[Congressional Record Volume 140, Number 118 (Friday, August 19, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: August 19, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                THE HOMEOWNERS INSURANCE DISCLOSURE ACT

 Mr. RIEGLE. Mr. President, yesterday I introduced S. 2402, the 
Homeowners Insurance Disclosure Act. I ask unanimous consent that the 
text of the legislation be printed in the Congressional Record in its 
entirety.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2402

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Homeowners 
     Insurance Disclosure Act of 1994''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Establishment of general requirements to submit information.
Sec. 4. Reporting of noncommercial insurance information.
Sec. 5. Study of commercial insurance for residential properties and 
              small businesses.
Sec. 6. Reporting of rural insurance information.
Sec. 7. Waiver of reporting requirements.
Sec. 8. Reporting by private mortgage insurers.
Sec. 9. Use of data contractor and statistical agents.
Sec. 10. Submission of information to secretary and maintenance of 
              information.
Sec. 11. Compilation of aggregate information.
Sec. 12. Availability and access system.
Sec. 13. Designations.
Sec. 14. Improved methods and reporting on basis of other areas.
Sec. 15. Annual reporting period.
Sec. 16. Disclosures by insurers to applicants and policyholders.
Sec. 17. Enforcement.
Sec. 18. Reports.
Sec. 19. Task force on agency appointments.
Sec. 20. Studies.
Sec. 21. Exemption and relation to State laws.
Sec. 22. Regulations.
Sec. 23. Definitions.
Sec. 24. Effective date.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--The Congress finds that--
       (1) there are disparities in insurance coverage provided by 
     some insurers between areas of different incomes and racial 
     composition; and
       (2) such disparities in affordability and availability of 
     insurance severely limit the ability of qualified consumers 
     to obtain credit for home and business purchases.
       (b) Purposes.--The purposes of this Act are--
       (1) to establish a nationwide database for determining the 
     availability, affordability, and adequacy of insurance 
     coverage for consumers;
       (2) to facilitate the enforcement of Federal and State laws 
     that prohibit illegally discriminatory insurance practices; 
     and
       (3) to determine whether the extent and characteristics of 
     insurance availability, affordability, and coverage require 
     public officials to take any actions--
       (A) to remedy redlining or other illegally or unfairly 
     discriminatory insurance practices; or
       (B) to promote insurance availability and affordability in 
     areas underserved by insurers.
       (c) Construction.--Nothing in this Act is intended to, nor 
     shall it be construed to, encourage unsound underwriting 
     practices.

     SEC. 3. ESTABLISHMENT OF GENERAL REQUIREMENTS TO SUBMIT 
                   INFORMATION.

       (a) In General.--The Secretary shall, by regulation, 
     establish requirements for insurers to compile and submit 
     information to the Secretary for each annual reporting 
     period, in accordance with this Act.
       (b) Consultation.--In establishing the requirements for the 
     submission of information under this Act, the Secretary shall 
     consult with Federal agencies having appropriate expertise, 
     the National Association of Insurance Commissioners, State 
     insurance regulators, statistical agents, representatives of 
     small businesses, representatives of insurance agents 
     (including minority insurance agents), representatives of 
     property and casualty insurers, and community, consumer, and 
     civil rights organizations, as appropriate.

     SEC. 4. REPORTING OF NONCOMMERCIAL INSURANCE INFORMATION.

       (a) In General.--The requirements established pursuant to 
     section 3 to carry out this section shall--
       (1) be designed to ensure that information is submitted and 
     compiled under this section as may be necessary to permit 
     analysis and comparison of--
       (A) the availability and affordability of insurance 
     coverage and the quality or type of insurance coverage, by 
     MSA and the applicable region, race, and gender of 
     policyholders; and
       (B) the location of the principal place of business of 
     insurance agents and the race of such agents, and the 
     location of the principal place of business of insurance 
     agents terminated and the race of such agents, by MSA and 
     applicable region; and
       (2) specify the data elements required to be reported under 
     this section and require uniformity in the definitions of the 
     data elements.
       (b) Designated Insurers.--
       (1) Aggregate information.--The regulations issued under 
     section 3 shall require that each designated insurer for a 
     designated line of insurance under section 13(c)(1) compile 
     and submit to the Secretary, for each annual reporting 
     period--
       (A) the total number of policies issued in such line, total 
     exposures covered by such policies, and total amount of 
     premiums for such policies, by designated line and by 
     designated MSA and applicable region in which the insured 
     risk is located;
       (B) the total number of cancellations and nonrenewals 
     (expressed in terms of policies or exposures, as determined 
     by the Secretary), by designated line and by designated MSA 
     and applicable region in which the insured risk is located;
       (C) the total number and racial characteristics of--
       (i) licensed agents of such insurer selling insurance in 
     the designated line, by designated MSA and applicable region 
     in which the agent's principal place of business is located; 
     and
       (ii) such agents who were terminated by the insurer, by 
     designated MSA and applicable region in which the agent's 
     principal place of business was located; and
       (D) for such designated line of insurance, information that 
     will enable the Secretary to assess the aggregate loss 
     experience for the insurer, by designated MSA and applicable 
     region in which the insured risk is located.
       (2) Specification of information for itemized disclosure.--
       (A) In general.--The regulations issued under section 3 
     regarding annual reporting requirements for designated 
     insurers for a designated line of insurance under section 
     13(c)(1) shall, with respect to policies issued under the 
     designated line or exposure units covered by such policies, 
     as determined by the Secretary--
       (i) specify the data elements that shall be submitted;
       (ii) provide for the submission of information on an 
     individual insurer basis;
       (iii) provide for the submission of the information with 
     the least burden on insurers, particularly small insurers, 
     and insurance agents;
       (iv) take into account existing statistical reporting 
     systems in the insurance industry;
       (v) require reporting by MSA and applicable region in which 
     the insured risk is located;
       (vi) provide for the submission of information that 
     identifies the designated line and subline or coverage type;
       (vii) provide for the submission of information that 
     distinguishes policies written in a residual market from 
     policies written in the voluntary market;
       (viii) specify--

