II 109th CONGRESS 2d Session S. 3239 IN THE SENATE OF THE UNITED STATES May 25, 2006 Mr. Dayton (for himself and Mr. Lott) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation A BILL To require full disclosure of insurance coverage and noncoverage by insurance companies and provide for Federal Trade Commission enforcement.

1.

Short title

This Act may be cited as the Uniform Insurance Non-Coverage Disclosure Act.

2.

Unlawful act

Each individual policy written by a State-registered insurance company shall include on the front or first page of the policy a Noncoverage Disclosure box restating in plain English, in bold font twice the size of the text in the body of the policy, all conditions, exclusions, and other limitations pertaining to coverage under that policy, regardless of the underlying insurance product in question.

3.

Enforcement

(a)

In general

Any violation of this Act shall be treated as a violation of a regulation under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive acts or practices. (b)

Regulations

The Federal Trade Commission (referred to in this Act as the Commission) shall promulgate regulations to carry out this Act.

4.

Powers of commission

(a)

In general

The Commission, acting through the Division of Financial Practices in the Bureau of Consumer Protection, shall prevent any person from violating this Act, and any regulation promulgated thereunder, in the same manner, by the same means, and with the same jurisdiction, powers and duties as though all applicable terms and provisions of the Federal Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated into and made a part of this Act. (b)

Penalties

Any person who violates regulations promulgated under this Act shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act as though all applicable terms and provisions of the Federal Trade Commission Act were incorporated into and made part of this Act. (c)

Authority preserved

Nothing in this Act shall be construed to limit the authority of the Commission under any other provision of law.