[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1317 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 1317

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 24, 1995

  Mr. Bliley (for himself, Mr. Dingell, Mr. Solomon, Mr. Mineta, Mr. 
 Paxon, Mr. Pomeroy, Mr. Burton of Indiana, Mr. Saxton, Mr. Hayes, Mr. 
Kingston, Mr. Tanner, Mr. Upton, Mr. Davis, Mr. Gillmor, Mr. Schaefer, 
  Mr. Bilbray, Mrs. Kennelly, Mr. Meehan, Mr. Bass, and Mr. Lewis of 
 California) introduced the following bill; which was referred to the 
                         Committee on Commerce

                             April 18, 1995

             Additional sponsor: Mr. Neal of Massachusetts

_______________________________________________________________________

                                 A BILL


 
To ensure that sellers and underwriters of insurance are qualified and 
           subject to State 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 State's and Consumer's 
Rights Clarification and Fair Competition Act of 1995''.

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, underwrite, 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, underwriting, or solicitation of insurance 
takes place, and that person is not prohibited from engaging in such 
activities under Federal law or by the laws of that State.
    (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, policy form approvals, 
        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, and 
that person is not prohibited from engaging in such activities under 
Federal law or by the laws of that State.
    (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, policy form approvals, 
        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. 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 product is sold, solicited, or underwritten, 
including as defined or authorized under State law any annuity contract 
the income on which is tax deferred under section 72 of the Internal 
Revenue Code of 1986.

SEC. 7. EFFECTIVE DATE.

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