year periods at the time provided in 
                subparagraph (C), and the first such period shall be 
                the 5-year period beginning upon the commencement of 
                the sixth annual reporting period to which the 
                reporting requirements under this Act apply.
                    (B) The Secretary shall designate not less than 150 
                MSA's as designated MSA's for each such 5-year period 
                and shall designate such MSA's based upon the 
                information and recommendations made in the report 
                under section 18(b) relating to the period.
                    (C) The Secretary shall make the designation of 
                MSA's for an ensuing 5-year period by regulations 
                issued--
                            (i) not later than 12 months before the 
                        commencement of the 5-year period; and
                            (ii) not later than 6 months after the 
                        submission to the Secretary of the report under 
                        section 20(b) relating to such period.
                    (D) The designations of MSA's for a 5-year period 
                shall take effect upon the commencement of the first 
                annual reporting period of the 5-year period beginning 
                not less than 12 months after the issuance of the 
                regulations making such designations, and shall remain 
                in effect until the expiration of the 5-year period.
Notwithstanding any other provision of this section, the designation of 
an MSA shall remain in effect until a succeeding designation of MSA's 
under paragraph (2) takes effect.
    (b) Designation of Insurers.--The Secretary shall designate, for 
each designated line and each State, insurers doing business in the 
lines as designated insurers in the State for purposes of this Act, 
subject to the following requirements:
            (1) Highest aggregate premium volume.--
                    (A) General rule.--For each State, the Secretary 
                shall designate, for each designated line, each of the 
                insurers and insurer groups included in the class 
                established under this paragraph for the State.
                    (B) Determination.--In each State, the Secretary 
                shall rank the insurers and insurer groups in each 
                designated line from the insurer or group having the 
                largest aggregate premium volume in the State for such 
                line to the insurer or group having the smallest such 
                aggregate premium volume and shall include in the class 
                for the State only--
                            (i) the insurer or group of the highest 
                        rank;
                            (ii) each insurer or group of successively 
                        lower rank if the inclusion of such insurer or 
                        group in the class does not result in the sum 
                        of such aggregate premium volumes for insurers 
                        and groups in the class exceeding 80 percent of 
                        the total aggregate premium volume in the State 
                        for the line; and
                            (iii) the first such successively lower 
                        ranked insurer or insurer group whose inclusion 
                        in the class results in such sum exceeding 80 
                        percent of the total aggregate premium volume 
                        in the State for the line.
            (2) Minimum aggregate premium volume.--For each State, the 
        Secretary shall designate, for each designated line, each 
        insurer and insurer group not designated pursuant to paragraph 
        (1) whose premium volume in the State for the designated line 
        exceeds 1 percent of the total aggregate premium volume in the 
        State for the line.
            (3) FAIR plans and joint underwriting associations.--For 
        each State, the Secretary shall designate, for each designated 
        line--
                    (A) each statewide plan under part A of title XII 
                of the National Housing Act to assure fair access to 
                insurance requirements; and
                    (B) each joint underwriting association;
        that provides insurance under such line.
            (4) Duration.--The Secretary shall designate insurers under 
        this subsection once every 5 years. Each insurer designated 
        shall be a designated insurer for each of the first 5 
        successive annual reporting periods commencing after such 
        designation.
    (c) Designation of Lines of Insurance.--
            (1) In general.--The Secretary shall, by regulation, 
        designate homeowners, dwelling fire, and allied lines of 
        insurance as designated lines for purposes of this Act, and 
        shall distinguish the coverage types in such lines by the 
        perils covered and by market or replacement value. For purposes 
        of this Act, homeowners insurance shall not include any renters 
        coverage or coverage for the personal property of a condominium 
        owner.
            (2) Report.--At any time the Secretary determines that any 
        line of insurance not described in paragraph (1) should be a 
        designated line because disparities in coverage provided under 
        such line exist among geographic areas having different income 
        levels or racial composition, the Secretary shall submit a 
        report recommending designating such line of insurance as a 
        designated line for purposes of this Act to the Committee on 
        Banking, Finance and Urban Affairs of the House of 
        Representatives and the appropriate committees of the Senate.
            (3) Duration.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the Secretary shall make the designations under 
                this subsection once every 5 years, by regulation, and 
                each line and subline or coverage type designated under 
                such regulations shall be designated for each of the 
                first 5 successive annual reporting periods occurring 
                after issuance of the regulations.
                    (B) Alteration.--During any 5-year period referred 
                to in subparagraph (A) in which designations are in 
                effect, the Secretary may amend or revise the 
                designated lines, sublines, and coverage types only by 
                regulation and only in accordance with the requirements 
                of this subsection. Such regulations amending or 
                revising designations shall apply only to annual 
                reporting periods beginning after the expiration of the 
                6-month period beginning on the date of issuance of the 
                regulations.
    (d) Timing of Designations.--The Secretary shall make the 
designations required by subsections (b)(4) and (c)(3)(A) and notify 
interested parties during the 6-month period ending 6 months before the 
commencement of the first annual reporting period to which such 
designations apply.
    (e) Obtaining Information.--The Secretary may require insurers to 
submit to the Secretary such information as the Secretary considers 
necessary to make designations specifically required under this Act. 
The Secretary may not require insurers to submit any information under 
this subsection that relates to any line of insurance not specifically 
authorized to be designated pursuant to this Act or that is to be used 
solely for the purpose of a report under subsection (c)(2).

