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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1257 Reported in House (RH)]

                                                 Union Calendar No. 166

103d CONGRESS

  1st Session

                               H. R. 1257

                  [Report No. 103-302, Parts I and II]

_______________________________________________________________________

                                 A BILL

To reconstitute the Federal Insurance Administration as an independent 
   agency within the executive branch, provide for minimum standards 
 applicable to foreign insurers and reinsurers providing insurance in 
    the United States, make liquidity assistance available to well-
   capitalized insurance companies, and provide for public access to 
  information regarding the availability of insurance, and for other 
                               purposes.

_______________________________________________________________________

                            October 28, 1993

  Reported from the Committee on Energy and Commerce with amendments, 
   committed to the Committee of the Whole House on the State of the 
                    Union, and ordered to be printed

                                                 Union Calendar No. 166
103d CONGRESS
  1st Session
                                H. R. 1257

                  [Report No. 103-302, Parts I and II]

To reconstitute the Federal Insurance Administration as an independent 
   agency within the executive branch, provide for minimum standards 
 applicable to foreign insurers and reinsurers providing insurance in 
    the United States, make liquidity assistance available to well-
   capitalized insurance companies, and provide for public access to 
  information regarding the availability of insurance, and for other 
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 9, 1993

  Mr. Kennedy (for himself and Mr. Gonzalez) introduced the following 
bill; which was referred to the Committee on Banking, Finance and Urban 
                                Affairs

                            October 19, 1993

   Reported with amendments, referred to the Committee on Energy and 
  Commerce for a period ending not later than November 19, 1993, for 
  consideration of such provisions of the bill and amendment as fall 
within the jurisdiction of the committee pursuant to clause 1(h), rule 
                                   X
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                            October 28, 1993

Additional sponsors: Mr. Hinchey, Ms. Velazquez, Mr. Dixon, Mr. Fields 
   of Louisiana, Mr. Mfume, Mr. Gutierrez, Ms. Eshoo, and Mr. de Lugo

                            October 28, 1993

  Reported from the Committee on Energy and Commerce with amendments, 
   committed to the Committee of the Whole House on the State of the 
                    Union, and ordered to be printed
[Omit the part in italic black brackets and insert the part printed in 
                            boldface roman]
 [For text of introduced bill, see copy of bill as introduced on March 
                                9, 1993]

_______________________________________________________________________

                                 A BILL

 
To reconstitute the Federal Insurance Administration as an independent 
   agency within the executive branch, provide for minimum standards 
 applicable to foreign insurers and reinsurers providing insurance in 
    the United States, make liquidity assistance available to well-
   capitalized insurance companies, and 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 AND TABLE OF CONTENTS.

    [(a) Short Title.--This Act may be cited as the ``Insurance 
Consumer Protection Act''.
    [(b) Table of Contents.--

[Sec. 1. Short title and table of contents.

              [TITLE I--CERTIFICATION OF FOREIGN INSURERS

         [Subtitle A--Certification of Foreign Direct Insurers

[Sec. 101. Requirement for conducting direct insurance business.
[Sec. 102. Application.
[Sec. 103. Certification procedure.
[Sec. 104. Requirements for foreign direct insurers.
[Sec. 105. Financial statements.
[Sec. 106. Authority to establish risk-based capital standards.

            [Subtitle B--Certification of Foreign Reinsurers

[Sec. 121. Requirement for claiming credit for reinsurance.
[Sec. 122. Application.
[Sec. 123. Certification procedure.
[Sec. 124. Requirements for foreign reinsurers.
[Sec. 125. Financial statements.
[Sec. 126. Authority to establish risk-based capital standards.

                        [Subtitle C--Enforcement

[Sec. 141. Examinations of foreign insurers.
[Sec. 142. Termination and suspension of certification.
[Sec. 143. Cease-and-desist orders.
[Sec. 144. Actions by State insurance regulators to enforce 
                            requirements applicable to foreign 
                            insurers.
[Sec. 145. Criminal penalties.
[Sec. 146. Notification to State insurance regulators and coordination 
                            with foreign insurance regulators.
[Sec. 147. National insurance intelligence database.

                    [Subtitle D--General Provisions

[Sec. 161. Transfer of information with State insurance regulators.
[Sec. 162. National Advisory Council of State Insurance Regulators.
[Sec. 163. GAO study of accounting principles.
[Sec. 164. Fees.
[Sec. 165. Forms.
[Sec. 166. Determination of qualified financial institutions and 
                            control.
[Sec. 167. Definitions.
[Sec. 168. Relation to State laws.
[Sec. 169. Effective dates.

[TITLE II--DISCLOSURE OF INSURANCE AVAILABILITY AND INSURER INVESTMENT 
                              INFORMATION

[Sec. 201. Short title.
[Sec. 202. Findings and purposes.
[Sec. 203. Establishment of general requirements to submit information.
[Sec. 204. Reporting of noncommercial insurance information.
[Sec. 205. Study of commercial insurance for residential properties and 
                            small businesses.
[Sec. 206. Reporting of bid, performance, and payment bonds for small 
                            businesses.
[Sec. 207. Reporting of rural insurance information.
[Sec. 208. Waiver of reporting requirements.
[Sec. 209. Reporting by private mortgage insurers.
[Sec. 210. Use of data contractor and statistical agents.
[Sec. 211. Reporting of information regarding investments by insurers.
[Sec. 212. Submission of information to Secretary and maintenance of 
                            information.
[Sec. 213. Compilation of aggregate information.
[Sec. 214. Availability and access system.
[Sec. 215. Designations.
[Sec. 216. Improved methods and reporting on basis of other areas.
[Sec. 217. Annual reporting period.
[Sec. 218. Disclosures by insurers to applicants and policyholders.
[Sec. 219. Enforcement.
[Sec. 220. Reports.
[Sec. 221. Task force on agency appointments.
[Sec. 222. Studies.
[Sec. 223. Exemption and relation to State laws.
[Sec. 224. Regulations.
[Sec. 225. Definitions.
[Sec. 226. Effective date.

              [TITLE I--CERTIFICATION OF FOREIGN INSURERS

         [Subtitle A--Certification of Foreign Direct Insurers

[SEC. 101. REQUIREMENT FOR CONDUCTING DIRECT INSURANCE BUSINESS.

    [No foreign insurer may engage in the business of insurance in any 
State by accepting or renewing United States direct written insurance 
obligations after the date provided in section 169(c) unless the 
foreign insurer is certified under this subtitle by the Secretary of 
the Treasury as a certified foreign direct insurer. No person may 
assist or facilitate, in any State, the acceptance or renewal of United 
States direct written insurance obligations with a foreign insurer 
unless the foreign insurer is so certified.

[SEC. 102. APPLICATION.

    [The Secretary shall provide for a foreign insurer to apply, in the 
form and manner determined by the Secretary, for certification under 
this subtitle as a certified foreign direct insurer.

[SEC. 103. CERTIFICATION PROCEDURE.

    [(a) In General.--The Secretary may certify a foreign insurer as a 
certified foreign direct insurer for purposes of this title only if--
            [(1) the foreign insurer submits an application under 
        section 102 containing such information as the Secretary may 
        require to determine whether the foreign insurer complies with 
        the standards established under section 104, together with an 
        application fee in the amount determined under section 164(a);
            [(2) the Secretary determines that the foreign insurer 
        complies with the requirements under section 104; and
            [(3) the Secretary determines that the foreign insurer has 
        complied with the requirements under section 105.
    [(b) Requirements for Foreign Direct Insurers Not Seeking 
Certification.--The Secretary may reduce or waive the requirements 
under sections 104 and 105 as the Secretary determines appropriate, 
with respect to any foreign direct insurer that submits to the 
Secretary, before the date provided in section 169(c), written notice 
that the foreign insurer does not intend to apply for certification 
under this subtitle, will not violate the prohibitions under section 
101, and will comply with any requirements pursuant to this subsection. 
In making any such determinations, the Secretary shall consider the 
adequacy of insurance regulation in the country of domicile of the 
foreign insurer and the needs and protections of United States 
policyholders, creditors, and the general public.

[SEC. 104. REQUIREMENTS FOR FOREIGN DIRECT INSURERS.

    [(a) In General.--Each foreign direct insurer shall comply with the 
following requirements:
            [(1) Minimum net worth and risk-based capital standards.--
        The foreign insurer shall have a net worth in an amount not 
        less than $15,000,000 (or an aggregate amount of not less than 
        $10,000,000,000, in the case of a group of incorporated 
        insurers under common administration), or such higher amount as 
        the Secretary may require based on the amount of business 
        transacted by the foreign insurer and the aggregate amount of 
        the United States direct written insurance obligations of the 
        foreign insurer and shall comply with any risk-based capital 
        standards established by the Secretary under section 106. The 
        Secretary shall determine the net worth of a foreign insurer 
        and may adjust the value of any assets and liabilities of an 
        insurer, for purposes of this paragraph, in accordance with the 
        accounting standards established by the Secretary pursuant to 
        section 105(d).
            [(2) Trust fund.--The foreign insurer shall establish and, 
        at all times, maintain at a qualified financial institution in 
        the United States an irrevocable trust, which shall meet the 
        following requirements:
                    [(A) Availability of proceeds.--The trust 
                instrument shall provide that contested claims shall be 
                valid and enforceable upon the final order of any court 
                of competent jurisdiction in the United States. Legal 
                title to assets of the trust shall be vested in the 
                trustees of the trust and all assets shall be available 
                to meet the United States direct written insurance 
                obligations of the insurer, notwithstanding any other 
                specified use of the trust. The trust shall remain in 
                effect for such time as the insurer has outstanding 
                obligations due under policies subject to the trust.
                    [(B) Balance.--Except as provided in subparagraph 
                (C), the trust fund shall have a balance, at all times, 
                of cash, readily marketable securities, and letters of 
                credit, acceptable in the determination of the 
                Secretary, in an amount not less than--
                            [(i) for a single insurer, the greater of--
                                    [(I) $2,500,000; or
                                    [(II) the lesser of (a) the 
                                aggregate amount of the United States 
                                direct written insurance obligations of 
                                the insurer, or (b) $10,000,000;
                            [(ii) for an insurer that is a group 
                        including incorporated and individual 
                        unincorporated underwriters, the sum of--
                                    [(I) $50,000,000; and
                                    [(II) the aggregate amount of the 
                                United States direct written insurance 
                                obligations of the insurer plus an 
                                amount equal to all other liabilities 
                                secured by the trust; and
                            [(iii) for an insurer that is a group of 
                        incorporated insurers under common 
                        administration, the sum of--
                                    [(I) $50,000,000; and
                                    [(II) the aggregate amount of the 
                                United States direct written insurance 
                                obligations pursuant to insurance 
                                contracts subscribed to by members of 
                                the group and issued by or through each 
                                member of the group.
                    [(C) Unsafe financial conditions.--The Secretary 
                may increase the minimum balance required to be 
                maintained under subparagraph (B) by an insurer, on a 
                case-by-case basis, if the Secretary determines that 
                such insurer is operating in a manner likely to result 
                in an unsafe or unsound financial condition.
        The Secretary may develop and require the use of standard 
        forms, agreements, and contracts for use in establishing trusts 
        under this paragraph. The trust agreement shall require the 
        qualified financial institution to serve at all times as 
        trustee and shall provide that the Secretary shall have access 
        to such books and records regarding the trust fund as may be 
        necessary to conduct audits required under section 141(c). 
        Notwithstanding any Federal or State law, if the insurer is 
        placed in supervision, rehabilitation, or liquidation, or any 
        equivalent status by the State or country of its domicile, or 
        the Secretary determines pursuant to regulations issued by the 
        Secretary that the condition of the insurer is such that the 
        further transaction of business by the insurer will be 
        hazardous to United States policyholders or creditors, or to 
        the public, then the Secretary shall have the sole authority 
        for distributing the proceeds of any trust fund under this 
        paragraph for payment of the valid claims of the United States 
        policyholders of the insurer and other claimants under such 
        policies. The trustees of the trust shall submit a report in 
        writing to the Secretary annually, not later than the date 
        established by the Secretary by regulation. The report shall 
        state the balance of the trust, list the investments of the 
        trust for the 12-month period for which the report is made, and 
        certify the date of the termination of the trust with respect 
        to new business (if planned) or certify that the trust will not 
        expire before the date occurring 12 months after the expiration 
        of the 12-month period for which the report is made.
            [(3) Agent for service of process.--The foreign insurer 
        shall appoint and maintain, in the form and manner required by 
        the Secretary, an agent in the United States upon whom process 
        may be served in any action, suit, or proceeding.
            [(4) Jurisdiction of courts.--The foreign insurer shall 
        agree to submit to the jurisdiction of any court of the United 
        States or of any State, of competent jurisdiction, and to be 
        fully bound by its decision.
            [(5) Regulation by domicile.--The foreign insurer shall 
        annually submit to the Secretary a certificate of compliance, 
        certificate of good standing, or equivalent documentation (as 
        determined by the Secretary) properly attested by the foreign 
        insurance regulator for the domicile of the insurer, evidencing 
        authority under the laws of the domicile of the insurer to 
        engage in the business of insurance in such domicile.
            [(6) Biographical information.--The foreign insurer shall 
        annually submit to the Secretary, in the form and manner 
        determined by the Secretary--
                    [(A) biographical information on all senior 
                officers and directors of the insurer that demonstrates 
                a level of competency, experience, and integrity 
                sufficient to indicate that permitting the insurer to 
                conduct business in the United States would not be 
                contrary to the interests of United States 
                policyholders, creditors, or the general public; and
                    [(B) biographical, management, and operational 
                information, as the Secretary shall provide, on any 
                persons that control the insurer.
            [(7) Insurance experience.--The foreign insurer shall--
                    [(A) have been actively and continuously engaged in 
                the business of insurance as a direct insurer for a 
                period of not less than 3 years ending upon the 
                submission of an application under section 102;
                    [(B) be a wholly owned subsidiary of an insurer 
                actively and continuously engaged in the business of 
                insurance as a direct insurer for a period of not less 
                than 3 years ending upon the submission of an 
                application under section 102; or
                    [(C) be the continuing corporation resulting from a 
                merger or consolidation of insurers, at least one of 
                which has been actively and continuously engaged in the 
                business of insurance as a direct insurer for a period 
                of not less than 3 years ending upon the submission of 
                an application under section 102.
            [(8) Other.--The foreign insurer shall meet any other 
        requirements relating to the solvency or capacity, or safety 
        and soundness of the business practices of the insurer, that 
        are established by the Secretary as the Secretary may determine 
        are reasonably necessary to protect the interests of United 
        States policyholders, creditors, or the general public.
    [(b) Waiver.--The Secretary may reduce or waive any of the 
requirements under paragraphs (3) through (8) of subsection (a) with 
respect to a foreign insurer if the Secretary determines on a case-by-
case basis that the foreign insurer has demonstrated, to the 
satisfaction of the Secretary, experience, competence, and capacity to 
safely and soundly engage in the business of insurance in the United 
States.

