[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4145 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4145

    To establish a program under the Secretary of Housing and Urban 
     Development to eliminate redlining in the insurance business.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 25, 1998

   Mr. Jackson of Illinois introduced the following bill; which was 
      referred to the Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
    To establish a program under the Secretary of Housing and Urban 
     Development to eliminate redlining in the insurance business.

    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 ``Anti-Redlining Insurance Disclosure 
Act of 1998''.

SEC. 2. FINDINGS AND CONSTRUCTION.

    (a) Findings.--The Congress finds that--
            (1) disparities in property and casualty insurance coverage 
        provided by insurers engaged in interstate commerce between 
        areas of different incomes and racial composition could 
        adversely affect interstate commerce and the cost and 
        availability of insurance for consumers;
            (2) insurance companies are increasingly using credit 
        reports in their insurance underwriting practices;
            (3) the use of credit reports to deny insurance coverage to 
        individuals and businesses in poor and minority communities 
        could adversely affect interstate commerce; and
            (4) appropriate disclosures of information by insurers 
        would benefit consumers and insurance regulators.
    (b) Construction.--Nothing in this Act is intended to, nor shall it 
be construed to, encourage unsound underwriting practices.

SEC. 3. MAINTENANCE OF INFORMATION AND PUBLIC DISCLOSURE.

