datamatters24/research-document-archive huggingface dataset:
between areas of different incomes and racial com-
position;
(2) such disparities adversely affect the afford-
ability and availability of insurance for consumers;
(3) the lack of affordable and adequate insur-
ance for qualified consumers severely limits the abil-
ity of such consumers to obtain credit for home,
business, and automobile purchases; and
(4) disclosures of insurance activities of insur-
ers would benefit consumers and insurance regu-
lators without imposing any undue burden on insur-
ers.
(b) CONSTRUCTION.—Nothing in this title is intended
to, nor shall it be construed to, encourage unsound under-
writing practices.
SEC. 403. MAINTENANCE OF INFORMATION AND PUBLIC
DISCLOSURE.
(a) DESIGNATED INSURERS.—Except as provided in
section 404(e), each insurer designated under section
407(a), which sells a line of insurance designated under
section 407(b) in a Metropolitan Statistical Area or Con-
solidated Metropolitan Statistical Area (both hereafter in
this title referred to as an ‘‘MSA’’) designated by the Di-
rector of the Office of Management and Budget, shall
compile and make available for each calendar year to the
Federal Insurance Administrator (in accordance with sec-
tion 406 and regulations of the Administrator) and to the
public for inspection and copying at the home office or
at a central depository established under section 405 and
at least one branch office (if there is one) within such
MSA—
(1) the number and total coverage amount of
insurance policies by designated line which were is-
sued in such MSA;
(2) the number and total coverage amount of
insurance policies by designated line for which the
insurer received a completed application in such
MSA;
(3) the number and total coverage amount of
insurance policies by designated line for which the
insurer received a completed application and which
were not issued, in such MSA;
(4) the number and total coverage amount of
insurance policies by designated line which were re-
newed in such MSA;
(5) the number and total coverage amount of
insurance policies by designated line for which the
insurer received a completed application for renewal
in such MSA;
such information is required to be maintained and made
available.
(d) FORMAT FOR DISCLOSURES.—Subject to section
405, the Administrator shall prescribe a standard format
for making information available as required by section
403. Such format shall encourage the submission of infor-
mation in a form readable by a computer.
(e) EXEMPTIONS.—
(1) SECRETARIAL ACTION.—The Administrator
may by regulation exempt from the requirements of
section 403 any insurer within any State if the Ad-
ministrator determines that under the laws of such
State that such insurer is subject to disclosure re-
quirements on a census tract basis substantially
similar to those of section 403 and that such law
contains adequate provisions for enforcement.
(2) UNITED
STATES
PROGRAM.—Reporting
shall not be required under section 403 with respect
to insurance provided by a program underwritten or
administered by the United States, including the na-
tional flood insurance program under the National
Flood Insurance Act of 1968, the program for insur-
ance against burglary and theft under title XII of
the National Housing Act, and mortgage insurance
under the National Housing Act.
(f) COMPLETED APPLICATION.—For purposes of sec-
tion 403 and this section, the Administrator shall define
‘‘completed applications’’ to—
(1) ensure that the disclosure required by such
sections appropriately reflects the characteristics of
the applicants interested in purchasing insurance in
an MSA; and
(2) prevent insurers from evading the intent of
such sections through practices designed to discour-
age applicants from completing applications.
SEC. 405. ACCESS SYSTEM.
(a) IN GENERAL.—The Administrator shall imple-
ment a system to facilitate access to information required
to be maintained and made available under section 403.
Such system shall also include arrangements for a publicly
accessible central depository of information in each MSA,
as provided under subsection (b), and for a telephone
number which can be used by the public, at cost, to re-
quest such information. Written statements containing
such information shall be made available to the public for
inspection and copying at such central depository of infor-
mation for all designated insurers within such MSA. The
Administrator shall make copies of such statements avail-
able in forms readable by widely used personal computers.
The Administrator may charge a fee for such information,
which may not exceed the amount, determined by the Ad-
ministrator, that is equal to the cost of producing the com-
puter statements.
(b) USE OF HOME MORTGAGE DISCLOSURE ACT DE-
POSITORIES.—To the extent practicable, the central de-
positories referred to in subsection (a) shall be the central
depositories established under section 304(f) of the Home
Mortgage Disclosure Act of 1975. The Federal Financial
Institutions Examination Council shall consult with the
Administrator regarding the use of such depositories and
shall provide for the use of such depositories to the extent
agreed to by such Council and the Administrator.
SEC. 406. SUBMISSION TO ADMINISTRATOR.
The information referred to in section 403 shall be
submitted to the Administrator. The Administrator shall
develop regulations prescribing—
(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 Ad-
ministrator such additional data or explanations as it
deems relevant to the decision by such insurer to sell in-
surance.
