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-
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:
(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.
(b) OBTAINING INFORMATION.—The Secretary may
obtain from insurers such information as the Secretary
may require to make designations under subsection (a).
SEC. 5. TASK FORCE ON AGENCY APPOINTMENTS.
(a) ESTABLISHMENT.—Within 90 days of the date of
the enactment of this Act, the Secretary shall establish
a task force on insurance agency appointments. The task
force shall—
(1) consist of representatives of appropriate
Federal agencies, property and casualty insurance
agents, including specifically minority insurance
agents, property and casualty insurance companies,
State insurance regulators, and public interest
groups,
(2) have a significant representation from mi-
nority insurance agents, and
(3) be chaired by the Secretary or the Sec-
retary’s designee.
(b) FUNCTION.— The task force shall—
(1) review the problems inner city and minority
agents may have in receiving appointments to rep-
resent property and casualty insurance companies,
(2) review the practices of insurers in terminat-
ing agents and consider the effect such practices
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,
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,
(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.
(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-
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-
propriate declaratory and injunctive relief against any in-
surer who violates the requirements of section 3.
(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. 10. SUNSET.
(a) EXPIRATION.—Except as provided in subsection
(b), this Act shall not be in effect after the expiration of
5 years from its effective date. Prior to the expiration of
4 years from such date, the Secretary shall report to the
Commerce Committee of the House of Representatives
and the appropriate committee of the Senate—
(1) the quality of data received under section 3
and the effectiveness of the data requirement, in-
cluding the relation between the cost of such data
gathering and the benefits from having such data
available,
(2) the appropriateness of the geographic data
reporting units,
(3) the need for continued reporting by the des-
ignated insurers in urban areas,
(4) the efforts of insurers to meet the insurance
needs of minority and low-income neighborhoods,
and
(5) such other information as the Secretary de-
termines will assist in considering an extension of
this Act.
(b) EXTENSION.—Based on the Secretary’s report on
the need described in subsection (a)(3) and the informa-
tion described in subsection (a)(5), the Secretary may ex-
tend this Act for one period of 2 years.
SEC. 11. STUDIES.
(a) STUDY OF INFORMATION ON INSURANCE APPLI-
CANTS.—
(1) IN GENERAL.—The Secretary shall conduct
a study to determine the feasibility and utility of the
collection of information with respect to the charac-
teristics of applicants for insurance and reasons for
rejection of applicants. The study shall examine the
extent to which—
(A) oral applications or representations are
used by insurers and agents in making deter-
minations regarding whether or not to insure a
prospective insured,
(B) written applications are used by insur-
ers and agents in making determinations re-
garding whether or not to insure a prospective
insured,
(C) written applications are submitted
after the insurer or agent has already made a
determination to provide insurance to a pro-
spective insured or has determined that the pro-
spective insured is eligible for insurance, and
(D) prospective insureds are discouraged
from submitting applications for insurance
based, in whole or in part, on—
(i) the location of the risk to be in-
sured,
(ii) the race or ethnicity of the pro-
spective insured,
(iii) the racial or ethnic composition of
the neighborhood in which the risk to be
insured is located, and
(iv) in the case of residential property
insurance, the age and value of the risk to
be insured.
(2) REPORT.—The Secretary shall report the
results of the study under paragraph (1) to the
Committee on Energy and Commerce of the House
of Representatives and the appropriate Committee of
the Senate within 18 months of the date of the en-
actment of this Act.
(b) STUDY OF INSURER ACTIONS TO MEET INSUR-
ANCE NEEDS OF CERTAIN NEIGHBORHOODS.—The Sec-
retary shall conduct a study of various practices, actions,
programs, and methods undertaken by insurers to meet
the property and casualty insurance needs of residents of
low- and moderate-income neighborhoods, minority neigh-
borhoods, and small businesses located in such neighbor-
hoods. The Secretary may establish a task force of inter-
ested parties, including representatives of insurance com-
panies, insurance agents, including minority agents, and
consumer representatives to discuss additional practices,
actions, programs, and methods to meet these needs. The
Secretary shall report the results of the study, including
any recommendations, to the Committee on Energy and
Commerce of the House of Representatives and the appro-
priate Committee of the Senate no later than 2 years after
the date of the enactment of this Act.
SEC. 12. DEFINITIONS.
For purposes of this Act:
(1) The term ‘‘commercial insurance’’ means
any line of property and casualty insurance, except
private passenger automobile and homeowner’s in-
surance.
(2) The term ‘‘designated insurer’’ means an
insurer designated by the Secretary pursuant to sec-
tion 4(a)(2).
(3) The term ‘‘designated line’’ means a line of
insurance specified in section 4(a)(3).
(4) The term ‘‘exposure units’’ means units in-
sured against risk of loss by an insurer and the term
‘‘units’’ means an automobile or the number of units
in a building.
(5) The term ‘‘insurer’’ means any corporation,
association, society, order, firm, company, partner-
ship, individual, or aggregation of individuals which
is subject to examination or supervision by any State
insurance regulator, or which is doing or represents
an insurance business. Such term does not include
an individual or entity which represents an insurer
as agent for the purpose of selling or which rep-
resents a consumer as a broker for the purpose of
buying insurance.
(6) The term ‘‘MSA’’ means a Metropolitan
Statistical Area or a Consolidated Metropolitan Sta-
tistical Area and the term ‘‘designated MSA’’ means
an MSA designated by the Secretary pursuant to
section 4(a)(1).
(7) The term ‘‘property and casualty insur-
ance’’ 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.
(8) The term ‘‘residual market’’ means an as-
signed risk plan, joint underwriting association, or
any similar mechanism designed to make insurance
available to those unable to obtain it in the vol-
untary market.
(9) The term ‘‘Secretary’’ means the Secretary
of Commerce.
(10) The term ‘‘State’’ means any State, the
District of Columbia, the Commonwealth of Puerto
Rico, the Northern Mariana Islands, the Virgin Is-
lands, American Samoa, and the Trust Territory of
the Pacific Islands.
SEC. 13. EFFECTIVE DATE.
The requirements of this Act shall take effect with
respect to information on insurance described in section
3 and developed in and after calendar year 1995.
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