[SEC. 105. FINANCIAL STATEMENTS.

    [(a) Requirement.--
            [(1) Financial statements submitted to foreign 
        regulators.--Each foreign direct insurer shall--
                    [(A) upon application under section 102 for 
                certification as a certified foreign direct insurer, 
                and
                    [(B) in the case of a certified foreign direct 
                insurer, on an annual basis, for purposes of renewing 
                certification,
        submit to the Secretary the financial statements of the 
        insurer, and of any persons that control the insurer, that are 
        required to be submitted to the foreign insurance regulators 
        for the insurer.
            [(2) Independent audit.--Each financial statement submitted 
        to the Secretary under paragraph (1) shall include an audit 
        conducted by a independent certified public accountant or other 
        qualified independent auditor in accordance with generally 
        accepted auditing standards or the auditing standards of the 
        applicable country (if the Secretary determines such standards 
        are comparable). The audit shall include a certification by the 
        accountant or auditor of the amount of all loss reserves of the 
        foreign direct insurer.
    [(b) Additional Information.--The Secretary may at any time require 
any certified foreign direct insurer or foreign direct insurer applying 
for certification, to submit to the Secretary, in addition to the 
information submitted under subsection (a), any information that the 
Secretary considers reasonable and necessary to determine the financial 
condition of the insurer.
    [(c) Accounting Standards.--The Secretary shall evaluate and adjust 
any financial statements and information submitted under this section 
that are not prepared in accordance with the accounting standards 
established under subsection (d) as may be necessary to conform to such 
accounting standards.
    [(d) Establishment of Standards.--
            [(1) In general.--The Secretary shall establish accounting 
        standards for determining the net worth of foreign direct 
        insurers and the compliance of such insurers with any risk-
        based capital standards established under section 106.
            [(2) Consideration of established accounting principles.--
        In establishing the accounting standards, the Secretary shall 
        take into consideration (A) generally accepted accounting 
        principles, (B) United States statutory accounting principles, 
        (C) the results of the study under section 163 and the 
        recommendations of the Comptroller General contained in the 
        report under such section, and (D) the specific characteristics 
        of the insurance business and reinsurers.

[SEC. 106. AUTHORITY TO ESTABLISH RISK-BASED CAPITAL STANDARDS.

    [(a) Authority.--The Secretary may, by regulation, establish risk-
based capital standards under this section requiring a foreign direct 
insurer to have a net worth appropriate to the underwriting, financial, 
investment, and other risk assumed by the insurer (as provided under 
subsection (b)(1)), and may require, for certification as a certified 
foreign direct insurer, that a foreign direct insurer comply with such 
standards.
    [(b) Content.--
            [(1) In general.--Any risk-based capital standards 
        established under this section shall require a foreign direct 
        insurer to maintain an amount of capital that is sufficient, as 
        determined by the Secretary, for the foreign insurer to 
        maintain minimum capital amounts taking into account the nature 
        and type of risks underwritten by the insurer, the premium 
        volume of risks underwritten by the insurer, the composition, 
        quality, duration, and liquidity of the insurer's investment 
        portfolio, and the adequacy of the capital reserves of the 
        insurer, and such other risks as the Secretary considers 
        appropriate.
            [(2) Capital levels.--Any risk-based capital standards 
        established under this section may include various capital 
        levels designed to identify the seriousness of any capital 
        inadequacies of a foreign insurer.
            [(3) Enforcement.--The Secretary may provide that if the 
        amount of capital maintained by a foreign insurer does not meet 
        or exceed the amount required to be maintained under the 
        various risk-based capital standards, the Secretary may take 
        actions under subtitle C to enforce such requirements and may 
        take other actions as the Secretary considers appropriate to 
        facilitate compliance with such requirements.

            [Subtitle B--Certification of Foreign Reinsurers

[SEC. 121. REQUIREMENT FOR CLAIMING CREDIT FOR REINSURANCE.

    [No United States insurer may claim reinsurance obtained from a 
foreign reinsurer after the date provided in section 169(c) as an asset 
or deduction from liability for purposes of any financial statement 
(including financial statements required under this title) unless the 
foreign reinsurer is certified under this subtitle by the Secretary as 
a certified foreign reinsurer.

[SEC. 122. APPLICATION.

    [The Secretary shall provide for a foreign reinsurer to apply, in 
the form and manner determined by the Secretary, for certification 
under this subtitle as a certified foreign reinsurer.

[SEC. 123. CERTIFICATION PROCEDURE.

    [(a) In General.--The Secretary may certify a foreign reinsurer as 
a certified foreign reinsurer for purposes of this title only if--
            [(1) the foreign reinsurer submits an application under 
        section 122 containing such information as the Secretary may 
        require to determine whether the foreign insurer complies with 
        the standards established under section 124, together with an 
        application fee in the amount determined under section 164(a);
            [(2) the Secretary determines that the foreign insurer 
        complies with the requirements under section 124; and
            [(3) the Secretary determines that the foreign insurer has 
        complied with the requirements under section 125.
    [(b) Requirements for Foreign Reinsurers Not Seeking 
Certification.--The Secretary may reduce or waive the requirements 
under sections 124 and 125 as the Secretary determines appropriate, 
with respect to any foreign reinsurer that submits to the Secretary, 
before the date provided in section 169(c), written notice that the 
foreign reinsurer does not intend to apply for certification under this 
subtitle and will comply with any requirements pursuant to this 
subsection. In making any such determinations, the Secretary shall 
consider the United States reinsurance obligations of the foreign 
reinsurer, the adequacy of insurance regulation in the country of 
domicile of the foreign reinsurer, and the needs and protections of 
United States policyholders, creditors, and the general public.

[SEC. 124. REQUIREMENTS FOR FOREIGN REINSURERS.

    [(a) In General.--Each foreign reinsurer shall comply with the 
following requirements:
            [(1) Minimum net worth and risk-based capital standards.--
        The foreign reinsurer shall have a net worth in an amount not 
        less than $20,000,000 (or an aggregate amount of not less than 
        $10,000,000,000, in the case of a group of incorporated 
        reinsurers under common administration), or such higher amount 
        as the Secretary may require based on the amount of business 
        transacted by the foreign reinsurer and the value of the 
        insurance ceded to the foreign reinsurer and shall comply with 
        any risk-based capital standards established by the Secretary 
        under section 126. The Secretary shall determine the net worth 
        of a foreign reinsurer and may adjust the value of any assets 
        and liabilities of a reinsurer, for purposes of this paragraph, 
        in accordance with the accounting standards established by the 
        Secretary pursuant to section 125(d).
            [(2) Policyholder security.--The foreign reinsurer shall 
        secure the interests of United States policyholders by 
        compliance with at least 1 of the following subparagraphs:
                    [(A) Trust fund.--The foreign reinsurer shall 
                establish and, at all times, maintain at a qualified 
                financial institution in the United States an 
                irrevocable trust, which shall meet the following 
                requirements:
                            [(i) Availability of proceeds.--The trust 
                        instrument shall provide that contested claims 
                        shall be valid and enforceable upon the final 
                        order of any court of competent jurisdiction in 
                        the United States. Legal title to assets of the 
                        trust shall be vested in the trustees of the 
                        trust and all assets shall be available to meet 
                        the United States reinsurance obligations of 
                        the reinsurer, notwithstanding any other 
                        specified use of the trust. The trust shall 
                        remain in effect for such time as the insurer 
                        has outstanding obligations due under 
                        reinsurance obligations subject to the trust.
                            [(ii) Balance.--Except as provided in 
                        subparagraph (C), the trust fund shall have a 
                        balance, at all times, of cash, readily 
                        marketable securities, and letters of credit, 
                        acceptable in the determination of the 
                        Secretary, in an amount not less than--
                                    [(I) for a single assuming insurer, 
                                $5,000,000;
                                    [(II) for an insurer that is a 
                                group including incorporated and 
                                individual unincorporated underwriters, 
                                the sum of $100,000,000 and the 
                                aggregate amount of the United States 
                                reinsurance obligations of the insurer, 
                                plus an amount equal to all other 
                                liabilities secured by the trust; and
                                    [(III) for an insurer that is a 
                                group of incorporated insurers under 
                                common administration, the sum of 
                                $100,000,000 and the aggregate amount 
                                of the United States reinsurance 
                                obligations pursuant to reinsurance 
                                contracts subscribed to by members of 
                                the group and issued by or through each 
                                member of the group.
                            [(iii) Unsafe financial conditions.--The 
                        Secretary may increase the minimum balance 
                        required to be maintained under subparagraph 
                        (B) by a reinsurer, on a case-by-case basis, if 
                        the Secretary determines that the reinsurer is 
                        operating in a manner likely to result in an 
                        unsafe or unsound financial condition.
                The Secretary may develop and require the use of 
                standard forms, agreements, and contracts for use in 
                establishing trusts under this paragraph. The trust 
                agreement shall require the qualified financial 
                institution to serve at all times as trustee and shall 
                provide that the Secretary shall have access to such 
                books and records regarding the trust fund as may be 
                necessary to conduct audits required under section 
                141(c). Notwithstanding any Federal or State law, if 
                the reinsurer is placed in supervision, rehabilitation, 
                or liquidation, or any equivalent status by the State 
                or country of its domicile, or the Secretary determines 
                pursuant to regulations issued by the Secretary that 
                the condition of the reinsurer is such that the further 
                transaction of business by the reinsurer will be 
                hazardous to the interests of United States 
                policyholders or creditors, or to the public, then the 
                Secretary shall have the sole authority for 
                distributing the proceeds of any trust fund under this 
                subparagraph for payment of valid claims of the United 
                States reinsurance obligations of the reinsurer and 
                other claimants under such policies. The trustees of 
                the trust shall submit a report in writing to the 
                Secretary annually, not later than the date established 
                by the Secretary by regulation. The report shall state 
                the balance of the trust, list the investments of the 
                trust for the 12-month period for which the report is 
                made, and certify the date of the termination of the 
                trust with respect to new business (if planned) or 
                certify that the trust will not expire before the date 
                occurring 12 months after the expiration of the 12-
                month period for which the report is made.
                    [(B) Other security.--The foreign reinsurer shall 
                fund all United States reinsurance obligations of the 
                reinsurer in the form of--
                            [(i) cash under the control of the ceding 
                        United States insurer;
                            [(ii) a clean, irrevocable, unconditional, 
                        and automatically renewable letter of credit 
                        issued by a qualified financial institution and 
                        held by the ceding insurer; or
                            [(iii) any other form of funding that the 
                        Secretary determines is appropriate.
            [(3) Agent for service of process.--The foreign reinsurer 
        shall appoint and maintain, in the form and manner required by 
        the Secretary, an agent in the United States upon whom process 
        may be served in any action, suit, or proceeding.
            [(4) Jurisdiction of courts.--
                    [(A) In general.--The foreign reinsurer shall agree 
                to submit to the jurisdiction of any court of the 
                United States or of any State, of competent 
                jurisdiction, and to be fully bound by its decision.
                    [(B) Arbitration.--The provisions of subparagraph 
                (A) may not be construed to annul, alter, or affect any 
                obligation of the parties to a reinsurance agreement to 
                arbitrate or otherwise resolve their disputes that is 
                established by such an agreement.
            [(5) Regulation by domicile.--The foreign reinsurer shall 
        annually submit to the Secretary a certificate of compliance, 
        certificate of good standing, or equivalent documentation (as 
        determined by the Secretary) properly attested by the foreign 
        insurance regulator for the domicile of the reinsurer, 
        evidencing authority under the laws of the domicile of the 
        reinsurer to engage in the business of reinsurance in such 
        domicile.
            [(6) Biographical information.--The foreign reinsurer shall 
        annually submit to the Secretary, in the form and manner 
        determined by the Secretary--
                    [(A) biographical information on all senior 
                officers and directors of the reinsurer that 
                demonstrates a level of competency, experience, and 
                integrity sufficient to indicate that permitting the 
                reinsurer to conduct business in the United States 
                would not be contrary to the interests of United States 
                cedants, policyholders, creditors, or the general 
                public; and
                    [(B) biographical, management, and operational 
                information, as the Secretary shall provide, on any 
                persons that control the reinsurer.
            [(7) Insurance experience.--The foreign reinsurer shall--
                    [(A) have been actively and continuously engaged in 
                the business of insurance as a reinsurer for a period 
                of not less than 3 years ending upon the submission of 
                an application under section 122;
                    [(B) be a wholly owned subsidiary of an insurer and 
                continuously engaged in the business of insurance as a 
                reinsurer for a period of not less than 3 years ending 
                upon the submission of an application under section 
                122; or
                    [(C) be the continuing corporation resulting from a 
                merger or consolidation of insurers, at least one of 
                which has been actively and continuously engaged in the 
                business of insurance as a reinsurer for a period of 
                not less than 3 years ending upon the submission of an 
                application under section 122.
            [(8) Other.--The foreign reinsurer shall meet any other 
        requirements relating to the solvency or capacity, or safety 
        and soundness of the business practices of the reinsurer, that 
        are established by the Secretary as the Secretary may determine 
        are reasonably necessary to protect the interest of United 
        States policyholders, creditors, and the general public.
    [(b) Waiver.--The Secretary may reduce or waive any of the 
requirements under paragraphs (3) through (8) of subsection (a) with 
respect to a foreign reinsurer if the Secretary determines on a case-
by-case basis that the foreign reinsurer has demonstrated, to the 
satisfaction of the Secretary, experience, competence, and capacity to 
safely and soundly engage in the business of reinsurance in the United 
States.