SEC. 14. IMPROVED METHODS AND REPORTING ON BASIS OF OTHER AREAS.

    (a) Development of Improved Methods.--The Secretary shall develop, 
or assist in the improvement of, methods of matching addresses and 
applicable regions to facilitate compliance by insurers, in as 
economical a manner as possible, with the requirements of this Act. The 
Secretary shall allow insurers, or statistical agents acting on behalf 
of insurers, to match addresses and applicable regions through the use 
of 9-digit zip codes if the Secretary determines that such use will 
substantially reduce the cost and burden to insurers of such matching 
without significant adverse impact on the reliability of the matching.
    (b) Address Conversion Software.--The Secretary shall make 
available, to any insurer required to provide information to the 
Secretary under this Act, computer software that can be used to convert 
addresses to applicable regions within designated MSA's. The software 
shall be made available in forms that provide such conversion for 
designated MSA's on a nationwide basis and on a State-by-State basis. 
The software shall be made available not later than 6 months before the 
first annual reporting period to which the reporting requirements under 
this Act apply (pursuant to section 26) and shall be updated annually. 
The software shall be made available without charge, except for an 
amount, determined by the Secretary, which shall not exceed the actual 
cost of reproducing the software.
    (c) Convertibility.--
            (1) Authority.--The Secretary may, by regulation, provide 
        for insurers to comply with the requirements under sections 4, 
        5, and 8(b) by reporting the information required under such 
        sections on the basis of geographical location other than MSA 
        and applicable region, but only if the Secretary determines 
        that information reported on such other basis is convertible to 
        the basis of MSA and applicable region and such conversion does 
        not affect the accuracy of the information.
            (2) Limitation.--With respect to any information submitted 
        on the basis of geographical location other than designated MSA 
        and applicable region pursuant to paragraph (1), the Secretary 
        may disclose the information only on the basis of designated 
        MSA and applicable region.

SEC. 15. ANNUAL REPORTING PERIOD.

    (a) In General.--For purposes of this Act, the annual reporting 
periods shall be the 12-month periods commencing in each calendar year 
on the same day, which shall be selected under subsection (b) by the 
Secretary.
    (b) Selection.--Not later than the expiration of the 6-month period 
beginning on the date of enactment of this Act, the Secretary shall, by 
regulation, select a day of the year upon which all annual reporting 
periods shall commence. In determining such day, the Secretary shall 
consider the reporting periods used for purposes of State and other 
insurance statistical reporting systems, in order to minimize the 
burdens on insurers.

SEC. 16. DISCLOSURES BY INSURERS TO APPLICANTS AND POLICYHOLDERS.

