II 

110TH CONGRESS 

1ST SESSION S. 1061 

To require insurance companies to fully disclose insurance coverage and 

noncoverage of homeowners’ insurance policies, to provide for enforcement by the Federal Trade Commission, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 29, 2007 

Mr. LOTT introduced the following bill; which was read twice and referred to 

the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To require insurance companies to fully disclose insurance 

coverage and noncoverage of homeowners’ insurance policies, to provide for enforcement by the Federal Trade 

Commission, 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 ‘‘Homeowners’ Insur5 ance Noncoverage Disclosure Act’’. 


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•S 1061 IS

1 SEC. 2. REQUIRED DISCLOSURE OF NONCOVERAGE IN 

2 HOMEOWNERS’ INSURANCE POLICIES. 

3 (a) IN GENERAL.—Each individual homeowner’s pol4 icy written by a State-registered insurance company shall 

5 include on the front or first page of the policy a ‘‘Noncov6 erage Disclosure’’ box restating in plain English, in bold 

7 font twice the size of the text in the body of the policy, 

8 all conditions, exclusions, and other limitations pertaining 

9 to coverage under that policy, regardless of the underlying 

10 insurance product in question. 

11 (b) REGULATIONS.—Not later than 180 days after 

12 the date of the enactment of this Act, the Federal Trade 

13 Commission shall promulgate such regulations as may be 

14 necessary to carry out the provisions of this Act. 

15 SEC. 3. ENFORCEMENT. 

16 (a) IN GENERAL.—Any failure to comply with the 

17 provisions of section 2 shall be treated as a violation of 

18 a regulation under section 18(a)(1)(B) of the Federal 

19 Trade Commission Act (15 U.S.C. 57a(a)(1)(B)) regard20 ing unfair or deceptive acts or practices. 

21 (b) POWERS OF FEDERAL TRADE COMMISSION.— 

22 (1) IN GENERAL.—The Federal Trade Commis23 sion shall prevent any person from violating this 

24 Act, and any regulation promulgated thereunder, in 

25 the same manner, by the same means, and with the 

26 same jurisdiction, powers, and duties as though all 


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•S 1061 IS

1 applicable terms and provisions of the Federal Trade 

2 Commission Act (15 U.S.C. 41 et seq.) were incor3 porated into and made a part of this Act. 

4 (2) PENALTIES.—Any person who violates regu5 lations promulgated under this Act shall be subject 

6 to the penalties and entitled to the privileges and 

7 immunities provided in the Federal Trade Commis8 sion Act in the same manner, by the same means, 

9 and with the same jurisdiction, power, and duties as 

10 though all applicable terms and provisions of the 

11 Federal Trade Commission Act were incorporated 

12 into and made part of this Act. 

13 (c) AUTHORITY PRESERVED.—Nothing in this Act 

14 shall be construed to limit the authority of the Federal 

15 Trade Commission under any other provision of law. 

Æ 


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