[SEC. 125. FINANCIAL STATEMENTS.

    [(a) Requirement.--
            [(1) Financial statements submitted to foreign 
        regulators.--Each foreign reinsurer shall--
                    [(A) upon application under section 122 for 
                certification as a certified foreign reinsurer, and
                    [(B) in the case of a certified foreign reinsurer, 
                on an annual basis, for purposes of renewing 
                certification,
        submit to the Secretary the financial statements of the 
        reinsurer, and of any persons that control the reinsurer, that 
        are required to be submitted to the foreign insurance 
        regulators for the reinsurer.
            [(2) Independent audit.--Each financial statement submitted 
        to the Secretary under paragraph (1) shall include an audit 
        conducted by a independent certified public accountant or other 
        qualified independent auditor in accordance with generally 
        accepted auditing standards or the auditing standards of the 
        applicable country (if the Secretary determines such standards 
        are comparable). The audit shall include a certification by the 
        accountant or auditor of the amount of all loss reserves of the 
        foreign reinsurer.
    [(b) Additional Information.--The Secretary may at any time require 
any certified foreign reinsurer or foreign reinsurer applying for 
certification, to submit to the Secretary, in addition to the 
information submitted under subsection (a), any information that the 
Secretary considers reasonable and necessary to determine the financial 
condition of the reinsurer.
    [(c) Accounting Standards.--The Secretary shall evaluate and adjust 
any financial statements and information submitted under this section 
that are not prepared in accordance with the accounting standards 
established under subsection (d) as may be necessary to conform to such 
accounting standards.
    [(d) Establishment of Standards.--
            [(1) In general.--The Secretary shall establish accounting 
        standards for determining the net worth of foreign reinsurers 
        and the compliance of such reinsurers with any risk-based 
        capital standards established under section 126.
            [(2) Consideration of established accounting principles.--
        In establishing the accounting standards, the Secretary shall 
        take into consideration (A) generally accepted accounting 
        principles, (B) United States statutory accounting principles, 
        (C) the results of the study under section 163 and the 
        recommendations of the Comptroller General contained in the 
        report under such section, and (D) the specific characteristics 
        of the insurance business and reinsurers.

[SEC. 126. AUTHORITY TO ESTABLISH RISK-BASED CAPITAL STANDARDS.

    [(a) Authority.--The Secretary may, by regulation, establish risk-
based capital standards under this section requiring a foreign 
reinsurer to have a net worth appropriate to the underwriting, 
financial, investment, and other risk assumed by the insurer (as 
provided under subsection (b)(1)), and may require, for certification 
as a certified foreign reinsurer, that a foreign reinsurer comply with 
such standards.
    [(b) Content.--
            [(1) In general.--Any risk-based capital standards 
        established under this section shall require a foreign 
        reinsurer to maintain an amount of capital that is sufficient, 
        as determined by the Secretary, for the foreign reinsurer to 
        maintain minimum capital amounts taking into account the nature 
        and type of risks assumed by the insurer, the premium volume of 
        risks assumed by the reinsurer, the composition, quality, 
        duration, and liquidity of the reinsurer's investment 
        portfolio, and the adequacy of the capital reserves of the 
        reinsurer, and such other risks as the Secretary considers 
        appropriate.
            [(2) Capital levels.--Any risk-based capital standards 
        established under this section may include various capital 
        levels designed to identify the seriousness of any capital 
        inadequacies of a foreign reinsurer.
            [(3) Enforcement.--The Secretary may provide that if the 
        amount of capital maintained by a foreign reinsurer does not 
        meet or exceed the amount required to be maintained under the 
        various risk-based capital standards, the Secretary may take 
        actions under subtitle C to enforce such requirements and may 
        take other actions as the Secretary considers appropriate to 
        facilitate compliance with such requirements.

                        [Subtitle C--Enforcement

[SEC. 141. EXAMINATIONS OF FOREIGN INSURERS.

    [(a) In General.--The Secretary shall establish standards under 
this section for examinations of foreign insurers to determine their 
financial condition.
    [(b) Timing.--The Secretary--
            [(1) shall conduct an examination under this section of 
        each foreign insurer applying for certification under section 
        102 or 122; and
            [(2) may conduct an examination of a foreign insurer at any 
        time the Secretary considers an examination reasonable and 
        necessary to determine the financial condition of the insurer.
    [(c) Audits of Trust Funds.--At any time the Secretary considers an 
audit reasonable and necessary to determine the financial condition of 
the trust fund established pursuant to section 104(2) or 124(2) by a 
foreign insurer, the Secretary may--
            [(1) conduct an audit of the trust fund; or
            [(2) require the insurer to provide for an audit of the 
        trust fund, conducted by a independent certified public 
        accountant or other qualified independent auditor in accordance 
        with the accounting standards established under section 105(d) 
        or 125(d), as applicable, and to submit the results of the 
        audit to the Secretary.
    [(d) Access.--Each foreign insurer examined pursuant to this 
section shall provide the Secretary access to any books and records of 
the insurer for purpose of conducting any examination or audit under 
this section.

[SEC. 142. TERMINATION AND SUSPENSION OF CERTIFICATION.

    [(a) Termination of Certification.--
            [(1) Voluntary termination.--
                    [(A) Notice.--Any foreign insurer may terminate the 
                insurer's status as a certified foreign insurer if such 
                foreign insurer provides written notice to the 
                Secretary of the insurer's intent to terminate such 
                status not less than 90 days before the effective date 
                of such termination.
                    [(B) Cessation of business.--With respect to 
                foreign insurers that terminate their certified status 
                pursuant to this paragraph, the Secretary shall issue 
                regulations providing for--
                            [(i) the termination, in an orderly and 
                        appropriate manner, of the activities of such 
                        insurers relating to the conducting of the 
                        business of foreign direct insurance or foreign 
                        reinsurance; and
                            [(ii) the manner and timing for such 
                        insurers to obtain access to the proceeds of 
                        the trust fund of the insurer under section 
                        104(2) or section 124(2), as applicable.
            [(2) Involuntary termination.--
                    [(A) Grounds.--The Secretary may take action under 
                this paragraph to terminate the status of a foreign 
                insurer if the Secretary determines that--
                            [(i) a certified foreign insurer or the 
                        directors, officers, managers, or trustees of a 
                        certified foreign insurer have engaged or are 
                        engaging in unsafe or unsound practices in 
                        conducting the business of the foreign insurer;
                            [(ii) a certified foreign insurer is in an 
                        unsafe or unsound condition to continue 
                        operations as a certified foreign insurer; or
                            [(iii) a certified foreign insurer or the 
                        directors or trustees of a certified foreign 
                        insurer have violated any applicable law, 
                        regulation, order, condition imposed in writing 
                        by the Secretary in connection with the 
                        certification of the foreign insurer as a 
                        certified foreign insurer, or any written 
                        agreement entered into between the certified 
                        foreign insurer and the Secretary.
                    [(B) Notice to appropriate state insurance 
                regulators.--Upon any determination by the Secretary 
                that the grounds exist to take action under this 
                paragraph, the Secretary shall notify each appropriate 
                State insurance regulator of the determination and the 
                facts and circumstances on which such determination is 
                based, and consult with the regulator regarding the 
                action proposed to be taken.
                    [(C) Notice to foreign insurer.--Upon any 
                determination by the Secretary to take action under 
                this paragraph, the Secretary shall--
                            [(i) serve written notice to the foreign 
                        insurer of the Secretary's intention to 
                        terminate the certified status of the foreign 
                        insurer;
                            [(ii) provide the foreign insurer with a 
                        statement of the charges on the basis of which 
                        the determination to terminate such insurer's 
                        certified status was made; and
                            [(iii) notify the foreign insurer of the 
                        date (not less than 30 days after notice under 
                        this subparagraph) and place for a hearing 
                        before the Secretary (or any person designated 
                        by the Secretary) with respect to the 
                        termination of the foreign insurer's certified 
                        status.
                    [(D) Issuance of order.--If, on the basis of the 
                evidence presented at a hearing before the Secretary 
                (or any person designated by the Secretary for such 
                purpose) and the written findings of the Secretary (or 
                such person) with respect to such evidence (which shall 
                be conclusive), the Secretary finds that any unsafe or 
                unsound practice or condition or any violation 
                specified in the notice to an foreign insurer under 
                subparagraph (C) has been established, the Secretary 
                may issue an order terminating the certified status of 
                such foreign insurer effective as of a date subsequent 
                to such finding. In any such hearing, all issues shall 
                be determined on the record subject to the requirements 
                of section 554 of title 5, United States Code.
                    [(E) Appearance and consent to termination.--Unless 
                the foreign insurer appears at the hearing by a duly 
                authorized representative, the insurer shall be deemed 
                to have consented to the termination of its status as a 
                certified foreign insurer and the Secretary may issue 
                an order terminating such status.
                    [(F) Judicial review.--Any foreign insurer whose 
                certified status has been terminated by order of the 
                Secretary under this paragraph shall have the right of 
                judicial review of such order only to the same extent 
                as provided for the review of orders under section 
                143(f).
                    [(G) Publication of notice of termination.--The 
                Secretary may publish notice of termination under this 
                paragraph and the foreign insurer shall give notice of 
                such termination to each of its policyholders and 
                cedants at the last address of record on the books of 
                the foreign insurer, in such manner and at such time as 
                the Secretary may consider to be necessary and may 
                order for the protection of policyholders and cedants.
    [(b) Temporary Suspension of Certification.--
            [(1) In general.--The Secretary may issue a temporary order 
        suspending the certified status of the foreign insurer if, 
        after consultation with the appropriate State insurance 
        regulators, the Secretary initiates a termination proceeding 
        under subsection (a)(2) and finds with respect to a certified 
        foreign insurer that--
                    [(A) such foreign insurer (or any of its directors, 
                officers, managers, or trustees) is engaging in an 
                unsafe or unsound practice in conducting the business 
                of the foreign insurer;
                    [(B) such foreign insurer is in an unsafe or 
                unsound condition to continue operating as a certified 
                foreign insurer; or
                    [(C) such foreign insurer (or any of its directors, 
                officers, managers, or trustees) has violated any 
                applicable law, rule, regulation, or order, or any 
                condition imposed in writing by the Secretary, or any 
                written agreement entered into with the Secretary,
            [(2) Effective period.--Any order issued under paragraph 
        (1) shall become effective not earlier than 10 days from the 
        date of service upon the foreign insurer and, unless set aside, 
        limited, or suspended by a court in proceedings authorized 
        hereunder, such temporary order shall remain effective and 
        enforceable until an order of the Secretary under subsection 
        (a)(2)(D) becomes final or until the Secretary dismisses the 
        proceedings under subsection (a)(2).
            [(3) Judicial review.--Before the expiration of the 10-day 
        period beginning on the date any temporary order has been 
        served upon a foreign insurer under paragraph (1), such foreign 
        insurer may apply to the United States District Court for the 
        District of Columbia for an injunction setting aside, limiting, 
        or suspending the enforcement, operation, or effectiveness of 
        such order, and such court shall have jurisdiction to issue 
        such injunction.
            [(4) Continuation of applicability of requirements.--A 
        foreign insurer for which a temporary order has been issued 
        under this subsection shall continue to be subject to the 
        requirements of this title applicable to foreign insurers and 
        certified foreign insurers and the Secretary shall have the 
        same powers and rights with respect to such foreign insurer as 
        in the case of a certified foreign insurer, subject to the 
        administrative proceedings as provided in this title.
            [(5) Publication of order.--A foreign insurer for which a 
        temporary order has been issued under this subsection shall 
        give notice of the order to each of its policyholders and 
        cedants in such manner and at such times as the Secretary may 
        find to be necessary and may order for the protection of the 
        policyholders and cedants. If the Secretary determines that the 
        foreign insurer has not substantially complied with the notice 
        to policyholders and cedants required by the Secretary, the 
        Secretary may provide such notice in such manner as the 
        Secretary may find to be necessary and appropriate.
    [(c) Final Decisions to Terminate Certification.--The Secretary 
shall make, and may not delegate, any decision to--
            [(1) issue a temporary order terminating certification of a 
        foreign insurer; or
            [(2) issue a final order terminating certification of a 
        foreign insurer.

