I
104TH CONGRESS
1ST SESSION
H. R. 176
To provide for disclosures for insurance in interstate commerce.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 4, 1995
Mr. COLLINS of Illinois introduced the following bill; which was referred to
the Committee on Commerce
A BILL
To provide for disclosures for insurance in interstate
commerce.
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 ‘‘Anti Redlining in In-
surance Disclosure Act’’.
SEC. 2. FINDINGS AND CONSTRUCTION.
(a) FINDINGS.—The Congress finds that—
(1) disparities in property and casualty insur-
ance coverage provided by insurers engaged in inter-
state commerce between areas of different incomes
and racial composition could adversely affect inter-
state commerce and the cost and availability of in-
surance for consumers, and
(2) appropriate disclosures of information by in-
surers would benefit consumers and insurance regu-
lators.
(b) CONSTRUCTION.—Nothing in this Act is intended
to, nor shall it be construed to, encourage unsound under-
writing practices.
SEC. 3. MAINTENANCE OF INFORMATION AND PUBLIC DIS-
CLOSURE.
(a) GENERAL RULE.—
(1) DESIGNATED INSURERS.—
(A) IN GENERAL.—Except as provided by
subsection (b)(7), each designated insurer shall,
in accordance with subsection (b), annually
compile, submit to the Secretary, and make
available to the public for each calendar year
and for designated lines of insurance in a des-
ignated MSA—
(i) the total number of policies, total
exposure units (in car years and house
years), and total earned premium of insur-
ance policies by designated line which were
issued by such insurer and the new written
exposure units, exposure units canceled,
and the exposure units not renewed by
such insurer, and
(ii) the number of licensed agents of
such insurer whose principal place of busi-
ness is located in such designated MSA
and the number within each 5-digit zip
code in such designated MSA and with re-
spect to each such agent, whether such
agent is an employee, independent contrac-
tor working exclusively for such insurer, or
an independent contractor appointed to
represent such insurer on a non-exclusive
basis.
(B) SUBMISSIONS
AND
AVAILABILITY.—
The information described in subparagraph (A)
shall be—
(i) submitted to the Secretary in ac-
cordance with subsection (d), and
(ii) made available to the public, in
accordance with subsection (b)(2), for in-
spection and copying, at cost, at the home
office of the insurer and at a central de-
pository, established under subsection (c),
by the Secretary.
the public on a timetable determined by the Sec-
retary but not later than October 1 of the calendar
year following the calendar year for which the infor-
mation is required to be made available, except that
such information shall not be made available to the
public until it is available in its entirety but it shall
be made available if not all the information required
to be reported is available on such October 1 or on
the date determined by the Secretary.
(3) SPECIFICATION OF DATA.—
(A) IN GENERAL.—With respect to infor-
mation which is required to be maintained and
made available under subsection (a)(1), the Sec-
retary shall by regulation establish specifica-
tions for the collection and public reporting of
such information with respect to the following
lines of insurance: private passenger auto-
mobile, homeowners, and dwelling fire and al-
lied lines. 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) detail what data elements should
be collected,
(iv) provide for the collection of infor-
mation on an individual insurer basis,
(v) minimize burdens on insurance
agents, including independent insurance
agents,
(vi) provide the data required by
clause (ii) with the least burden on insur-
ers, particularly small insurers,
(vii) take into account the types of
data collected under the Home Mortgage
Disclosure Act of 1975,
(viii) take into account existing statis-
tical reporting systems in the insurance in-
dustry,
(ix) require itemization by 5-digit zip
code, and
(x) include information on policies
written in a residual market.
(B) CONSULTATIONS.—In developing the
specifications in subparagraph (A), the Sec-
retary shall consult with—
(i) other Federal agencies with appro-
priate expertise,
(ii) State insurance regulators,
(iii) representatives of the insurance
industry, including statistical agents,
(iv) representatives of insurance pro-
ducers, including minority insurance pro-
ducers, and
(v) consumer, community, and civil
rights groups who are representative of a
diversity of geographic locations.
(C) EFFECTIVE
DATE.—The regulation
under subparagraph (A) shall be issued no later
than 270 days after the date of the enactment
of this Act.
(4) COMMERCIAL INSURANCE STUDY AND PILOT
PROJECT.—
(A) STUDY.—The Secretary shall conduct
a study regarding the availability of commercial
insurance (other than professional liability in-
surance, workers compensation insurance, and
title insurance) with special emphasis on the
availability of commercial insurance for small
business. The study shall focus on—
(i) an appropriate definition for small
business; and
(ii) preliminary views regarding the
availability, cost, and type of insurance
coverage for small business, which may be
based on surveys of members of the small
business community.
In conducting the study, 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 report
detailing the findings of the study to the Com-
mittee on Energy and Commerce of the House
of Representatives and the appropriate commit-
tee of the Senate no later than 18 months fol-
lowing the date of enactment of this Act.
(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-
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,
(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
(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
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
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
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.
(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
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-