policyholders of, insurance may be asked their
racial characteristics only in writing. Any such
written question shall clearly indicate that a re-
sponse to the question is voluntary on the part
of the applicant or policyholder, but encour-
aged, and that the information is being re-
quested by the Federal Government to monitor
the availability and affordability of insurance. If
an applicant for, or policyholder of, insurance
declines to provide such information, the agent
or insurer for such insurance may provide such
information.
(3) RULE FOR REPORTING BY DESIGNATED IN-
SURERS.—A designated insurer for a designated line
shall submit—
(A) information required under subpara-
graphs (A), (B), and (D) of paragraph (1) and
information required pursuant to paragraph
(2), for risks insured under such line that are
located within each designated MSA any part of
which is located in a State for which the insurer
is designated; and
(B) information required under paragraph
(1)(C) for agents within such designated
MSA’s.
(c) NONDESIGNATED INSURERS.—The regulations is-
sued under section 3 shall require each insurer that issues
an insurance policy in a designated line of insurance under
subparagraph (A) or (B) of section 15(c)(1) that covers
an insured risk located in a designated MSA and which
is not a designated insurer for the line in any State in
which any part of such MSA is located, to compile and
submit to the Secretary, for each annual reporting pe-
riod—
(1) the total number of policies issued in such
line,
(2) the total exposures covered by such policies,
and
(3) the total amount of premiums for such poli-
cies,
by designated MSA and applicable region in which the in-
sured risk is located.
SEC. 5. STUDY OF COMMERCIAL INSURANCE FOR RESIDEN-
TIAL PROPERTIES AND SMALL BUSINESSES.
(a) IN GENERAL.—The Secretary shall conduct a
study to determine the availability, affordability, and qual-
ity or types of commercial insurance coverage for residen-
tial properties and small businesses, in urban areas.
(b) SUBMISSION OF INFORMATION.—To acquire in-
formation for the study under this section, the Secretary
shall, by regulation, establish requirements for insurers
providing commercial insurance for residential properties
and small businesses to compile and submit to the Sec-
retary on an annual basis information regarding such in-
surance, as follows:
(1) MSA’S.—The Secretary shall carry out the
study only with respect to the 25 MSA’s having the
largest populations, as determined by the Secretary
and specified in the regulations under this section.
(2) INSURERS.—For each of the MSA’s speci-
fied pursuant to paragraph (1), the Secretary shall
designate the insurers required to submit the infor-
mation. The Secretary shall designate a sufficient
number of insurers to provide a representative sam-
ple of the insurers providing such insurance in each
such MSA.
(3) LINES OF INSURANCE.—The Secretary shall
require the submission of information regarding
such lines, sublines, or coverage types of commercial
insurance as the Secretary determines are necessary
or important with respect to establishing, operating,
or maintaining residential properties and each type
of small business selected under paragraph (4), and
shall require submission of such information by such
lines, sublines, or coverage types.
(4) SMALL
BUSINESSES.—For purposes of
paragraph (3), the Secretary shall determine the
types of businesses that are typically small busi-
nesses and shall select a representative sample of
such types.
(5) DATA
ELEMENTS.—The Secretary shall
identify the data elements required to be submitted.
(6) SUBMISSION BY LOCATION.—The Secretary
shall require the information to be submitted by des-
ignated MSA and applicable region in which the in-
sured risk is located.
(7) SUBMISSION BY INSURER.—The Secretary
shall require the submission of information on an in-
dividual insurer basis and shall specify whether in-
formation, when submitted, shall be aggregated by
like policies, except that the Secretary shall not per-
mit such aggregation if it will adversely affect the
accuracy of the information reported.
(8) SUNSET.—The Secretary shall require the
submission of information under this section only for
each of the first 5 annual reporting periods begin-
ning more than 36 months after the date of the en-
actment of this Act.
(c) CONSIDERATIONS.—In establishing the require-
ments for submission of information under this section,
the Secretary shall—
(1) take into consideration the administrative,
paperwork, and other burdens on insurers and insur-
ance agents involved in complying with the require-
ments of this section;
(2) minimize the burdens imposed by such re-
quirements with respect to such insurers and agents;
and
(3) take into consideration existing statistical
reporting systems in the insurance industry.
(d) REPORT.—Not later than 6 months after the ex-
piration of the 5-year period referred to in subsection
(b)(8), the Secretary shall submit a report to the Congress
describing the information submitted under the study con-
ducted under this section and any findings of the Sec-
retary from the study regarding disparities in the avail-
ability, affordability, and quality or types of commercial
insurance coverage for residential properties and small
businesses, in urban areas.
SEC. 6. REPORTING OF BID, PERFORMANCE, AND PAYMENT
BONDS FOR SMALL BUSINESSES.
(a) IN GENERAL.—The Secretary shall by regulation
establish requirements in accordance with section 3 for in-
surers to compile and submit to the Secretary, for each
annual reporting period, information regarding bid, per-
formance, and payment bonds for small businesses, by
lines designated under subparagraph (C) of section
15(c)(1), that is similar to the information required to be
submitted under section 4.
(b) CONTENTS.—The regulations under this section
shall provide for—
(1) designation of insurers required to submit
the information, pursuant to standards comparable
to the standards for designation under section 15(b),
and submission of the information on an individual
insurer basis;
(2) identification of data elements required to
be submitted;
(3) the information to be submitted by des-
ignated MSA and applicable region;
(4) the information to be submitted in a man-
ner similar to that required for information submit-
ted under section 4;
(5) an appropriate definition of small busi-
nesses; and
(6) the information to be submitted for each
annual reporting period.
SEC. 7. REPORTING OF RURAL INSURANCE INFORMATION.
(a) IN GENERAL.—The Secretary shall, by regula-
tion, establish requirements for insurers to annually com-
pile and submit to the Secretary information concerning
the availability, affordability, and quality or type of insur-
ance in designated rural areas in the lines designated
under subparagraphs (A) and (B) of section 15(c)(1).
(b) CONTENT.—The regulations under this section
shall provide that—
(1) the information to be compiled and submit-
ted under this section by designated insurers and in-
surers that are not designated insurers shall be of
such types, data elements, and specificity that is as
identical as possible to the types, data elements, and
specificity of information required under this Act of
designated and nondesignated insurers, respectively,
for designated MSA’s and shall be subject to the
provisions of section 4(b)(2)(B); and
(2) the information compiled and submitted
under this section shall be compiled and submitted
on the basis of each 5-digit zip code in which the in-
sured risks are located, rather than on the basis of
designated MSA and applicable region (as otherwise
required in this Act).