       (I) whether information shall be submitted on the basis of 
     policy or exposure unit; and
       (II) whether information, when submitted, shall be 
     aggregated by like policyholders with like policies, except 
     that the Secretary shall not permit such aggregation if it 
     will adversely affect the accuracy of the information 
     reported;

       (ix) provide for the submission of information regarding 
     the number of cancellations and nonrenewals of policies under 
     the designated line by MSA and applicable region in which the 
     insured risk is located, by race and gender of the 
     policyholder (if known to the insurer), and by whether the 
     policy was issued in a voluntary or residual market; and
       (x) provide for the submission of information on the racial 
     characteristics and gender of policyholders at the level of 
     detail comparable to that required by the Home Mortgage 
     Disclosure Act of 1975 (and the regulations issued 
     thereunder).
       (B) Rules regarding obtaining racial information.--With 
     respect to the information specified in subparagraph (A)(x), 
     applicants for, and policyholders of, insurance may be asked 
     their racial characteristics only in writing. Any such 
     written question shall clearly indicate that a response to 
     the question is voluntary on the part of the applicant or 
     policyholder, but encouraged, and that the information is 
     being requested by the Federal Government to monitor the 
     availability and affordability of insurance. If an applicant 
     for, or policyholder of, insurance declines to provide such 
     information, the agent or insurer for such insurance may 
     provide such information.
       (3) Rule for reporting by designated insurers.--A 
     designated insurer for a designated line shall submit--
       (A) information required under subparagraphs (A), (B), and 
     (D) of paragraph (1) and information required pursuant to 
     paragraph (2), for risks insured under such line that are 
     located within each designated MSA, any part of which is 
     located in a State for which the insurer is designated; and
       (B) information required under paragraph (1)(C) for agents 
     within such designated MSA's.
       (c) Nondesignated Insurers.--The regulations issued under 
     section 3 shall require each insurer that issues an insurance 
     policy in a designated line of insurance under section 
     13(c)(1) that covers an insured risk located in a 
     designated MSA and which is not a designated insurer for 
     the line in any State in which any part of such MSA is 
     located, to compile and submit to the Secretary, for each 
     annual reporting period--
       (1) the total number of policies issued in such line;
       (2) the total exposures covered by such policies; and
       (3) the total amount of premiums for such policies;
     by designated MSA and applicable region in which the insured 
     risk is located.

     SEC. 5. STUDY OF COMMERCIAL INSURANCE FOR RESIDENTIAL 
                   PROPERTIES AND SMALL BUSINESSES.