    (a) In General.--The Secretary shall, by regulation, require the 
following disclosures:
            (1) Applicants.--Each insurer that, through the insurer, or 
        an agent or broker, declines a written application or written 
        request to issue an insurance policy under a designated line 
        shall provide to the applicant at the time of such declination, 
        through such insurer, agent, or broker, one of the following:
                    (A) A written explanation of the specific reasons 
                for the declination.
                    (B) Written notice that--
                            (i) the applicant may submit to the 
                        insurer, agent, or broker, within 90 days of 
                        such notice, a written request for a written 
                        explanation of the reasons for the declination; 
                        and
                            (ii) pursuant to such a request, an 
                        explanation shall be provided to the applicant 
                        within 21 days after receipt of such request.
            (2) Provision of explanation.--If an insurer, agent, or 
        broker making a declination receives a written request referred 
        to in paragraph (1)(B) within such 90-day period, the insurer, 
        agent, or broker shall provide a written explanation referred 
        to in such subparagraph within such 21-day period.
            (3) Policyholders.--Each insurer that cancels or refuses to 
        renew an insurance policy under a designated line shall provide 
        to the policyholder, in writing and within an appropriate 
        period of time as determined by the Secretary, the reasons for 
        canceling or refusing to renew the policy.
    (b) Model Acts.--In issuing regulations under subsection (a), the 
Secretary shall consider relevant portions of model acts developed by 
the National Association of Insurance Commissioners.
    (c) Preemption.--Subsection (a) shall not be construed to annul, 
alter, or effect, or exempt any insurer, agent, or broker subject to 
the provisions of subsection (a) from complying with any laws or 
requirements of any State with respect to notifying insurance 
applicants or policyholders of the reasons for declination or 
cancellation of, or refusal to renew insurance, except to the extent 
that such laws or requirements are inconsistent with subsection (a) (or 
the regulations issued thereunder) and then only to the extent of such 
inconsistency. The Secretary is authorized to determine whether such 
inconsistencies exist and to resolve issues regarding such 
inconsistencies. The Secretary may not provide that any State law or 
requirement is inconsistent with subsection (a) if it imposes 
requirements equivalent to the requirements under such subsection or 
requirements that are more stringent or comprehensive, in the 
determination of the Secretary.
    (d) Immunity.--In issuing regulations under subsection (a), the 
Secretary shall specifically consider the necessity of providing 
insurers, agents, and brokers with immunity solely for the act of 
conveying or communicating the reasons for a declination or 
cancellation of, or refusal to renew insurance on behalf of a principal 
making such decision. The Secretary may provide for immunity under the 
regulations issued under subsection (a) if the Secretary determines 
that such a provision is necessary and in the public interest, except 
that the Secretary may not provide immunity for any conduct that is 
negligent, reckless, or willful.
    (e) Enforcement.--The Secretary may authorize the States to enforce 
the requirements under regulations issued under subsection (a).

SEC. 17. ENFORCEMENT.

    (a) Civil Penalties.--Any insurer who is determined by the 
Secretary, after providing opportunity for a hearing on the record, to 
have violated any requirement pursuant to this Act 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 
referred to in subsection (a).
    (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. 18. REPORTS.