(c) DESIGNATION OF RURAL AREAS.—For purposes
of this section, the term ‘‘designated rural area’’ means
the following:
(1) FIRST 5 YEARS.—With respect to the first
5 annual reporting periods to which the reporting re-
quirements under this section apply, any of the 50
rural areas designated by the Secretary and speci-
fied in regulations issued pursuant to section 24,
which shall not be amended or revised after issu-
ance. The Secretary shall (to the extent possible)
designate 1 rural area under this paragraph in each
State of the United States.
(2) AFTER FIRST 5 YEARS.—With respect to
annual reporting periods thereafter, a rural area for
which a designation made by the Secretary under
this paragraph is in effect, pursuant to the following
requirements:
(A) The designations shall be made for
each of the successive 5-year periods at the
time provided in subparagraph (C), and the
first such period shall be the 5-year period be-
ginning upon the commencement of the 6th an-
nual reporting period to which the reporting re-
quirements under this Act apply.
(B) The Secretary shall designate 50 rural
areas as designated rural areas for each such 5-
year period and shall designate such rural areas
based upon the information and recommenda-
tions made in the report under section 20(b) re-
lating to the period.
(C) The Secretary shall make the designa-
tion of rural areas for an ensuing 5-year period
by regulations issued—
(i) not later than the date occurring
12 months before the commencement of
the 5-year period; and
(ii) not later than 6 months after the
submission to the Secretary of the report
under section 20(b) relating to such pe-
riod.
(D) The designations for a 5-year period
shall take effect upon the commencement of the
first annual reporting period of the 5-year pe-
riod that begins at least 12 months after the is-
suance of the regulations making such designa-
tions, and shall remain in effect until the expi-
ration of the 5-year period.
Notwithstanding any other provision of this section, the
designation of a rural area shall remain in effect until a
succeeding designation of rural areas under paragraph (2)
takes effect.
SEC. 8. WAIVER OF REPORTING REQUIREMENTS.
(a) WAIVER FOR STATES COLLECTING EQUIVALENT
INFORMATION.—
(1) AUTHORITY.—Subject to the requirements
under this section, the Secretary shall provide, by
regulation, for the waiver of the applicability of the
provisions of sections 4, 5, and 7 for each insurer
transacting business within a State referred to in
paragraph (2), but only with respect to information
required to be submitted under such sections that
relates to agents or insured risks located in the
State.
(2) REQUIREMENTS.—The Secretary may make
a waiver pursuant to paragraph (1) only with re-
spect to a State that the Secretary determines has
in effect a law or other requirement that—
(A) requires insurers to submit to the
State information that is at least the same or
equivalent to the information that is required to
be submitted to the Secretary pursuant to sec-
tions 4, 5, and 7;
(B) provides for adequate enforcement of
such law or other requirements;
(C) provides for the same annual reporting
period used by the Secretary under this Act and
for submission of the information to the Sec-
retary in a timely fashion, as determined by the
Secretary; and
(D) provides that, to the extent statistical
agents are permitted to submit information to
the State on behalf of insurers, such agents are
subject to the same or equivalent requirements
as provided under section 10(b).
(3) DURATION.—A waiver pursuant to para-
graph (1) may remain in effect only during the pe-
riod for which the State law or other requirement re-
quired under paragraph (2) remains in effect.
(b) MULTIPLE-STATE MSA’S.—In the case of any
designated MSA that contains area within (1) any State
for which a waiver has been made pursuant to subsection
(a), and (2) any State for which such a waiver has not
been made, the provisions of this Act requiring submission
of information to the Secretary regarding such MSA shall
be considered to apply only to the portion of such MSA
that is located within the State for which such a waiver
has not been made.
(c) AUTHORITY FOR SECRETARY TO OBTAIN INFOR-
MATION DIRECTLY FROM INSURERS.—If the State for
which a waiver has been made pursuant to subsection (a)
does not submit to the Secretary the information required
under subsection (a)(2)(A) or submits information that is
not complete, the Secretary shall require the insurers
transacting business within the State to submit such infor-
mation directly to the Secretary.
SEC. 9. REPORTING BY PRIVATE MORTGAGE INSURERS.
(a) HMDA REPORTING.—On an annual basis, the
Financial Institutions Examination Council shall deter-
mine the extent to which each insurer providing private
mortgage insurance is making available to the public and
submitting to the appropriate agency information regard-
ing such insurance that is equivalent to the information
regarding mortgages required to be reported under the
Home Mortgage Disclosure Act of 1975.
(b) REPORTING UNDER THIS ACT.—
(1) CERTIFICATION
OF
NONCOMPLIANCE.—If,
for any annual period referred to in subsection (a),
such Council determines that any insurer providing
private mortgage insurance is not making available
to the public or submitting the information referred
to in subsection (a) or that the information made
available or submitted is not equivalent information
as described in subsection (a), then the Council shall
notify the insurer of such noncompliance. If, after
the expiration of a reasonable period of time, the in-
surer has not remedied such noncompliance to the
satisfaction of the Council, then the Council shall
immediately certify such noncompliance to the Sec-
retary.
(2) REQUIREMENT.—Upon the receipt of a cer-
tification under paragraph (1), the Secretary shall,
by regulation, require such insurer to submit to the
Secretary information regarding such insurance that
complies with the provisions of section 4 that are ap-
plicable to such insurance. Such regulations shall be
issued not later than 6 months after receipt of such
certification and shall apply to the first succeeding
annual reporting period that begins at least 6
months after issuance of such regulations and to
each annual reporting period thereafter.
SEC. 10. USE OF DATA CONTRACTOR AND STATISTICAL
AGENTS.
(a) DATA COLLECTION CONTRACTOR.—The Sec-
retary may contract with a data collection contractor to
collect the information required to be maintained and sub-
mitted under sections 4, 5, 7, 8, 9(b), and 11 if the con-
tractor agrees to collect the information pursuant to the
terms and conditions of such sections and this Act and
the regulations issued thereunder. Information submitted
to such contractor shall be available to the public to the
same extent as if the information were submitted directly
to the Secretary.
(b) USE OF STATISTICAL AGENTS.—
(1) IN GENERAL.—The Secretary shall provide,
by regulation, that insurers may submit any infor-
mation required under sections 4, 5, 7, and 9(b)
through statistical agents acting on behalf of more
than one insurer.
(2) PROTECTIONS.—The regulations issued
under this subsection shall permit submission of in-
formation through a statistical agent only if the Sec-
retary determines that—
(A) the statistical agent has adequate pro-
cedures to protect the integrity of the informa-
tion submitted;
(B) the statistical agent has a statistical
plan and format for submitting the information
that meets the requirements of this Act;
(C) the statistical agent has procedures in
place that ensure that information reported
under the statistical plan in connection with re-
porting under this Act and submitted to the
Secretary is not subject to any adjustment by
the statistical agent or an insurer for reasons
other than technical accuracy and conformance
to the statistical plan;
(D) the information of an insurer is not
subject to review by any other insurer before
being made available to the public; and
(E) acceptance of the information through
the statistical agent will not adversely affect the
accuracy of the information reported.