[SEC. 143. CEASE-AND-DESIST ORDERS.

    [(a) Cease-and-Desist Orders.--
            [(1) Grounds for issuance.--The Secretary may issue and 
        serve upon a foreign insurer or an insurer-affiliated party a 
        notice of charges under this subsection if, in the 
        determination of the Secretary--
                    [(A) the foreign insurer or insurer-affiliated 
                party is in an unsafe or unsound condition;
                    [(B) the foreign insurer or insurer-affiliated 
                party is engaging or has engaged, or the Secretary has 
                reasonable cause to believe that the foreign insurer or 
                insurer-affiliated party is about to engage, in an 
                unsafe or unsound practice in conducting the business 
                of such foreign insurer; or
                    [(C) the foreign insurer or insurer-affiliated 
                party is violating or has violated, or the Secretary 
                has reasonable cause to believe that the foreign 
                insurer or insurer-affiliated party is about to 
                violate, a law, rule, or regulation, or any condition 
                imposed in writing by the Secretary or any written 
                agreement entered into with the Secretary.
            [(2) Contents of notice of charges.--The notice shall 
        contain a statement of the facts constituting the unsafe or 
        unsound condition, the unsafe or unsound practice or practices, 
        or the alleged violation or violations, and shall fix a time 
        and place at which a hearing will be held to determine whether 
        an order to cease and desist therefrom should issue against the 
        foreign insurer or insurer-affiliated party.
            [(3) Hearing and failure to appear.--Such hearing shall be 
        fixed for a date not earlier than 30 days nor later than 60 
        days after service of such notice unless an earlier or a later 
        date is set by the Secretary at the request of any party so 
        served. Unless the party or parties so served appears at the 
        hearing personally or by a duly authorized representative, the 
        party shall be deemed to have consented to the issuance of the 
        cease-and-desist order under paragraph (4).
            [(4) Issuance of order.--In the event of consent under 
        paragraph (3) or if, upon the record made at any such hearing, 
        the Secretary finds that any unsafe or unsound condition, 
        unsafe or unsound practice, or violation specified in the 
        notice of charges has been established, the Secretary may issue 
        and serve upon the foreign insurer or insurer-affiliated party 
        an order to cease and desist from any such violation or 
        practice. Such order may, by provisions which may be mandatory 
        or otherwise, require the foreign insurer or insurer-affiliated 
        party to cease and desist from the same, and, further, to take 
        affirmative action as provided in subsection (c) to correct the 
        conditions resulting from any such condition, practice, or 
        violation.
            [(5) Effective date.--A cease-and-desist order under this 
        subsection shall become effective upon the date specified in 
        the order or, if no date is specified, upon the expiration of 
        the 30-day period beginning upon service of the order upon the 
        foreign insurer or other person concerned and shall remain 
        effective and enforceable as provided therein, except to such 
        extent as it is stayed, modified, terminated, or set aside by 
        action of the Secretary or a reviewing court.
    [(b) Temporary Cease-and-Desist Orders.--
            [(1) Grounds for issuance.--Whenever the Secretary 
        determines that the unsafe or unsound condition, the unsafe or 
        unsound practice or practices, or the violation or threatened 
        violation specified in the notice of charges served upon a 
        foreign insurer or insurer-affiliated party pursuant to 
        subsection (a)(1), or the continuation thereof, is likely--
                    [(A) to cause insolvency or significant dissipation 
                of assets or earnings of the foreign insurer, or
                    [(B) to weaken the condition of the foreign insurer 
                or otherwise prejudice the interests of its 
                policyholders or cedants prior to the completion of the 
                proceedings conducted pursuant to subsection (a),
        the Secretary may issue a temporary order requiring the foreign 
        insurer or insurer-affiliated party to cease and desist from 
        any such violation or practice and to take affirmative action 
        to prevent or remedy such insolvency, dissipation, condition, 
        practice, violation, or prejudice pending completion of such 
        proceedings.
            [(2) Effective date.--An order under this subsection shall 
        become effective upon service upon the foreign insurer or such 
        party participating in the conduct of the affairs of the 
        foreign insurer and, unless set aside, limited, or suspended by 
        a court in proceedings authorized by paragraph (3), shall 
        remain effective and enforceable pending the completion of the 
        administrative proceedings pursuant to such notice and until 
        such time as the Secretary dismisses the charges specified in 
        such notice, or if a cease-and-desist order is issued against 
        the foreign insurer or such party, until the effective date of 
        such order.
            [(3) Judicial review.--Within 10 days after a foreign 
        insurer or insurer-affiliated party has been served with a 
        temporary cease-and-desist order under this subsection, the 
        foreign insurer or such party may apply to the United States 
        District Court for the District of Columbia for an injunction 
        setting aside, limiting, or suspending the enforcement, 
        operation, or effectiveness of such order pending the 
        completion of the administrative proceedings pursuant to the 
        notice of charges served upon the foreign insurer or such party 
        under subsection (a)(1), and such court shall have jurisdiction 
        to issue such injunction.
            [(4) Incomplete or inaccurate records.--
                    [(A) Temporary order.--If a notice of charges 
                served under subsection (a)(1) specifies, on the basis 
                of particular facts and circumstances, that a foreign 
                insurer's books and records are so incomplete or 
                inaccurate that the Secretary is unable, through the 
                normal supervisory process, to determine the financial 
                condition of the foreign insurer or the details or 
                purpose of any transaction or transactions that may 
                have a material effect on the financial condition of 
                the foreign insurer, the Secretary may issue a 
                temporary order requiring--
                            [(i) the cessation of any activity or 
                        practice which gave rise, whether in whole or 
                        in part, to the incomplete or inaccurate state 
                        of the books or records; or
                            [(ii) affirmative action to restore such 
                        books or records to a complete and accurate 
                        state, until the completion of the proceedings 
                        initiated under subsection (a)(1).
                    [(B) Effective period.--Any temporary order issued 
                under subparagraph (A)--
                            [(i) shall become effective upon service; 
                        and
                            [(ii) unless set aside, limited, or 
                        suspended by a court in proceedings under 
                        paragraph (3), shall remain in effect and 
                        enforceable until the earlier of--
                                    [(I) the completion of the 
                                proceeding initiated under subsection 
                                (a)(1) in connection with the notice of 
                                charges; or
                                    [(II) the date that the Secretary 
                                determines, by examination or 
                                otherwise, that the foreign insurer's 
                                books and records are accurate and 
                                reflect the financial condition of the 
                                foreign insurer.
            [(5) Injunction.--In the case of violation or threatened 
        violation of, or failure to obey, a temporary cease-and-desist 
        order issued pursuant to paragraph (1), the Secretary may apply 
        to the United States District Court for the District of 
        Columbia for an injunction to enforce such order. If the court 
        determines that there has been such violation or threatened 
        violation or failure to obey, it shall be the duty of the court 
        to issue such injunction.
    [(c) Affirmative Action to Correct Conditions Resulting From 
Violations or Practices.--The authority to issue orders under 
subsections (a) and (b) that requires a foreign insurer or insurer-
affiliated party to take affirmative action to correct or remedy any 
unsafe or unsound condition or conditions resulting from any practice 
or violation, with respect to which such order is issued, includes the 
authority to require such foreign insurer or insurer-affiliated party 
to--
            [(1) make restitution or provide reimbursement, 
        indemnification, or guarantee against loss;
            [(2) rescind agreements or contracts;
            [(3) employ qualified officers or employees (who may be 
        subject to approval by the Secretary at the direction of the 
        Secretary); and
            [(4) take such other action as the Secretary determines to 
        be appropriate.
    [(d) Authority to Limit Activities.--The authority to issue orders 
under subsections (a) and (b) includes the authority to place 
limitations on the activities or functions of a foreign insurer or 
insurer-affiliated party.
    [(e) Standards for Hearings.--
            [(1) Venue.--Any hearing provided for in this section shall 
        be held in the judicial district of the United States District 
        Court for the District of Columbia and shall be conducted in 
        accordance with the provisions of chapter 5 of title 5 of the 
        United States Code.
            [(2) Issuance of order.--After such hearing, and within 90 
        days after the Secretary has notified the parties that the case 
        has been submitted to the Secretary for final decision, the 
        Secretary shall render the decision (which shall include 
        findings of fact upon which its decision is predicated) and 
        shall issue and serve upon each party to the proceeding an 
        order or orders consistent with the provisions of this section.
            [(3) Modification.--Judicial review of any cease and desist 
        order (other than a temporary cease and desist order) shall be 
        exclusively as provided in subsection (f). Unless a petition 
        for review is timely filed as provided in subsection (f)(1) and 
        thereafter until the record in the proceeding has been filed as 
        so provided, the Secretary may at any time, modify, terminate, 
        or set aside any such order upon such notice and in such manner 
        as the Secretary considers proper. Upon such filing of the 
        record, the Secretary may modify, terminate, or set aside any 
        such order with permission of the court.
    [(f) Judicial Review.--
            [(1) Commencement.--Any party to any proceeding under this 
        section may obtain a review of any order served pursuant to 
        this section (other than a temporary cease and desist order 
        issued with the consent, whether actual or deemed, of the 
        foreign insurer or insurer-affiliated party concerned) by the 
        filing in the United States Court of Appeals for the District 
        of Columbia Circuit, within 30 days after the date of service 
        of such order, a written petition praying that the order be 
        modified, terminated, or set aside. The clerk of the court 
        shall transmit a copy of such petition to the Secretary, and 
        thereupon the Secretary shall file in the court the record in 
        the proceeding, as provided in section 2112 of title 28 of the 
        United States Code.
            [(2) Jurisdiction.--Upon the filing of such petition, such 
        court shall have jurisdiction, which upon the filing of the 
        record shall (except as provided in the last sentence of 
        subsection (e)(3)) be exclusive, to affirm, modify, terminate, 
        or set aside, in whole or in part, the order of the Secretary.
            [(3) Review.--Review of such proceedings shall be had as 
        provided in chapter 7 of title 5 of the United States Code.
            [(4) Final judgment.--The judgment and decree of the court 
        shall be final, except that the same shall be subject to review 
        by the Supreme Court upon certiorari, as provided in section 
        1254 of title 28 of the United States Code.
            [(5) No automatic stay.--The commencement of proceedings 
        for judicial review under this subsection shall not, unless 
        specifically ordered by the court, operate as a stay of any 
        order issued by the Secretary.
    [(g) Enforcement and Jurisdiction.--
            [(1) Enforcement.--The Secretary may (in the discretion of 
        the Secretary) apply to any United States district court, or 
        the United States court of any territory, within the 
        jurisdiction of which the foreign insurer transacts business, 
        for the enforcement of any effective and outstanding notice or 
        order issued under this section. Such courts shall have 
        jurisdiction and power to order and require compliance 
        herewith.
            [(2) Jurisdiction.--Except as otherwise provided in this 
        section, no court shall have jurisdiction to affect by 
        injunction or otherwise the issuance or enforcement of any 
        notice or order under this section, or to review, modify, 
        suspend, terminate, or set aside any such notice or order.
    [(h) Civil Monetary Penalty.--
            [(1) First tier.--Any foreign insurer which, and any 
        insurer-affiliated party who--
                    [(A) violates any provision of this title or any 
                regulation issued pursuant to this title,
                    [(B) violates any final order or temporary order 
                issued pursuant to subsection (a) or (b),
                    [(C) violates any condition imposed in writing by 