       (a) In General.--The Secretary shall conduct a study to 
     determine the availability, affordability, and quality or 
     types of commercial insurance coverage for residential 
     properties and small businesses, in urban areas.
       (b) Submission of Information.--To acquire information for 
     the study under this section, the Secretary shall, by 
     regulation, establish requirements for insurers providing 
     commercial insurance for residential properties and small 
     businesses to compile and submit to the Secretary on an 
     annual basis information regarding such insurance, as 
     follows:
       (1) MSA's.--The Secretary shall carry out the study only 
     with respect to the 25 MSA's having the largest populations, 
     as determined by the Secretary and specified in the 
     regulations under this section.
       (2) Insurers.--For each of the MSA's specified pursuant to 
     paragraph (1), the Secretary shall designate the insurers 
     required to submit the information. The Secretary shall 
     designate a sufficient number of insurers to provide a 
     representative sample of the insurers providing such 
     insurance in each such MSA.
       (3) Lines of insurance.--The Secretary shall require the 
     submission of information regarding such lines, sublines, or 
     coverage types of commercial insurance as the Secretary 
     determines are necessary or important with respect to 
     establishing, operating, or maintaining residential 
     properties and each type of small business selected under 
     paragraph (4), and shall require submission of such 
     information by such lines, sublines, or coverage types.
       (4) Small businesses.--For purposes of paragraph (3), the 
     Secretary shall determine the types of businesses that are 
     typical of small businesses and shall select a representative 
     sample of such types.
       (5) Data elements.--The Secretary shall identify the data 
     elements required to be submitted.
       (6) Submission by location.--The Secretary shall require 
     the information to be submitted by designated MSA and 
     applicable region in which the insured risk is located.
       (7) Submission by insurer.--The Secretary shall require the 
     submission of information on an individual insurer basis and 
     shall specify whether information, when submitted, shall be 
     aggregated by like policies, except that the Secretary shall 
     not permit such aggregation if it will adversely affect the 
     accuracy of the information reported.
       (8) Sunset.--The Secretary shall require the submission of 
     information under this section only for each of the first 5 
     annual reporting periods beginning more than 3 years after 
     the date of enactment of this Act.
       (c) Considerations.--In establishing the requirements for 
     submission of information under this section, the Secretary 
     shall--
       (1) take into consideration the administrative, paperwork, 
     and other burdens on insurers and insurance agents involved 
     in complying with the requirements of this section;
       (2) minimize the burdens imposed by such requirements with 
     respect to such insurers and agents; and
       (3) take into consideration existing statistical reporting 
     systems in the insurance industry.
       (d) Report.--Not later than 6 months after the expiration 
     of the fifth of the 5 annual reporting periods referred to in 
     subsection (b)(8), the Secretary shall submit a report to the 
     Congress describing the information submitted under the study 
     conducted under this section and any findings of the 
     Secretary from the study regarding disparities in the 
     availability, affordability, and quality or types of 
     commercial insurance coverage for residential properties and 
     small businesses, in urban areas.

     SEC. 6. REPORTING OF RURAL INSURANCE INFORMATION.

       (a) In General.--The Secretary shall, by regulation, 
     establish requirements for insurers to annually compile and 
     submit to the Secretary information concerning the 
     availability, affordability, and quality or type of insurance 
     in designated rural areas in the lines designated under 
     section 13(c)(1).
       (b) Content.--The regulations under this section shall 
     provide that--
       (1) the information to be compiled and submitted under this 
     section by designated insurers and insurers that are not 
     designated insurers shall be of such types, data elements, 
     and specificity that is as identical as possible to the 
     types, data elements, and specificity of information required 
     under this Act of designated and nondesignated insurers, 
     respectively, for designated MSA's and shall be subject to 
     the provisions of section 4(b)(2)(B); and
       (2) the information compiled and submitted under this 
     section shall be compiled and submitted on the basis of each 
     5-digit zip code in which the insured risks are located, 
     rather than on the basis of designated MSA and applicable 
     region (as otherwise required in this Act).
       (c) Designation of Rural Areas.--For purposes of this 
     section, the term ``designated rural area'' means the 
     following:
       (1) First 5 years.--With respect to the first 5 annual 
     reporting periods to which the reporting requirements under 
     this section apply, any of the 25 rural areas designated by 
     the Secretary and specified in regulations issued pursuant to 
     section 22, which shall not be amended or revised after 
     issuance.
       (2) After first 5 years.--With respect to annual reporting 
     periods thereafter, a rural area for which a designation made 
     by the Secretary under this paragraph is in effect, 
     pursuant to the following requirements:
       (A) The designations shall be made for each of the 
     successive 5-year periods at the time provided in 
     subparagraph (C), and the first such period shall be the 5-
     year period beginning upon the commencement of the sixth 
     annual reporting period to which the reporting requirements 
     under this Act apply.
       (B) The Secretary shall designate 25 rural areas as 
     designated rural areas for each such 5-year period and shall 
     designate such rural areas based upon the information and 
     recommendations made in the report under section 18(b) 
     relating to the period.
       (C) The Secretary shall make the designation of rural areas 
     for an ensuing 5-year period by regulations issued--
       (i) not later than 12 months before the commencement of the 
     5-year period; and
       (ii) not later than 6 months after the submission to the 
     Secretary of the report under section 18(b) relating to such 
     period.
       (D) The designations of rural areas for a 5-year period 
     shall take effect upon the commencement of the first annual 
     reporting period of the 5-year period beginning not less than 
     12 months after the issuance of the regulations making such 
     designations, and shall remain in effect until the expiration 
     of the 5-year period.
     Notwithstanding any other provision of this section, the 
     designation of a rural area shall remain in effect until a 
     succeeding designation of rural areas under paragraph (2) 
     takes effect.

     SEC. 7. WAIVER OF REPORTING REQUIREMENTS.