(3) DISCONTINUANCE OF ACCEPTANCE OF IN-
FORMATION.—The Secretary may discontinue ac-
cepting information reported through a statistical
agent pursuant to this subsection if the Secretary
determines that the requirements for such reporting
are no longer met or that continued acceptance of
such information is contrary to the goal of ensuring
the accuracy of the information reported.
(4) GAO AUDITS.—The Comptroller General
shall, at the request of the Secretary, audit informa-
tion collection and submission performed under this
subsection by data collection contractors or statis-
tical agents to ensure that the integrity of the infor-
mation collected and submitted is protected. In de-
termining whether to request an audit of a statis-
tical agent, the Secretary shall consider the suffi-
ciency (for purposes of this Act) of audits of the sta-
tistical agent conducted in connection with State in-
surance regulation.
(5) LIABILITY.—Notwithstanding any use of a
statistical agent as authorized under this subsection,
an insurer using such an agent shall be responsible
for compliance with the requirements under this Act.
SEC. 11. REPORTING OF INFORMATION REGARDING IN-
VESTMENTS BY INSURERS.
(a) IN GENERAL.—The Secretary of Housing and
Urban Development shall, by regulation, require that each
designated insurer that makes a designated investment in
a property or business located in a designated MSA shall
compile and submit to the Secretary for each annual re-
porting period, the following information:
(1) DIRECT LOANS.—
(A) COMMERCIAL REAL ESTATE LOANS.—
The total number of loans for the purchase of
commercial real estate made by the designated
insurer, the aggregate amount of such loans,
and the amount of each such loan, by des-
ignated MSA and applicable region in which the
real estate for which the loan was made is lo-
cated.
(B) 
SINGLE-FAMILY
MORTGAGES.—The
total number of mortgage loans for the pur-
chase of 1- to 4-family dwellings made by the
designated insurer, the aggregate amount of
such loans, and the amount of each such loan,
by designated MSA and applicable region in
which the dwelling for which the loan was made
is 
located, 
which 
information 
shall 
be
disaggregated by racial characteristics, income
level, and gender of the borrower under the
loan.
(C) 
COMMERCIAL
AND
INDUSTRIAL
LOANS.—The total number of commercial and
industrial loans made by the designated insurer,
the aggregate amount of such loans, and the
amount of each such loan, by designated MSA
and applicable region in which the property or
business involved in the loan is located, which
information shall be disaggregated by the size
of business of the borrower under the loan and
by the ownership characteristic of the business,
which shall be classified as either minority-
owned, women-owned, or otherwise-owned.
(2) LOAN PURCHASES.—
(A) COMMERCIAL REAL ESTATE LOANS.—
The total number of loans for the purchase of
commercial real estate purchased by the des-
ignated insurer, the aggregate amount of such
loans, and the amount of each such loan, by
designated MSA and applicable region in which
the real estate for which the loan was made is
located.
(B) 
SINGLE-FAMILY
MORTGAGES.—The
total number of mortgage loans for the pur-
chase of 1- to 4-family dwellings purchased by
the designated insurer, the aggregate amount of
such loans, and the amount of each such loan,
by designated MSA and applicable region in
which the dwelling for which the loan was made
is 
located, 
which 
information 
shall 
be
disaggregated by racial characteristics, income
level, and gender of the borrower under the
loan.
(C) 
COMMERCIAL
AND
INDUSTRIAL
LOANS.—The total number of commercial and
industrial loans purchased by the designated in-
surer, the aggregate amount of such loans, and
the amount of each such loan, by designated
MSA and applicable region in which the prop-
erty or business involved in the loan is located,
which information shall be disaggregated by the
size of business of the borrower under the loan
and by the ownership characteristic of the busi-
ness, which shall be classified as either minor-
ity-owned, women-owned, or otherwise-owned.
(3) OTHER INVESTMENTS.—For such other in-
vestments made by the designated insurer, as the
Secretary may designate pursuant to subsection (b),
the total number of such investments, the aggregate
amount of such investments, and the amount of each
such investment, by designated MSA and applicable
region in which the property or business involved in
the investment is located, as determined by the Sec-
retary, which information shall be disaggregated by
the size of business of the borrower under the loan
and by the ownership characteristic of the business,
which shall be classified as either minority-owned,
women-owned, or otherwise-owned.
(b) DESIGNATION OF OTHER INVESTMENTS.—
(1) IN GENERAL.—For purposes of subsection
(a)(3), the Secretary may designate activities and in-
vestments other than the investments described in
paragraphs (1) and (2) of subsection (a) for which
designated insurers shall compile and submit infor-
mation under this section.
(2) REQUIREMENT.—In making designations
under this subsection, the Secretary shall designate
(A) activities and investments that significantly ben-
efit low- and moderate-income families and persons,
small businesses in distressed communities, or
minority- or women-owned businesses, and (B) ac-
tivities and investments that contribute to the cre-
ation of jobs and economic development of distressed
communities.
(3) CONSIDERATIONS.—The Secretary shall
specifically consider for designation under this sub-
section investments in community development fi-
nancial institutions, community development cor-
porations, State-issued bonds, and securities backed
by State development funds.
(c) SIZE OF BUSINESS.—The Secretary shall, by reg-
ulation, establish various categories of the sizes of busi-
nesses, for purposes of disaggregating information under
paragraphs (1)(C), (2)(C), and (3) of subsection (a) by
various sizes of businesses.
SEC. 12. SUBMISSION OF INFORMATION TO SECRETARY
AND MAINTENANCE OF INFORMATION.
(a) PERIOD OF MAINTENANCE.—Each insurer re-
quired by this Act to compile and submit information to
the Secretary shall maintain such information for the 3-
year period beginning upon the conclusion of the annual
reporting period to which such information relates. The
Secretary shall maintain any information submitted to the
Secretary for such period as the Secretary considers ap-
propriate and feasible to carry out the purposes of this
Act and to allow for historical analysis and comparison
of the information.
(b) SUBMISSION.—The Secretary shall issue regula-
tions prescribing a standard schedule (taking into consid-
eration the provisions of section 14(a)), format, and meth-
od for submitting information under this Act to the Sec-
retary. The format and method of submitting the informa-
tion shall facilitate and encourage the submission in a
form readable by a computer. Any insurer submitting in-
formation to the Secretary may submit in writing to the
Secretary any additional information or explanations that
the insurer considers relevant to the decision by the in-
surer to sell insurance.
