among geographic areas having different income lev-
els or racial composition, the Secretary shall submit 
a report recommending designating such line of in-
surance 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 ap-
propriate 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 regula-
tions 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 pe-
riod 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 revis-
ing designations shall apply only to annual re-
porting periods beginning after the expiration 
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of the 6-month period beginning on the date of 
issuance of the regulations. 
(b) TIMING OF DESIGNATIONS.—The Secretary shall 
make the designations required by subsection (a)(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. 
(c) OBTAINING INFORMATION.—The Secretary may 
require insurers to submit to the Secretary such informa-
tion as the Secretary considers necessary to make designa-
tions 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 (a)(2). 
SEC. 211. ENFORCEMENT. 
(a) CIVIL PENALTIES.—Any insurer who is deter-
mined 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 ac-
tion in an appropriate United States district court for ap-
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propriate declaratory and injunctive relief against any in-
surer who violates the requirements referred to in sub-
section (a). 
(c) INSURER LIABILITY.—An insurer shall be respon-
sible under subsections (a) and (b) for any violation of 
a statistical agent acting on behalf of the insurer. 
SEC. 212. EXEMPTION AND RELATION TO STATE LAWS. 
(a) EXEMPTION FOR UNITED STATES PROGRAMS.— 
Reporting shall not be required under this title with re-
spect to insurance provided by any program underwritten 
or administered by the United States. 
(b) RELATION TO STATE LAWS.—This title shall not 
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 rec-
ordkeeping or exempting any insurer subject to this title 
from any obligation under, or an obligation to comply 
with, any such law. 
SEC. 213. REGULATIONS. 
(a) AUTHORIZATION.— 
(1) 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. 
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(2) SUBSTANTIVE REGULATIONS.—The regula-
tions shall be issued in accordance with the proce-
dures under section 553 of title 5, United States 
Code, for substantive regulations. 
(3) EFFECTIVE
DATE.—Except as otherwise 
provided in this title, such final regulations shall be 
issued before the end of the 18-month period begin-
ning 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, includ-
ing 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. 214. DEFINITIONS. 
For purposes of this subtitle, the following definitions 
shall apply: 
(1) AGENT.—The term ‘‘agent’’— 
(A) means, with respect to an insurer, an 
agent licensed by a State who sells property and 
casualty insurance; and 
(B) includes agents who are employees of 
the insurer, agents who are independent con-
tractors working exclusively for the insurer, and 
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agents who are independent contractors ap-
pointed to represent the insurer on a nonexclu-
sive basis. 
(2) 
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 insur-
ance. 
(3) DESIGNATED LINE.—The term ‘‘designated 
line’’ means a line of insurance or bid, performance, 
and payment bonds designated by the Secretary 
under section 210(a). 
(4) 
EXPOSURES.—The 
term 
‘‘exposures’’ 
means, for purposes of section 203, with respect to 
an insurance policy, an expression of an exposure 
unit covered under the policy compared to the dura-
tion of the policy (pursuant to standards established 
by the Secretary for uniform reporting of expo-
sures). 
(5) EXPOSURE
UNITS.—The term ‘‘exposure 
units’’ means, for purposes of section 203, an auto-
mobile or dwelling covered under an insurance policy 
for private passenger automobile or homeowners or 
dwelling fire and allied lines coverage. 
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(6) 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. 
(7) 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. 
(8) ISSUED.—The term ‘‘issued’’ means, with 
respect to an insurance policy, newly issued or re-
newed. 
(9) JOINT UNDERWRITING ASSOCIATION.—The 
term ‘‘joint underwriting association’’ means an un-
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incorporated association of insurers established to 
provide a particular form of insurance to the public. 
(10) 
MORTGAGE
INSURANCE.—The 
term 
‘‘mortgage insurance’’ means insurance against the 
nonpayment of, or default on, a mortgage or loan 
for residential or commercial property. 
(11) 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. 
(12) PROPERTY AND CASUALTY INSURANCE.— 
The term ‘‘property and casualty insurance’’— 
(A) 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; 
and 
(B) does not include workers’ compensa-
tion, professional liability, or title insurance. 
(13) RESIDUAL MARKET.—The term ‘‘residual 
market’’— 
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(A) means an assigned risk plan, joint un-
derwriting association, or any similar mecha-
nism designed to make insurance available to 
those unable to obtain it in the voluntary mar-
ket; and 
(B) includes each statewide plan under 
part A of title XII of the National Housing Act 
to assure fair access to insurance requirements. 
(14) 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). 
(15) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of Housing and Urban Develop-
ment. 
(16) 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 Ter-
ritory of the Pacific Islands. 
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