I 

116TH CONGRESS 

2D SESSION H. R. 8576 

To require the Government Accountability Office to conduct biennial studies 

of personal private automobile insurance coverage, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 9, 2020 

Ms. TLAIB (for herself, Mrs. WATSON COLEMAN, Mr. TAKANO, and Mr. 

GARCI ́A of Illinois) introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To require the Government Accountability Office to conduct 

biennial studies of personal private automobile insurance 

coverage, and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Prevent Auto Insur5 ance Discrimination Study Act of 2020’’ or the ‘‘PAID 

6 Study Act of 2020’’. 


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1 SEC. 2. BIENNIAL STUDIES OF PERSONAL PRIVATE AUTO2 MOBILE INSURANCE. 

3 (a) BIENNIAL STUDIES.—The Comptroller General 

4 of the United States (in this section referred to as the 

5 ‘‘Comptroller General’’) shall, not later than the expiration 

6 of the 2-year period beginning on the date of the enact7 ment of this Act and not less often than every 2 years 

8 thereafter, conduct a study under this section that— 

9 (1) identifies non-driving related underwriting 

10 factors used by private passenger automobile insur11 ers and the extent to which each such underwriting 

12 factor impacts the final rate for an insured and an 

13 insured’s placement in an insurer’s various compa14 nies and rating tiers; 

15 (2) identifies existing controls and current auto16 mobile insurer practices to prevent discriminatory 

17 pricing of automobile insurance coverage, including 

18 any controls to identify and prevent discrimination 

19 through the use of pricing algorithms; 

20 (3) evaluates the presence or absence of dis21 parate impact in private passenger automobile insur22 ance premiums, risk classifications, and an insurer’s 

23 company or tier placement based on non-driving re24 lated factors, including examining how such pre25 miums are impacted by factors such as zip code, 

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1 ographic area, gender, marital status, occupation, 

2 occupation status, level of education, consumer cred3 it score and history, and homeownership status; 

4 (4) assesses the extent to which States consist5 ently determine what is unfairly discriminatory in 

6 private passenger automobile insurance pricing, risk 

7 classifications, and product offerings and what 

8 standards are used by State insurance regulators to 

9 make such a determination for oversight and en10 forcement purposes; 

11 (5) determines the manner and frequency with 

12 which State insurance regulators identify question13 able underwriting and rating practices in the provi14 sion of private passenger automobile insurance cov15 erage and take actions to address findings of non16 compliance with State law and ensure that rates are 

17 not excessive, inadequate, or unfairly discriminatory, 

18 including analyzing any problems and deficiencies 

19 identified among State insurance regulators. 

20 (b) PRELIMINARY ANALYSIS.—Not later than the ex21 piration of the 12-month period beginning on the date of 

22 the enactment of this Act, the Comptroller General shall 

23 submit to the Congress preliminary analysis based on the 

24 study conducted pursuant to subsection (a) that, for pri25 vate passenger automobile insurance— 


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1 (1) compares premium rates for such coverage 

2 for similar drivers with different non-driving charac3 teristics described in subsection (a)(3) and other 

4 such characteristics as the Comptroller General con5 siders appropriate; 

6 (2) evaluates the use of data related to non7 driving characteristics in underwriting and pricing 

8 assistance and premium calculations; and 

9 (3) determines the extent to which any of the 

10 research indicates a disparate impact on protected 

11 classes of people resulting from the use of non-driv12 ing rating and underwriting factors. 

13 (c) OBTAINING INSURER INFORMATION.— 

14 (1) IN GENERAL.—The Comptroller General 

15 shall obtain and utilize in each study under this sec16 tion— 

17 (A) data from insurers that identifies, for 

18 the preceding year— 

19 (i) premiums charged and premiums 

20 quoted for policyholders and applicants; 

21 (ii) base rates, other rating factors, 

22 and risk classifications used for under23 writing and pricing such insurance, wheth24 er in the form of underwriting guidelines, 


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1 tier placement factors, rating factors, or 

2 other terminology; 

3 (iii) the sources and uses of insurance 

4 and non-insurance data used for risk clas5 sification and pricing; 

6 (iv) the census tract of the place ga7 raging of the insured vehicle; and 

8 (v) insurer rating algorithms and non9 standard data used by the insurers; and 

10 (B) information and data from third party 

11 vendors providing pricing assistance algorithms 

12 and data to insurers and the insurance indus13 try. 