SEC. 13. COMPILATION OF AGGREGATE INFORMATION.
(a) INSURANCE INFORMATION.—For each annual re-
porting period, the Secretary shall—
(1) compile, for each designated MSA, by des-
ignated line (and if such information is submitted,
by subline or coverage type)—
(A) information submitted under sections
4, 5, 8, and 9(b) and loss ratios (if the submis-
sion of loss information is required), aggregated
by applicable region for all insurers submitting
such information; and
(B) such information and loss ratios (if the
submission of loss information is required), ag-
gregated by applicable region for each such in-
surer; and
(2) produce tables based on information submit-
ted under sections 4, 5, 8, and 9(b) for each des-
ignated MSA, by insurer and for all insurers, by des-
ignated line (and if such information is submitted,
by subline or coverage type), indicating—
(A) insurance underwriting patterns aggre-
gated for the applicable regions within the
MSA, grouped according to location, age of
property, income level, and racial characteristics
of neighborhoods; and
(B) loss ratios based on the information
obtained pursuant to sections 4, 5, 8, and 9(b)
(if the submission of loss information is re-
quired), aggregated for the applicable regions
within the MSA, grouped according to location,
age of property, income level, and racial charac-
teristics of neighborhoods.
(b) AGENT INFORMATION.—For each annual report-
ing period and for each designated MSA, the Secretary
shall compile, by designated line, the information submit-
ted under section 4(b)(1)(C)—
(1) by designated insurer by applicable region;
(2) by designated insurer aggregated for the
applicable regions within the designated MSA,
grouped according to location, age of property, in-
come level, and racial characteristics; and
(3) for all designated insurers that have submit-
ted such information for the designated MSA, aggre-
gated for the applicable regions within the des-
ignated MSA, grouped according to location, age of
property, income level, and racial characteristics.
(c) RURAL INSURANCE INFORMATION.—For each an-
nual reporting period, the Secretary shall—
(1) compile for each applicable 5-digit zip code,
by designated line (and if such information is sub-
mitted, by subline or coverage type)—
(A) information regarding insurance in
rural areas submitted under sections 7 and 8
and loss ratios, for all insurers for which such
information is submitted; and
(B) such information and loss ratios, for
each such insurer; and
(2) produce tables for each 5-digit zip code
based on information regarding insurance in rural
areas submitted under sections 7 and 8, by insurer
and for all such insurers for which information is
submitted under such sections, by designated line
(and if such information is submitted, by subline or
coverage type), indicating—
(A) insurance underwriting patterns, ag-
gregated by zip codes, grouped according to lo-
cation, age of property, income level, and racial
characteristics of neighborhoods (where such
demographic information is available); and
(B) loss ratios, based on the information
obtained pursuant to sections 7 and 8, aggre-
gated by zip codes, grouped according to loca-
tion, age of property, income level, and racial
characteristics of neighborhoods (where such
demographic information is available).
(d) INVESTMENT INFORMATION.—For each annual
reporting period, the Secretary shall—
(1) compile the information submitted under
section 11, for each designated MSA—
(A) aggregated by applicable region for all
insurers, by designated investment; and
(B) aggregated by applicable region for
each insurer, by designated investment; and
(2) produce tables for each designated MSA, for
each insurer and for all insurers, indicating patterns
of designated investments, which shall be aggregated
by applicable region, grouped according to racial
characteristics, income level, and gender of the bor-
rower or size of business of the borrower and owner-
ship characteristic of the business, as applicable.
SEC. 14. AVAILABILITY AND ACCESS SYSTEM.
(a) AVAILABILITY TO PUBLIC.—
(1) IN GENERAL.—The Secretary shall main-
tain and make available to the public, in accordance
with the requirements of this section, any informa-
tion submitted to the Secretary under this Act and
any information compiled by the Secretary under
this Act.
(2) TIMING.—The Secretary shall make such
information publicly available on a timetable deter-
mined by the Secretary, but not later than 9 months
after the conclusion of the annual reporting period
to which the information relates, except that such
information shall not be made available to the public
until it is available in its entirety unless not all the
information required to be reported is available by
such date.
(b) PUBLIC ACCESS SYSTEM.—
(1) IMPLEMENTATION.—The Secretary shall
implement a system to facilitate access to any infor-
mation required to be made available to the public
under this Act.
(2) BASES OF AVAILABILITY.—The system shall
provide access in the following manners:
(A) ACCESS TO ITEMIZED INFORMATION.—
To information submitted under sections 4, 5,
7, 8, 9(b), and 11 on the basis of the insurer
submitting the information, on the basis of des-
ignated MSA and applicable region (or in the
case of rural information submitted under sec-
tion 7 or 8, on the basis of 5-digit zip code),
and on any other basis the Secretary considers
feasible and appropriate.
(B) ACCESS
TO
AGGREGATE
INFORMA-
TION.—To 
aggregate 
information 
compiled
under section 13, on the basis of (i) the insurer
submitting the information, and (ii) designated
MSA and applicable region (or in the case of
rural information submitted under section 7 or
8, on the basis of 5-digit zip code), and on any
other basis the Secretary considers feasible and
appropriate.
(3) METHOD.—The access system shall include
a toll-free telephone number that can be used by the
public to request such information and the address
at which a written request for such information may
be submitted.
(4) FORM.—The Secretary shall, by regulation,
establish the forms in which such information may
be furnished by the Secretary. Such forms shall in-
clude written statements, forms readable by widely
used personal computers, and, if feasible, on-line ac-
cess for personal computers. The Secretary shall
provide the information available under this section
in any such form requested by the person requesting
the information, except that the Secretary may
charge a fee for providing such information, which
may not exceed the amount, determined by the Sec-
retary, that is equal to the cost of reproducing the
information.
(5) ANALYSIS SOFTWARE.—The Secretary shall
make available to the public software that can be
used on a personal computer to analyze the informa-
tion provided under this section. The software shall
be capable of analyzing the information by insurer,
designated line, race, gender, MSA, and applicable
region. It shall also contain data compiled by the
Secretary for each MSA and applicable region on in-
come levels, age of property, and racial characteris-
tics that can be used to evaluate the information
provided under this Act by insurers. The software
and any accompanying data shall be made available
to the public without charge, except for an amount,
determined by the Secretary, which shall not exceed
the actual cost of reproducing the software and the
accompanying data.
(c) PROTECTIONS
REGARDING
LOSS
INFORMA-
TION.—
(1) PROHIBITION OF DISCLOSURE OF LOSS IN-
FORMATION.—Notwithstanding any other provision
of this Act, the Secretary may not make available to
the public or otherwise disclose any information sub-
mitted under this Act regarding the amount or num-
ber of claims paid by any insurer, the amount of
losses of any insurer, or the loss experience for any
insurer, except (A) in the form of a loss ratio (ex-
pressing the relationship of claims paid to pre-
miums) made available or disclosed in compliance
with the provisions of paragraph (2), or (B) as pro-
vided in paragraph (3).
