[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5075 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 5075

To ensure that sellers and underwriters of insurance are qualified and 
              subject to consumer protection requirements.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 22, 1994

 Mr. Dingell (for himself and Mrs. Collins of Illinois) introduced the 
   following bill; which was referred to the Committee on Energy and 
                                Commerce

_______________________________________________________________________

                                 A BILL


 
To ensure that sellers and underwriters of insurance are qualified and 
              subject to consumer protection requirements.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Insurance Sales and Underwriting 
Consumer Protection Act of 1994''.

SEC. 2. PURPOSE.

    The purpose of this Act is to protect consumers and potential 
consumers of insurance by ensuring that sellers and underwriters of 
insurance in interstate commerce are professionally qualified to sell 
and solicit insurance and underwrite insurance and are subject to the 
consumer protection requirements applicable in the State in which the 
insurance is sold, solicited, or underwritten.

SEC. 3. PROTECTION OF INSURANCE PURCHASERS.

    (a) In General.--A person may not sell or solicit the purchase of 
insurance in a State unless that person qualifies under and complies 
with all insurance regulatory requirements applicable in the State in 
which the sale or solicitation of insurance takes place.
    (b) Applicable Requirements.--The requirements covered under 
subsection (a) include--
            (1) qualifying for and maintaining a license to sell or 
        solicit the purchase of insurance if such license is required 
        by the insurance regulatory authority of the State in which the 
        insurance is sold or its purchase solicited, and
            (2) complying with all consumer protection requirements, 
        such as those applicable to disclosure, unfair trade practices, 
        and product advertising, that apply to the marketing of 
        insurance in the State in which the insurance is sold or its 
        purchase solicited.
    (c) Covered Transactions.--The insurance sales and solicitations 
covered by this section include the sales and solicitations of any 
insurance sold, solicited, underwritten, or reinsured by an entity that 
operates in interstate commerce or is part of an entity any part of 
which operates in interstate commerce.

SEC. 4. PROTECTION OF INSURANCE POLICYHOLDERS.

    (a) In General.--A person may not underwrite insurance in a State 
unless that person complies with all insurance regulatory requirements 
applicable in the State in which the insurance is underwritten.
    (b) Applicable Requirements.--The requirements covered under 
subsection (a) include--
            (1) qualifying for and maintaining a license to underwrite 
        insurance if such license is required by the insurance 
        regulatory authority of the State in which the insurance is 
        underwritten;
            (2) if a license is not required by the insurance 
        regulatory authority of the State in which the insurance is 
        underwritten, otherwise meeting any applicable financial or 
        other requirements imposed by the State in which the insurance 
        is underwritten; and
            (3) complying with all consumer protection requirements, 
        such as those applicable to disclosure, unfair trade practices, 
        and product advertising, that apply to underwriting insurance 
        in the State in which the insurance is underwritten.
    (c) Covered Transactions.--The insurance underwriting covered by 
this section includes any insurance underwritten or reinsured by an 
entity that operates in interstate commerce or is part of an entity any 
part of which operates in interstate commerce.

SEC. 5. SAVINGS CLAUSE.

    The provisions of this Act do not alter or affect the provisions of 
the Liability Risk Retention Act of 1986 (15 U.S.C. 3901 et seq.).

SEC. 6. ENFORCEMENT.

    (a) In General.--If the appropriate State does not take action 
against a violation of the sales, solicitation, and underwriting 
requirements covered by this Act, the Department of Justice may file a 
civil action as to such violation.
    (b) Standard for a Violation.--The determination of whether an act 
constitutes a violation under this Act shall be made pursuant to the 
insurance laws and regulations of the applicable State.
    (c) Remedies.--In an action under subsection (a), the Department of 
Justice may ask for either or both of the following:
            (1) An order prohibiting that person from engaging in the 
        prohibited conduct.
            (2) A civil fine of up to $1,000 for each violation.

SEC. 7. DEFINITION OF INSURANCE.

    For purposes of this Act, the term ``insurance'' means any product 
defined or regulated as insurance by the insurance regulatory authority 
of the State in which the insurance is sold, solicited, or 
underwritten.

SEC. 8. EFFECTIVE DATE.

    The requirements of this Act shall take effect 180 days after the 
date of enactment.

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