                the Secretary in connection with the certification of 
                any foreign insurer as a certified foreign insurer, or
                    [(D) violates any written agreement between such 
                foreign insurer and the Secretary,
        shall forfeit and pay a civil penalty of not more than $50,000 
        for each day during which such violation continues.
            [(2) Second tier.--Notwithstanding paragraph (1), any 
        foreign insurer which, and any insurer-affiliated party who--
                    [(A)(i) commits any violation described in any 
                subparagraph of paragraph (1),
                    [(ii) recklessly engages in an unsafe or unsound 
                practice in conducting the affairs of such foreign 
                insurer, or
                    [(iii) breaches any fiduciary duty, and
                    [(B) which violation, practice, or breach--
                            [(i) is part of a pattern of misconduct;
                            [(ii) causes or is likely to cause more 
                        than a minimal loss to such foreign insurer; or
                            [(iii) results in pecuniary gain or other 
                        benefit to such party,
        shall forfeit and pay a civil penalty of not more than $100,000 
        for each day during which such violation, practice, or breach 
        continues.
            [(3) Third tier.--Notwithstanding paragraphs (1) and (2), 
        any foreign insurer which, and any insurer-affiliated party 
        who--
                    [(A) knowingly--
                            [(i) commits any violation described in any 
                        subparagraph of paragraph (1),
                            [(ii) engages in any unsafe or unsound 
                        practice in conducting the affairs of such 
                        foreign insurer, or
                            [(iii) breaches any fiduciary duty, and
                    [(B) knowingly or recklessly causes a substantial 
                loss to such foreign insurer or a substantial pecuniary 
                gain or other benefit to such party by reason of such 
                violation, practice, or breach,
        shall forfeit and pay a civil penalty in an amount not to 
        exceed the applicable maximum amount determined under paragraph 
        (4) for each day during which such violation, practice, or 
        breach continues.
            [(4) Maximum amounts of penalties for any violation 
        described in paragraph (3).--The maximum daily amount of any 
        civil penalty which may be assessed pursuant to paragraph (3) 
        for any violation, practice, or breach described in such 
        subparagraph is--
                    [(A) in the case of any person other than a foreign 
                insurer, an amount to not exceed $500,000; and
                    [(B) in the case of any foreign insurer, an amount 
                not to exceed the lesser of--
                            [(i) $1,000,000; or
                            [(ii) 1 percent of the total assets of such 
                        insurer.
            [(5) Assessment.--
                    [(A) Written notice.--Any penalty imposed under 
                paragraph (1), (2), or (3) may be assessed and 
                collected by the Secretary by written notice.
                    [(B) Finality of assessment.--If, with respect to 
                any assessment under subparagraph (A), a hearing is not 
                requested pursuant to paragraph (8) within the period 
                of time allowed under such paragraph, the assessment 
                shall constitute a final and unappealable order.
            [(6) Authority to modify or remit penalty.--The Secretary 
        may compromise, modify, or remit any penalty that the Secretary 
        may assess or had already assessed under paragraph (1), (2), or 
        (3).
            [(7) Mitigating factors.--In determining the amount of any 
        penalty imposed under paragraph (1), (2), or (3), the Secretary 
        shall take into account the appropriateness of the penalty with 
        respect to--
                    [(A) the size of financial resources and good faith 
                of the foreign insurer or other person charged;
                    [(B) the gravity of the violation;
                    [(C) the history of previous violations; and
                    [(D) such other matters as justice may require.
            [(8) Hearing.--The foreign insurer or other person against 
        whom any penalty is assessed under this subsection shall be 
        afforded an agency hearing if such insurer or person submits a 
        request for such hearing within 20 days after the issuance of 
        the notice of assessment.
            [(9) Collection.--
                    [(A) Referral.--If any foreign insurer or other 
                person fails to pay an assessment after any penalty 
                assessed under this subsection has become final, the 
                Secretary shall recover the amount assessed by action 
                in the appropriate United States district court.
                    [(B) Appropriateness of penalty not reviewable.--In 
                any civil action under subparagraph (A), the validity 
                and appropriateness of the penalty shall not be subject 
                to review.
            [(10) Disbursement.--All penalties collected under 
        authority of this subsection shall be paid to the Secretary and 
        shall be available to the Secretary, in such amounts and to 
        such extent as are or have been provided in appropriation Acts, 
        to carry out this title.
            [(11) Regulations.--The Secretary shall prescribe 
        regulations establishing such procedures as may be necessary to 
        carry out this subsection.
    [(i) Notice Under This Section After Separation From Service.--The 
resignation, termination of employment or participation, or separation 
of an insurer-affiliated party (including a separation caused by the 
closing of the foreign insurer) shall not affect the jurisdiction and 
authority of the Secretary to issue any notice and proceed under this 
section against any such party, if such notice is served before the end 
of the 6-year period beginning on the date such party ceased to be such 
a party with respect to such foreign insurer (whether such date occurs 
before, on, or after the date of the enactment of this Act).
    [(j) Prejudgment Attachment.--
            [(1) In general.--In any action brought by the Secretary 
        pursuant to this section, or in actions brought in aid of, or 
        to enforce an order in, any administrative or other civil 
        action for monetary damages, restitution, or civil monetary 
        penalties brought by the Secretary, the court may, upon 
        application of the Secretary, issue a restraining order that--
                    [(A) prohibits any person subject to the proceeding 
                from withdrawing, transferring, removing, dissipating, 
                or disposing of any funds, assets or other property; 
                and
                    [(B) appoints a temporary receiver to administer 
                the restraining order.
            [(2) Standard.--A permanent or temporary injunction or 
        restraining order shall be granted without bond upon a proper 
        showing that monetary damages, restitution, or civil monetary 
        penalties, as sought by the Secretary, is appropriate.
    [(k) Service.--Any service required or authorized to be made by the 
Secretary under this section may be made by registered mail, or in such 
other manner reasonably calculated to give actual notice as the 
Secretary may by regulation or otherwise provide. Copies of any notice 
or order served by the Secretary upon any foreign insurer or any 
insurer-affiliated party, pursuant to the provisions of this section, 
shall also be sent to the appropriate State insurance regulator.
    [(l) Notice to State Regulators.--In connection with any proceeding 
under subsection (a) or (b)(1) involving a foreign insurer or any 
insurer-affiliated party, the Secretary shall provide the appropriate 
State insurance regulator with notice of the Secretary's intent to 
institute such a proceeding and the grounds therefore. No foreign 
insurer or other party who is the subject of any notice or order issued 
by the Secretary under this section shall have standing to raise the 
requirements of this subsection as ground for attacking the validity of 
any such notice or order.
    [(m) Oaths and Subpoenas.--
            [(1) Authority.--In the course of or in connection with any 
        proceeding under this section, the Secretary (or any designated 
        representative thereof, including any person designated to 
        conduct any hearing under this section) shall have the power--
                    [(A) to administer oaths and affirmations;
                    [(B) to take or cause to be taken depositions; and
                    [(C) to issue, revoke, quash, or modify subpoenas 
                and subpoenas duces tecum.
        The Secretary may make rules and regulations with respect to 
        any such proceedings, claims, examinations, or investigations.
            [(2) Witnesses and documents.--The attendance of witnesses 
        and the production of documents provided for in this subsection 
        may be required from any place in any State or in any territory 
        or other place subject to the jurisdiction of the United States 
        at any designated place where such proceeding is being 
        conducted.
            [(3) Enforcement.--The Secretary or any party to 
        proceedings under this section may apply to the United States 
        District Court for the District of Columbia, or the United 
        States district court for the judicial district or the United 
        States court in any territory in which such proceeding is being 
        conducted, or where the witness resides or carries on business, 
        for enforcement of any subpoena or subpoena duces tecum issued 
        pursuant to this subsection, and such courts shall have 
        jurisdiction and power to order and require compliance 
        therewith.
            [(4) Fees and expenses.--Witnesses subpoenaed under this 
        subsection shall be paid the same fees and mileage that are 
        paid witnesses in the district courts of the United States. Any 
        court having jurisdiction of any proceeding instituted under 
        this section by an foreign insurer or a director or officer 
        thereof, may allow to any such party such reasonable expenses 
        and attorneys' fees as it deems just and proper, and such 
        expenses and fees shall be paid by the foreign insurer or from 
        its assets.
            [(5) Misdemeanor.--Any person who willfully shall fail or 
        refuse to attend and testify or to answer any lawful inquiry or 
        to produce books, papers, correspondence, memoranda, contracts, 
        agreements, or other records, if in such person's power so to 
        do, in obedience to the subpoena of the Secretary, shall be 
        guilty of a misdemeanor and, upon conviction, shall be subject 
        to a fine of not more than $1,000 or to imprisonment for a term 
        of not more than 1 year or both.
    [(n) Acts Outside the United States.--An act or practice outside 
the United States on the part of a foreign insurer or any officer, 
director, employee, or agent thereof may not constitute the basis for 
any action by any officer or agency of the United States under this 
section, unless--
            [(1) such officer or agency alleges a belief that such act 
        or practice has been, is, or is likely to be a cause of or 
        carried on in connection with or in furtherance of an act or 
        practice within any one or more States which, in and of itself, 
        would constitute an appropriate basis for action by a Federal 
        officer or agency under this section; or
            [(2) the alleged act or practice is one which, if proven, 
        would, in the judgment of the Secretary, adversely affect the 
        United States policyholders or cedants of the insurer.
    [(o) Public Disclosures of Final Orders and Agreements.--
            [(1) In general.--The Secretary shall publish and make 
        available to the public on a monthly basis--
                    [(A) any written agreement or other written 
                statement for which a violation may be enforced by the 
                Secretary, unless the Secretary (in the discretion of 
                the Secretary) determines that publication would be 
                contrary to the public interest;
                    [(B) any final order issued with respect to any 
                administrative enforcement proceeding initiated by the 
                Secretary under this section; and
                    [(C) any modification to or termination of any 
                order or agreement made public pursuant to this 
                paragraph.
            [(2) Hearings.--All hearings on the record with respect to 
        any notice of charges issued by the Secretary shall be open to 
        the public, unless the Secretary (in the discretion of the 
        Secretary) determines that holding an open hearing would be 
        contrary to the public interest.
            [(3) Reports to congress.--The Secretary shall prepare a 
        written report as a part of each determination not to hold a 
        public hearing pursuant to paragraph (2) or not to publish a 
        document pursuant to paragraph (1)(A). At the end of each 
        calendar quarter, the Secretary shall submit all such reports 
        to the Congress.
            [(4) Transcript of hearing.--The Secretary shall prepare a 
        transcript that includes all testimony and other documentary 
        evidence for all hearings commenced pursuant to subsection (e). 
        A transcript of public hearings shall be made available to the 
        public pursuant to section 552 of title 5, United States Code.
            [(5) Delay of publication under exceptional 
        circumstances.--If the Secretary makes a determination in 
        writing that the publication of a final order pursuant to 
        paragraph (1)(B) would seriously threaten the safety and 
        soundness of a foreign insurer, the Secretary may delay the 
        publication of the document for a reasonable time.
            [(6) Retention of documents.--The Secretary shall keep and 
        maintain a record, for a period of at least 6 years, of all 
        documents described in paragraph (1) and all informal 
        enforcement agreements and other supervisory actions and 
        supporting documents issued with respect to or in connection 
        with any administrative enforcement proceeding initiated by the 
        Secretary under this section.