(2) PROTECTION OF IDENTITY OF INSURER.—
In making available to the public or otherwise dis-
closing a loss ratio for an insurer—
(A) the Secretary may not identify the in-
surer to which the loss ratio relates; and
(B) the Secretary may disclose the loss
ratio only in a manner that does not allow any
party to determine the identity of the specific
insurer to which the loss ratio relates, except
parties having access to information under
paragraph (3).
(3) CONFIDENTIALITY
OF
INFORMATION
DIS-
CLOSED TO GOVERNMENTAL AGENCIES.—The Sec-
retary may make information referred to in para-
graph (1) and the identity of the specific insurer to
which such information relates available to any Fed-
eral entity and any State agency responsible for reg-
ulating insurance in a State and may otherwise dis-
close such information to any such entity or agency,
but only to the extent such entity or agency agrees
not to make any such information available or dis-
close such information to any other person.
SEC. 15. DESIGNATIONS.
(a) DESIGNATION OF MSA’S.—For purposes of this
Act, the term ‘‘designated MSA’’ means the following
MSA’s:
(1) FIRST 5 YEARS.—With respect to the first
5 annual reporting periods to which the reporting re-
quirements under this Act apply (pursuant to sec-
tion 26), any of the 150 MSA’s selected as follows:
(A) The Secretary shall select the 50
MSA’s having the largest populations, as deter-
mined by the Secretary and specified in regula-
tions issued pursuant to section 24, which shall
not be amended or revised after issuance.
(B) The Secretary shall select 100 addi-
tional MSA’s, on a basis that provides for (i)
geographic diversity among the designated
MSA’s under this paragraph, and (ii) diversity
in size of the populations among such MSA’s.
(2) AFTER FIRST 5 YEARS.—With respect to
annual reporting periods thereafter, an MSA for
which a designation under this paragraph is in ef-
fect, pursuant to the following requirements:
(A) The designations shall be made for
each of the successive 5-year periods at the
time provided in subparagraph (C), and the
first such period shall be the 5-year period be-
ginning upon the commencement of the 6th an-
nual reporting period to which the reporting re-
quirements under this Act apply.
(B) The Secretary shall designate not less
than 150 MSA’s as designated MSA’s for each
such 5-year period and shall designate such
MSA’s based upon the information and rec-
ommendations made in the report under section
20(b) relating to the period.
(C) The Secretary shall make the designa-
tion of MSA’s for an ensuing 5-year period by
regulations issued—
(i) not later than the date occurring
12 months before the commencement of
the 5-year period; and
(ii) not later than 6 months after the
submission to the Secretary of the report
under section 20(b) relating to such pe-
riod.
(D) The designations for a 5-year period
shall take effect upon the commencement of the
first annual reporting period of the 5-year pe-
riod that begins at least 12 months after the is-
suance of the regulations making such designa-
tions, and shall remain in effect until the expi-
ration of the 5-year period.
Notwithstanding any other provision of this section, the
designation of an MSA shall remain in effect until a suc-
ceeding designation of MSA’s under paragraph (2) takes
effect.
(b) DESIGNATION
OF INSURERS.—The Secretary
shall designate, for each designated line and each State,
insurers doing business in the lines as designated insurers
in the State for purposes of this Act, subject to the follow-
ing requirements:
(1) HIGHEST AGGREGATE PREMIUM VOLUME.—
(A) GENERAL
RULE.—For a State, the
Secretary shall designate, for each designated
line, each of the insurers and insurer groups in-
cluded in the class established under this para-
graph for the State.
(B) DETERMINATION.—In the State, the
Secretary shall rank the insurers and insurer
groups in each designated line from the insurer
or group having the largest aggregate premium
volume in the State for such line to the insurer
or group having the smallest such aggregate
premium volume and shall include in the class
for the State only (i) the insurer or group of
the highest rank, and (ii) each insurer or group
of successively lower rank if the inclusion of
such insurer or group in the class does not re-
sult in the sum of such aggregate premium vol-
umes for insurers and groups in the class ex-
ceeding 80 percent of the total aggregate pre-
mium volume in the State for the line, and (iii)
the first such successively lower ranked insurer
or insurer group whose inclusion in the class re-
sults in such sum exceeding 80 percent of the
total aggregate premium volume in the State
for the line.
(2) MINIMUM AGGREGATE PREMIUM VOLUME.—
For a State, the Secretary shall designate, for each
designated line, each insurer and insurer group not
designated pursuant to paragraph (1) whose pre-
mium volume in the State for the designated line ex-
ceeds 1 percent of the total aggregate premium vol-
ume in the State for the line.
(3) FAIR PLANS
AND
JOINT
UNDERWRITING
ASSOCIATIONS.—For a State, the Secretary shall
designate, for each designated line—
(A) each statewide plan under part A of
title XII of the National Housing Act to assure
fair access to insurance requirements, and
(B) each joint underwriting association,
that provides insurance under such line.
(4) DURATION.—The Secretary shall designate
insurers under this subsection once every 5 years.
Each insurer designated shall be a designated in-
surer for each of the first 5 successive annual re-
porting periods commencing after such designation.
(c) DESIGNATION OF LINES OF INSURANCE.—
(1) IN GENERAL.—The Secretary shall, by reg-
ulation, designate lines of insurance as designated
lines for purposes of this Act, as follows:
(A) AUTOMOBILE.—The Secretary shall
designate private passenger automobile insur-
ance and shall also designate any sublines and
coverage types of private passenger automobile
insurance that the Secretary considers appro-
priate to determine and compare the availabil-
ity, affordability, and type of coverage in such
line among applicable regions.
(B) NONCOMMERCIAL
INSURANCE
FOR
RESIDENTIAL PROPERTY.—The Secretary shall
designate homeowners insurance and dwelling
fire and allied lines, and shall distinguish the
coverage types in such lines by the perils cov-
ered and by market or replacement value. For
purposes of this Act, homeowners insurance
shall not include any renters coverage or cov-
erage for the personal property of a condomin-
ium owner.
(C) BID, PERFORMANCE, AND
PAYMENT
BONDS
FOR
SMALL
BUSINESSES.—The Sec-
retary shall designate lines, and any sublines
and coverage types, of bid, performance, and
payment bonds for small businesses, for which
reporting is required pursuant to section 6, that
the Secretary considers appropriate to deter-
mine and compare the availability, affordability,
and quality or type of coverage in bid, perform-
ance, and payment bonds for small businesses
among applicable regions.
