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(B) PROPOSAL OF PILOT PROJECT.—Con-
current with the conduct of the study under
subparagraph (A), the Secretary shall develop a
proposed data collection pilot project in the 5
largest MSA’s to help determine the need for
any further data collection requirements to
evaluate the availability, cost, and type of insur-
ance coverage for small business. In developing
the proposed pilot project, 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 specific
proposal for a pilot project to the Committee on
Energy and Commerce of the House of Rep-
resentatives and the appropriate committee of
the Senate no later than 18 months following
the date of enactment of this Act.
(C) 
SPECIFICATIONS
FOR
PILOT
PROJECT.—Immediately following the submis-
sion of the proposal for a pilot project, the Sec-
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retary shall, by regulation, establish specifica-
tions for the collection and public reporting of
information with respect to commercial insur-
ance for the proposed pilot project. As part of
the specifications, the Secretary shall designate
the 5 largest MSA’s for purposes of the pilot
project. The specifications shall—
(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) provide for the collection of infor-
mation on an individual insurer basis,
(iv) provide the data required by
clause (ii) with the least burden on insur-
ers, particularly small insurers, and insur-
ance agents, including independent insur-
ance agents,
(v) take into account existing statis-
tical reporting systems in the insurance in-
dustry and use existing data sources to the
maximum practical extent,
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(vi) include information on policies
written in a residual market,
(vii) detail what data elements should
be collected,
(viii) detail what insurers should be
designated insurers for purposes of the
pilot project,
(ix) detail what lines of commercial
insurance should be designated for pur-
poses of the pilot project, with particular
consideration given to commercial fire and
business owners lines,
(x) include an appropriate definition
of small business, if necessary,
(xi) provide data representative of at
least 2 years of experience and provide
that the pilot project will terminate no
later than 2 years after its inception, and
(xii) provide adequate lead time to in-
surers designated under clause (viii) for
the reporting to begin.
The regulation shall be issued within 2 years of
the date of enactment of this Act.
(D) REPORTING UNDER PILOT PROJECT.—
Insurers 
designated 
under 
subparagraph
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(C)(viii) shall report to the Secretary with re-
spect to lines of insurance designated under
subparagraph (C)(ix) in the 5 largest MSA’s,
pursuant to the regulation issued by the Sec-
retary in subparagraph (C).
(E) ANALYSIS
OF
DATA
UNDER
PILOT
PROJECT.—At the conclusion of the pilot
project, the Secretary shall analyze the data
collected. Within 1 year of the conclusion of the
pilot project, the Secretary shall report to the
Committee on Energy and Commerce of the
House of Representatives and the appropriate
committee of the Senate on—
(i) any conclusions of the Secretary
regarding the data collected under the pilot
project, particularly regarding the avail-
ability, cost, and type of commercial insur-
ance for small business, and
(ii) the need for further data collec-
tion requirements to evaluate the availabil-
ity, cost, and type of such coverage or to
help ensure the availability of such cov-
erage.
(5) PERIOD OF MAINTENANCE.—Any informa-
tion required to be compiled and made available
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under subsection (a) shall be maintained and made
available for a period of 3 years after the close of
the first year during which such information is re-
quired to be maintained and made available.
(6) FORMAT
FOR
DISCLOSURES.—Subject to
subsection (c), the Secretary shall prescribe a stand-
ard format for making information available as re-
quired by subsection (a). Such format shall encour-
age the submission of information in a form read-
able by a computer.
(7) EXEMPTION.—
(A) SECRETARIAL
ACTION.—If the Sec-
retary determines that a State has enacted a
law, or otherwise implemented a requirement
under which—
(i) insurers operating in that State
are subject to disclosure requirements on a
5-digit zip code basis substantially similar
to those of subsection (a),
(ii) there are adequate provisions for
enforcement, and
(iii) the information disclosed under
the State law or requirement is made avail-
able to the Secretary and the public in a
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manner similar to other information dis-
closed under subsection (a),
then the Secretary shall by regulation exempt
insurers operating in that State from complying
with the requirements of subsection (a) with re-
spect to that State’s portions of the designated
MSA’s. If the Secretary determines that the
State law or requirement no longer meets the
criteria of clauses (i) through (iii) or is no
longer in effect, the Secretary shall by regula-
tion revoke the exemption.
(B) UNITED
STATES
PROGRAM.—Report-
ing shall not be required under subsection (a)
with respect to insurance provided by a pro-
gram underwritten or administered by the Unit-
ed States.