[SEC. 144. ACTIONS BY STATE INSURANCE REGULATORS TO ENFORCE 
              REQUIREMENTS APPLICABLE TO FOREIGN INSURERS.

    [(a) In General.--Subject to the provisions of this section, any 
appropriate State insurance regulator may bring a civil action in a 
Federal or State court of competent jurisdiction, on behalf of the 
Secretary, against any foreign insurer that commits any action that 
would make the foreign insurer subject to a civil monetary penalty 
under section 143(h). The court shall have the jurisdiction to enjoin 
such action and apply the appropriate civil monetary penalty under 
section 143(h).
    [(b) Notice to Secretary.--A State insurance regulator may bring an 
action under this section only if the State insurance regulator 
notifies the Secretary in writing, not less than 30 days before the 
commencement of the action, of the regulator's intent to bring the 
action, of the identities of the foreign insurer or persons to be named 
as defendants to the action, and of all information the regulator 
possesses regarding the activity that is the subject of the action that 
may materially affect the Secretary's decision to initiate a proceeding 
to impose a civil monetary penalty under section 143(h) against the 
prospective defendants. Any notice or information received by the 
Secretary pursuant to this subsection shall remain confidential and 
shall not be disclosed to any foreign insurer or person to be named as 
a defendant to the action.
    [(c) Notice by Secretary of Intended Action.--The Secretary shall 
notify a State insurance regulator providing notice under subsection 
(b) of whether the Secretary intends to initiate a proceeding to impose 
a civil monetary penalty under section 143(h) against the prospective 
defendants. Notice under this subsection shall be provided, in writing, 
not later than the expiration of the 30-day period beginning on the 
date that the Secretary receives the written notice under subsection 
(b).
    [(d) Requirements for Action by State Insurance Regulator.--A State 
insurance regulator may bring an action under this section only--
            [(1) after receipt of notice under subsection (c) that the 
        Secretary does not intend to initiate a proceeding to impose a 
        civil monetary penalty under section 143(h) against the 
        prospective defendants;
            [(2) if, upon the expiration of the period referred to in 
        subsection (c), the Secretary has not provided the notice 
        required under subsection (c); or
            [(3) if the Secretary provides notice under subsection (c) 
        that the Secretary intends to initiate a proceeding to impose a 
        civil monetary penalty under section 143(h) against the 
        prospective defendants, but upon the expiration of the 90-day 
        period beginning on the date such notice is sent the Secretary 
        has not initiated such a proceeding.
A notice by the Secretary under paragraph (1), absence of notice by the 
Secretary under paragraph (2), or failure by the Secretary to initiate 
a proceeding under paragraph (3), shall not be admissible as evidence 
of the liability or non-liability of a defendant in any civil 
proceeding commenced by a State insurance regulator pursuant to this 
section. A matter considered by or in the possession of the Secretary 
shall not be discoverable in any civil proceeding commenced by a State 
insurance regulator pursuant to this section.
    [(e) Prohibition of Settlement Without Secretary's Consent.--No 
settlement agreement with regard to any action under this section may 
be entered into or agreed to by any State insurance regulator who 
brought the action on behalf of the Secretary without the prior written 
consent of the Secretary.
    [(f) Share of Penalty.--
            [(1) State actions.--In any action brought under this 
        section, the court shall distribute 50 percent of any civil 
        monetary penalty imposed to the State insurance regulator who 
        brought the action and 50 percent to the Secretary.
            [(2) Civil monetary penalties.--If a State insurance 
        regulator furnishes the Secretary with notice and information 
        pursuant to subsection (b) and such notice and information is a 
        contributing factor in imposing a civil monetary penalty under 
        section 143(h), then the court shall distribute to the State 
        insurance regulator the greater of (A) one-third of the amount 
        of the civil monetary penalty imposed, or (B) the costs of the 
        investigation conducted by the State insurance regulator.

[SEC. 145. CRIMINAL PENALTIES.

    [(a) Submission of False and Misleading Information.--Whoever 
knowingly submits information required under this title to the 
Secretary that is false and misleading shall be fined under title 18, 
United States Code, or imprisoned not more than 30 years, or both.
    [(b) False Representation of Certification.--
            [(1) In general.--Section 709 of title 18, United States 
        Code, is amended by inserting after the undesignated paragraph 
        relating to the Overseas Private Investment Corporation the 
        following new paragraph:
    [``Whoever falsely advertises or represents, or publishes or 
displays any sign, symbol, or advertisement reasonably calculated to 
convey the impression that a foreign insurer that is not a certified 
foreign insurer under title I of the Insurance Consumer Protection Act 
is such a certified foreign insurer; or''.
            [(2) Effective date.--This subsection shall take effect 
        upon the expiration of the 18-month period beginning upon the 
        date of the enactment of this Act.

[SEC. 146. NOTIFICATION TO STATE INSURANCE REGULATORS AND COORDINATION 
              WITH FOREIGN INSURANCE REGULATORS.

    [(a) State Insurance Regulators.--
            [(1) Notice.--Subject to any other requirements of this 
        title, the Secretary shall notify each appropriate State 
        insurance regulator before examining any foreign insurer under 
        this subtitle, terminating or suspending the certification of 
        any certified foreign insurer under this subtitle, issuing any 
        order or taking any other enforcement action authorized against 
        any foreign insurer or insurer-affiliated party pursuant to 
        this subtitle, or imposing any civil monetary penalty or 
        commencing any criminal action pursuant to this subtitle and 
        the amendment made by this subtitle.
            [(2) Effect of requirement.--No foreign insurer or other 
        party who is the subject of any notice or order issued by the 
        Secretary pursuant to subsection shall have standing to raise 
        the requirements of this subsection as ground for attacking the 
        validity of any such notice or order.
    [(b) Foreign Insurance Regulators.--
            [(1) Requesting assistance from foreign insurance 
        regulators.--In conducting any investigation, examination, or 
        enforcement action under this title, the Secretary may--
                    [(A) request the assistance of any foreign 
                insurance regulator; and
                    [(B) maintain an office outside the United States.
            [(2) Providing assistance to foreign insurance 
        regulators.--
                    [(A) In general.--The Secretary may, at the request 
                of any foreign insurance regulator, assist such 
                regulator if such regulator states that the requesting 
                regulator is conducting an investigation to determine 
                whether any person has violated, is violating, or is 
                about to violate any law or regulation relating to 
                insurance or reinsurance matters administered or 
                enforced by the requesting regulator.
                    [(B) Investigation by secretary.--The Secretary 
                may, in the discretion of the Secretary, investigate 
                and collect information and evidence pertinent to a 
                request for assistance under subparagraph (A). Any such 
                investigation shall comply with the laws of the United 
                States and the policies and procedures of the 
                Secretary.
                    [(C) Factors to consider.--In deciding whether to 
                provide assistance under this paragraph, the Secretary 
                shall consider--
                            [(i) whether the requesting regulator has 
                        agreed to provide reciprocal assistance with 
                        respect to insurance and reinsurance matters 
                        within the jurisdiction of the Secretary; and
                            [(ii) whether compliance with the request 
                        would prejudice the public interest of the 
                        United States.
            [(3) Rule of construction.--Paragraphs (1) and (2) shall 
        not be construed to limit the authority of the Secretary to 
        provide or receive assistance or information to or from any 
        foreign authority with respect to any matter.

[SEC. 147. NATIONAL INSURANCE INTELLIGENCE DATABASE.

    [(a) In General.--The Secretary shall collect information regarding 
individuals and other persons that have engaged in any activity in 
violation of any Federal or State law, regulation, or order relating to 
insurance or reinsurance activities. The Secretary shall establish a 
computer-based database of such information and shall regularly update 
the database.
    [(b) Law Enforcement Access.--The Secretary shall make information 
from the database under this section available to appropriate Federal 
and State law enforcement and regulatory agencies upon request.
    [(c) Confidentiality.--Except as provided in subsection (b), 
notwithstanding any other law, regulation, ordinance, any agreement, 
any judgment or order of any court, tribunal, or other officer, or any 
other legal process, the Secretary may not disclose any information 
from the database under this section.

                    [Subtitle D--General Provisions

[SEC. 161. TRANSFER OF INFORMATION WITH STATE INSURANCE REGULATORS.

    [The Secretary shall provide to a State insurance regulator any 
application submitted under section 102 or 122 by a foreign insurer, 
any financial statement or other information submitted under section 
105 or 125 by a foreign insurer, and any other information submitted to 
the Secretary under this title by a foreign insurer, if such 
information is requested by such State insurance regulator for such 
insurer.

[SEC. 162. NATIONAL ADVISORY COUNCIL OF STATE INSURANCE REGULATORS.

    [(a) Establishment.--The Secretary shall establish an advisory 
council to be known as the National Advisory Council of State Insurance 
Regulators.
    [(b) Duties.--The National Advisory Council of State Insurance 
Regulators shall advise the Secretary on activities with respect to the 
requirements for foreign insurers under this title, certification of 
foreign insurers under this title, standards of such certification, and 
any other activities of the Secretary under this title. The Advisory 
Council may submit such advice and recommendations to the Secretary in 
writing and the Secretary shall respond, in writing, to any such 
advice, and shall include in any such response an explanation of any 
actions taken with respect to the advice and any reasons for not 
following any recommendations of the Advisory Council that were not 
adopted by the Secretary.
    [(c) Membership.--
            [(1) Number and appointment.--The National Advisory Council 
        of State Insurance Regulators shall be composed of 10 members 
        appointed by the Secretary subject to the following 
        requirements:
                    [(A) State insurance regulators.--The members shall 
                be the individuals serving as the heads, members of the 
                governing bodies, or the designees of such individuals, 
                of the State insurance regulators of 10 different 
                States.
                    [(B) Diversity among state population.--In 
                appointing the membership of the Advisory Council, the 
                Secretary shall provide that the States represented by 
                members shall differ widely, with respect to each 
                other, in population.
                    [(C) Geographical diversity.--In appointing the 
                membership of the Advisory Council, the Secretary shall 
                provide that the States represented by members include 
                States from the various regions of the United States.
            [(2) Terms.--
                    [(A) In general.--Each member shall be appointed 
                for a term of 2 years, except as provided in 
                subparagraphs (B) and (C).
                    [(B) Terms of initial appointees.--As designated by 
                the Secretary at the time of appointment, of the 
                members first appointed, 5 shall be appointed for terms 
                of 1 year.
                    [(C) Vacancies.--If, before the expiration of the 
                term of a member of the Advisory Council, such member 
                no longer serves as a State insurance regulator, the 
                Secretary shall appoint a successor who shall meet the 
                requirements of this subsection to serve for the 
                remainder of that term. A member may serve after the 
                expiration of that member's term until a successor has 
                taken office.
    [(d) Meetings.--The National Advisory Council of State Insurance 
Regulators shall meet not less frequently than once each calendar 
quarter of each year.
    [(e) Permanent Status.--Section 14(a)(2)(B) of the Federal Advisory 
Committee Act (5 U.S.C. App.; relating to the termination of advisory 
committees) shall not apply to the National Advisory Council of State 
Insurance Regulators.

[SEC. 163. GAO STUDY OF ACCOUNTING PRINCIPLES.

    [(a) Study.--The Comptroller General of the United States shall 
conduct a study of the applicability and appropriateness of generally 
accepted accounting principles and United States statutory accounting 
principles for use in evaluating the financial statements required to 
be submitted under sections 105 and 125 by foreign insurers. The study 
shall be designed to determine what accounting principles are most 
appropriate to the businesses of insurance and reinsurance, taking into 
consideration the characteristics of such businesses and insurers and 
reinsurers.
    [(b) Report.--The Comptroller General shall submit a report to the 
Committee on Banking, Finance and Urban Affairs of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate, not later than the expiration of the 12-month 
period beginning on the date of the enactment of this Act on the 
results of the study. The report shall include a determination of the 
accounting principles most appropriate for use in evaluating financial 
statements under sections 105 and 125, the extent of the applicability 
of such principles for use in such financial statements, identification 
and analysis of any benefits and problems in using such principles for 
such purposes, and any recommendations of the Comptroller General 
regarding the establishment of separate or different standards or 
principles for such use.

[SEC. 164. FEES.

