160
existing data sources to the maxi-
mum practical extent,
(vi) include information on
policies written in a residual mar-
ket,
(vii) detail what data ele-
ments should be collected,
(viii) 
detail 
what 
insurers
should be designated insurers for
purposes of the pilot project,
(ix) detail what lines of com-
mercial insurance should be des-
ignated for purposes of the pilot
project, with particular consider-
ation given to commercial fire
and business owners lines,
(x) include an appropriate
definition of small business, if
necessary,
(xi) provide data representa-
tive of at least 2 years of experi-
ence and provide that the pilot
project will terminate no later
than 2 years after its inception,
and
161
(xii) provide adequate lead
time to insurers 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 respect to lines of
insurance designated under subpara-
graph (C)(ix) in the 5 largest MSA’s,
pursuant to the regulation issued by
the Secretary in subparagraph (C).
(E) ANALYSIS OF DATA UNDER PILOT
PROJECT.—At the conclusion of the
pilot project, the Secretary shall ana-
lyze the data collected. Within 1 year
of the conclusion of the pilot project,
the Secretary shall report to the Com-
mittee on Energy and Commerce of
the House of Representatives and the
appropriate committee of the Senate
on—
162
(i) any conclusions of the Sec-
retary regarding the data col-
lected under the pilot project,
particularly regarding the avail-
ability, cost, and type of commer-
cial insurance for small business,
and
(ii) the need for further data
collection requirements to evalu-
ate the availability, cost, and type
of such coverage or to help en-
sure the availability of such cov-
erage.
(5) PERIOD OF MAINTENANCE.—Any in-
formation 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 required to be maintained and made
available.
(6) FORMAT FOR DISCLOSURES.—Subject
to subsection (c), the Secretary shall pre-
scribe a standard format for making in-
formation available as required by sub-
163
section (a). Such format shall encourage
the submission of information in a form
readable by a computer.
(7) EXEMPTION.—
(A) SECRETARIAL
ACTION.—If the
Secretary determines that a State has
enacted a law, or otherwise imple-
mented a requirement under which—
(i) insurers operating in that
State are subject to disclosure re-
quirements on a 5-digit zip code
basis 
substantially 
similar 
to
those of subsection (a),
(ii) there are adequate provi-
sions for enforcement, and
(iii) the information disclosed
under the State law or require-
ment is made available to the Sec-
retary 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 re-
quirements of subsection (a) with re-
164
spect to that State’s portions of the
designated MSA’s. If the Secretary de-
termines that the State law or re-
quirement no longer meets the cri-
teria of clauses (i) through (iii) or is
no longer in effect, the Secretary
shall by regulation revoke the exemp-
tion.
(B) UNITED STATES PROGRAM.—Re-
porting shall not be required under
subsection (a) with respect to insur-
ance provided by a program under-
written or administered by the Unit-
ed States.
(c) PUBLIC ACCESS SYSTEM.—The Secretary
shall implement a system to facilitate public
access to information required to be made
available to the public under subsection (a).
Such system shall include arrangements for a
central depository of information in each des-
ignated 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 in-
165
formation for all designated insurers within
such MSA. The Secretary shall also make cop-
ies of such statements available in forms read-
able by widely used personal computers, such
as in disc format. The Secretary may charge
a fee for such information, which may not ex-
ceed the amount, determined by the Sec-
retary, that is equal to the cost of reproducing
the information.
(d) SUBMISSION
TO SECRETARY.—With re-
spect to the information required to be sub-
mitted under subsection (a) to the Secretary,
the Secretary shall develop regulations pre-
scribing the format and method for submit-
ting such information. Such regulations shall
ensure uniformity among insurers, to the ex-
tent practicable, in the format used for re-
porting, 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 de-
cision by such insurer to sell insurance.
SEC. 4. DESIGNATIONS.