       (a) Waiver for States Collecting Equivalent Information.--
       (1) Authority.--Subject to the requirements under this 
     section, the Secretary shall provide, by regulation, for the 
     waiver of the applicability of the provisions of sections 4, 
     5, and 6 for each insurer transacting business within a State 
     referred to in paragraph (2), but only with respect to 
     information required to be submitted under such sections that 
     relates to agents or insured risks located in the State.
       (2) Requirements.--The Secretary may make a waiver pursuant 
     to paragraph (1) only with respect to a State that the 
     Secretary determines has in effect a law or other requirement 
     that--
       (A) requires insurers to submit to the State information 
     that is the same as or equivalent to the information that is 
     required to be submitted to the Secretary pursuant to 
     sections 4, 5, and 6;
       (B) provides for adequate enforcement of such law or other 
     requirements;
       (C) provides for the same annual reporting period used by 
     the Secretary under this Act and for submission of the 
     information to the Secretary in a timely fashion, as 
     determined by the Secretary; and
       (D) provides that, to the extent statistical agents are 
     permitted to submit information to the State on behalf of 
     insurers, such agents are subject to the same or equivalent 
     requirements as provided under section 9(b).
       (3) Duration.--A waiver pursuant to paragraph (1) may 
     remain in effect only during the period for which the State 
     law or other requirement under paragraph (2) remains in 
     effect.
       (b) Multiple-State MSA's.--In the case of any designated 
     MSA that contains area within--
       (1) any State for which a waiver has been made pursuant to 
     subsection (a); and
       (2) any State for which such a waiver has not been made;
     the provisions of this Act requiring submission of 
     information to the Secretary regarding such MSA shall be 
     considered to apply only to the portion of such MSA that is 
     located within the State for which such a waiver has not been 
     made.
       (c) Authority for Secretary To Obtain Information Directly 
     From Insurers.--If the State for which a waiver has been made 
     pursuant to subsection (a) does not submit to the Secretary 
     the information required under subsection (a)(2)(A) or 
     submits information that is not complete, the Secretary shall 
     require the insurers transacting business within the State to 
     submit such information directly to the Secretary.

     SEC. 8. REPORTING BY PRIVATE MORTGAGE INSURERS.

       (a) HMDA Reporting.--On an annual basis, the Federal 
     Financial Institutions Examination Council (hereafter in this 
     section referred to as the ``Council'') shall determine the 
     extent to which each insurer providing private mortgage 
     insurance is making available to the public and submitting to 
     the appropriate agency information regarding such 
     insurance that is equivalent to the information regarding 
     mortgages required to be reported under the Home Mortgage 
     Disclosure Act of 1975.
       (b) Reporting Under This Act.--
       (1) Certification of noncompliance.--If, for any annual 
     period referred to in subsection (a), the Council determines 
     that any insurer providing private mortgage insurance is not 
     making available to the public or submitting the information 
     referred to in subsection (a) or that the information made 
     available or submitted is not equivalent information as 
     described in subsection (a), then the Council shall notify 
     the insurer of such noncompliance. If, after the expiration 
     of a reasonable period of time, the insurer has not remedied 
     such noncompliance to the satisfaction of the Council, then 
     the Council shall immediately certify such noncompliance to 
     the Secretary.
       (2) Requirement.--Upon the receipt of a certification under 
     paragraph (1), the Secretary shall, by regulation, require 
     such insurer to submit to the Secretary information regarding 
     such insurance that complies with the provisions of section 4 
     that are applicable to such insurance. Such regulations shall 
     be issued not later than 6 months after receipt of such 
     certification and shall apply to the first succeeding annual 
     reporting period beginning not less than 6 months after 
     issuance of such regulations and to each annual reporting 
     period thereafter.

     SEC. 9. USE OF DATA CONTRACTOR AND STATISTICAL AGENTS.

       (a) Data Collection Contractor.--The Secretary may contract 
     with a data collection contractor to collect the information 
     required to be maintained and submitted under sections 4, 5, 
     6, 7, and 8(b), if the contractor agrees to collect the 
     information pursuant to the terms and conditions of such 
     sections and this Act and the regulations issued thereunder. 
     Information submitted to such contractor shall be available 
     to the public to the same extent as if the information were 
     submitted directly to the Secretary.
       (b) Use of Statistical Agents.--
       (1) In general.--The Secretary shall provide, by 
     regulation, that insurers may submit any information required 
     under sections 4, 5, 6, and 8(b) through statistical agents 
     acting on behalf of more than one insurer.
       (2) Protections.--The regulations issued under this 
     subsection shall permit submission of information through a 
     statistical agent only if the Secretary determines that--
       (A) the statistical agent has adequate procedures to 
     protect the integrity of the information submitted;
       (B) the statistical agent has a statistical plan and format 
     for submitting the information that meets the requirements of 
     this Act;
       (C) the statistical agent has procedures in place that 
     ensure that information reported under the statistical plan 
     in connection with reporting under this Act and submitted to 
     the Secretary is not subject to any adjustment by the 
     statistical agent or an insurer for reasons other than 
     technical accuracy and conformance to the statistical plan;
       (D) the information of an insurer is not subject to review 
     by any other insurer before being made available to the 
     public; and
       (E) acceptance of the information through the statistical 
     agent will not adversely affect the accuracy of the 
     information reported.
       (3) Discontinuance of acceptance of information.--The 
     Secretary may discontinue accepting information reported 
     through a statistical agent pursuant to this subsection if 
     the Secretary determines that the requirements for such 
     reporting are no longer met or that continued acceptance of 
     such information is contrary to the goal of ensuring the 
     accuracy of the information reported.
       (4) GAO audits.--The Comptroller General of the United 
     States shall, at the request of the Secretary, audit 
     information collection and submission performed under this 
     subsection by data collection contractors or statistical 
     agents to ensure that the integrity of the information 
     collected and submitted is protected. In determining whether 
     to request an audit of a statistical agent, the Secretary 
     shall consider the sufficiency (for purposes of this Act) of 
     audits of the statistical agent conducted in connection with 
     State insurance regulation.
       (5) Liability.--Notwithstanding any use of a statistical 
     agent as authorized under this subsection, an insurer using 
     such an agent shall be responsible for compliance with the 
     requirements under this Act.