    [(a) Application Fees for Certification.--The Secretary may assess 
and collect a reasonable application fee from foreign insurers applying 
under section 102 or 122 for certification, to cover any costs of the 
application procedure and reviewing applications.
    [(b) Regulatory Fees.--
            [(1) In general.--The Secretary shall, in accordance with 
        this subsection, assess and collect regulatory fees from 
        certified foreign insurers to cover the costs incurred by the 
        Secretary related to certifying and examining foreign insurers 
        under the provisions of this title.
            [(2) Amount of fees.--Fees under this subsection may be 
        assessed and collected from any certified foreign insurer in an 
        amount reasonably based on the proportion of the activities of 
        the Secretary referred to in paragraph (1) that relate to such 
        foreign insurer.

[SEC. 165. FORMS.

    [The Secretary may prescribe the form or forms in which any 
information required under any application, statement, report, or other 
documentation required under this title (or any regulation or order 
issued pursuant to this title) shall be submitted to the Secretary, the 
content of such information, and the standards, procedures, and manner 
of any certification, authentication, or verification to be followed in 
preparing and submitting such information.

[SEC. 166. DETERMINATION OF QUALIFIED FINANCIAL INSTITUTIONS AND 
              CONTROL.

    [(a) Qualified Financial Institutions.--For purposes of this title, 
a qualified financial institution shall be an insured depository 
institution (as such term is defined in section 3(c) of the Federal 
Deposit Insurance Act) that is adequately capitalized (for purposes of 
section 38 of such Act), including a United States branch of a foreign 
bank, and has been determined by the Secretary to meet such additional 
standards of financial condition and standing as the Secretary 
considers necessary and appropriate for purposes of this title.
    [(b) Control.--For purposes of this title, a person shall be 
considered to have control with respect to another person if--
            [(1) such person directly, indirectly, or acting through 1 
        or more other persons, owns, controls, or has the power to vote 
        25 percent or more of any class of voting securities of such 
        other person;
            [(2) such person controls, in any manner, the election of a 
        majority of the directors or trustees of such other person; or
            [(3) the Secretary makes a determination on the record, 
        after notice and opportunity for a hearing, that such person 
        directly or indirectly exercises a controlling influence over 
        the management or policies of such other person; except that, 
        in making any such determination, control shall be presumed to 
        exist if such person directly, indirectly, or acting through 1 
        or more other persons, owns, controls, or has the power to vote 
        10 percent or more of any class of voting securities of such 
        other person.

[SEC. 167. DEFINITIONS.

    [For purposes of this title:
            [(1) Appropriate state insurance regulator.--The term 
        ``appropriate State insurance regulator'' means, with respect 
        to a foreign insurer, the State insurance regulator for any 
        State in which the foreign insurer does a substantial amount of 
        business, as determined by the Secretary.
            [(2) Certified foreign direct insurer.--The term 
        ``certified foreign direct insurer'' means a foreign insurer 
        certified under subtitle A.
            [(3) Certified foreign insurer.--The term ``certified 
        foreign insurer'' means a certified foreign direct insurer or a 
        certified foreign reinsurer.
            [(4) Certified foreign reinsurer.--The term ``certified 
        foreign reinsurer'' means foreign reinsurer certified under 
        subtitle B.
            [(5) Foreign direct insurer.--The term ``foreign direct 
        insurer'' means a foreign insurer that has outstanding United 
        States direct written insurance obligations (not including 
        obligations for life insurance or health insurance).
            [(6) Foreign insurance regulator.--The term ``foreign 
        insurance regulator'' means the agency having principal 
        insurance regulatory authority in any country other than the 
        United States.
            [(7) Foreign insurer.--The term ``foreign insurer'' means 
        an insurer or reinsurer other than--
                    [(A) an insurer or reinsurer organized under the 
                laws of any State; or
                    [(B) the United States branch of a foreign insurer.
        The term includes insurers and reinsurers doing business as 
        single insurers, groups including individual unincorporated 
        underwriters, and groups of incorporated insurers under common 
        administration.
            [(8) Foreign reinsurer.--The term ``foreign reinsurer'' 
        means a foreign insurer that insures any portion of risks 
        undertaken by a United States insurer (not including risks 
        covered by life insurance or health insurance).
            [(9) Health insurance.--The term ``health insurance'' means 
        any health insurance, accident and health insurance, accident 
        and sickness or disability insurance contract or certificate of 
        insurance, whether issued on a group or individual basis, that 
        pays benefits to an insured who becomes ill, injured, or 
        disabled or who receives any medical or dental treatment or 
        therapy covered by the terms of the contract, except contracts 
        or certificates that (A) provide such benefits for illness or 
        injury that results from the liability of another, (B) pay 
        benefits as the result of an occupational injury or disease 
        covered by a contract of workers' compensation and employers' 
        liability insurance, or (C) are issued by a mandatory State 
        pooling plan or any agency or program established or required 
        by the Federal Government.
            [(10) Insurer-affiliated party.--The term ``insurer 
        affiliated party'' means--
                    [(A) any director, officer, employee, or 
                controlling stockholder of, or agent for, a foreign 
                insurer;
                    [(B) any shareholder, consultant, joint venture 
                partner, and any other person as determined by the 
                Secretary (by regulation or case-by-case) who 
                participates in the conduct of the affairs of a foreign 
                insurer; and
                    [(C) any independent contractor (including any 
                attorney, appraiser, actuary, or accountant) who 
                knowingly or recklessly participates in--
                            [(i) any violation of any law or 
                        regulation,
                            [(ii) any breach of fiduciary duty, or
                            [(iii) any unsafe or unsound practice,
                which caused or is likely to cause more than a minimal 
                financial loss to, or a significant adverse affect on, 
                the foreign insurer.
            [(11) Letter of credit.--The term ``letter of credit'' 
        means a clean irrevocable letter of credit issued or confirmed 
        by a qualified financial institution, in a form prescribed by 
        the Secretary.
            [(12) Life insurance.--The term ``life insurance'' means 
        any contract or certificate of insurance, whether issued on a 
        group or individual basis, that is designed primarily to pay 
        benefits to or on behalf of a beneficiary as the result of the 
        death of an individual. The term includes contracts that may 
        also pay benefits, in addition to death benefits, in the form 
        of surrender values, premium deferral in the event of a 
        disability, or income payments prior to the death of the 
        insured. The term also includes any annuity or other contract 
        or certificate of insurance, whether issued on a group or 
        individual basis, that pays an income benefit for the life of 1 
        or more persons or for a specified period of time (including 
        single lump-sum payments), including annuity contracts and 
        certificates under group annuity contracts in the form of 
        guaranteed investment contracts, deposit administration 
        contracts, unallocated funding agreements, allocated funding 
        agreements, structured settlement agreements, lottery 
        contracts, and any immediate or deferred annuity contracts.
            [(13) Readily marketable securities.--The term ``readily 
        marketable securities'' means securities registered for trading 
        on a national securities exchange in accordance with section 12 
        of the Securities Exchange Act of 1934 and any other securities 
        approved by the Secretary.
            [(14) Secretary.--The term ``Secretary'' means the 
        Secretary of the Treasury.
            [(15) State.--The term ``State'' means the States of the 
        United States, the District of Columbia, the Commonwealth of 
        Puerto Rico, Guam, the Virgin Islands, and American Samoa.
            [(16) State insurance regulator.--The term ``State 
        insurance regulator'' means the agency having principal 
        insurance regulatory authority in a State.
            [(17) United states branch of foreign insurer.--The term 
        ``United States branch of foreign insurer'' means the business 
        unit through which insurance business is transacted within the 
        United States by a foreign insurer, whose assets and 
        liabilities pertaining to such business are within the United 
        States, and that has been issued a certificate of authority to 
        transact insurance by 1 or more States.
            [(18) United states direct written insurance obligations.--
        The term ``United States direct written insurance obligations'' 
        means obligations of a direct insurer under a contract of 
        insurance for direct risk in any State (not including risks 
        covered by life insurance or health insurance), including 
        incurred but not reported claims.
            [(19) United states insurer.--The term ``United States 
        insurer'' means an insurer or reinsurer licensed by a State 
        insurance regulator.
            [(20) United states reinsurance obligations.--The term 
        ``United States reinsurance obligations'' means obligations 
        (not including obligations for life insurance or health 
        insurance) under any reinsurance contracts to United States 
        insurers for reported claims, incurred but not reported claims, 
        unearned premiums, losses and loss adjustment expense, and 
        aggregate reserves.

[SEC. 168. RELATION TO STATE LAWS.

    [This title may not be construed to preempt the law of any State, 
except to the extent that such laws are inconsistent with the 
provisions of this title, and then only to the extent of such 
inconsistency. The Secretary is authorized to determine whether such 
inconsistencies exist. The Secretary may not determine that any State 
law is inconsistent with any provision of this title if the law imposes 
requirements that are in addition to the requirements under this title 
and such requirements do not conflict with the requirements under this 
title.

[SEC. 169. EFFECTIVE DATES.

    [(a) Issuance of Regulations.--The Secretary shall issue any 
regulations necessary to carry out this title (including regulations 
establishing standards or requirements for applications under sections 
102 and 122, for foreign insurers under sections 104 and 124, for 
accounting under sections 105 and 125, for examination under section 
141, for termination and suspension of certification under section 142, 
for cease-and-desist orders under section 143, and for qualified 
financial institutions under section 166) not later than the expiration 
of the 18-month period beginning on the date of the enactment of this 
Act.
    [(b) Certification.--Not later than the expiration of the 24-month 
period beginning on the date of the enactment of this Act, the 
Secretary shall commence certifying foreign insurers as certified 
foreign direct insurers and certified foreign reinsurers under 
subtitles A and B, respectively.
    [(c) Requirements for Conducting Direct Insurance and Reinsurance 
Business.--The date referred to in sections 101 and 121 (relating to 
requirements for foreign insurers to conduct direct insurance business 
or to claim credit for reinsurance) shall be the date of the expiration 
of the 30-month period beginning on the date of the enactment of this 
Act.

[TITLE II--DISCLOSURE OF INSURANCE AVAILABILITY AND INSURER INVESTMENT 
                              INFORMATION

[SEC. 201. SHORT TITLE.

    [This title may be cited as the ``Insurance Disclosure Act''.

[SEC. 202. 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, business, and automobile 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 title 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 title is intended to, nor shall 
it be construed to, encourage unsound underwriting practices.

[SEC. 203. ESTABLISHMENT OF GENERAL REQUIREMENTS TO SUBMIT INFORMATION.

    [(a) In General.--The Secretary of Housing and Urban Development 
shall, by regulation, establish requirements for insurers to compile 
and submit information to the Secretary for each annual reporting 
period, in accordance with this title.
    [(b) Consultation.--In establishing the requirements for the 
submission of information under this title, 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. 204. REPORTING OF NONCOMMERCIAL INSURANCE INFORMATION.

    [(a) In General.--The requirements established pursuant to section 
203 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 applicable region and 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 203 shall require that each designated insurer for a 
        designated line of insurance under subparagraph (A) or (B) of 
        section 215(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 203 regarding annual reporting requirements for 
                designated insurers for a designated line of insurance 
                under subparagraph (A) or (B) of section 215(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 
203 shall require each insurer that issues an insurance policy in a 
designated line of insurance under subparagraph (A) or (B) of section 
215(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. 205. 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 
        typically 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 36 months after 
        the date of the 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 
5-year period 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. 206. REPORTING OF BID, PERFORMANCE, AND PAYMENT BONDS FOR SMALL 
              BUSINESSES.

    [(a) In General.--The Secretary shall by regulation establish 
requirements in accordance with section 203 for insurers to compile and 
submit to the Secretary, for each annual reporting period, information 
regarding bid, performance, and payment bonds for small businesses, by 
lines designated under subparagraph (C) of section 215(c)(1), that is 
similar to the information required to be submitted under section 204.
    [(b) Contents.--The regulations under this section shall provide 
for--
            [(1) designation of insurers required to submit the 
        information, pursuant to standards comparable to the standards 
        for designation under section 215(b), and submission of the 
        information on an individual insurer basis;
            [(2) identification of data elements required to be 
        submitted;
            [(3) the information to be submitted by designated MSA and 
        applicable region;
            [(4) the information to be submitted in a manner similar to 
        that required for information submitted under section 204;
            [(5) an appropriate definition of small businesses; and
            [(6) the information to be submitted for each annual 
        reporting period.

[SEC. 207. 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 subparagraphs (A) and (B) of section 215(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 
        title of designated and nondesignated insurers, respectively, 
        for designated MSA's and shall be subject to the provisions of 
        section 204(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 title).
    [(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 224, which shall not be amended or revised after 
        issuance. The Secretary shall (to the extent possible) 
        designate 1 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 6th annual reporting period to which the reporting 
                requirements under this title 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 220(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 the date occurring 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 220(b) relating to such period.
                    [(D) The designations for a 5-year period shall 
                take effect upon the commencement of the first annual 
                reporting period of the 5-year period that begins at 
                least 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. 208. 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 204, 
        205, and 207 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 at least the same or equivalent to 
                the information that is required to be submitted to the 
                Secretary pursuant to sections 204, 205, and 207;
                    [(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 title 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 210(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 required 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 title 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. 209. REPORTING BY PRIVATE MORTGAGE INSURERS.