    (a) General Rule.--
            (1) Designated insurers.--
                    (A) In general.--Except as provided by subsection 
                (b)(6), each designated insurer shall, in accordance 
                with subsection (b), annually compile, submit to the 
                Secretary, and make available to the public for each 
                calendar year and for designated lines of insurance in 
                a designated Metropolitan Statistical Area (referred to 
                in this Act as ``MSA'') for which the insurer was 
                designated under section 4(a)(2)--
                            (i) the total number of policies, total 
                        exposure units (in car years and house years), 
                        and total earned premium of insurance policies 
                        by designated line which were issued by such 
                        insurer, exposure units canceled, and the 
                        exposure units not renewed by such insurer;
                            (ii) the total number of claims made which, 
                        with respect to property insurance, shall be 
                        disaggregated by the type and use of the 
                        property insured, which types and uses shall 
                        include--
                                    (I) properties consisting of one to 
                                4 dwelling units;
                                    (II) properties consisting of more 
                                than 4 dwelling units;
                                    (III) owner occupied properties;
                                    (IV) rental properties: and
                                    (V) vacant properties;
                            (iii) disclose the standards and criteria 
                        used in underwriting each designated line of 
                        insurance; and
                            (iv) the number of licensed agents of such 
                        insurer and the number within each census track 
                        in such designated MSA, whether such agent is 
                        an employee, independent contractor working 
                        exclusively for such insurer, or an independent 
                        contractor appointed to represent such insurer 
                        on a nonexclusive basis.
                    (B) Submissions and availability.--The information 
                described in subparagraph (A) shall be--
                            (i) submitted to the Secretary in 
                        accordance with subsection (d); and
                            (ii) made available to the public, in 
                        accordance with subsection (b)(2), for 
                        inspection and copying, at cost, at the home 
                        office of the insurer and at a central 
                        depository established under subsection (c), by 
                        the Secretary.
            (2) Nondesignated insurers.--Except as provided in 
        subsection (b)(6), every insurer which sells an insurance 
        policy in a designated line of insurance in a designated MSA, 
and which is not a designated insurer in such MSA shall submit to the 
Secretary for each calendar year in accordance with subsection (d) and 
regulations of the Secretary the total exposure units (in car years and 
house years) of insurance policies in a designated line sold in such 
MSA. With respect to such policies, the insurer shall report the 
designated MSA where the insured risks are located for which such 
insurance is issued and within such MSA report the census track where 
the risk is located.
    (b) Requirements.--
            (1) Content.--The information required to be maintained and 
        made available under subsection (a)(1) shall be itemized in 
        order to clearly and conspicuously disclose the policies, the 
        exposure units, and the premium amount for each line of 
        insurance for which information is required and be itemized by 
        the census track where the risks are located.
            (2) Availability to the public.--The information required 
        to be maintained and made available under subsection (a) shall 
        be made available to the public on a timetable determined by 
        the Secretary but not later than October 1 of the calendar year 
        following the calendar year for which the information is 
        required to be made available, except that such information 
        shall not be made available to the public until it is available 
        in its entirety, but it shall be made available if not all the 
        information required to be reported is available on such 
        October 1 or on the date determined by the Secretary.
            (3) Specification of data.--
                    (A) In general.--With respect to information which 
                is required to be maintained and made available under 
                subsection (a)(1), the Secretary shall by regulation 
                establish specifications for the collection and public 
                reporting of such information with respect to the 
                following lines of insurance: private passenger 
                automobile, homeowners, dwelling fire and allied lines, 
                small business commercial, and surety bonds. The 
                specifications shall--
                            (i) provide that information be aggregated 
                        among similar policyholders and reported on 
                        that basis;
                            (ii) be designed to collect information 
                        with respect to the availability, cost, and 
                        type of insurance coverage between and among 
                        various geographic areas;
                            (iii) detail what data elements should be 
                        collected;
                            (iv) provide for the collection of 
                        information on an individual insurer basis;
                            (v) minimize burdens on insurance agents, 
                        including independent insurance agents;
                            (vi) provide the data required by clause 
                        (ii) with the least burden on insurers, 
                        particularly small insurers;
                            (vii) take into account the types of data 
                        collected under the Home Mortgage Disclosure 
                        Act of 1975, such as gender, racial and 
                        financial characteristics of applicants for 
                        insurance and the reason for any declines, 
                        cancellations, or nonrenewals made for such 
                        insurance;
                            (viii) take into account existing 
                        statistical reporting systems in the insurance 
                        industry;
                            (ix) require itemization by census track; 
                        and
                            (x) include information on policies written 
                        in a residual market.
                    (B) Consultations.--In developing the 
                specifications in subparagraph (A), the Secretary shall 
                consult with--
                            (i) other Federal agencies with appropriate 
                        expertise;
                            (ii) State insurance regulators;
                            (iii) representatives of the insurance 
                        industry, including statistical agents;
                            (iv) representatives of insurance 
                        producers, including minority insurance 
                        producers; and
                            (v) consumer, community, and civil rights 
                        groups who are representative of a diversity of 
                        geographic locations.
                    (C) Effective date.--The regulation under 
                subparagraph (A) shall be issued no later than 270 days 
                after the date of the enactment of this Act.
            (4) Period of maintenance.--Any information required to be 
        compiled and made available under subsection (a)(1) 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.
            (5) Format for disclosures.--Subject to subsection (c), the 
        Secretary shall prescribe a standard format for making 
        information available as required by subsection (a)(1). Such 
        format shall encourage the submission of information in a form 
        readable by a computer.
            (6) Exemption.--
                    (A) Secretarial action.--If the Secretary 
                determines that a State has enacted a law, or otherwise 
                implemented a requirement under which--
                            (i) insurers operating in that State are 
                        subject to disclosure requirements on a census 
                        track basis substantially similar to those of 
                        subsection (a);
                            (ii) there are adequate provisions for 
                        enforcement; and
                            (iii) the information disclosed under the 
                        State law or requirement is made available to 
                        the Secretary and the public in a manner 
                        similar to other information disclosed under 
                        subsection (a)(1),
                then the Secretary shall by regulation exempt insurers 
                operating in that State from complying with the 
                requirements of subsection (a)(1) with respect to that 
State's portions of the designated MSA's. If the Secretary determines 
that the State law or requirement no longer meets the criteria of 
clauses (i) through (iii) or is no longer in effect, the Secretary 
shall by regulation revoke the exemption.
                    (B) United states program.--Reporting shall not be 
                required under subsection (a) with respect to insurance 
                provided by a program underwritten or administered by 
                the United 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)(1). Such system shall 
include arrangements for a central depository of information in each 
designated 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 information for all designated insurers within such MSA. 
The Secretary shall also make copies of such statements available in 
forms readable by widely used personal computers, such as in disc 
format. The Secretary may charge a fee for such information, which may 
not exceed the amount, determined by the Secretary, that is equal to 
the cost of reproducing the information.
    (d) Submission to Secretary.--With respect to the information 
required to be submitted under subsection (a) to the Secretary, the 
Secretary shall develop regulations prescribing the format and method 
for submitting such information. Such regulations shall ensure 
uniformity among insurers, to the extent practicable, in the format 
used for reporting, including the definitions of data elements. Any 
reporting insurer may submit in writing to the Secretary such 
additional data or explanations as it deems relevant to the decision by 
such insurer to sell insurance.