     SEC. 10. SUBMISSION OF INFORMATION TO SECRETARY AND 
                   MAINTENANCE OF INFORMATION.

       (a) Period of Maintenance.--The Secretary shall maintain 
     any information submitted to the Secretary for such period as 
     the Secretary considers appropriate and feasible to carry out 
     the purposes of this Act and to allow for historical 
     analysis and comparison of the information.
       (b) Submission.--The Secretary shall issue regulations 
     prescribing a standard schedule (taking into consideration 
     the provisions of section 12(a)), format, and method for 
     submitting information under this Act to the Secretary. The 
     format and method of submitting the information shall 
     facilitate and encourage the submission in a form readable by 
     a computer. Any insurer submitting information to the 
     Secretary may submit in writing to the Secretary any 
     additional information or explanations that the insurer 
     considers relevant to the decision by the insurer to sell 
     insurance.

     SEC. 11. COMPILATION OF AGGREGATE INFORMATION.

       (a) Insurance Information.--For each annual reporting 
     period, the Secretary shall--
       (1) compile, for each designated MSA, by designated line 
     (and if such information is submitted, by subline or coverage 
     type)--
       (A) information submitted under sections 4, 5, 7, and 8(b) 
     and loss ratios (if the submission of loss information is 
     required), aggregated by applicable region for all insurers 
     submitting such information; and
       (B) such information and loss ratios (if the submission of 
     loss information is required), aggregated by applicable 
     region for each such insurer; and
       (2) produce tables based on information submitted under 
     sections 4, 5, 7, and 8(b) for each designated MSA, by 
     insurer and for all insurers, by designated line (and if such 
     information is submitted, by subline or coverage type), 
     indicating--
       (A) insurance underwriting patterns aggregated for the 
     applicable regions within the MSA, grouped according to 
     location, age of property, income level, and racial 
     characteristics of neighborhoods; and
       (B) loss ratios based on the information obtained pursuant 
     to sections 4, 5, 7, and 8(b) (if the submission of loss 
     information is required), aggregated for the applicable 
     regions within the MSA, grouped according to location, age of 
     property, income level, and racial characteristics of 
     neighborhoods.
       (b) Agent Information.--For each annual reporting period 
     and for each designated MSA, the Secretary shall compile, by 
     designated line, the information submitted under section 
     4(b)(1)(C)--
       (1) by designated insurer by applicable region;
       (2) by designated insurer aggregated for the applicable 
     regions within the designated MSA, grouped according to 
     location, age of property, income level, and racial 
     characteristics; and
       (3) for all designated insurers that have submitted such 
     information for the designated MSA, aggregated for the 
     applicable regions within the designated MSA, grouped 
     according to location, age of property, income level, and 
     racial characteristics.
       (c) Rural Insurance Information.--For each annual reporting 
     period, the Secretary shall--
       (1) compile for each applicable 5-digit zip code, by 
     designated line (and if such information is submitted, by 
     subline or coverage type)--
       (A) information regarding insurance in rural areas 
     submitted under sections 6 and 7 and loss ratios, for all 
     insurers for which such information is submitted; and
       (B) such information and loss ratios, for each such 
     insurer; and
       (2) produce tables for each 5-digit zip code based on 
     information regarding insurance in rural areas submitted 
     under sections 6 and 7, by insurer and for all such insurers 
     for which information is submitted under such sections, by 
     designated line (and if such information is submitted, by 
     subline or coverage type), indicating--
       (A) insurance underwriting patterns, aggregated by zip 
     codes, grouped according to location, age of property, income 
     level, and racial characteristics of neighborhoods (where 
     such demographic information is available); and
       (B) loss ratios, based on the information obtained pursuant 
     to sections 6 and 7, aggregated by zip codes, grouped 
     according to location, age of property, income level, and 
     racial characteristics of neighborhoods (where such 
     demographic information is available).

     SEC. 12. AVAILABILITY AND ACCESS SYSTEM.