SEC. 407. DESIGNATIONS.
(a) DESIGNATION OF INSURERS.—For each MSA,
the Administrator shall take the following actions:
(1) The Administrator shall annually designate
the insurers transacting insurance business in such
MSA for which reporting is required under section
403. At a minimum, the Administrator shall annu-
ally designate the 25 insurers in such MSA having
the largest premium volume in the designated lines
of insurance.
(2) The Administrator shall also annually des-
ignate any entity providing insurance in a des-
ignated line of insurance as part of a residual mar-
ket established by State law.
(3) The Administrator may designate additional
insurers on the basis of such criteria as the Admin-
istrator may by regulation develop. Such a regula-
tion shall be issued in accordance with section 553
of title 5, United States Code. In considering wheth-
er to designate additional insurers, the Adminis-
trator shall ensure that—
(A) insurers who specialize in selling insur-
ance in urban areas, including surplus lines in-
surers, are specifically considered for designa-
tion notwithstanding their premium volume;
and
(B) insurers representing at least 90 per-
cent of the premium volume in the designated
lines of insurance are designated in such MSA.
(b) DESIGNATION OF LINES OF INSURANCE.—For
each MSA, the Administrator shall designate the lines of
insurance sold in such MSA for which reporting is re-
quired under section 403. At a minimum, the Adminis-
trator shall annually designate private mortgage insurance
and the following lines of property and casualty insurance:
(1) Private passenger automobile insurance (in-
cluding appropriate sublines and classes).
(2) Property insurance which does not cover
commercial property (including homeowners, fire,
burglary and theft, and other lines, and appropriate
sublines and classes and related coverages such as
coverage of property contents and property insured
at full replacement value or market value).
(3) Commercial insurance for small business.
The Administrator may designate additional lines of insur-
ance on the basis of such criteria as the Administrator
may by regulation develop. Such a regulation shall be is-
sued in accordance with section 553 of title 5, United
States Code. For purposes of this title, the designation
of a line of insurance includes a designation of a subline
or class of insurance.
(c) TIMING OF DESIGNATIONS.—The Administrator
shall make the annual designations required by sub-
sections (a) and (b) no later than September 1 of the year
preceding the year for which reporting is required under
section 403. The Administrator shall notify persons in-
volved in the designations no later than the October 1
which follows the designation.
(d) OBTAINING INFORMATION.—The Administrator
may obtain from insurers such information as the Admin-
istrator may require to make designations under this sec-
tion.
SEC. 408. DISCLOSURES TO REJECTED APPLICANTS.
(a) IN GENERAL.—Except as provided in subsection
(e), the Administrator shall, by regulations issued under
section 553 of title 5, United States Code—
(1) require insurers to provide to each applicant
for insurance in a designated line—
(A) reasons for denying an application for
such insurance or for canceling or not renewing
a policy in force; and
(B) actions the applicant may take to qual-
ify for such insurance; and
(2) restrict the use insurers may make of infor-
mation relating to—
(A) adverse underwriting decisions; or
(B) insurance coverage in a residual mar-
ket.
(b) MODEL ACTS.—In issuing regulations under sub-
section (a), the Administrator shall consider relevant por-
tions of model acts developed by the National Association
of Insurance Commissioners.
(c) ENFORCEMENT.—The Administrator may dele-
gate to the States the authority to enforce the require-
ments of regulations issued under subsection (a).
(d) PREEMPTION.—Subsection (a) is not to be con-
strued to preempt any State from imposing on insurers
requirements of the type stated in such subsection, includ-
ing requirements which are more stringent or more com-
prehensive.
(e) EXEMPTION.—A regulation issued under sub-
section (a) may not apply to insurance provided under a
program underwritten or administered by the United
States, including the national flood insurance program
under the National Flood Insurance Act of 1968, the pro-
gram for insurance against burglary and theft under title
XII of the National Housing Act, and mortgage insurance
under the National Housing Act.
I
103D CONGRESS
1ST SESSION
H. R. 1256
To amend the Internal Revenue Code of 1986 to require State unemployment
insurance laws to establish a system under which workers may purchase
insurance to cover the costs of health insurance during periods of unem-
ployment.
IN THE HOUSE OF REPRESENTATIVES
MARCH 9, 1993
Mr. FRANKS of Connecticut introduced the following bill; which was referred
to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to require
State unemployment insurance laws to establish a system
under which workers may purchase insurance to cover
the costs of health insurance during periods of unemploy-
ment.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
That (a) subsection (a) of section 3304 of the Internal
Revenue Code of 1986 (relating to approval of State un-
employment compensation laws) is amended by striking
‘‘and’’ at the end of paragraph (17), by redesignating
(B) financial, management, and oper-
ational information on all entities that directly
or indirectly control the reinsurer, as the Ad-
ministrator shall provide.