SEC. 4. DESIGNATIONS.

    (a) Designations by the Secretary.--
            (1) Designations of msa's.--The Secretary shall designate 
        the MSA's for which reporting is required under section 3(a). 
        At a minimum, the Secretary shall designate the 50 MSA's having 
        the largest population.
            (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 
                reporting is required under section 3(a). At a minimum, 
                the Secretary shall designate the 25 insurers in such 
                MSA having the largest premium 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 part of a residual 
                market established by State law.
                    (C) The Secretary shall also designate, in addition 
                to the insurers designated under subparagraphs (A) and 
                (B), insurers who specialize in selling insurance in 
                urban areas, including surplus lines insurers.
                    (D) The Secretary shall also designate, in addition 
                to the insurers designated under subparagraphs (A), 
                (B), and (C) insurers such that insurers representing 
                at least 80 percent of the premium volume in each State 
                in which such MSA is located in the designated line of 
                insurance are designated in such MSA. The Secretary may 
                not designate additional insurers under this 
                subparagraph if their market share in the designated 
                line of insurance in the applicable States, as measured 
                by premium volume in each State in which such MSA is 
                located, is under 1 percent.
                    (E) In addition to the insurers designated under 
                subparagraph (A), (B), (C), and (D) the Secretary may 
                by regulation designate additional insurers in a MSA if 
                the designation of additional insurers is necessary to 
                provide valid data with respect to the availability, 
                cost, and type of insurance 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 insurance in a MSA, as measured 
                by premium volume in each State in which such MSA is 
                located, of under 1 percent, 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 measured by premium volume in each State 
                in which such MSA is located. In addition, the 
                Secretary may revoke the designation of any insurer 
                designated 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 subparagraph and if such 
                insurer primarily sells insurance in rural areas of 
                such MSA.
                    (G) For purposes of this paragraph, insurers which 
                are affiliated or are members of the same group shall 
                be considered together as 1 insurer.
            (3) Designation of lines of insurance.--For each MSA 
        designated under paragraph (1), the following are the 
        designated lines of property and casualty insurance for which 
        reporting is required under section 3:
                    (A) Private passenger automobile insurance.
                    (B) Homeowners insurance.
                    (C) Dwelling fire and allied lines of insurance.
                    (D) Commercial insurance for small business.
                    (E) Surety bonds.
        The Secretary may designate additional lines of insurance on 
        the basis of such criteria as the Secretary may by rule 
        develop. Such a rule shall be issued in accordance with section 
        553 of title 5, United States Code. For purposes of this Act, 
        the designation of a line of insurance includes a designation 
        of a subline of class of insurance.
            (4) Timing of designations.--
                    (A) Initial designations.--The Secretary shall make 
                initial designations 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 preceding the fifth year after a 
                designation under subparagraph (A) or this 
                subparagraph, the Secretary shall make another 
                designation to be effective upon the expiration of such 
                5 years and such designation shall be effective for 5 
                calendar years from the date of designation.
                    (C) Notice.--The Secretary shall notify persons 
                involved in the designations no later than the July 15 
                which follows the designation.
    (b) Obtaining Information.--The Secretary may obtain from insurers 
such information as the Secretary may require to make designations 
under subsection (a).

