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SEC. 2. FINDINGS AND CONSTRUCTION.
(a) FINDINGS.—The Congress finds that—
(1) disparities in property and casualty insur-
ance coverage provided by insurers engaged in inter-
state commerce between areas of different incomes
and racial composition could adversely affect inter-
state commerce and the cost and availability of in-
surance for consumers, and
(2) appropriate disclosures of information by in-
surers would benefit consumers and insurance regu-
lators.
(b) CONSTRUCTION.—Nothing in this Act is intended
to, nor shall it be construed to, encourage unsound under-
writing practices.
SEC. 3. MAINTENANCE OF INFORMATION AND PUBLIC DIS-
CLOSURE.
(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 des-
ignated MSA—
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(i) the total number of policies, total
exposure units (in car years and house
years), and total earned premium of insur-
ance 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 busi-
ness is located in such designated MSA
and the number within each 5-digit zip
code in such designated MSA and with re-
spect to each such agent, whether such
agent is an employee, independent contrac-
tor 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 ac-
cordance with subsection (d), and
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(ii) made available to the public, in
accordance with subsection (b)(2), for in-
spection and copying, at cost, at the home
office of the insurer and at a central de-
pository, 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 in-
surance 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 con-
spicuously disclose the policies, the exposure units,
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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 infor-
mation required to be maintained and made avail-
able under subsection (a) shall be made available to
the public on a timetable determined by the Sec-
retary but not later than October 1 of the calendar
year following the calendar year for which the infor-
mation 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 infor-
mation which is required to be maintained and
made available under subsection (a)(1), the Sec-
retary shall by regulation establish specifica-
tions for the collection and public reporting of
such information with respect to the following
lines of insurance: private passenger auto-
mobile, homeowners, and dwelling fire and al-
lied lines. The specifications shall—
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(i) provide that information be aggre-
gated among similar policyholders and re-
ported 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 infor-
mation 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 insur-
ers, 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 statis-
tical reporting systems in the insurance in-
dustry,
(ix) require itemization by 5-digit zip
code, and
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(x) include information on policies
written in a residual market.
(B) CONSULTATIONS.—In developing the
specifications in subparagraph (A), the Sec-
retary shall consult with—
(i) other Federal agencies with appro-
priate expertise,
(ii) State insurance regulators,
(iii) representatives of the insurance
industry, including statistical agents,
(iv) representatives of insurance pro-
ducers, including minority insurance pro-
ducers, 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 in-
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surance, 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 regu-
lators, consumer, community, and civil rights
groups, representatives of small business, rep-
resentatives of the insurance industry, including
statistical agents, and representatives of insur-
ance producers, including minority insurance
producers. The Secretary shall submit a report
detailing the findings of the study to the Com-
mittee on Energy and Commerce of the House
of Representatives and the appropriate commit-
tee of the Senate no later than 18 months fol-
lowing the date of enactment of this Act.