(9) INSURANCE EXPERIENCE.—The foreign re-
insurer shall—
(A) have been actively and continuously
engaged in the business of insurance for a pe-
riod of not less than 3 years ending upon the
submission of an application under section 204;
(B) be a wholly owned subsidiary of an in-
surer and have been actively and continuously
engaged in the business of insurance for a pe-
riod of not less than 3 years ending upon the
submission of an application under section 204;
or
(C) be the continuing corporation resulting
from a merger or consolidation of insurers, at
least one of which has been actively and con-
tinuously engaged in the business of insurance
for a period of not less than 3 years ending
upon the submission of an application under
section 204.
paragraph (18) as paragraph (19), and by inserting after
paragraph (17) the following new paragraph:
‘‘(18) optional health insurance continuation
benefits shall be available as required by subsection
(g); and’’
(b) Section 3304 of such Code is amended by adding
at the end thereof the following new subsection:
‘‘(g) OPTIONAL HEALTH INSURANCE CONTINUATION
BENEFITS.—
‘‘(1) IN GENERAL.—For purposes of subsection
(a)(18), a State law meets the requirements of this
subsection if—
‘‘(A) the State law establishes a program
under which individuals performing services
covered under such State law may elect to pur-
chase health insurance continuation benefits by
having premiums deducted by their employer
from their wages,
‘‘(B) such program offers several options
as to the period for which such benefits are
available and as to the level of such benefits,
‘‘(C) such program specifies the periodic
premium to be deducted for each of such op-
tions and the maximum total premium payable
for any such option, and
‘‘(D) any premiums collected pursuant to
such program are to be deposited in a special
fund established under such State law which is
to be used solely for purposes of providing
health insurance continuation benefits (exclu-
sive of costs of administration).
‘‘(2) HEALTH INSURANCE CONTINUATION BEN-
EFITS.—For purposes of this subsection, the term
‘health insurance continuation benefits’ means pay-
ments to or on behalf of an individual who is receiv-
ing compensation under the State law to assist in
covering the cost of health insurance for such indi-
vidual and his spouse and dependents.
‘‘(3) ADMINISTRATIVE
FUNDS
MADE
AVAIL-
ABLE.—For purposes of title III of the Social Secu-
rity Act, the costs of administering the program re-
ferred to in paragraph (1) shall be treated as costs
of administering the State unemployment compensa-
tion law.’’.
(c)(1) Except as provided by paragraph (2), the
amendments made by this section shall take effect on No-
vember 1, 1993.
(2) In the case of any State the legislature of which
has not been in session for at least 30 calendar days
(whether or not successive) between the date of the enact-
ment of this Act and November 1, 1993, the amendments
made by this section shall take effect 30 calendar days
after the first day on which such legislature is in session
on or after November 1, 1993.
Æ
ƒ(1) the foreign insurer submits an application
under section 102 containing such information as the
Secretary may require to determine whether the for-
eign insurer complies with the standards established
under section 104, together with an application fee in
the amount determined under section 164(a);
ƒ(2) the Secretary determines that the foreign
insurer complies with the requirements under section
104; and
ƒ(3) the Secretary determines that the foreign
insurer has complied with the requirements under sec-
tion 105.
ƒ(b) REQUIREMENTS FOR FOREIGN DIRECT INSURERS
NOT SEEKING CERTIFICATION.—The Secretary may reduce
or waive the requirements under sections 104 and 105 as
the Secretary determines appropriate, with respect to any
foreign direct insurer that submits to the Secretary, before
the date provided in section 169(c), written notice that the
foreign insurer does not intend to apply for certification
under this subtitle, will not violate the prohibitions under
section 101, and will comply with any requirements pursu-
ant to this subsection. In making any such determinations,
the Secretary shall consider the adequacy of insurance regu-
lation in the country of domicile of the foreign insurer and
ƒSEC. 125. FINANCIAL STATEMENTS.
ƒ(a) REQUIREMENT.—
ƒ(1) FINANCIAL
STATEMENTS
SUBMITTED
TO
FOREIGN
REGULATORS.—Each 
foreign 
reinsurer
shall—
ƒ(A) upon application under section 122
for certification as a certified foreign reinsurer,
and
ƒ(B) in the case of a certified foreign rein-
surer, on an annual basis, for purposes of renew-
ing certification,
submit to the Secretary the financial statements of the
reinsurer, and of any persons that control the rein-
surer, that are required to be submitted to the foreign
insurance regulators for the reinsurer.