(2) REPORT.—At any time the Secretary deter-
mines that any line of insurance not described in
paragraph (1) should be a designated line because
disparities in coverage provided under such line exist
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 Act
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
of the 6-month period beginning on the date of
issuance of the regulations.
(d) TIMING OF DESIGNATIONS.—The Secretary shall
make the designations required by subsections (b)(4) and
(c)(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.
(e) 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 Act. 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
Act or that is to be used solely for the purpose of a report
under subsection (c)(2).
SEC. 16. IMPROVED METHODS AND REPORTING ON BASIS
OF OTHER AREAS.
(a) DEVELOPMENT OF IMPROVED METHODS.—The
Secretary shall develop, or assist in the improvement of,
methods of matching addresses and applicable regions to
facilitate compliance by insurers, in as economical a man-
ner as possible, with the requirements of this Act. The
Secretary shall allow insurers, or statistical agents acting
on behalf of insurers, to match addresses and applicable
regions through the use of 9-digit zip codes if the Sec-
retary determines that such use will substantially reduce
the cost and burden to insurers of such matching without
significant adverse impact on the reliability of the match-
ing.
(b) ADDRESS CONVERSION SOFTWARE.—The Sec-
retary shall make available, to any insurer required to pro-
vide information to the Secretary under this Act, computer
software that can be used to convert addresses to applica-
ble regions within designated MSA’s. The software shall
be made available in forms that provide such conversion
for designated MSA’s on a nationwide basis and on a
State-by-State basis. The software shall be made available
not less than 6-months before the first annual reporting
period to which the reporting requirements under this Act
apply (pursuant to section 226) and shall be updated an-
nually. The software shall be made available without
charge, except for an amount, determined by the Sec-
retary, which shall not exceed the actual cost of reproduc-
ing the software.
(c) CONVERTIBILITY.—
(1) AUTHORITY.—The Secretary may, by regu-
lation, provide for insurers to comply with the re-
quirements under sections 4, 5, 9(b), and 11 by re-
porting the information required under such sections
on the basis of geographical location other than
MSA and applicable region, but only if the Secretary
determines that information reported on such other
basis is convertible to the basis of MSA and applica-
ble region and such conversion does not affect the
accuracy of the information.
(2) LIMITATION.—With respect to any informa-
tion submitted on the basis of geographical location
other than designated MSA and applicable region
pursuant to paragraph (1), the Secretary may dis-
close the information only on the basis of designated
MSA and applicable region.
SEC. 17. ANNUAL REPORTING PERIOD.
(a) IN GENERAL.—For purposes of this Act, the an-
nual reporting periods shall be the 12-month periods com-
mencing in each calendar year on the same day, which
shall be selected under subsection (b) by the Secretary.
(b) SELECTION.—Not later than the expiration of the
6-month period beginning on the date of the enactment
of this Act, the Secretary shall, by regulation, select a day
of the year upon which all annual reporting periods shall
commence. In determining such day, the Secretary shall
consider the reporting periods used for purposes of State
and other insurance statistical reporting systems, in order
to minimize the burdens on insurers.
SEC. 18. DISCLOSURES BY INSURERS TO APPLICANTS AND
POLICYHOLDERS.
(a) IN GENERAL.—The Secretary shall, by regula-
tion, require the following disclosures:
(1) APPLICANTS.—Each insurer that, through
the insurer, or an agent or broker, declines a written
application or written request to issue an insurance
policy under a designated line shall provide to the
applicant at the time of such declination, through
such insurer, agent, or broker, one of the following:
(A) A written explanation of the specific
reasons for the declination.
(B) Written notice that (i) the applicant
may submit to the insurer, agent, or broker,
within 90 days of such notice, a written request
for a written explanation of the reasons for the
declination, and (ii) pursuant to such a request,
an explanation shall be provided to the appli-
cant within 21 days after receipt of such re-
quest.
If an insurer, agent, or broker making a declination
receives a written request referred to in subpara-
graph (B) within such 90-day period, the insurer,
agent, or broker shall provide a written explanation
referred to in such subparagraph within such 21-day
period.
(2) POLICYHOLDERS.—Each insurer that can-
cels or refuses to renew an insurance policy under
a designated line shall provide to the policyholder, in
writing and within an appropriate period of time as
determined by the Secretary, the reasons for cancel-
ing or refusing to renew the policy.
(b) MODEL ACTS.—In issuing regulations under sub-
section (a), the Secretary shall consider relevant portions
of model acts developed by the National Association of In-
surance Commissioners.
(c) PREEMPTION.—Subsection (a) shall not be con-
strued to annul, alter, or effect, or exempt any insurer,
agent, or broker subject to the provisions of subsection
(a) from complying with any laws or requirements of any
State with respect to notifying insurance applicants or pol-
icyholders of the reasons for declination or cancellation of,
or refusal to renew insurance, except to the extent that
such laws or requirements are inconsistent with subsection
(a) (or the regulations issued thereunder) and then only
to the extent of such inconsistency. The Secretary is au-
thorized to determine whether such inconsistencies exist
and to resolve issues regarding such inconsistencies. The
Secretary may not provide that any State law or require-
ment is inconsistent with subsection (a) if it imposes re-
quirements equivalent to the requirements under such
subsection or requirements that are more stringent or
comprehensive, in the determination of the Secretary.
(d) IMMUNITY.—In issuing regulations under sub-
section (a), the Secretary shall specifically consider the ne-
cessity of providing insurers, agents, and brokers immu-
nity solely for the act of conveying or communicating the
reasons for a declination or cancellation of, or refusal to
renew insurance on behalf of a principal making such deci-
sion. The Secretary may provide for immunity under the
regulations issued under subsection (a) if the Secretary
determines that such a provision is necessary and in the
public interest, except that the Secretary may not provide
immunity for any conduct that is negligent, reckless, or
willful.
(e) ENFORCEMENT.—The Secretary may authorize
the States to enforce the requirements under regulations
issued under subsection (a).
SEC. 19. 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 Act shall be subject to a civil penalty of
not to exceed $5,000 for each day during which such viola-
tion 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 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. 20. REPORTS.
(a) ANNUAL REPORT.—The Secretary shall annually
report to the Committee on Banking, Finance and Urban
Affairs of the House of Representatives and the appro-
priate Committees of the Senate on the implementation
of this Act and shall make recommendations to such Com-
mittees on such additional legislation as the Secretary
deems appropriate to carry out this Act. The Secretary
shall include in each annual report a description of any
complaints or problems resulting from the implementation
of this Act, of which the Secretary has knowledge, made
by (or on behalf of) insurance policyholders that concern
the disclosure of information regarding policyholders and
any recommendations for addressing such problems. Each
report shall specifically address whether granting property
and casualty insurance powers to other financial
intermediaries would significantly reduce redlining and
other discriminatory insurance practices and the Secretary
shall consult with the appropriate financial institution reg-
ulators regarding such issues in preparing the report.
