I 
115TH CONGRESS 
2D SESSION 
H. R. 4885 
To require the Federal Insurance Office of the Department of the Treasury 
to conduct a study to identify disparities between communities in auto 
insurance costs and payout amounts based on the predominant racial 
makeup of such communities, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 25, 2018 
Mr. TAKANO (for himself, Mr. GONZALEZ of Texas, Ms. ROYBAL-ALLARD, Ms. 
NORTON, Ms. BASS, Ms. JACKSON LEE, and Mrs. WATSON COLEMAN) 
introduced the following bill; which was referred to the Committee on Fi-
nancial Services 
A BILL 
To require the Federal Insurance Office of the Department 
of the Treasury to conduct a study to identify disparities 
between communities in auto insurance costs and payout 
amounts based on the predominant racial makeup of 
such communities, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Fair Auto Insurance 
Ratemaking Reporting to Allow a Transparent Evaluation 
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of Statistics Act of 2018’’ or the ‘‘FAIR RATES Act of 
2018’’. 
SEC. 2. DATA CALL. 
(a) IN GENERAL.—Pursuant to the authority under 
section 313(e) of title 31, United States Code, the Direc-
tor of the Federal Insurance Office shall collect from cov-
ered automobile insurers, aggregated on a census tract 
level basis based on the place of garaging of the insured 
vehicle, information for each of the three accident or cal-
endar years, as applicable, most recently completed as of 
the date of the enactment of this Act, regarding private 
passenger automobile insurance as the Director considers 
necessary to prepare the report required under section 3, 
which shall include the following information for each such 
year: 
(1) COMPANY NAME.—The name of the insur-
ance coverage for the vehicle. 
(2) EXPERIENCE YEAR.—The experience year 
for premiums and exposures. 
(3) CENSUS TRACT.—The census tract of the 
place of garaging of the insured vehicle. 
(4) PAID LOSS ADJUSTMENT EXPENSES.—Total 
paid loss adjustment expenses, reported by accident 
year. 
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(5) INCURRED LOSS ADJUSTMENT EXPENSES.— 
Total incurred loss adjustment expenses plus case 
reserves, reported by accident year. 
(6) COUNT OF CLAIMS RECORDED.—The num-
ber of claims reported for each coverage or type of 
loss, including claims that included payment and 
claims that did not include payment. 
(7) COUNT OF CLAIMS CLOSED.—The number 
of claims closed for each coverage or type of loss, in-
cluding claims that were closed that included pay-
ment and claims that were closed that did not in-
clude payment. 
(8) COVERAGE
TYPE.—The type of coverage 
provided, including liability, personal injury protec-
tion, collision, comprehensive, and uninsured motor-
ist bodily injury. 
(9) PREMIUM WRITTEN.—Total premium writ-
ten, reported by coverage type. 
(10) 
PREMIUM
EARNED.—Total 
premium 
earned, reported by coverage type. 
(11) EXPOSURE
WRITTEN.—Total exposures 
written, reported by coverage type. 
(12) EXPOSURE
EARNED.—Total exposures 
earned, reported by coverage type. 
(b) METHOD AND TIMING OF COLLECTION.— 
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(1) FROM FEDERAL OR STATE AGENCY.—Not 
later than the expiration of the 6-month period be-
ginning on the date of the enactment of this Act, the 
Director shall determine whether all of the informa-
tion required to be collected under subsection (a) 
can be obtained in the manner provided under the 
first sentence of section 313(e)(4) of title 31, United 
States Code, in a timely manner. If the Director de-
termines that all such information is available, and 
may be obtained by such manner in a timely man-
ner, the Director shall so obtain all such informa-
tion. 
(2) FROM INTERMEDIARY.—If the Director de-
termines under paragraph (1) that all of the infor-
mation required to be collected under subsection (a) 
cannot be obtained in the manner provided under 
the first sentence of section 313(e)(4) of title 31, 
United States Code, and in a timely manner, the Di-
rector shall provide that covered automobile insurers 
shall submit any such information that is not so ob-
tainable through— 
(A) an appropriate intermediary, including 
the National Association of Insurance Commis-
sioners; or 
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(B) other appropriate intermediaries, in-
cluding advisory organizations and statistical 
agents licensed by State insurance regulatory 
authorities. 
(3) FROM COVERED AUTOMOBILE INSURERS.— 
If the Director has not received all of the informa-
tion required to be collected under subsection (a) be-
fore the expiration of the 12-month period beginning 
on the date of the enactment of this Act, before the 
expiration of the 18-month period beginning upon 
such date of enactment, the Director shall collect 
from covered automobile insurers, in accordance 
with the penultimate sentence of section 313(e)(4) of 
title 31, United States Code, any such information 
not so received. 
SEC. 3. STUDY. 
(a) IN GENERAL.—The Director shall conduct a 
study, using the information collected pursuant to section 
2 and any other appropriate information available, to com-
pare private passenger automobile insurance premium 
costs and claims payment amounts to identify any dispari-
ties in such premium costs and claims payment amounts 
between coverage for automobiles garaged in census tracts 
and areas having a majority of residents who are racial 
minorities and coverage for automobiles garaged in census 
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tracts and areas having a majority of residents who are 
not racial minorities. Not later than the expiration of the 
24-month period beginning on the date of the enactment 
of this Act, the Director shall submit to the Congress a 
report containing the analysis, findings, and conclusions 
of the study under this section. 
(b) AVAILABILITY OF INFORMATION.—Upon submit-
ting the report to the Congress pursuant to subsection (a), 
the Director shall make publicly available all information 
collected pursuant to section 2 and all other information 
used in the conducting the study under this section, except 
that any information made publicly available may not con-
tain any personally identifiable information regarding in-
sureds under private passenger automobile insurance for 
which such information is collected. 
SEC. 4. DEFINITIONS. 
For purposes of this Act, the following definitions 
shall apply: 
(1) COVERED
AUTOMOBILE
INSURER.—The 
term ‘‘covered automobile insurer’’ means an insurer 
that— 
(A) has a statutory surplus attributable to 
private passenger automobile insurance cov-
erage, as of December 31, 2016, in an amount 
that exceeds $500,000,000; and 
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(B) 
annually 
collects 
more 
than 
$500,000,000 in premiums for private pas-
senger automobile insurance coverage. 
(2) DIRECTOR.—The term ‘‘Director’’ means 
the Director of the Federal Insurance Office of the 
Department of the Treasury. 
Æ 
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