Definition: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Input: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Insurance Disclosure Act of 1995''.

SEC. 2. DISCLOSURES BY INSURERS TO APPLICANTS.

(a) Requirement To Provide Written Explanation or Notice of
Declination.--The Secretary of Housing and Urban Development shall, by
regulation, require that each insurer who, 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:
(1) A written explanation of the specific reasons for the
declination.
(2) Written notice that (A) 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 (B) pursuant to such a request, an
explanation shall be provided to the applicant within 21 days
after receipt of such request.
(b) Response to Request for Explanation.--If an insurer, agent, or
broker making a declination receives a written request referred to in
subsection (a)(2) within such 90-day period, the insurer, agent, or
broker shall provide a written explanation referred to in such
subsection within such 21-day period.

SEC. 3. DISCLOSURES BY INSURERS TO POLICYHOLDERS.

The Secretary of Housing and Urban Development shall, by
regulation, require that each insurer who cancels 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 canceling or refusing to
renew the policy.

SEC. 4. CONSIDERATION OF MODEL ACTS.

In issuing regulations under sections 2 and 3, the Secretary shall
consider relevant portions of model acts developed by the National
Association of Insurance Commissioners.

SEC. 5. EFFECT ON STATE LAWS.

Sections 2 and 3 shall not be construed to annul, alter, or effect,
or exempt any insurer, agent, or broker subject to the provisions of
such sections from complying with any laws or requirements of any State
with respect to notifying insurance applicants or policyholders 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 such sections (or the regulations issued thereunder)
and then only to the extent of such inconsistency. The Secretary is
authorized to determine whether such inconsistencies exist and to
resolve issues regarding such inconsistencies. The Secretary may not
provide that any State law or requirement is inconsistent with section
2 or 3 if it imposes requirements equivalent to the requirements under
such sections or requirements that are more stringent or comprehensive,
in the determination of the Secretary.

SEC. 6. IMMUNITY.

In issuing regulations under sections 2 and 3, the Secretary shall
specifically consider the necessity of providing insurers, agents, and
brokers immunity 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 decision. The Secretary
may provide for immunity under the regulations issued under sections 2
and 3 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.

SEC. 7. DESIGNATION OF LINES OF INSURANCE.

(a) In General.--The Secretary shall, by regulation, designate
lines of insurance as designated lines for purposes of this Act, as
follows:
(1) Automobile.--The Secretary shall designate private
passenger automobile insurance and shall also designate any
sublines and coverage types of private passenger automobile
insurance that the Secretary considers appropriate for purposes
of this Act.
(2) 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 covered and by market or
replacement value, as the Secretary considers appropriate for
purposes of this Act. For purposes of this Act, homeowners
insurance shall not include any renters coverage or coverage
for the personal property of a condominium owner.
(b) Report.--At any time the Secretary determines that any line of
insurance not described in subsection (a) should be a designated line
because disparities in coverage provided under such line exist among
geographic areas having different income levels or racial composition,
the Secretary shall submit a report to the Congress recommending
designating such line of insurance as a designated line for purposes of
this Act.
(c) Duration.--
(1) In general.--Except as provided in paragraph (2), the
Secretary shall make the designations under this section once
every 5 years, by regulation, and each line and subline or
coverage type designated under such regulations shall be
designated for the 5-year period beginning upon the issuance of
such regulations.
(2) Alteration.--During any 5-year period referred to in
paragraph (1) 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 section. Such regulations
amending or revising designations shall apply only to that
portion of the 5-year period during which such amendment or
revision is made that remains 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 subsection (c)(1) and notify interested
parties during the 6-month period ending 6 months before the
commencement of the 5-year period to which such designations apply.
(e) Obtaining Information.--The Secretary may require insurers to
submit to the Secretary such information as the Secretary considers
necessary to make designations specifically required under this
section. 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 section
or that is to be used solely for the purpose of a report under
subsection (b).

SEC. 8. STATE ENFORCEMENT.

The Secretary may authorize the States to enforce the requirements
under regulations issued under sections 2 and 3.

SEC. 9. ENFORCEMENT.

(a) Civil Penalties.--Any insurer who is determined 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
violation continues.
(b) Injunction.--The Secretary may bring an action in an
appropriate United States district court for appropriate declaratory
and injunctive relief against any insurer who violates the requirements
referred to in subsection (a).

SEC. 10. DEFINITIONS.

For purposes of this Act:
(1) Agent.--The term ''agent'' means, with respect 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
exclusively for the insurer, and agents who are independent
contractors appointed to represent the insurer on a
nonexclusive basis.
(2) Designated line.--The term ''designated line'' means a
line of insurance designated by the Secretary under section 7.
(3) 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.
(4) Insurer.--The term ''insurer'' means any corporation,
association, society, order, firm, company, mutual,
partnership, 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. The term
does not include an individual 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.
(5) Property and casualty insurance.--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
negligence or imposed by statute or contract. Such term does
not include workers' compensation, professional liability, or
title insurance.
(6) Secretary.--The term ''Secretary'' means the Secretary
of Housing and Urban Development.
(7) 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 Territory of the Pacific Islands.

SEC. 11. REGULATIONS.

(a) In General.--The Secretary shall issue any regulations required
under this Act and any other regulations that may be necessary to carry
out this Act. The regulations 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, the final regulations to carry out this Act shall be issued
not later than the expiration of the 18-month period beginning on the
date of the enactment of this Act and shall take effect upon issuance.
(b) Burdens.--In prescribing such regulations, the Secretary shall
take into consideration the administrative, paperwork, and other
burdens on insurance agents, including 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.
Output:
Insurance Disclosure Act of 1995 - Instructs the Secretary of Housing and Urban Development to require insurers to provide written disclosures to applicants and policyholders, stating the reasons for: (1) declining a written application; or (2) cancelling or refusing to renew an existing policy.
Authorizes the Secretary to provide immunity to insurers, agents, and brokers regarding their communication of a cancellation, denial, or nonrenewal of insurance.
Prescribes guidelines under which the Secretary shall designate certain lines of insurance.
Sets forth enforcement guidelines, including civil penalties and injunctive relief.