(a) DESIGNATIONS BY THE SECRETARY.—
166
(1) DESIGNATIONS OF MSA’S.—The Sec-
retary shall designate the MSA’s for
which reporting is required under sec-
tion 3(a). The Secretary shall designate
the 25 MSA’s having the largest popu-
lation.
(2) DESIGNATION
OF
INSURERS.—For
each MSA designated under paragraph
(1), the Secretary shall take the following
actions:
(A) The Secretary shall designate
the insurers transacting insurance
business in such MSA for which re-
porting is required under section
3(a). At a minimum, the Secretary
shall designate the 25 insurers in
such MSA having the largest pre-
mium 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 insurance
in a designated line of insurance as
167
part of a residual market established
by State law.
(C) The Secretary shall also des-
ignate, in addition to the insurers
designated under subparagraphs (A)
and (B), insurers who specialize in
selling insurance in urban areas, in-
cluding surplus lines insurers.
(D) The Secretary shall also des-
ignate, in addition to the insurers
designated under subparagraph (A),
(B), and (C) insurers such that insur-
ers representing at least 80 percent of
the premium volume in each State in
which such MSA is located in the des-
ignated line of insurance are des-
ignated in such MSA. The Secretary
may not designate additional insurers
under this subparagraph if their mar-
ket share in the designated line of in-
surance in the applicable States, as
measured by premium volume in
each State in which such MSA is lo-
cated, is under 1 percent.
168
(E) In addition to the insurers
designated under subparagraph (A),
(B), (C), and (D) the Secretary may by
regulation designate additional insur-
ers in a MSA if the designation of ad-
ditional insurers is necessary to pro-
vide valid data with respect to the
availability, cost, and type of insur-
ance in the MSA.
(F) The Secretary shall revoke the
designation of an insurer designated
under subparagraph (A) as follows: If
such designated insurer has a market
share in a designated line of insur-
ance in a MSA, as measured by pre-
mium volume in each State in which
such MSA is located, of under 1 per-
cent, the Secretary shall revoke the
designation of such insurer beginning
with the insurer with the smallest
market share of such insurance if the
remainder of the designated insurers
have a market share of at least 75
percent of such insurance as meas-
ured by premium volume in each
169
State in which such MSA is located.
In addition, the Secretary may revoke
the designation of any insurer des-
ignated under subparagraph (A) with
a market share in a designated line of
insurance in a MSA, as measured by
premium volume in each State in
which such MSA is located, of under
1 percent if such designation has not
been revoked under this subpara-
graph and if such insurer primarily
sells insurance in rural areas of such
MSA.
(G) For purposes of this para-
graph, insurers which are affiliated
or are members of the same group
shall be considered together as one
insurer.
(3) DESIGNATION
OF
LINES
OF
INSUR-
ANCE.—For each MSA designated under
paragraph (1) the following are the des-
ignated lines of property and casualty in-
surance for which reporting is required
under section 3:
170
(A) Private passenger automobile
insurance.
(B) Homeowners insurance.
(C) Dwelling fire and allied lines
of insurance.
(4) TIMING OF DESIGNATIONS.—
(A) 
INITIAL
DESIGNATIONS.—The
Secretary shall make initial designa-
tions required by paragraphs (1), (2),
and (3) no later than July 1 of the
year preceding the first year for
which reporting is required under
section 3. Such initial designations
shall be effective for 5 calendar years
from the date of designation.
(B) SUBSEQUENT
DESIGNATIONS.—
Not later than July 1 of the year pre-
ceding the fifth year after a designa-
tion under subparagraph (A) or this
subparagraph, the Secretary shall
make another designation to be effec-
tive upon the expiration of such 5
years and such designation shall be
effective for 5 calendar years from
the date of designation.
171
(C) NOTICE.—The Secretary shall
notify persons involved in the des-
ignations no later than the July 15
which follows the designation.
(b) OBTAINING
INFORMATION.—The Sec-
retary may obtain from insurers such infor-
mation as the Secretary may require to make
designations under subsection (a).
SEC. 5. TASK FORCE ON AGENCY APPOINTMENTS.