ƒ(2) INDEPENDENT
AUDIT.—Each financial
statement submitted to the Secretary under para-
graph (1) shall include an audit conducted by a inde-
pendent certified public accountant or other qualified
independent auditor in accordance with generally ac-
cepted auditing standards or the auditing standards
of the applicable country (if the Secretary determines
such standards are comparable). The audit shall in-
clude a certification by the accountant or auditor of
the amount of all loss reserves of the foreign reinsurer.
ƒ(b) ADDITIONAL INFORMATION.—The Secretary may
at any time require any certified foreign reinsurer or for-
eign reinsurer applying for certification, to submit to the
Secretary, in addition to the information submitted under
subsection (a), any information that the Secretary considers
reasonable and necessary to determine the financial condi-
tion of the reinsurer.
ƒ(c) ACCOUNTING STANDARDS.—The Secretary shall
evaluate and adjust any financial statements and informa-
tion submitted under this section that are not prepared in
accordance with the accounting standards established under
subsection (d) as may be necessary to conform to such ac-
counting standards.
ƒ(d) ESTABLISHMENT OF STANDARDS.—
ƒ(1) IN GENERAL.—The Secretary shall establish
accounting standards for determining the net worth of
foreign reinsurers and the compliance of such reinsur-
ers with any risk-based capital standards established
under section 126.
ƒ(2) CONSIDERATION
OF
ESTABLISHED
AC-
COUNTING PRINCIPLES.—In establishing the account-
ing standards, the Secretary shall take into consider-
ation (A) generally accepted accounting principles,
(B) United States statutory accounting principles,
(C) the results of the study under section 163 and the
(6) The term ‘‘private mortgage insurance’’
means insurance against the nonpayment of, or de-
fault on, a mortgage or loan for residential or com-
mercial property, except that such term does not in-
clude mortgage insurance made available under the
National Housing Act.
(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 ‘‘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. 418. EFFECTIVE DATE.
The requirements of this title shall take effect with
respect to calendar year 1994.
Æ
HR 1257 IH——2
HR 1257 IH——3
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ness activities and new small business concerns with
assistance on commencing nondefense commercial
operations in defense-dependent regions of the Unit-
ed States; and
(C) issue an annual report containing—
(i) a discussion of the effectiveness of the
programs referred to in subparagraphs (A) and
(B) in meeting the needs of the businesses re-
ferred to in such subparagraphs; and
(ii) recommendations for improving such
programs.
(e) WORKING GROUP ON JOB TRAINING.—(1) The
Secretary of Labor shall be the chairman of the working
group on job training.
(2) The working group on job training shall—
(A) coordinate job training programs for work-
ers who are displaced as a result of the spending re-
ductions referred to in section 102(a)(1);
(B) issue an annual guide to Federal Govern-
ment job training and unemployment programs that
are available to workers displaced as a result of such
spending reductions; and
(C) provide such workers with assistance in ap-
plying for Federal Government assistance under
‘‘(B) 6 months (or 2 years in the case of
clear and convincing evidence that the misrepre-
sentation pertains to the condition for which
benefits are sought) after the date of issuance
of the policy or certificate,
whichever is earlier.
‘‘(d) FRAUD RELATING TO INSURABILITY.—A carrier
may rescind, cancel, or nonrenew a long-term care insur-
ance policy or certificate, or deny an otherwise valid claim
under such policy or certificate based upon fraud relating
to the insurability of the individual, only—
‘‘(1) based upon clear and convincing evi-
dence—
‘‘(A) of fraud consisting of the knowing
and intentional misstatement of information
material to the acceptance for coverage, and
‘‘(B) which involves a chronic condition or
dates of treatment before the date of the policy
application; and
‘‘(2) if the carrier notifies the policyholder of
the carrier’s intention to rescind, cancel, or
nonrenew the policy or certificate or deny the claim
not later than 60 days after the date the carrier dis-
covers the fraud.
high-speed research technology, rotorcraft tech-
nology, high performance aircraft technology, super-
sonic technology, and others;
(8) joint technology development programs
among the Department of Defense, the National
Aeronautics and Space Administration, and industry
would allow for transferring skills and technologies
from the defense to the civilian aerospace sector and
would allow for the transfer back to defense, when
necessary; and
(9) such joint programs could allow for the De-
partment of Defense contribution to the programs to
be phased out over 5 years, which would allow the
defense industry to make the transfer to the civilian
aerospace sector and produce needed aerospace tech-
nology.
SEC. 3. JOINT AERONAUTICAL RESEARCH AND DEVELOP-
MENT PROGRAM.
(a) ESTABLISHMENT.—The Administrator and the
Secretary shall jointly establish a program for the purpose
of conducting research on aeronautical technologies that
have application to both military and civil aeronautical ve-
hicles and that enhance United States competitiveness.
Such program shall include research on—