       (a) Availability to Public.--
       (1) In general.--The Secretary shall maintain and make 
     available to the public, in accordance with the requirements 
     of this section, any information submitted to the Secretary 
     under this Act and any information compiled by the Secretary 
     under this Act.
       (2) Timing.--The Secretary shall make such information 
     publicly available on a timetable determined by the 
     Secretary, but not later than 9 months after the conclusion 
     of the annual reporting period to which the information 
     relates, except that such information shall not be made 
     available to the public until it is available in its 
     entirety unless not all the information required to be 
     reported is available by such date.
       (b) Public Access System.--
       (1) Implementation.--The Secretary shall implement a system 
     to facilitate access to any information required to be made 
     available to the public under this Act.
       (2) Bases of availability.--The system shall provide access 
     in accordance with the following:
       (A) Access to itemized information.--To information 
     submitted under sections 4, 5, 6, 7, and 8(b) on the basis of 
     the insurer submitting the information, on the basis of 
     designated MSA and applicable region (or in the case of rural 
     information submitted under section 6 or 7, on the basis of 
     5-digit zip code), and on any other basis the Secretary 
     considers feasible and appropriate.
       (B) Access to aggregate information.--To aggregate 
     information compiled under section 11, on the basis of--
       (i) the insurer submitting the information;
       (ii) designated MSA and applicable region (or in the case 
     of rural information submitted under section 6 or 7, on the 
     basis of 5-digit zip code); and
       (iii) any other basis the Secretary considers feasible and 
     appropriate.
       (3) Method.--The access system shall include a telephone 
     number that can be used by the public to request such 
     information and the address at which a written request for 
     such information may be submitted.
       (4) Form.--The Secretary shall, by regulation, establish 
     the forms in which such information may be furnished by the 
     Secretary. Such forms shall include written statements, forms 
     readable by widely used personal computers, and, if feasible, 
     on-line access for personal computers. The Secretary shall 
     provide the information available under this section in any 
     such form requested by the person requesting the information, 
     except that the Secretary shall charge a fee for providing 
     such information, which may not exceed the amount, determined 
     by the Secretary, that is equal to the cost of reproducing 
     the information.
       (c) Protections Regarding Loss Information.--
       (1) Prohibition of disclosure of loss information.--
     Notwithstanding any other provision of this Act, the 
     Secretary may not make available to the public or otherwise 
     disclose any information submitted under this Act regarding 
     the amount or number of claims paid by any insurer, the 
     amount of losses of any insurer, or the loss experience for 
     any insurer, except--
       (A) in the form of a loss ratio (expressing the 
     relationship of claims paid to premiums) made available or 
     disclosed in compliance with the provisions of paragraph (2); 
     or
       (B) as provided in paragraph (3).
       (2) Protection of identity of insurer.--In making available 
     to the public or otherwise disclosing a loss ratio for an 
     insurer--
       (A) the Secretary may not identify the insurer to which the 
     loss ratio relates; and
       (B) the Secretary may disclose the loss ratio only in a 
     manner that does not allow any party to determine the 
     identity of the specific insurer to which the loss ratio 
     relates, except parties having access to information under 
     paragraph (3).
       (3) Confidentiality of information disclosed to 
     governmental agencies.--The Secretary may make information 
     referred to in paragraph (1) and the identity of the specific 
     insurer to which such information relates available to any 
     Federal entity and any State agency responsible for 
     regulating insurance in a State and may otherwise disclose 
     such information to any such entity or agency, but only to 
     the extent such entity or agency agrees not to make any such 
     information available or disclose such information to any 
     other person.

     SEC. 13. DESIGNATIONS.