(a) ESTABLISHMENT.—Within 90 days of the
date of the enactment of this Act, the Sec-
retary shall establish a task force on insur-
ance agency appointments. The task force
shall—
(1) consist of representatives of ap-
propriate Federal agencies, property and
casualty insurance agents, including spe-
cifically minority insurance agents, prop-
erty and casualty insurance companies,
State insurance regulators, and public in-
terest groups,
(2) have a significant representation
from minority insurance agents, and
(3) be chaired by the Secretary or the
Secretary’s designee.
172
(b) FUNCTION.— The task force shall—
(1) review the problems inner city
and minority agents may have in receiv-
ing appointments to represent property
and casualty insurance companies,
(2) review the practices of insurers in
terminating agents and consider the ef-
fect such practices have on the availabil-
ity or cost of insurance, especially in un-
derserved areas, and
(3) recommend solutions to improve
the ability of inner city and minority in-
surance agents to market property and
casualty insurance products, including
steps property and casualty insurance
companies should take to increase their
appointments of such agents.
(c) REPORT
AND TERMINATION.—The task
force shall report to the Committee on Energy
and Commerce of the House of Representa-
tives and the appropriate Committee of the
Senate its findings under paragraphs (1) and
(2) of subsection (b) and its recommendations
under paragraph (3) of subsection (b) within
2 years after the date of the enactment of this
173
Act. The task force shall terminate when the
report is submitted to the Committees.
SEC. 6. IMPLEMENTATION OF SECTION 3.
(a) REGULATIONS.—The Secretary shall
promulgate such regulations as may be nec-
essary to carry out section 3. Such regulations
may—
(1) contain such classifications, dif-
ferentiations, or other provisions, and
(2) may provide for such adjustments
and exceptions for any class of trans-
actions,
as in the judgment of the Secretary are nec-
essary and proper to effectuate the purposes
of such section and to prevent circumvention
or evasion thereof or to facilitate compliance
therewith.
(b) DATA COLLECTION CONTRACTOR.—The
Secretary may contract with a data collection
contractor to carry out the Secretary’s re-
sponsibilities under section 3 if the contractor
agrees to collect and make available the data
pursuant to the terms and conditions of such
section. A statistical agent may also be a data
contractor.
174
(c) ROLE OF STATISTICAL AGENTS.—
(1) ACCEPTANCE
OF
DATA.—The Sec-
retary and, if applicable, the contractor
under the subsection (b) contract may ac-
cept data reported under section 3(a) by
a statistical agent acting on behalf of
more than one insurer if—
(A) the statistical plan used by
the statistical agent for the reporting
of data on insurance provides for the
reporting of data in a manner com-
patible with section 3(a),
(B) the statistical agent reports
such data on an individual insurer
basis, and, at the discretion of the
Secretary, on an aggregate basis,
(C) the statistical agent provides
adequate procedures to protect the
integrity of the data reported,
(D) the statistical agent has pro-
cedures in place which ensure that
data reported under the statistical
plan in connection with reporting
under this Act and submitted to the
Secretary are not subject to adjust-
175
ment by the statistical agent or an in-
surer for reasons other than technical
accuracy and conformance to the sta-
tistical plan,
(E) the statistical agent ensures
that the data of one insurer is not
subject to review by other insurers
before public availability, and
(F) the statistical agent provides
for the reporting of data in a manner
compatible 
with 
the 
format 
pre-
scribed by the Secretary under sec-
tion 3(d).
(2) DISCONTINUANCE
OF
DATA
ACCEPT-
ANCE.—The Secretary may, after provid-
ing an opportunity for a hearing, dis-
continue accepting data reported under
section 3(a) by a statistical agent acting
on behalf of more than one insurer if the
Secretary determines the requirements
for acceptance of data in paragraph (1)
are no longer met.