(b) GAO REPORTS.—
(1) IN GENERAL.—The Comptroller General of
the United States shall submit a report under this
subsection to the Secretary and the Congress for
each 5-year period referred to in sections 7(c)(2)
and 15(a)(2), which contains information to be used
by the Secretary in implementing this Act during
such period.
(2) TIMING.—The report under this subsection
for each such 5-year period shall be submitted not
later than the date occurring 18 months before the
commencement of the period to which the report re-
lates.
(3) CONTENTS.—A report under this subsection
shall include the following information:
(A) An analysis of the adequacy of the im-
plementation of this Act and any recommenda-
tions of the Comptroller General for improving
the implementation.
(B) The costs to the Federal Government,
insurers, and consumers of implementing and
complying with this Act.
(C) Any beneficial or harmful effects re-
sulting from the requirements of this Act.
(D) An analysis of whether, considering
the purposes of this Act, insurers are required
by this Act (or by implementing regulations) to
submit appropriate information.
(E) An analysis of whether sufficient evi-
dence exists of patterns of disparities in the
availability, affordability, and quality or type of
insurance coverage to warrant continued appli-
cability of the requirements of this Act.
(F) An analysis of whether the group of
designated MSA’s in effect at the time of the
report are appropriate for purposes of this Act.
(G) Specific recommendations, for use by
the Secretary in designating MSA’s for the 5-
year period for which the report is made, with
regard to—
(i) the characteristics of MSA’s that
should be included in the group of des-
ignated MSA’s;
(ii) the number of MSA’s that should
be included in the group;
(iii) the number of MSA’s having each
particular characteristic that should be in-
cluded in the group; and
(iv) the characteristics of MSA’s, and
number of MSA’s having each such char-
acteristic, that should be removed from the
group of designated MSA’s in effect at the
time of the report.
(H) With respect only to the first report
required under this subsection, recommenda-
tions of whether the study conducted under sec-
tion 5 should be continued beyond the date in
section 5(b)(8) and, if so, whether the require-
ments regarding the submission of information
under the study should be expanded or changed
with respect to insurers, MSA’s, lines, sublines
or coverage types of insurance, and types of
small businesses, or whether the study should
be allowed to terminate under law.
(I) An analysis of whether the group of
designated rural areas in effect at the time of
the report are appropriate for purposes of this
Act.
(J) Specific recommendations, for use by
the Secretary in designating rural areas for
purposes of section 7 for the 5-year period for
which the report is made, with regard to—
(i) the characteristics of rural areas
that should be included in the group of
designated rural areas under such section;
(ii) the number of rural areas having
each particular characteristic that should
be included in the group; and
(iii) the characteristics of rural areas,
and number of rural areas having each
such characteristic, that should be removed
from the group of designated rural areas
in effect at the time of the report.
(K) Any other information or recommenda-
tions relating to the requirements or implemen-
tation of this Act that the Comptroller General
considers appropriate.
(4) CONSULTATION.—In preparing each report
under this subsection, the Comptroller General shall
consult with Federal agencies having appropriate ex-
pertise, the National Association of Insurance Com-
missioners, State insurance regulators, statistical
agents, representatives of small businesses, rep-
resentatives of insurance agents (including minority
insurance agents) and property and casualty insur-
ers, and community, consumer, and civil rights orga-
nizations.
SEC. 21. TASK FORCE ON AGENCY APPOINTMENTS.
(a) ESTABLISHMENT.—Not later than 90 days after
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 insurers, State insur-
ance regulators, and community, consumer, and civil
rights organizations;
(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 insurers and consider
the effects such problems have on the availability,
affordability, and quality or type of insurance, espe-
cially in underserved areas;
(2) review the practices of insurers in terminat-
ing agents and consider the effects such practices
have on the availability, affordability, and quality or
type of insurance, especially 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 insurers should
take to increase their appointments of such agents.
(c) REPORT
AND TERMINATION.—The task force
shall report to the Committee on Banking, Finance and
Urban Affairs of the House of Representatives and the
appropriate Committees of the Senate its findings under
paragraphs (1) and (2) of subsection (b) and its rec-
ommendations under paragraph (3) of subsection (b) not
later than 2 years after the date of the enactment of this
Act. The task force shall terminate when the report is sub-
mitted to the Committees.
SEC. 22. STUDIES.
(a) STUDY OF INSURANCE PRESCREENING.—
(1) IN GENERAL.—The Secretary shall conduct
a study to determine the feasibility and utility of re-
quiring insurers to report information with respect
to the characteristics 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 racial characteristics of the
prospective insured;
(iii) the racial composition of the
neighborhood in which the risk to be in-
sured 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 Banking, Finance and Urban Affairs
of the House of Representatives and the appropriate
Committees of the Senate not later than 2 years
after the date of the enactment of this Act. The re-
port shall include recommendations of the Secretary
(A) with respect to requiring insurers to report on
the disposition of oral and written applications for
insurance, and (B) for any legislation that the Sec-
retary considers appropriate regarding the issues de-
scribed in the report.
(b) STUDY OF INSURER ACTIONS TO MEET INSUR-
ANCE NEEDS OF CERTAIN NEIGHBORHOODS.—The Sec-
retary shall conduct a study of various practices, actions,
and methods undertaken by insurers to meet the property
and casualty insurance needs of residents of low- and mod-
erate-income neighborhoods, minority neighborhoods, and
small businesses located in such neighborhoods. The Sec-
retary shall report the results of the study, including any
recommendations, to the Committee on Banking, Finance
and Urban Affairs of the House of Representatives and
the appropriate Committees of the Senate not later than
2 years after the date of the enactment of this Act.
(c) STUDY OF DISPARATE CLAIMS TREATMENT.—
(1) IN GENERAL.—The Secretary shall conduct
a study to determine whether, and the extent to
which, insurers engage in disparate treatment in
handling claims of policyholders under designated
lines of insurance based on the race, gender, and in-
come level of the policyholder, and on the racial
characteristics and income levels of the area in
which the insured risk is located. In conducting the
study, the Secretary shall specifically consider
whether residents of low-income neighborhoods or
areas and minority neighborhoods or areas are more
likely than residents of other areas to have their
claims contested or their insurance coverage can-
celed.
(2) REPORT.—The Secretary shall submit a re-
port on the results of the study to the Committee on
Banking, Finance and Urban Affairs of the House
of Representatives and the appropriate Committees
of the Senate not later than 2 years after the date
of the enactment of this Act.