14 (2) AUTHORITY; LIMITATIONS.—In the collec15 tion of data and information pursuant to paragraph 

16 (1)— 

17 (A) the provisions of section 313(e) of title 

18 31, United States Code, that are applicable to 

19 the Director of the Federal Insurance Office of 

20 the Department of the Treasury, to the Federal 

21 Insurance Office, and to data and information 

22 collected pursuant to such section shall apply to 

23 the Comptroller General, the Government Ac24 countability Office, and to data and information 


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1 collected pursuant to paragraph (1) of this sub2 section, respectively; and 

3 (B) any Federal agency, State insurance 

4 regulator or regulatory agency, other publicly 

5 available source, insurer, or third party vendor 

6 from which data and information is requested 

7 shall provide such data and information to the 

8 Comptroller General not later than the expira9 tion of the 90-day period that begins upon re10 ceipt of such request. 

11 (3) DISCRETION.—Paragraph (1) may not be 

12 construed to require the Comptroller General collect 

13 information and data described in such paragraph in 

14 comprehensive manner and the Comptroller General 

15 may, in the sole discretion of the Comptroller Gen16 eral collect as much information as the Comptroller 

17 General considers necessary to obtain an accurate 

18 sample with respect to insurers or areas that is suf19 ficient to comply with the requirements of subsection 

20 (a). 

21 (d) OBTAINING OTHER INFORMATION.—The Comp22 troller General shall obtain and utilize in each study under 

23 this section socioeconomic data from sources other than 

24 insurers, including data from the Bureau of the Census, 

25 Current Population Survey and American Community 


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1 Survey, and data from any reviews of automobile insur2 ance premiums and rates conducted by State insurance 

3 regulator or regulatory agency, appropriate to identify and 

4 analyze, for the preceding year— 

5 (1) socioeconomic characteristics relating to 

6 risk classifications associated with greater or lesser 

7 premium charges; 

8 (2) zip codes, geographic areas, and commu9 nities associated with greater or lesser premium 

10 charges; 

11 (3) zip codes, geographic areas, and commu12 nities having more or fewer choices for standard and 

13 preferred private passenger automobile insurance 

14 products and premiums; 

15 (4) zip codes, geographic areas, and commu16 nities in which the sale of non-standard insurance, 

17 the use of automobile insurance premium financing, 

18 the use of non-voluntary automobile insurance, the 

19 rates of uninsured motorists, and civil and criminal 

20 actions for failure to maintain insurance are great21 est; 

22 (5) zip codes, geographic areas, and commu23 nities having greater or fewer insurance producer lo24 cations that provide standard/preferred options as 

25 compared to non-standard options; and 


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1 (6) zip codes, geographic areas, and commu2 nities in which the offer of and use of telematics and 

3 other newer data-driven technologies is greater or 

4 lesser. 

5 (e) EVALUATION OF INFORMATION.—In conducting 

6 each study under this section, the Comptroller General 

7 shall evaluate the presence or absence of disparate impact 

8 in private passenger automobile insurance pricing, risk 

9 classifications, and product offerings based on race, reli10 gion, national origin, gender, marital status, sexual ori11 entation, occupation, occupation status, level of education, 

12 consumer credit score, and homeownership status, and 

13 shall employ multi-variate statistical analysis to conduct 

14 such analysis. 

15 (f) LIMITATION.—In conducting each study under 

16 this section, the Comptroller General may not engage in 

17 or include in the study any analysis of the reasonableness 

18 of premiums charged to claims paid or incurred. 

19 (g) BIENNIAL REPORTS.—For each study required to 

20 be conducted pursuant to subsection (a), the Comptroller 

21 General shall submit a report to the Congress describing 

22 the study conducted, the analysis conducted under the 

23 study, and any conclusions reached pursuant to the study 

24 and analysis. The report for each such study shall be subVerDate Sep 11 2014 23:05 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H8576.IH H8576

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1 mitted not later than the deadline under subsection (a) 

2 for completion of the study. 

3 (h) AVAILABILITY OF INFORMATION.—Upon submit4 ting each report to the Congress pursuant to subsection 

5 (g), the Comptroller General shall make publicly available 

6 all information collected pursuant to this section for such 

7 report and other information used in conducting the study 

8 under this section for such report, except that any infor9 mation made publicly available may not contain any per10 sonally identifiable information, nor any information that 

11 could identify individual insureds or applicants, under pri12 vate passenger automobile insurance for which such infor13 mation is collected. 

14 (i) CONSIDERATIONS IN APPROVING PREMIUM

15 RATES.—Each State insurance regulatory officer or agen16 cy shall take into consideration the reports submitted pur17 suant to subsection (a) in establishing and approving pre18 mium rates for private passenger automobile insurance 

19 coverage. 

Æ 


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