(d) ROLE OF GAO.—The Comptroller Gen-
eral shall have the authority to review and
audit any data collection and reporting per-
176
formed under section 3, whether by the Sec-
retary, the contractor under the subsection
(b) contract, or a statistical agent, to ensure
that the integrity of the data collected and re-
ported is protected.
(e) BURDENS
ON INSURANCE AGENTS.—In
prescribing regulations under this Act, the
Secretary shall take into consideration the
administrative, paperwork, and other bur-
dens on insurance agents, including inde-
pendent insurance agents, involved in com-
plying with the requirements of this Act and
shall minimize the burdens imposed by such
requirements with respect to such agents.
SEC. 7. RELATION TO STATE LAWS.
This Act does not annul, alter, or affect, or
exempt the obligation of any insurer subject
to this Act to comply with the laws of any
State or subdivision thereof with respect to
public disclosure and recordkeeping.
SEC. 8. COMPILATION OF AGGREGATE DATA.
(a) SCOPE OF DATA AND TABLES.—The Sec-
retary shall compile each year, for each MSA,
data aggregated by 5-digit zip code for all in-
surers who are subject to section 3 or who are
177
exempt from section 3 under subsection
(b)(7)(A) of such section. The Secretary shall
also produce tables indicating, for each MSA,
insurance policies aggregated for various cat-
egories of 5-digit zip codes grouped according
to location, age of property, income level, and
racial characteristics of neighborhood.
(b) AGGREGATION OF INFORMATION.—Statis-
tical agents may aggregate the data of insur-
ers that report to them and may provide such
information to the Secretary. The Secretary
may also provide the individual company
data submitted by insurers to statistical
agents for aggregation.
(c) AVAILABILITY
TO
PUBLIC.—The data
compiled and the tables produced pursuant to
subsection (a) shall be made available to the
public on a timetable determined by the Sec-
retary but not later than October 1 of the year
following the calendar year on which the data
and tables are based.
SEC. 9. ENFORCEMENT.
(a) CIVIL PENALTIES.—Any insurer who is
determined by the Secretary, after providing
opportunity for a hearing on the record, to
178
have violated the requirements of section 3
shall be subject to a civil penalty of not to ex-
ceed $5,000 for each day during which such
violation continues.
(b) INJUNCTION.—The Secretary may bring
an action in an appropriate United States dis-
trict court for appropriate declaratory and in-
junctive relief against any insurer who vio-
lates the requirements of section 3.
(c) INSURER LIABILITY.—An insurer shall be
responsible under subsections (a) and (b) for
any violation of a statistical agent acting on
behalf of the insurer.
SEC. 10. SUNSET.
(a) EXPIRATION.—Except as provided in
subsection (b), this Act shall not be in effect
after the expiration of 5 years from its effec-
tive date. Prior to the expiration of 4 years
from such date, the Secretary shall report to
the Energy and Commerce Committee of the
House of Representatives and the appropriate
committee of the Senate—
(1) the quality of data received under
section 3 and the effectiveness of the data
requirement, including the relation be-
179
tween the cost of such data gathering
and the benefits from having such data
available,
(2) the appropriateness of the geo-
graphic data reporting units,
(3) the need for continued reporting
by the designated insurers in urban
areas,
(4) the efforts of insurers to meet the
insurance needs of minority and low-in-
come neighborhoods, and
(5) such other information as the Sec-
retary determines will assist in consider-
ing an extension of this Act.
(b) EXTENSION.—Based on the Secretary’s
report on the need described in subsection
(a)(3) and the information described in sub-
section (a)(5), the Secretary may extend this
Act for one period of 2 years.
SEC. 11. STUDIES.