SEC. 5. DISCLOSURES TO REJECTED APPLICANTS.

    (a) In General.--Except as provided in subsection (e), the 
Secretary shall, by regulation 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 qualify for 
                such insurance; and
            (2) restrict the use insurers may make of information 
        relating to--
                    (A) adverse underwriting decisions; or
                    (B) insurance coverage in a residential market.
    (b) Model Acts.--In issuing regulations under subsection (a), the 
Secretary shall consider relevant portions of model acts developed by 
the National Association of Insurance Commissioners.
    (c) Enforcement.--The Secretary may delegate to the States the 
authority to enforce the requirements of regulations issued under 
subsection (a).
    (d) Preemption.--Subsection (a) is not to be construed to preempt 
any State from imposing on insurers requirements of the type stated in 
such subsection, including requirements which are more stringent or 
more comprehensive.
    (e) Exemption.--A regulation issued under subsection (a) may not 
apply to insurance provided under a program underwritten or 
administered by the United States.
    (f) Definition.--For purposes of subsection (a)(2)(A), an adverse 
underwriting decision means any of the following actions with respect 
to insurance transactions involving insurance coverage which is 
individually underwritten:
            (1) A declination of insurance coverage.
            (2) A termination of insurance coverage.
            (3) Failure of an agent to apply for insurance coverage 
        with a specific insurance entity which the agent represents and 
        which is requested by the applicant.
            (4) In the case of property or casualty insurance 
        coverage--
                    (A) place by an insurance entity or agent of a risk 
                with a residual market mechanism, an unauthorized 
                insurer, or an insurance entity which specializes in 
                substandard risks; or
                    (B) the charging of higher rates on the basis of 
                information which differs from that which the applicant 
                or policyholder furnished.

SEC. 6. TASK FORCE ON AGENCY APPOINTMENTS.

    (a) Establishment.--Within 90 days of the date of the enactment of 
this Act, the Secretary shall establish a task force on insurance 
agency appointments. The task force shall--
            (1) consist of representatives of appropriate Federal 
        agencies, property and casualty insurance agents, including 
        specifically minority insurance agents, property and casualty 
        insurance companies, State insurance regulators, and public 
        interest groups;
            (2) have a significant representation from minority 
        insurance agents; and
            (3) be chaired by the Secretary or the Secretary's 
        designee.
    (b) Function.--The task force shall--
            (1) review the problems inner city and minority agents may 
        have in receiving appointments to represent property and 
        casualty insurance companies;
            (2) review the practices of insurers in terminating agents 
        and consider the effect such practices have on the availability 
        or cost of insurance, especially in underserved areas; and
            (3) recommend solutions to improve the ability of inner 
        city and minority insurance 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 Banking and Financial Services of the House of 
Representatives 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 Act. The task force shall 
terminate when the report is submitted to the committees.

SEC. 7. IMPLEMENTATION OF SECTION 3.

    (a) Regulations.--The Secretary shall promulgate such regulations 
as may be necessary to carry out section 3. Such regulations may--
            (1) contain such classifications, differentiations, or 
        other provisions; and
            (2) provide for such adjustments and exceptions for any 
        class of transactions,
as in the judgment of the Secretary are necessary 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 
responsibilities 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.
    (c) Role of Statistical Agents.--
            (1) Acceptance of data.--The Secretary and, if applicable, 
        the contractor under the subsection (b) contract may accept 
        data reported under section 3(a) by a statistical agent acting 
        on behalf of more than 1 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 compatible 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 procedures 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 
                adjustment by the statistical agent or an insurer for 
                reasons other than technical accuracy and conformance 
                to the statistical plan;
                    (E) the statistical agent ensures that the data of 
                1 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 prescribed by the Secretary under section 3(d).
            (2) Discontinuance of data acceptance.--The Secretary may, 
        after providing an opportunity for a hearing, discontinue 
        accepting data reported under section 3(a) by a statistical 
        agent acting on behalf of more than 1 insurer if the Secretary 
        determines the requirements for acceptance of data in paragraph 
        (1) are no longer met.
    (d) Role of GAO.--The Comptroller General shall have the authority 
to review and audit any data collection and reporting performed under 
section 3, whether by the Secretary, the contractor under the 
subsection (b) contract, or a statistical agent, to ensure that the 
integrity of the data collected and reported is protected.
    (e) Burdens on Insurance Agents.--In prescribing regulations under 
this Act, 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.