    (a) Annual Report.--The Secretary shall annually report to the 
Committee on Banking, Finance and Urban Affairs of the House of 
Representatives and the appropriate committees of the Senate on the 
implementation of this Act and shall make recommendations to such 
committees on such additional legislation as the Secretary deems 
appropriate to carry out this Act. The Secretary shall include in each 
annual report a description of any complaints or problems resulting 
from the implementation of this Act, of which the Secretary has 
knowledge, made by (or on behalf of) insurance policyholders that 
concern the disclosure of information regarding policyholders and any 
recommendations for addressing such problems. Each report shall 
specifically address whether granting property and casualty insurance 
powers to other financial intermediaries would significantly reduce 
redlining and other discriminatory insurance practices and the 
Secretary shall consult with the appropriate financial institution 
regulators regarding such issues in preparing the report.
    (b) GAO Reports.--
            (1) In general.--The Comptroller General of the United 
        States shall submit a report under this subsection to the 
        Secretary and the Congress for each 5-year period referred to 
        in sections 6(c)(2) and 13(a)(2), which contains information to 
        be used by the Secretary in implementing this Act during such 
        period.
            (2) Timing.--The report under this subsection for each such 
        5-year period shall be submitted not later than 18 months 
        before the commencement of the period to which the report 
        relates.
            (3) Contents.--A report under this subsection shall include 
        the following information:
                    (A) An analysis of the adequacy of the 
                implementation of this Act and any recommendations of 
                the Comptroller General for improving the 
                implementation.
                    (B) The costs to the Federal Government, insurers, 
                and consumers of implementing and complying with this 
                Act.
                    (C) Any beneficial or harmful effects resulting 
                from the requirements of this Act.
                    (D) An analysis of whether, considering the 
                purposes of this Act, insurers are required by this Act 
(or by implementing regulations) to submit appropriate information.
                    (E) An analysis of whether sufficient evidence 
                exists of patterns of disparities in the availability, 
                affordability, and quality or type of insurance 
                coverage to warrant continued applicability of the 
                requirements of this Act.
                    (F) An analysis of whether the group of designated 
                MSA's in effect at the time of the report are 
                appropriate for purposes of this Act.
                    (G) Specific recommendations, for use by the 
                Secretary in designating MSA's for the 5-year period 
                for which the report is made, with regard to--
                            (i) the characteristics of MSA's that 
                        should be included in the group of designated 
                        MSA's;
                            (ii) the number of MSA's that should be 
                        included in the group;
                            (iii) the number of MSA's having each 
                        particular characteristic that should be 
                        included in the group; and
                            (iv) the characteristics of MSA's, and 
                        number of MSA's having each such 
                        characteristic, that should be removed from the 
                        group of designated MSA's in effect at the time 
                        of the report.
                    (H) With respect only to the first report required 
                under this subsection, recommendations of whether the 
                study conducted under section 5 should be continued 
                beyond the date in section 5(b)(8) and, if so, whether 
                the requirements regarding the submission of 
                information under the study should be expanded or 
                changed with respect to insurers, MSA's, lines, 
                sublines or coverage types of insurance, and types of 
                small businesses, or whether the study should be 
                allowed to terminate under law.
                    (I) An analysis of whether the group of designated 
                rural areas in effect at the time of the report are 
                appropriate for purposes of this Act.
                    (J) Specific recommendations, for use by the 
                Secretary in designating rural areas for purposes of 
                section 6 for the 5-year period for which the report is 
                made, with regard to--
                            (i) the characteristics of rural areas that 
                        should be included in the group of designated 
                        rural areas under such section;
                            (ii) the number of rural areas having each 
                        particular characteristic that should be 
                        included in the group; and
                            (iii) the characteristics of rural areas, 
                        and number of rural areas having each such 
                        characteristic, that should be removed from the 
                        group of designated rural areas in effect at 
                        the time of the report.
                    (K) Any other information or recommendations 
                relating to the requirements or implementation of this 
                Act that the Comptroller General considers appropriate.
            (4) Consultation.--In preparing each report under this 
        subsection, the Comptroller General shall consult with Federal 
        agencies having appropriate expertise, the National Association 
        of Insurance Commissioners, State insurance regulators, 
        statistical agents, representatives of small businesses, 
        representatives of insurance agents (including minority 
        insurance agents) and property and casualty insurers, and 
        community, consumer, and civil rights organizations.

SEC. 19. TASK FORCE ON AGENCY APPOINTMENTS.

    (a) Establishment.--Not later than 90 days after the date of 
enactment of this Act, the Secretary shall establish a task force on 
insurance agency appointments (hereafter in this section referred to as 
the ``Task Force''). 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 
        insurers, State insurance regulators, and community, consumer, 
        and civil rights organizations;
            (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 insurers and consider the effects such problems have 
        on the availability, affordability, and quality or type of 
        insurance, especially in underserved areas;
            (2) review the practices of insurers in terminating agents 
        and consider the effects such practices have on the 
        availability, affordability, and quality or type 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 insurers should take to increase their appointments of 
        such agents.
    (c) Report and Termination.--The Task Force shall report to the 
Committee on Banking, Finance and Urban Affairs of the House of 
Representatives and the appropriate committees of the Senate its 
findings under paragraphs (1) and (2) of subsection (b) and its 
recommendations under paragraph (3) of subsection (b) not later than 2 
years after the date of enactment of this Act. The Task Force shall 
terminate on the date on which the report is submitted to the 
committees.

SEC. 20. STUDIES.