       (a) Designation of MSA's.--For purposes of this Act, the 
     term ``designated MSA'' means the following MSA's:
       (1) First 5 years.--With respect to the first 5 annual 
     reporting periods to which the reporting requirements under 
     this Act apply (pursuant to section 24), any of the 100 MSA's 
     selected as follows:
       (A) The Secretary shall select the 50 MSA's having the 
     largest populations, as determined by the Secretary and 
     specified in regulations issued pursuant to section 22, which 
     shall not be amended or revised after issuance.
       (B) The Secretary shall select 50 additional MSA's, on a 
     basis that provides for--
       (i) geographic diversity among the designated MSA's under 
     this paragraph;
       (ii) diversity in size of the populations among such MSA's; 
     and
       (iii) the inclusion of MSA's with a high concentration of 
     racial minorities.
       (2) After first 5 years.--With respect to annual reporting 
     periods thereafter, an MSA for which a designation under this 
     paragraph is in effect, pursuant to the following 
     requirements:
       (A) The designations shall be made for each of the 
     successive 5-year periods at the time provided in 
     subparagraph (C), and the first such period shall be the 5-
     year period beginning upon the commencement of the sixth 
     annual reporting period to which the reporting requirements 
     under this Act apply.
       (B) The Secretary shall designate not less than 100 MSA's 
     as designated MSA's for each such 5-year period and shall 
     designate such MSA's based upon the information and 
     recommendations made in the report under section 18(b) 
     relating to the period.
       (C) The Secretary shall make the designation of MSA's for 
     an ensuing 5-year period by regulations issued--
       (i) not later than 12 months before the commencement of the 
     5-year period; and
       (ii) not later than 6 months after the submission to the 
     Secretary of the report under section 20(b) relating to such 
     period.
       (D) The designations of MSA's for a 5-year period shall 
     take effect upon the commencement of the first annual 
     reporting period of the 5-year period beginning not less than 
     12 months after the issuance of the regulations making such 
     designations, and shall remain in effect until the expiration 
     of the 5-year period.
     Notwithstanding any other provision of this section, the 
     designation of an MSA shall remain in effect until a 
     succeeding designation of MSA's under paragraph (2) takes 
     effect.
       (b) Designation of Insurers.--The Secretary shall 
     designate, for each designated line and each State, insurers 
     doing business in the lines as designated insurers in the 
     State for purposes of this Act, subject to the following 
     requirements:
       (1) Highest aggregate premium volume.--
       (A) General rule.--For each State, the Secretary shall 
     designate, for each designated line, each of the insurers and 
     insurer groups included in the class established under this 
     paragraph for the State.
       (B) Determination.--In each State, the Secretary shall rank 
     the insurers and insurer groups in each designated line from 
     the insurer or group having the largest aggregate premium 
     volume in the State for such line to the insurer or group 
     having the smallest such aggregate premium volume and shall 
     include in the class for the State only--
       (i) the insurer or group of the highest rank;
       (ii) each insurer or group of successively lower rank if 
     the inclusion of such insurer or group in the class does not 
     result in the sum of such aggregate premium volumes for 
     insurers and groups in the class exceeding 80 percent of the 
     total aggregate premium volume in the State for the line; and
       (iii) the first such successively lower ranked insurer or 
     insurer group whose inclusion in the class results in such 
     sum exceeding 80 percent of the total aggregate premium 
     volume in the State for the line.
       (2) Minimum aggregate premium volume.--For each State, the 
     Secretary shall designate, for each designated line, each 
     insurer and insurer group not designated pursuant to 
     paragraph (1) whose premium volume in the State for the 
     designated line exceeds 1 percent of the total aggregate 
     premium volume in the State for the line.
       (3) FAIR plans and joint underwriting associations.--For 
     each State, the Secretary shall designate, for each 
     designated line--
       (A) each statewide plan under part A of title XII of the 
     National Housing Act to assure fair access to insurance 
     requirements; and
       (B) each joint underwriting association;
     that provides insurance under such line.
       (4) Duration.--The Secretary shall designate insurers under 
     this subsection once every 5 years. Each insurer designated 
     shall be a designated insurer for each of the first 5 
     successive annual reporting periods commencing after such 
     designation.
       (c) Designation of Lines of Insurance.--
       (1) In general.--The Secretary shall, by regulation, 
     designate homeowners, dwelling fire, and allied lines of 
     insurance as designated lines for purposes of this Act, and 
     shall distinguish the coverage types in such lines by the 
     perils covered and by market or replacement value. For 
     purposes of this Act, homeowners insurance shall not include 
     any renters coverage or coverage for the personal property of 
     a condominium owner.
       (2) Report.--At any time the Secretary determines that any 
     line of insurance not described in paragraph (1) should be a 
     designated line because disparities in coverage provided 
     under such line exist among geographic areas having different 
     income levels or racial composition, the Secretary shall 
     submit a report recommending designating such line of 
     insurance as a designated line for purposes of this Act to 
     the Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the appropriate committees of the House of 
     Representatives.
       (3) Duration.--
       (A) In general.--Except as provided in subparagraph (B), 
     the Secretary shall make the designations under this 
     subsection once every 5 years, by regulation, and each line 
     and subline or coverage type designated under such 
     regulations shall be designated for each of the first 5 
     successive annual reporting periods occurring after issuance 
     of the regulations.
       (B) Alteration.--During any 5-year period referred to in 
     subparagraph (A) in which designations are in effect, the 
     Secretary may amend or revise the designated lines, sublines, 
     and coverage types only by regulation and only in accordance 
     with the requirements of this subsection. Such regulations 
     amending or revising designations shall apply only to annual 
     reporting periods beginning after the expiration of the 6-
     month period beginning on the date of issuance of the 
     regulations.
       (d) Timing of Designations.--The Secretary shall make the 
     designations required by subsections (b)(4) and (c)(3)(A) and 
     notify interested parties during the 6-month period ending 6 
     months before the commencement of the first annual reporting 
     period to which such designations apply.
       (e) Obtaining Information.--The Secretary may require 
     insurers to submit to the Secretary such information as the 
     Secretary considers necessary to make designations 
     specifically required under this Act. The Secretary may not 
     require insurers to submit any information under this 
     subsection that relates to any line of insurance not 
     specifically authorized to be designated pursuant to this Act 
     or that is to be used solely for the purpose of a report 
     under subsection (c)(2).

