I
104TH CONGRESS
1ST SESSION
H. R. 1317
To ensure that sellers and underwriters of insurance are qualified and subject
to State consumer protection requirements.
IN THE HOUSE OF REPRESENTATIVES
MARCH 24, 1995
Mr. BLILEY (for himself, Mr. DINGELL, Mr. SOLOMON, Mr. MINETA, Mr.
PAXON, Mr. POMEROY, Mr. BURTON of Indiana, Mr. SAXTON, Mr.
HAYES, Mr. KINGSTON, Mr. TANNER, Mr. UPTON, Mr. DAVIS, Mr.
GILLMOR, Mr. SCHAEFER, Mr. BILBRAY, Mrs. KENNELLY, Mr. MEEHAN,
Mr. BASS, and Mr. LEWIS of California) introduced the following bill;
which was referred to the Committee on Commerce
APRIL 18, 1995
Additional sponsor: Mr. NEAL of Massachusetts
A BILL
To ensure that sellers and underwriters of insurance are
qualified and subject to State consumer protection re-
quirements.
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 ‘‘Insurance State’s and
Consumer’s Rights Clarification and Fair Competition Act
of 1995’’.
SEC. 2. PURPOSE.
The purpose of this Act is to protect consumers and
potential consumers of insurance by ensuring that sellers
and underwriters of insurance in interstate commerce are
professionally qualified to sell and solicit insurance and
underwrite insurance and are subject to the consumer pro-
tection requirements applicable in the State in which the
insurance is sold, solicited, or underwritten.
SEC. 3. PROTECTION OF INSURANCE PURCHASERS.
(a) IN GENERAL.—A person may not sell, under-
write, or solicit the purchase of insurance in a State unless
that person qualifies under and complies with all insur-
ance regulatory requirements applicable in the State in
which the sale, underwriting, or solicitation of insurance
takes place, and that person is not prohibited from engag-
ing in such activities under Federal law or by the laws
of that State.
(b) APPLICABLE
REQUIREMENTS.—The require-
ments covered under subsection (a) include—
(1) qualifying for and maintaining a license to
sell or solicit the purchase of insurance if such li-
cense is required by the insurance regulatory author-
ity of the State in which the insurance is sold or its
purchase solicited, and
(2) complying with all consumer protection re-
quirements, such as those applicable to disclosure,
policy form approvals, unfair trade practices, and
product advertising, that apply to the marketing of
insurance in the State in which the insurance is sold
or its purchase solicited.
(c) COVERED TRANSACTIONS.—The insurance sales
and solicitations covered by this section include the sales
and solicitations of any insurance sold, solicited, under-
written, or reinsured by an entity that operates in inter-
state commerce or is part of an entity any part of which
operates in interstate commerce.
SEC. 4. PROTECTION OF INSURANCE POLICYHOLDERS.
(a) IN GENERAL.—A person may not underwrite in-
surance in a State unless that person complies with all
insurance regulatory requirements applicable in the State
in which the insurance is underwritten, and that person
is not prohibited from engaging in such activities under
Federal law or by the laws of that State.
(b) APPLICABLE
REQUIREMENTS.—The require-
ments covered under subsection (a) include—
(1) qualifying for and maintaining a license to
underwrite insurance if such license is required by
the insurance regulatory authority of the State in
which the insurance is underwritten;
(2) if a license is not required by the insurance
regulatory authority of the State in which the insur-
ance is underwritten, otherwise meeting any applica-
ble financial or other requirements imposed by the
State in which the insurance is underwritten; and
(3) complying with all consumer protection re-
quirements, such as those applicable to disclosure,
policy form approvals, unfair trade practices, and
product advertising, that apply to underwriting in-
surance in the State in which the insurance is un-
derwritten.
(c) COVERED TRANSACTIONS.—The insurance under-
writing covered by this section includes any insurance un-
derwritten or reinsured by an entity that operates in inter-
state commerce or is part of an entity any part of which
operates in interstate commerce.
SEC. 5. SAVINGS CLAUSE.
The provisions of this Act do not alter or affect the
provisions of the Liability Risk Retention Act of 1986 (15
U.S.C. 3901 et seq.).
SEC. 6. DEFINITION OF INSURANCE.
For purposes of this Act, the term ‘‘insurance’’
means any product defined or regulated as insurance by
the insurance regulatory authority of the State in which
the product is sold, solicited, or underwritten, including
as defined or authorized under State law any annuity con-
tract the income on which is tax deferred under section
72 of the Internal Revenue Code of 1986.
SEC. 7. EFFECTIVE DATE.
The requirements of this Act shall take effect 180
days after the date of enactment of this Act.
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