(c) PUBLIC ACCESS SYSTEM.—The Secretary shall
implement a system to facilitate public access to informa-
tion required to be made available to the public under sub-
section (a). Such system shall include arrangements for
a central depository of information in each designated
MSA and for a telephone number which can be used by
the public, at cost, to request such information. State-
ments shall be made available to the public for inspection
and copying at such central depository of information for
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all designated insurers within such MSA. The Secretary
shall also make copies of such statements available in
forms readable by widely used personal computers, such
as in disc format. The Secretary may charge a fee for such
information, which may not exceed the amount, deter-
mined by the Secretary, that is equal to the cost of repro-
ducing the information.
(d) SUBMISSION TO SECRETARY.—With respect to
the information required to be submitted under subsection
(a) to the Secretary, the Secretary shall develop regula-
tions prescribing the format and method for submitting
such information. Such regulations shall ensure uniform-
ity among insurers, to the extent practicable, in the format
used for reporting, including the definitions of data ele-
ments. Any reporting insurer may submit in writing to
the Secretary such additional data or explanations as it
deems relevant to the decision by such insurer to sell in-
surance.
SEC. 4. DESIGNATIONS.
(a) DESIGNATIONS BY THE SECRETARY.—
(1) DESIGNATIONS OF MSA’S.—The Secretary
shall designate the MSA’s for which reporting is re-
quired under section 3(a). The Secretary shall des-
ignate the 25 MSA’s having the largest population.
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(2) DESIGNATION
OF
INSURERS.—For each
MSA designated under paragraph (1), the Secretary
shall take the following actions:
(A) The Secretary shall designate the in-
surers transacting insurance business in such
MSA for which reporting is required under sec-
tion 3(a). At a minimum, the Secretary shall
designate the 25 insurers in such MSA having
the largest premium volume in the designated
lines of insurance in each State in which such
MSA is located.
(B) In addition to the insurers designated
under subparagraph (A), the Secretary shall
also designate any entity primarily providing in-
surance in a designated line of insurance as
part of a residual market established by State
law.
(C) The Secretary shall also designate, in
addition to the insurers designated under sub-
paragraphs (A) and (B), insurers who specialize
in selling insurance in urban areas, including
surplus lines insurers.
(D) The Secretary shall also designate, in
addition to the insurers designated under sub-
paragraph (A), (B), and (C) insurers such that
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insurers representing at least 80 percent of the
premium volume in each State in which such
MSA is located in the designated line of insur-
ance are designated in such MSA. The Sec-
retary may not designate additional insurers
under this subparagraph if their market share
in the designated line of insurance in the appli-
cable States, as measured by premium volume
in each State in which such MSA is located, is
under 1 percent.
(E) In addition to the insurers designated
under subparagraph (A), (B), (C), and (D) the
Secretary may by regulation designate addi-
tional insurers in a MSA if the designation of
additional insurers is necessary to provide valid
data with respect to the availability, cost, and
type of insurance in the MSA.
(F) The Secretary shall revoke the des-
ignation of an insurer designated under sub-
paragraph (A) as follows: If such designated in-
surer has a market share in a designated line
of insurance in a MSA, as measured by pre-
mium volume in each State in which such MSA
is located, of under 1 percent, the Secretary
shall revoke the designation of such insurer be-
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ginning with the insurer with the smallest mar-
ket share of such insurance if the remainder of
the designated insurers have a market share of
at least 75 percent of such insurance as meas-
ured by premium volume in each State in which
such MSA is located. In addition, the Secretary
may revoke the designation of any insurer des-
ignated under subparagraph (A) with a market
share in a designated line of insurance in a
MSA, as measured by premium volume in each
State in which such MSA is located, of under
1 percent if such designation has not been re-
voked under this subparagraph and if such in-
surer primarily sells insurance in rural areas of
such MSA.
(G) For purposes of this paragraph, insur-
ers which are affiliated or are members of the
same group shall be considered together as one
insurer.
(3) DESIGNATION OF LINES OF INSURANCE.—
For each MSA designated under paragraph (1) the
following are the designated lines of property and
casualty insurance for which reporting is required
under section 3:
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(A) Private passenger automobile insur-
ance.
(B) Homeowners insurance.
(C) Dwelling fire and allied lines of insur-
ance.
(4) TIMING OF DESIGNATIONS.—
(A) INITIAL
DESIGNATIONS.—The Sec-
retary shall make initial designations required
by paragraphs (1), (2), and (3) no later than
July 1 of the year preceding the first year for
which reporting is required under section 3.
Such initial designations shall be effective for 5
calendar years from the date of designation.
(B) SUBSEQUENT
DESIGNATIONS.—Not
later than July 1 of the year preceding the fifth
year after a designation under subparagraph
(A) or this subparagraph, the Secretary shall
make another designation to be effective upon
the expiration of such 5 years and such des-
ignation shall be effective for 5 calendar years
from the date of designation.
(C) NOTICE.—The Secretary shall notify
persons involved in the designations no later
than the July 15 which follows the designation.