(a) STUDY OF INFORMATION ON INSURANCE
APPLICANTS.—
(1) IN GENERAL.—The Secretary shall
conduct a study to determine the feasibil-
ity and utility of the collection of infor-
180
mation 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 represen-
tations are used by insurers and
agents in making determinations re-
garding whether or not to insure a
prospective insured,
(B) written applications are used
by insurers and agents in making de-
terminations regarding whether or
not to insure a prospective insured,
(C) written applications are sub-
mitted after the insurer or agent has
already made a determination to pro-
vide insurance to a prospective in-
sured or has determined that the pro-
spective insured is eligible for insur-
ance, and
(D) prospective insureds are dis-
couraged from submitting applica-
tions for insurance based, in whole or
in part, on—
181
(i) the location of the risk to
be insured,
(ii) the race or ethnicity of the
prospective insured,
(iii) the racial or ethnic com-
position of the neighborhood in
which the risk to be insured is lo-
cated, and
(iv) in the case of residential
property insurance, the age and
value of the risk to be insured.
(2) REPORT.—The Secretary shall re-
port the results of the study under para-
graph (1) to the Committee on Energy
and Commerce of the House of Rep-
resentatives and the appropriate Com-
mittee of the Senate within 18 months of
the date of the enactment of this Act.
(b) STUDY OF INSURER ACTIONS TO MEET IN-
SURANCE NEEDS OF CERTAIN NEIGHBORHOODS.—
The Secretary shall conduct a study of var-
ious practices, actions, programs, and meth-
ods undertaken by insurers to meet the prop-
erty and casualty insurance needs of resi-
dents of low- and moderate-income neighbor-
182
hoods, minority neighborhoods, and small
businesses located in such neighborhoods.
The Secretary may establish a task force of in-
terested parties, including representatives of
insurance companies, insurance agents, in-
cluding minority agents, and consumer rep-
resentatives to discuss additional practices,
actions, programs, and methods to meet these
needs. The Secretary shall report the results
of the study, including any recommendations,
to the Committee on Energy and Commerce of
the House of Representatives and the appro-
priate Committee of the Senate no later than
2 years after the date of the enactment of this
Act.
SEC. 12. DEFINITIONS.
For purposes of this Act:
(1) The term ‘‘commercial insurance’’
means any line of property and casualty
insurance, except private passenger auto-
mobile and homeowner’s insurance.
(2) The term ‘‘designated insurer’’
means an insurer designated by the Sec-
retary pursuant to section 4(a)(2).
183
(3) The term ‘‘designated line’’ means
a line of insurance specified in section
4(a)(3).
(4) The term ‘‘exposure units’’ means
units insured against risk of loss by an
insurer and the term ‘‘units’’ means an
automobile or the number of units in a
building.
(5) The term ‘‘insurer’’ means any cor-
poration, association, society, order, firm,
company, partnership, individual, or ag-
gregation of individuals which is subject
to examination or supervision by any
State insurance regulator, or which is
doing or represents an insurance busi-
ness. Such term does not include an indi-
vidual or entity which represents an in-
surer as agent for the purpose of selling
or which represents a consumer as a
broker for the purpose of buying insur-
ance.
(6) The term ‘‘MSA’’ means a Metro-
politan Statistical Area or a Consolidated
Metropolitan Statistical Area and the
term ‘‘designated MSA’’ means an MSA
184
designated by the Secretary pursuant to
section 4(a)(1).
(7) The term ‘‘property and casualty
insurance’’ 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 neg-
ligence or imposed by statute or contract.
(8) The term ‘‘residual market’’ means
an assigned risk plan, joint underwriting
association, or any similar mechanism de-
signed to make insurance available to
those unable to obtain it in the voluntary
market.
(9) The term ‘‘Secretary’’ means the
Secretary of Commerce.
(10) The term ‘‘State’’ means any
State, the District of Columbia, the Com-
monwealth of Puerto Rico, the Northern
Mariana 
Islands, 
the 
Virgin 
Islands,
American Samoa, and the Trust Territory
of the Pacific Islands.
185
SEC. 13. EFFECTIVE DATE.
The requirements of this Act shall take ef-
fect with respect to information on insurance
described in section 3 and developed in and
after calendar year 1995.
Amend the title so as to read: ‘‘A bill to
provide for disclosures for insurance in
interstate commerce.’’.
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