II 110th CONGRESS 1st Session S. 1061 IN THE SENATE OF THE UNITED STATES March 29, 2007 Mr. Lott introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To require insurance companies to fully disclose insurance coverage and noncoverage of homeowners' insurance policies, to provide for enforcement by the Federal Trade Commission, and for other purposes.

1.

Short title

This Act may be cited as the Homeowners' Insurance Noncoverage Disclosure Act.

2.

Required disclosure of noncoverage in homeowners' insurance policies

(a)

In general

Each individual homeowner's 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. (b)

Regulations

Not later than 180 days after the date of the enactment of this Act, the Federal Trade Commission shall promulgate such regulations as may be necessary to carry out the provisions of this Act.

3.

Enforcement

(a)

In general

Any failure to comply with the provisions of section 2 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)

Powers of Federal Trade Commission

(1)

In general

The Federal Trade Commission 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. (2)

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 in the same manner, by the same means, and with the same jurisdiction, power, and duties 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 Federal Trade Commission under any other provision of law.