    [(a) HMDA Reporting.--On an annual basis, the Financial 
Institutions Examination 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 Title.--
            [(1) Certification of noncompliance.--If, for any annual 
        period referred to in subsection (a), such 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 204 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 that begins at least 6 
        months after issuance of such regulations and to each annual 
        reporting period thereafter.

[SEC. 210. 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 204, 205, 207, 208, 209(b), and 
211 if the contractor agrees to collect the information pursuant to the 
terms and conditions of such sections and this title 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 204, 205, 207, and 209(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 title;
                    [(C) the statistical agent has procedures in place 
                that ensure that information reported under the 
                statistical plan in connection with reporting under 
                this title 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 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 title) 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 title.

[SEC. 211. REPORTING OF INFORMATION REGARDING INVESTMENTS BY INSURERS.

    [(a) In General.--The Secretary of Housing and Urban Development 
shall, by regulation, require that each designated insurer that makes a 
designated investment in a property or business located in a designated 
MSA shall compile and submit to the Secretary for each annual reporting 
period, the following information:
            [(1) Direct loans.--
                    [(A) Commercial real estate loans.--The total 
                number of loans for the purchase of commercial real 
                estate made by the designated insurer, the aggregate 
                amount of such loans, and the amount of each such loan, 
                by designated MSA and applicable region in which the 
                real estate for which the loan was made is located.
                    [(B) Single-family mortgages.--The total number of 
                mortgage loans for the purchase of 1- to 4-family 
                dwellings made by the designated insurer, the aggregate 
                amount of such loans, and the amount of each such loan, 
                by designated MSA and applicable region in which the 
                dwelling for which the loan was made is located, which 
                information shall be disaggregated by racial 
                characteristics, income level, and gender of the 
                borrower under the loan.
                    [(C) Commercial and industrial loans.--The total 
                number of commercial and industrial loans made by the 
                designated insurer, the aggregate amount of such loans, 
                and the amount of each such loan, by designated MSA and 
                applicable region in which the property or business 
                involved in the loan is located, which information 
                shall be disaggregated by the size of business of the 
                borrower under the loan and by the ownership 
                characteristic of the business, which shall be 
                classified as either minority-owned, women-owned, or 
                otherwise-owned.
            [(2) Loan purchases.--
                    [(A) Commercial real estate loans.--The total 
                number of loans for the purchase of commercial real 
                estate purchased by the designated insurer, the 
                aggregate amount of such loans, and the amount of each 
                such loan, by designated MSA and applicable region in 
                which the real estate for which the loan was made is 
                located.
                    [(B) Single-family mortgages.--The total number of 
                mortgage loans for the purchase of 1- to 4-family 
                dwellings purchased by the designated insurer, the 
                aggregate amount of such loans, and the amount of each 
                such loan, by designated MSA and applicable region in 
                which the dwelling for which the loan was made is 
                located, which information shall be disaggregated by 
                racial characteristics, income level, and gender of the 
                borrower under the loan.
                    [(C) Commercial and industrial loans.--The total 
                number of commercial and industrial loans purchased by 
                the designated insurer, the aggregate amount of such 
                loans, and the amount of each such loan, by designated 
                MSA and applicable region in which the property or 
                business involved in the loan is located, which 
                information shall be disaggregated by the size of 
                business of the borrower under the loan and by the 
                ownership characteristic of the business, which shall 
                be classified as either minority-owned, women-owned, or 
                otherwise-owned.
            [(3) Other investments.--For such other investments made by 
        the designated insurer, as the Secretary may designate pursuant 
        to subsection (b), the total number of such investments, the 
        aggregate amount of such investments, and the amount of each 
        such investment, by designated MSA and applicable region in 
        which the property or business involved in the investment is 
        located, as determined by the Secretary, which information 
        shall be disaggregated by the size of business of the borrower 
        under the loan and by the ownership characteristic of the 
        business, which shall be classified as either minority-owned, 
        women-owned, or otherwise-owned.
    [(b) Designation of Other Investments.--
            [(1) In general.--For purposes of subsection (a)(3), the 
        Secretary may designate activities and investments other than 
        the investments described in paragraphs (1) and (2) of 
        subsection (a) for which designated insurers shall compile and 
        submit information under this section.
            [(2) Requirement.--In making designations under this 
        subsection, the Secretary shall designate (A) activities and 
        investments that significantly benefit low- and moderate-income 
        families and persons, small businesses in distressed 
        communities, or minority- or women-owned businesses, and (B) 
        activities and investments that contribute to the creation of 
        jobs and economic development of distressed communities.
            [(3) Considerations.--The Secretary shall specifically 
        consider for designation under this subsection investments in 
        community development financial institutions, community 
        development corporations, State-issued bonds, and securities 
        backed by State development funds.
    [(c) Size of Business.--The Secretary shall, by regulation, 
establish various categories of the sizes of businesses, for purposes 
of disaggregating information under paragraphs (1)(C), (2)(C), and (3) 
of subsection (a) by various sizes of businesses.

[SEC. 212. SUBMISSION OF INFORMATION TO SECRETARY AND MAINTENANCE OF 
              INFORMATION.

    [(a) Period of Maintenance.--Each insurer required by this title 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 title 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 214(a)), format, and method for submitting information under 
this title 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. 213. 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 204, 205, 
                208, and 209(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 204, 205, 208, and 209(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 204, 205, 208, and 209(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 204(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 207 and 208 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 207 and 208, 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 207 and 208, aggregated by zip 
                codes, grouped according to location, age of property, 
                income level, and racial characteristics of 
                neighborhoods (where such demographic information is 
                available).
    [(d) Investment Information.--For each annual reporting period, the 
Secretary shall--
            [(1) compile the information submitted under section 211, 
        for each designated MSA--
                    [(A) aggregated by applicable region for all 
                insurers, by designated investment; and
                    [(B) aggregated by applicable region for each 
                insurer, by designated investment; and
            [(2) produce tables for each designated MSA, for each 
        insurer and for all insurers, indicating patterns of designated 
        investments, which shall be aggregated by applicable region, 
        grouped according to racial characteristics, income level, and 
        gender of the borrower or size of business of the borrower and 
        ownership characteristic of the business, as applicable.

[SEC. 214. 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 title and any information compiled by the Secretary under 
        this title.
            [(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 title.
            [(2) Bases of availability.--The system shall provide 
        access in the following manners:
                    [(A) Access to itemized information.--To 
                information submitted under sections 204, 205, 207, 
                208, 209(b), and 211 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 207 or 208, 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 213, on the basis of 
                (i) the insurer submitting the information, and (ii) 
                designated MSA and applicable region (or in the case of 
                rural information submitted under section 207 or 208, 
                on the basis of 5-digit zip code), and on 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 title 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 title, the 
        Secretary may not make available to the public or otherwise 
        disclose any information submitted under this title 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. 215. DESIGNATIONS.

    [(a) Designation of MSA's.--For purposes of this title, 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 title apply (pursuant to section 226), 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 
                224, 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 6th annual reporting period to which the reporting 
                requirements under this title 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 220(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 the date occurring 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 220(b) relating to such period.
                    [(D) The designations for a 5-year period shall 
                take effect upon the commencement of the first annual 
                reporting period of the 5-year period that begins at 
                least 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 title, 
subject to the following requirements:
            [(1) Highest aggregate premium volume.--
                    [(A) General rule.--For a 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 the 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, and (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 a 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 a 
        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 lines of insurance as designated lines for purposes 
        of this title, as follows:
                    [(A) Automobile.--The Secretary shall designate 
                private passenger automobile insurance and shall also 
                designate any sublines and coverage types of private 
                passenger automobile insurance that the Secretary 
                considers appropriate to determine and compare the 
                availability, affordability, and type of coverage in 
                such line among applicable regions.
                    [(B) Noncommercial insurance for residential 
                property.--The Secretary shall designate homeowners 
                insurance and dwelling fire and allied lines, and shall 
                distinguish the coverage types in such lines by the 
                perils covered and by market or replacement value. For 
                purposes of this title, homeowners insurance shall not 
                include any renters coverage or coverage for the 
                personal property of a condominium owner.
                    [(C) Bid, performance, and payment bonds for small 
                businesses.--The Secretary shall designate lines, and 
                any sublines and coverage types, of bid, performance, 
                and payment bonds for small businesses, for which 
                reporting is required pursuant to section 206, that the 
                Secretary considers appropriate to determine and 
                compare the availability, affordability, and quality or 
                type of coverage in bid, performance, and payment bonds 
                for small businesses among applicable regions.
            [(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 title 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 title. 
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 title or that is to be 
used solely for the purpose of a report under subsection (c)(2).

[SEC. 216. 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 title. 
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 title, 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 less than 6-months 
before the first annual reporting period to which the reporting 
requirements under this title apply (pursuant to section 226) 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 
        204, 205, 209(b), and 211 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. 217. ANNUAL REPORTING PERIOD.

    [(a) In General.--For purposes of this title, 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 the 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. 218. 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.
        If an insurer, agent, or broker making a declination receives a 
        written request referred to in subparagraph (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.
            [(2) 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 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. 219. 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 title 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. 220. 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 title and shall make recommendations to such 
Committees on such additional legislation as the Secretary deems 
appropriate to carry out this title. The Secretary shall include in 
each annual report a description of any complaints or problems 
resulting from the implementation of this title, 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 207(c)(2) and 215(a)(2), which contains information 
        to be used by the Secretary in implementing this title during 
        such period.
            [(2) Timing.--The report under this subsection for each 
        such 5-year period shall be submitted not later than the date 
        occurring 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 title 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 
                title.
                    [(C) Any beneficial or harmful effects resulting 
                from the requirements of this title.
                    [(D) An analysis of whether, considering the 
                purposes of this title, insurers are required by this 
                title (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 title.
                    [(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 title.
                    [(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 205 should be continued 
                beyond the date in section 205(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 title.
                    [(J) Specific recommendations, for use by the 
                Secretary in designating rural areas for purposes of 
                section 207 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 
                title 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. 221. TASK FORCE ON AGENCY APPOINTMENTS.

    [(a) Establishment.--Not later than 90 days after 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 
        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 the enactment of this Act. The task force shall 
terminate when the report is submitted to the Committees.

[SEC. 222. 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 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 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 the 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 the 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 the 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 the 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 title apply (pursuant to section 226).

[SEC. 223. EXEMPTION AND RELATION TO STATE LAWS.

    [(a) Exemption for United States Programs.--Reporting shall not be 
required under this title with respect to insurance provided by any 
program underwritten or administered by the United States.
    [(b) Relation to State Laws.--This title does not annul, alter, or 
affect, or exempt the obligation of any insurer subject to this title 
to comply with the laws of any State or subdivision thereof with 
respect to public disclosure, submission of information, and 
recordkeeping.

[SEC. 224. REGULATIONS.

    [(a) In General.--The Secretary shall issue any regulations 
required under this title and any other regulations that may be 
necessary to carry out this title. 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 title, such final regulations shall be 
issued not later than the expiration of the 18-month period beginning 
on the date of the 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 title and shall 
minimize the burdens imposed by such requirements with respect to such 
agents.

[SEC. 225. DEFINITIONS.

    [For purposes of this title:
            [(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 private passenger automobile, homeowner's insurance and 
        dwelling fire and 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 215(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, or making any other 
        investment designated by the Secretary under section 211(b).
            [(6) Designated line.--The term ``designated line'' means a 
        line of insurance or bid, performance, and payment bonds 
        designated by the Secretary under section 215(c).
            [(7) Exposures.--The term ``exposures'' means, for purposes 
        of section 204, 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, 
        for purposes of section 204, an automobile or dwelling covered 
        under an insurance policy for private passenger automobile or 
        homeowners or dwelling fire and 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 209, 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. With respect to section 206, the 
        term means any person authorized to transact the business of 
        bid, performance, and payment bonds for small businesses. The 
        term includes any certified foreign direct insurer under title 
        I, 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 title).
            [(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. 226. EFFECTIVE DATE.

    [The requirements of this title relating to reporting of 
information by insurers shall take effect with respect to the first 
annual reporting period that begins more than 36 months after the date 
of the enactment of this Act.
            [Amend the title so as to read: ``A bill to establish 
        minimum standards applicable to foreign insurers and reinsurers 
        providing insurance in the United States, and provide for 
        public access to information regarding the availability of 
        insurance, and for other purposes.''.]

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 Energy and 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.
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