    (a) Study of Insurance Prescreening.--
            (1) In general.--The Secretary shall conduct a study to 
        determine the feasibility and utility of requiring insurers to 
        report 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 insured persons 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 racial characteristics of the 
                        prospective insured;
                            (iii) the racial 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 Banking, Finance 
        and Urban Affairs of the House of Representatives and the 
        appropriate committees of the Senate, not later than 2 years 
        after the date of enactment of this Act. The report shall 
        include recommendations of the Secretary--
                    (A) with respect to requiring insurers to report on 
                the disposition of oral and written applications for 
                insurance; and
                    (B) for any legislation that the Secretary 
                considers appropriate regarding the issues described in 
                the report.
    (b) Study of Insurer Actions To Meet Insurance Needs of Certain 
Neighborhoods.--The Secretary shall conduct a study of various 
practices, actions, 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 shall report 
the results of the study, including any recommendations, to the 
Committee on Banking, Finance and Urban Affairs of the House of 
Representatives and the appropriate committees of the Senate, not later 
than 2 years after the date of enactment of this Act.
    (c) Study of Disparate Claims Treatment.--
            (1) In general.--The Secretary shall conduct a study to 
        determine whether, and the extent to which, insurers engage in 
        disparate treatment in handling claims of policyholders under 
        designated lines of insurance based on the race, gender, and 
        income level of the policyholder, and on the racial 
        characteristics and income levels of the area in which the 
        insured risk is located. In conducting the study, the Secretary 
        shall specifically consider whether residents of low-income 
        neighborhoods or areas and minority neighborhoods or areas are 
        more likely than residents of other areas to have their claims 
        contested or their insurance coverage canceled.
            (2) Report.--The Secretary shall submit a report on the 
        results of the study to the Committee on Banking, Finance and 
        Urban Affairs of the House of Representatives and the 
        appropriate committees of the Senate, not later than 2 years 
        after the date of enactment of this Act.
    (d) Study of Rating Territories.--The Secretary shall conduct a 
study to determine whether the practice in the insurance industry of 
basing insurance premium amounts on the territory in which the insured 
risk is located has a disparate impact on the availability, 
affordability, or quality of insurance by race, gender, or type of 
neighborhood. The Secretary shall submit a report on the results of the 
study to the Committee on Banking, Finance and Urban Affairs of the 
House of Representatives and the appropriate committees of the Senate, 
not later than 12 months after the date of enactment of this Act.
    (e) Study of Insurer Reinvestment Requirements.--
            (1) In general.--The Secretary shall conduct a study to 
        determine the feasibility of requiring insurers to reinvest in 
        communities and neighborhoods from which they collect premiums 
        for insurance and whether, and the extent to which, community 
        reinvestment requirements for insurers should be established 
        that are comparable to the community reinvestment requirements 
        applicable to depository institutions. The Secretary shall 
        consult with representatives of insurers and consumer, 
        community, and civil rights organizations regarding the results 
        of the study and any recommendations to be made based on the 
        results of the study.
            (2) Report.--The Secretary shall report the results of the 
        study, including any such recommendations, to the Committee on 
        Banking, Finance and Urban Affairs of the House of 
        Representatives and the appropriate committees of the Senate, 
        not later than 6 months after the conclusion of the first 
        annual reporting period to which the reporting requirements 
        under this Act apply (pursuant to section 26).

SEC. 21. EXEMPTION AND RELATION TO STATE LAWS.

    (a) Exemption for United States Programs.--Reporting shall not be 
required under this Act with respect to insurance provided by any 
program underwritten or administered by the United States.
    (b) 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, submission of information, and recordkeeping.

SEC. 22. REGULATIONS.

    (a) In General.--The Secretary shall issue any regulations required 
under this Act and any other regulations that may be necessary to carry 
out this Act. The regulations shall be issued through rulemaking in 
accordance with the procedures under section 553 of title 5, United 
States Code, for substantive rules. Except as otherwise provided in 
this Act, such final regulations shall be issued not later than the 
expiration of the 18-month period beginning on the date of enactment of 
this Act.
    (b) Burdens.--In prescribing such regulations, 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. 23. DEFINITIONS.

