I
104TH CONGRESS
1ST SESSION
H. R. 182
To provide for disclosures for insurance in interstate commerce.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 4, 1995
Mrs. COLLINS 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
Insurance Disclosure Act’’.
SEC. 2. FINDINGS AND CONSTRUCTION.
(a) FINDINGS.—The Congress finds that—
(1) there are disparities in property and cas-
ualty insurance coverage provided by some insurers
engaged in interstate commerce between areas of
different incomes and racial composition,
(2) such disparities adversely affect insurance
in interstate commerce and the affordability and
availability of insurance for consumers, and
(3) disclosures of insurance activities of insur-
ers would benefit consumers and insurance regu-
lators without imposing any undue burden on
insurers.
(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.—Except as pro-
vided by subsection (b)(5), each insurer designated
by the Secretary, which sells a line of insurance des-
ignated by the Secretary in a Metropolitan Statis-
tical Area or Consolidated Metropolitan Statistical
Area, as designated by the Secretary (both hereafter
in this Act referred to as a ‘‘MSA’’), shall compile
and make available for each calendar year to the
Secretary in accordance with subsection (d) and reg-
ulations of the Secretary and to the public for in-
spection and copying at the home office or at a
central depository established under subsection (c)
and at least one branch office (if there is one) within
such designated MSA—
(A) the number and total coverage amount
of insurance policies by line designated by the
Secretary which were issued or for which the in-
surer received a completed application in such
designated MSA, and
(B) the number of agents of such insurer
whose principal place of business is located in
such designated MSA and the number within
each census tract or county, as applicable, in
such designated MSA and with respect to each
such agent, whether such agent is an employee,
independent contractor working exclusively for
such insurer, or an independent contractor
appointed to represent such insurer on a non-
exclusive basis.
(2) NON-DESIGNATED
INSURERS.—Except as
provided in subsection (b)(5), every insurer which
sells an insurance policy in a designated line of in-
surance in a designated MSA and which is not a
designated insurer in such MSA shall report for
each calendar year to the Secretary in accordance
with subsection (d) and regulations of the Secretary
the number of insurance policies in a designated line
sold in such MSA on an annualized basis which ad-
justs for varying durations of insurance policies
sold—
(A) itemized by census tract for policies
sold within any county with a population of
more than 30,000 within the designated MSA,
or
(B) by county for insurance policies sold
within any other county in such MSA.
Such information shall be made available to the pub-
lic on a timetable determined by the Secretary but
not later than December 31 of the calendar year fol-
lowing the calendar year for which the information
is required to be reported.
(b) REQUIREMENTS.—
(1) CONTENT.—The information required to be
maintained and made available under subsection
(a)(1) shall—
(A) be itemized in order to clearly and con-
spicuously disclose the number and coverage
amount for each line of insurance for which
information is required by—
(i) census tracts for insurance policies
within any county with a population of
more than 30,000 within the designated
MSA, or
(ii) county for insurance policies with-
in any other county within such designated
MSA,
(B) disclose for each designated line of in-
surance in a designated MSA and, with respect
to each such line, for each census tract or
county, as applicable, in the designated MSA—
(i) the total number of claims made
which with respect to property insurance
shall be disaggregated by the type and use
of the property insured, and
(ii) the total amount paid in claims
which with respect to property insurance
shall be disaggregated by the type and use
of the property insured,
(C) disclose the standards and criteria
used in underwriting each designated line of
insurance, and
(D) be made available to the public on a
timetable determined by the Secretary but not
later than December 31 of the calendar year
following the calendar year for which the infor-
mation is required to be made available.
(2) ITEMIZATION OF DATA.—With respect to in-
surance for which information is required to be
maintained and made available under subsection
(a)(1), the following information shall be maintained
and made available for each completed application
and for each policy:
(A) The designated MSA for which such
insurance is issued and within such MSA the
census tract or county, as applicable, for which
such insurance is issued.
(B) The designated insurer who issued
such insurance.
(C) The date of the issuance of such insur-
ance.
(D) The line of the insurance which is des-
ignated and any subline or class of such insur-
ance.
(E) The type of insurance or policy form
for which applications are made and the types
of insurance and policy forms which are issued.
(F) The amount of coverage provided
under such insurance and any applicable
deductibles.
(G) The amount of the premiums for such
insurance.
(H) The durations of such insurance.
(I) A notation if such insurance was issued
in a voluntary or residual market.
(J) The reason for any declination, can-
cellation, or non-renewal made for such insur-
ance.
(K) With respect to property insurance,
the market value of the property insured and
the type and use of property insured.
(3) 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 5 years after the close of
the first year during which such information is
required to be maintained and made available.
(4) 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.
(5) EXEMPTION.—
(A) SECRETARIAL ACTION.—The Secretary
may by regulation exempt from the require-
ments of subsection (a) any insurer within any
State if the Secretary determines that under
the laws of such State that such insurer is sub-
ject to disclosure requirements on a census
tract basis substantially similar to those of sub-
section (a) and that such law contains adequate
provisions for enforcement.
(B) UNITED
STATES
PROGRAM.—Report-
ing shall not be required under subsection (a)
with respect to insurance provided by a
program underwritten or administered by the
United States.
(6) COMPLETED APPLICATION.—For purposes
of subsection (a) and this subsection, the Secretary
shall define ‘‘completed applications’’ to—
(A) ensure that the disclosure required by
such subsections appropriately reflects the char-
acteristics of the applicants interested in pur-
chasing insurance in a designated MSA, and
(B) prevent insurers from evading the in-
tent of such subsections through practices de-
signed to discourage applicants from completing
applications.
(c) ACCESS SYSTEM.—The Secretary, shall imple-
ment a system to facilitate access to information required
to be maintained and made available under subsection (a).
Such system shall include arrangements for a central de-
pository of information in each designated MSA and for
a telephone number which can be used by the public, at
cost, to request such information. Statements shall be
made available to the public for inspection and copying
at such central depository of information for all designated
insurers within such MSA.
(d) SUBMISSION TO SECRETARY.—The information
referred to in subsection (a) shall be submitted to the Sec-
retary. The Secretary shall develop regulations prescrib-
ing—
(1) the format for making such information
available,
(2) the method for submission of such informa-
tion, and
(3) the procedures for making the information
available to the public.
Any reporting insurer may submit in writing to the Sec-
retary such additional data or explanations as it deems
relevant to the decision by such insurer to sell insurance.
SEC. 4. DESIGNATIONS.
(a) DESIGNATIONS BY THE SECRETARY.—
(1) DESIGNATIONS OF MSA’S.—The Secretary
shall, on an annual basis, designate the MSA’s for
which reporting is required under section 3. At a
minimum, the Secretary shall designate the 150
MSA’s having the largest population. The Secretary
may designate additional MSA’s on the basis of such
criteria as the Secretary may by rule develop. Such
a rule shall be issued in accordance with section 553
of title 5, United States Code.
(2) DESIGNATION
OF
INSURERS.—For each
MSA designated under paragraph (1), the Secretary
shall take the following actions:
(A) The Secretary shall annually designate
the insurers transacting insurance business in
such MSA for which reporting is required under
section 3. At a minimum, the Secretary shall
annually designate the 25 insurers in such MSA
having the largest premium volume in the
designated lines of insurance.
(B) The Secretary shall also annually des-
ignate any entity providing insurance in a des-
ignated line of insurance as part of a residual
market established by State law.
(C) The Secretary may designate addi-
tional insurers on the basis of such criteria as
the Secretary may by rule develop. Such a rule
shall be issued in accordance with section 553
of title 5, United States Code. In considering