(d) STUDY
OF RATING TERRITORIES.—The Sec-
retary shall conduct a study to determine whether the
practice in the insurance industry of basing insurance pre-
mium amounts on the territory in which the insured risk
is located has a disparate impact on the availability, af-
fordability, or quality of insurance by race, gender, or type
of neighborhood. The Secretary shall submit a report on
the results of the study to the Committee on Banking, Fi-
nance and Urban Affairs of the House of Representatives
and the appropriate Committees of the Senate not later
than 12 months after the date of the enactment of this
Act.
(e) STUDY OF INSURER REINVESTMENT REQUIRE-
MENTS.—
(1) IN GENERAL.—The Secretary shall conduct
a study to determine the feasibility of requiring in-
surers to reinvest in communities and neighborhoods
from which they collect premiums for insurance and
whether, and the extent to which, community rein-
vestment requirements for insurers should be estab-
lished that are comparable to the community rein-
vestment requirements applicable to depository insti-
tutions. The Secretary shall consult with representa-
tives of insurers and consumer, community, and civil
rights organizations regarding the results of the
study and any recommendations to be made based
on the results of the study.
(2) REPORT.—The Secretary shall report the
results of the study, including any such rec-
ommendations, to the Committee on Banking, Fi-
nance and Urban Affairs of the House of Represent-
atives and the appropriate Committees of the Senate
not later than 6 months after the conclusion of the
first annual reporting period to which the reporting
requirements under this Act apply (pursuant to sec-
tion 26).
SEC. 23. EXEMPTION AND RELATION TO STATE LAWS.
(a) EXEMPTION FOR UNITED STATES PROGRAMS.—
Reporting shall not be required under this Act with re-
spect to insurance provided by any program underwritten
or administered by the United States.
(b) RELATION TO STATE LAWS.—This Act does not
annul, alter, or affect, or exempt the obligation of any in-
surer subject to this Act to comply with the laws of any
State or subdivision thereof with respect to public disclo-
sure, submission of information, and recordkeeping.
SEC. 24. REGULATIONS.
(a) IN GENERAL.—The Secretary shall issue any reg-
ulations required under this Act and any other regulations
that may be necessary to carry out this Act. The regula-
tions shall be issued through rulemaking in accordance
with the procedures under section 553 of title 5, United
States Code, for substantive rules. Except as otherwise
provided in this Act, such final regulations shall be issued
not later than the expiration 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 Act and shall minimize the
burdens imposed by such requirements with respect to
such agents.
SEC. 25. DEFINITIONS.
For purposes of this Act:
(1) AGENT.—The term ‘‘agent’’ means, with re-
spect to an insurer, an agent licensed by a State
who sells property and casualty insurance. The term
includes agents who are employees of the insurer,
agents who are independent contractors working ex-
clusively for the insurer, and agents who are inde-
pendent contractors appointed to represent the in-
surer on a nonexclusive basis.
(2) APPLICABLE REGION.—The term ‘‘applica-
ble region’’ means, with respect to a designated
MSA—
(A) for any county located within the MSA
that has a population of more than 30,000, the
applicable census tract within the county; or
(B) for any county located within the MSA
that has a population of 30,000 or less, the ap-
plicable county.
(3) 
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.
(4) DESIGNATED
INSURER.—The term ‘‘des-
ignated insurer’’ means, with respect to a designated
line, an insurer designated for a State by the Sec-
retary under section 15(b) as a designated insurer
for such line or any insurer that is part of an in-
surer group selected under such section.
(5) 
DESIGNATED
INVESTMENT.—The 
term
‘‘designated investment’’ means making or purchas-
ing a loan for the purchase of commercial real es-
tate, making or purchasing a mortgage loan for the
purchase of a 1- to 4-family dwelling, making or
purchasing a commercial or industrial loan, or mak-
ing any other investment designated by the Sec-
retary under section 11(b).
(6) DESIGNATED LINE.—The term ‘‘designated
line’’ means a line of insurance or bid, performance,
and payment bonds designated by the Secretary
under section 15(c).
(7) 
EXPOSURES.—The 
term 
‘‘exposures’’
means, for purposes of section 4, with respect to an
insurance policy, an expression of an exposure unit
covered under the policy compared to the duration of
the policy (pursuant to standards established by the
Secretary for uniform reporting of exposures).
(8) EXPOSURE
UNITS.—The term ‘‘exposure
units’’ means, for purposes of section 4, an auto-
mobile or dwelling covered under an insurance policy
for private passenger automobile or homeowners or
dwelling fire and allied lines coverage.
(9) 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.
(10) INSURER.—Except with respect to section
9, the term ‘‘insurer’’ means any corporation, asso-
ciation, society, order, firm, company, mutual, part-
nership, individual, aggregation of individuals, or
any other legal entity that is authorized to transact
the business of property or casualty insurance in any
State or that is engaged in a property or casualty
insurance business. With respect to section 6, the
term means any person authorized to transact the
business of bid, performance, and payment bonds for
small businesses. The term does not include an indi-
vidual 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.
(11) ISSUED.—The term ‘‘issued’’ means, with
respect to an insurance policy, newly issued or re-
newed.
(12) JOINT UNDERWRITING ASSOCIATION.—The
term ‘‘joint underwriting association’’ means an un-
incorporated association of insurers established to
provide a particular form of insurance to the public.
(13) 
MORTGAGE
INSURANCE.—The 
term
‘‘mortgage insurance’’ means insurance against the
nonpayment of, or default on, a mortgage or loan
for residential or commercial property.
(14) MSA.—The term ‘‘MSA’’ means a Metro-
politan Statistical Area or a Primary Metropolitan
Statistical Area.
(15) 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.
(16) PROPERTY AND CASUALTY INSURANCE.—
The term ‘‘property and casualty insurance’’ means
insurance against loss of or damage to property, in-
surance against loss of income or extra expense in-
curred because of loss of, or damage to, property,
and insurance against third party liability claims
caused by negligence or imposed by statute or con-
tract. Such term does not include workers’ com-
pensation, professional liability, or title insurance.
(17) RESIDUAL MARKET.—The term ‘‘residual
market’’ means an assigned risk plan, joint under-
writing association, or any similar mechanism de-
signed to make insurance available to those unable
to obtain it in the voluntary market. The term in-
cludes each statewide plan under part A of title XII
of the National Housing Act to assure fair access to
insurance requirements.
(18) 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 Act).
(19) 
SECRETARY.—The 
term 
‘‘Secretary’’
means the Secretary of Housing and Urban Develop-
ment.
(20) 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.
SEC. 26. EFFECTIVE DATE.
The requirements of this Act relating to reporting of
information by insurers shall take effect with respect to
the first annual reporting period that begins more than
36 months after the date of the enactment of this Act.
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