SEC. 8. RELATION TO STATE LAWS.

    This Act does not annul, alter, 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 record 
keeping.

SEC. 9. COMPILATION OF AGGREGATE DATA.

    (a) Scope of Data and Tables.--The Secretary shall compile each 
year, for each designated MSA, data aggregated by 5-digit zip code for 
all insurers who are subject to section 3 or who are exempt from 
section 3 under subsection (b)(6)(A) of such section. The Secretary 
shall also produce tables indicating, for each MSA, insurance policies 
aggregated for various categories of 5-digit zip codes grouped 
according to location, age of property, income level, and racial 
characteristics of neighborhood.
    (b) Aggregation of Information.--Statistical agents may aggregate 
the data of insurers 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 Secretary but not later than 
October 1 of the year following the calendar year on which the data and 
tables are based.

SEC. 10. ENFORCEMENT.

    (a) Civil Penalties.--Any insurer who is determined by the 
Secretary, after providing opportunity for a hearing on the record, to 
have violated the requirements of section 3 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 
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. 11. SUNSET.

    (a) Expiration.--Except as provided in subsection (b), this Act 
shall not be in effect after the expiration of 5 years from its 
effective date. Prior to the expiration of 4 years from such date, the 
Secretary shall report to the Banking and Financial Services 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 
        between the cost of such data gathering and the benefits from 
        having such data available;
            (2) the appropriateness of the geographic 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-income neighborhoods; and
            (5) such other information as the Secretary determines will 
        assist in considering 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 
subsection (a)(5), the Secretary may extend this Act for one period of 
2 years.

SEC. 12. STUDIES.