    For purposes of this Act, the following definitions shall apply:
            (1) Agent.--The term ``agent'' means, with respect to an 
        insurer, an agent licensed by a State who sells property and 
        casualty insurance. The term includes agents who are employees 
        of the insurer, agents who are independent contractors working 
        exclusively for the insurer, and agents who are independent 
        contractors appointed to represent the insurer on a 
        nonexclusive basis.
            (2) Applicable region.--The term ``applicable region'' 
        means, with respect to a designated MSA--
                    (A) for any county located within the MSA that has 
                a population of more than 30,000, the applicable census 
                tract within the county; or
                    (B) for any county located within the MSA that has 
                a population of 30,000 or less, the applicable county.
            (3) Commercial insurance.--The term ``commercial 
        insurance'' means any line of property and casualty insurance, 
        except homeowner's, dwelling fire, allied lines, and other 
        personal lines of insurance.
            (4) Designated insurer.--The term ``designated insurer'' 
        means, with respect to a designated line, an insurer designated 
        for a State by the Secretary under section 13(b) as a 
        designated insurer for such line or any insurer that is part of 
        an insurer group selected under such section.
            (5) Designated investment.--The term ``designated 
        investment'' means making or purchasing a loan for the purchase 
        of commercial real estate, making or purchasing a mortgage loan 
        for the purchase of a 1- to 4-family dwelling, making or 
        purchasing a commercial or industrial loan.
            (6) Designated line.--The term ``designated line'' means a 
        line of insurance or bid, performance, and payment bonds 
        designated by the Secretary under section 13(c).
            (7) Exposures.--The term ``exposures'' means, with respect 
        to an insurance policy, an expression of an exposure unit 
        covered under the policy compared to the duration of the policy 
        (pursuant to standards established by the Secretary for uniform 
        reporting of exposures).
            (8) Exposure units.--The term ``exposure units'' means a 
        dwelling covered under an insurance policy for homeowners, 
        dwelling fire, or allied lines coverage.
            (9) Insurance.--The term ``insurance'' means property and 
        casualty insurance. Such term includes primary insurance, 
        surplus lines insurance, and any other arrangement for the 
        shifting and distributing of risks that is determined to be 
        insurance under the law of any State in which the insurer or 
        insurer group engages in an insurance business.
            (10) Insurer.--Except with respect to section 8, the term 
        ``insurer'' means any corporation, association, society, order, 
        firm, company, mutual, partnership, individual, aggregation of 
        individuals, or any other legal entity that is authorized to 
        transact the business of property or casualty insurance in any 
        State or that is engaged in a property or casualty insurance 
        business. The term includes any certified foreign direct 
        insurer, but does not include an individual or entity which 
        represents an insurer as agent solely for the purpose of 
        selling or which represents a consumer as a broker solely for 
        the purpose of buying insurance.
            (11) Issued.--The term ``issued'' means, with respect to an 
        insurance policy, newly issued or renewed.
            (12) Joint underwriting association.--The term ``joint 
        underwriting association'' means an unincorporated association 
        of insurers established to provide a particular form of 
        insurance to the public.
            (13) Mortgage insurance.--The term ``mortgage insurance'' 
        means insurance against the nonpayment of, or default on, a 
        mortgage or loan for residential or commercial property.
            (14) MSA.--The term ``MSA'' means a Metropolitan 
        Statistical Area or a Primary Metropolitan Statistical Area.
            (15) Private mortgage insurance.--The term ``private 
        mortgage insurance'' means mortgage insurance other than 
        mortgage insurance made available under the National Housing 
        Act, title 38 of the United States Code, or title V of the 
        Housing Act of 1949.
            (16) Property and casualty insurance.--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. Such term does 
        not include workers' compensation, professional liability, or 
        title insurance.
            (17) Residual market.--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. The term includes 
        each statewide plan under part A of title XII of the National 
        Housing Act to assure fair access to insurance requirements.
            (18) Rural area.--The term ``rural area'' means any area 
        that--
                    (A) has a population of 10,000 or more;
                    (B) has a continuous boundary; and
                    (C) contains only areas that are rural areas, as 
                such term is defined in section 520 of the Housing Act 
                of 1949 (except that clause (3)(B) of such section 520 
                shall not apply for purposes of this Act).
            (19) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (20) State.--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. 24. EFFECTIVE DATE.

    The requirements of this Act relating to reporting of information 
by insurers shall take effect with respect to the first annual 
reporting period that begins not less than 3 years after the date of 
enactment of this Act.
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