shall be subject to a civil penalty of not to exceed $5,000 
for each day during which such violation continues. 
(b) INJUNCTION.—The Commission may bring an ac-
tion in an appropriate United States district court for ap-
propriate declaratory and injunctive relief against any in-
surer who violates the requirements of this Act. 
(c) INSURER LIABILITY.—An insurer shall be respon-
sible under this section for any violation of a statistical 
agent acting on behalf of the insurer. 
SEC. 8. RELATION TO OTHER LAWS. 
(a) STATE LAW.—No provision of this Act shall be 
construed as annulling, altering, or affecting the laws of 
any State or any political subdivision of a State relating 
to public disclosure, submission of information, and record 
keeping or exempting any insurer subject to this Act from 
any obligation under, or an obligation to comply with, any 
such law. 
(b) OTHER FEDERAL LAW.—This Act relates specifi-
cally to the business of insurance. 
SEC. 9. REGULATIONS. 
(a) IN GENERAL.—The Commission shall prescribe, 
after notice and opportunity for comment, such regula-
tions as may be necessary to carry out this Act and pre-
vent evasions of this Act and such regulations.
(b) FACTORS TO BE CONSIDERED.—In prescribing 
regulations under this Act, the Commission shall take into 
consideration the administrative, paperwork, and other 
burdens on insurance agents, including independent insur-
ance 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. 10. DEFINITIONS. 
For purposes of this Act, the following definitions 
shall apply: 
(1) ADVERSE ACTION.—The term ‘‘adverse ac-
tion’’—
(A) means a denial or cancellation of, an 
increase in any charge for, or a reduction or 
other adverse or unfavorable change in the 
terms of coverage or amount of, any insurance, 
existing or applied for, in connection with the 
underwriting of insurance; and 
(B) includes the nonrenewal of an existing 
insurance policy. 
(2) COMMISSION.—The term ‘‘Commission’’ 
means the Federal Trade Commission.
(3) CONSUMER REPORTING AGENCY.—The term 
‘‘consumer reporting agency’’ has the same meaning
as in section 603(f) of the Fair Credit Reporting 
Act. 
(4) CONSUMER REPORT.—The term ‘‘consumer 
report’’—
(A) when used in connection with insur-
ance issued primarily for personal, family, or 
household purposes, has the same meaning as 
in section 603(d) of the Fair Credit Reporting 
Act; and 
(B) when used in connection with small 
business insurance, has the meaning given such 
term by the Commission in regulations. 
(5) INSURANCE APPLICATION.—The term ‘‘in-
surance application’’ means an application for insur-
ance, as determined by the Commission, made by 
any means, including in writing, orally, and by elec-
tronic means. 
(6) INSURANCE CREDIT SCORE.—The term ‘‘in-
surance credit score’’ means a numerical representa-
tion of the insurance risk a person presents using 
the person’s attributes derived from a consumer re-
port or credit information in a formula to assess in-
surance risk on an actuarial or statistical basis.
(7) INSURANCE POLICY.—The term ‘‘insurance 
policy’’ means a policy, contract, or certificate or evi-
dence of insurance. 
(8) INSURER.—The term ‘‘insurer’’—
(A) means any corporation, association, so-
ciety, order, firm, company, mutual, partner-
ship, individual, aggregation of individuals, or 
any other legal entity that is authorized to 
transact the business of property or casualty in-
surance in any State or that is engaged in a 
property or casualty insurance business; and 
(B) 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. 
(9) RESIDUAL MARKET MECHANISM.—The term 
‘‘residual market mechanism’’ means any assigned 
risk plan, private insurance placement facility, joint 
underwriting association, or similar mechanism es-
tablished by a State or pursuant to any State law 
to provide property and casualty insurance for prop-
erty owners who are unable to obtain such coverage 
in the voluntary market. Such term includes each 
State-wide plan of any State to assure fair access to
insurance requirements under part A of title XII of 
the National Housing Act. 
(10) SMALL BUSINESS.—The term ‘‘small busi-
ness’’ means any business that meets the criteria es-
tablished under and pursuant to section 3 of the 
Small Business Act for a small-business concern. 
(11) SMALL BUSINESS INSURANCE.—The term 
‘‘small business insurance’’—
(A) means property and casualty insurance 
specifically covering loss of, or damage to, the 
small business property, including 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; and 
(B) does not include workers’ compensa-
tion, professional liability, or title insurance. 
(12) 
UNDERWRITING.—The 
term 
‘‘under-
writing’’ means the selection of the risk that will be 
assumed by the insurer on a contract, and specifi-
cally the decision whether to accept, deny, renew, 
not renew, reduce, or increase the amount of bene-
fits payable or types of coverages under the contract.
SEC. 11. EFFECTIVE DATE OF REGULATIONS. 
Except as otherwise provided in this Act, regulations 
necessary to implement the requirements of this Act, and 
prevent evasions of the Act and regulations prescribed 
under this Act, shall be prescribed in final form before 
the end of the 18-month period beginning on the date of 
the enactment of this Act.
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