    (a) Study of Information on Insurance Applicants.--
            (1) In general.--The Secretary shall conduct a study to 
        determine the feasibility and utility of the collection of 
        information 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 representations are used 
                by insurers and agents in making determinations 
                regarding whether or not to insure a prospective 
                insured;
                    (B) written applications are used by insurers and 
                agents in making determinations regarding whether or 
                not to insure a prospective insured;
                    (C) written applications are submitted after the 
                insurer or agent has already made a determination to 
                provide insurance to a prospective insured or has 
                determined that the prospective insured is eligible for 
                insurance; and
                    (D) prospective insureds are discouraged from 
                submitting applications for insurance based, in whole 
                or in part, on--
                            (i) the location of the risk to be insured;
                            (ii) the race or ethnicity of the 
                        prospective insured;
                            (iii) the racial or ethnic composition of 
                        the neighborhood in which the risk to be 
                        insured is located; and
                            (iv) in the case of residential property 
                        insurance, the age and value of the risk to be 
                        insured.
            (2) Report.--The Secretary shall report the results of the 
        study under paragraph (1) to the Committee on Banking and 
        Financial Services of the House of Representatives and the 
        appropriate committee of the Senate within 18 months of the 
        date of the enactment of this Act.
    (b) Study of Insurer Actions To Meet Insurance Needs of Certain 
Neighborhoods.--The Secretary shall conduct a study of various 
practices, actions, programs, and methods undertaken by insurers to 
meet the property and casualty insurance needs of residents of low- and 
moderate-income neighborhoods, minority neighborhoods, and small 
businesses located in such neighborhoods. The Secretary may establish a 
task force of interested parties, including representatives of 
insurance companies, insurance agents, including minority agents, and 
consumer representatives 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 Banking and Financial Services of the House of 
Representatives and the appropriate committee of the Senate no later 
than 2 years after the date of the enactment of this Act.
    (c) Study of Disparate Claim Treatment.--
            (1) In general.--The Secretary shall conduct a study to 
        determine whether, and the extent to which, insurers engage in 
        disparate treatment in handling claims of policyholders under 
        designated lines of insurance based on the race, gender, and 
        income level of the policyholder and the racial characteristics 
        and income levels of the area in which the insurance risk is 
        located. In conducting the study, the Secretary shall 
        specifically consider whether the residents of low-income 
        neighborhoods or areas and minority neighborhoods or areas are 
        more likely than residents of other areas to have their claims 
        contested or their insurance coverage canceled.
            (2) Report.--The Secretary shall submit a report on the 
        results of the study under paragraph (1) to the Committee on 
        Banking and Financial Affairs of the House of Representatives 
        and the appropriate Committees of the Senate not later than 2 
        years after the date of the enactment of this Act.
    (d) Study of Rating Territories.--The Secretary shall conduct a 
study to determine whether the practice in the insurance industry of 
basing insurance premiums on the territory in which the insured risk is 
located has a disparate impact on the availability, affordability, or 
quality of insurance by race, gender, or type of neighborhood. The 
Secretary shall submit a report on the results of the study to the 
Committee on Banking and Financial Affairs of the House of 
Representatives and the appropriate Committees of the Senate not later 
than 12 months after the date of the enactment of this Act.
    (e) Study of Reinvestment Requirements.--
            (1) In general.--The Secretary shall conduct a study to 
        determine the feasibility of requiring insurers to reinvest in 
        communities and neighborhoods from which they collect premiums 
        for insurance and whether, and the extent to which, community 
        reinvestment requirements for insurers should be established 
        that are comparable to the community reinvestment requirements 
        applicable to depository institutions. The Secretary shall 
        consult with representatives of insurers and consumer, 
        community, and civil rights organizations regarding the results 
        of the study and any recommendations to be made based on the 
        results of the study.
            (2) Report.-- The Secretary shall submit a report on the 
        results of the study, including any such recommendations, to 
        the Committee on Banking and Financial Affairs of the House of 
        Representatives and the appropriate Committees of the Senate 
        not later than 6 months after the conclusion of the first 
        annual reporting period to which the reporting requirements 
        under this Act apply.

SEC. 13. DEFINITIONS.

    For purposes of this Act:
            (1) Commercial insurance.--The term ``commercial 
        insurance'' means any line of property and casualty insurance, 
        except private passenger automobile and homeowner's insurance.
            (2) Designated insurer.--The term ``designated insurer'' 
        means an insurer designated by the Secretary pursuant to 
        section 4(a)(2).
            (3) Designated line.--The term ``designated line'' means a 
        line of insurance specified in 4(a)(3).
            (4) Exposure units.--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) Insurer.--The term ``insurer'' means any corporation, 
        association, society, order, firm, company, partnership, 
        individual, or aggregation of individuals which is subject to 
        examination or supervision by any State insurance regulator, or 
        which is doing or represents an insurance business. Such term 
        does not include an individual or entity which represents an 
        insurer as agent for the purpose of selling or which represents 
        a consumer as a broker for the purpose of buying insurance.
            (6) MSA.--The term ``MSA'' means a Metropolitan Statistical 
        Area or a Consolidated Metropolitan Statistical Area and the 
        term ``designated MSA'' means an MSA designated by the 
        Secretary pursuant to section 4(a)(1).
            (7) 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.
            (8) Residual market.--The term ``residual market'' means an 
        assigned risk plan, joint underwriting association, or any 
        similar mechanism designed to make insurance available to those 
        unable to obtain it in the voluntary market.
            (9) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (10) 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. 14. EFFECTIVE DATE.

    The requirements of this Act shall take effect with respect to 
information on insurance described in section 3 and developed in and 
after calendar year 2001.
                                 <all>