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have on the availability or cost of insurance, espe-
cially in underserved areas, and
(3) recommend solutions to improve the ability
of inner city and minority insurance agents to mar-
ket property and casualty insurance products, in-
cluding steps property and casualty insurance com-
panies should take to increase their appointments of
such agents.
(c) REPORT
AND TERMINATION.—The task force
shall report to the Committee on Energy and Commerce
of the House of Representatives and the appropriate Com-
mittee of the Senate its findings under paragraphs (1) and
(2) of subsection (b) and its recommendations under para-
graph (3) of subsection (b) within 2 years after the date
of the enactment of this Act. The task force shall termi-
nate when the report is submitted to the Committees.
SEC. 6. IMPLEMENTATION OF SECTION 3.
(a) REGULATIONS.—The Secretary shall promulgate
such regulations as may be necessary to carry out section
3. Such regulations may—
(1) contain such classifications, differentiations,
or other provisions, and
(2) may provide for such adjustments and ex-
ceptions for any class of transactions,
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as in the judgment of the Secretary are necessary and
proper to effectuate the purposes of such section and to
prevent circumvention or evasion thereof or to facilitate
compliance therewith.
(b) DATA COLLECTION CONTRACTOR.—The Sec-
retary may contract with a data collection contractor to
carry out the Secretary’s responsibilities under section 3
if the contractor agrees to collect and make available the
data pursuant to the terms and conditions of such section.
A statistical agent may also be a data contractor.
(c) ROLE OF STATISTICAL AGENTS.—
(1) ACCEPTANCE
OF
DATA.—The Secretary
and, if applicable, the contractor under the sub-
section (b) contract may accept data reported under
section 3(a) by a statistical agent acting on behalf
of more than one insurer if—
(A) the statistical plan used by the statis-
tical agent for the reporting of data on insur-
ance provides for the reporting of data in a
manner compatible with section 3(a),
(B) the statistical agent reports such data
on an individual insurer basis, and, at the dis-
cretion of the Secretary, on an aggregate basis,
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(C) the statistical agent provides adequate
procedures to protect the integrity of the data
reported,
(D) the statistical agent has procedures in
place which ensure that data reported under the
statistical plan in connection with reporting
under this Act and submitted to the Secretary
are not subject to adjustment by the statistical
agent or an insurer for reasons other than tech-
nical accuracy and conformance to the statis-
tical plan,
(E) the statistical agent ensures that the
data of one insurer is not subject to review by
other insurers before public availability, and
(F) the statistical agent provides for the
reporting of data in a manner compatible with
the format prescribed by the Secretary under
section 3(d).
(2) DISCONTINUANCE OF DATA ACCEPTANCE.—
The Secretary may, after providing an opportunity
for a hearing, discontinue accepting data reported
under section 3(a) by a statistical agent acting on
behalf of more than one insurer if the Secretary de-
termines the requirements for acceptance of data in
paragraph (1) are no longer met.
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(d) ROLE OF GAO.—The Comptroller General shall
have the authority to review and audit any data collection
and reporting performed under section 3, whether by the
Secretary, the contractor under the subsection (b) con-
tract, or a statistical agent, to ensure that the integrity
of the data collected and reported is protected.
(e) BURDENS ON INSURANCE AGENTS.—In prescrib-
ing regulations under this Act, the Secretary shall take
into consideration the administrative, paperwork, and
other burdens on insurance agents, including independent
insurance agents, involved in complying with the require-
ments of this Act and shall minimize the burdens imposed
by such requirements with respect to such agents.
SEC. 7. RELATION TO STATE LAWS.
This Act does not annul, alter, or affect, or exempt
the obligation of any insurer subject to this Act to comply
with the laws of any State or subdivision thereof with re-
spect to public disclosure and recordkeeping.
SEC. 8. COMPILATION OF AGGREGATE DATA.
(a) SCOPE OF DATA AND TABLES.—The Secretary
shall compile each year, for each MSA, data aggregated
by 5-digit zip code for all insurers who are subject to sec-
tion 3 or who are exempt from section 3 under subsection
(b)(7)(A) of such section. The Secretary shall also produce
tables indicating, for each MSA, insurance policies aggre-
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gated for various categories of 5-digit zip codes grouped
according to location, age of property, income level, and
racial characteristics of neighborhood.
(b) AGGREGATION
OF
INFORMATION.—Statistical
agents may aggregate the data of insurers that report to
them and may provide such information to the Secretary.
The Secretary may also provide the individual company
data submitted by insurers to statistical agents for aggre-
gation.
(c) AVAILABILITY TO PUBLIC.—The data compiled
and the tables produced pursuant to subsection (a) shall
be made available to the public on a timetable determined
by the Secretary but not later than October 1 of the year
following the calendar year on which the data and tables
are based.
SEC. 9. 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 the requirements
of section 3 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-