     SEC. 14. IMPROVED METHODS AND REPORTING ON BASIS OF OTHER 
                   AREAS.

       (a) Development of Improved Methods.--The Secretary shall 
     develop, or assist in the improvement of, methods of matching 
     addresses and applicable regions to facilitate compliance by 
     insurers, in as economical a manner as possible, with the 
     requirements of this Act. The Secretary shall allow insurers, 
     or statistical agents acting on behalf of insurers, to match 
     addresses and applicable regions through the use of 9-digit 
     zip codes if the Secretary determines that such use will 
     substantially reduce the cost and burden to insurers of such 
     matching without significant adverse impact on the 
     reliability of the matching.
       (b) Convertibility.--
       (1) Authority.--The Secretary may, by regulation, provide 
     for insurers to comply with the requirements under sections 
     4, 5, and 8(b) by reporting the information required under 
     such sections on the basis of geographical location other 
     than MSA and applicable region, but only if the Secretary 
     determines that information reported on such other basis is 
     convertible to the basis of MSA and applicable region and 
     such conversion does not affect the accuracy of the 
     information.
       (2) Limitation.--With respect to any information submitted 
     on the basis of geographical location other than designated 
     MSA and applicable region pursuant to paragraph (1), the 
     Secretary may disclose the information only on the basis of 
     designated MSA and applicable region.

     SEC. 15. ANNUAL REPORTING PERIOD.

       (a) In General.--For purposes of this Act, the annual 
     reporting periods shall be the 12-month periods commencing in 
     each calendar year on the same day, which shall be selected 
     under subsection (b) by the Secretary.
       (b) Selection.--Not later than the expiration of the 6-
     month period beginning on the date of enactment of this Act, 
     the Secretary shall, by regulation, select a day of the year 
     upon which all annual reporting periods shall commence. In 
     determining such day, the Secretary shall consider the 
     reporting periods used for purposes of State and other 
     insurance statistical reporting systems, in order to 
     minimize the burdens on insurers.

     SEC. 16. DISCLOSURES BY INSURERS TO APPLICANTS AND 
                   POLICYHOLDERS.

       (a) In General.--The Secretary shall, by regulation, 
     require the following disclosures:
       (1) Applicants.--Each insurer that, through the insurer, or 
     an agent or broker, declines a written application or written 
     request to issue an insurance policy under a designated line 
     shall provide to the applicant at the time of such 
     declination, through such insurer, agent, or broker, one of 
     the following:
       (A) A written explanation of the specific reasons for the 
     declination.
       (B) Written notice that--
       (i) the applicant may submit to the insurer, agent, or 
     broker, within 90 days of such notice, a written request for 
     a written explanation of the reasons for the declination; and
       (ii) pursuant to such a request, an explanation shall be 
     provided to the applicant within 21 days after receipt of 
     such request.
       (2) Provision of explanation.--If an insurer, agent, or 
     broker making a declination receives a written request 
     referred to in paragraph (1)(B) within such 90-day period, 
     the insurer, agent, or broker shall provide a written 
     explanation referred to in such subparagraph within such 21-
     day period.
       (3) Policyholders.--Each insurer that cancels or refuses to 
     renew an insurance policy under a designated line shall 
     provide to the policyholder, in writing and within an 
     appropriate period of time as determined by the Secretary, 
     the reasons for canceling or refusing to renew the policy.
       (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) Preemption.--Subsection (a) shall not be construed to 
     annul, alter, or effect, or exempt any insurer, agent, or 
     broker subject to the provisions of subsection (a) from 
     complying with any laws or requirements of any State with 
     respect to notifying insurance applicants or policyholders of 
     the reasons for declination or cancellation of, or refusal to 
     renew insurance, except to the extent that such laws or 
     requirements are inconsistent with subsection (a) (or the 
     regulations issued thereunder) and then only to the extent of 
     such inconsistency. The Secretary is authorized to determine 
     whether such inconsistencies exist and to resolve issues 
     regarding such inconsistencies. The Secretary may not provide 
     that any State law or requirement is inconsistent with 
     subsection (a) if it imposes requirements equivalent to the 
     requirements under such subsection or requirements that are 
     more stringent or comprehensive, in the determination of the 
     Secretary.
       (d) Immunity.--In issuing regulations under subsection (a), 
     the Secretary shall specifically consider the necessity of 
     providing insurers, agents, and brokers with immunity solely 
     for the act of conveying or communicating the reasons for a 
     declination or cancellation of, or refusal to renew insurance 
     on behalf of a principal making such decision. The Secretary 
     may provide for immunity under the regulations issued under 
     subsection (a) if the Secretary determines that such a 
     provision is necessary and in the public interest, except 
     that the Secretary may not provide immunity for any conduct 
     that is negligent, reckless, or willful.
       (e) Enforcement.--The Secretary may authorize the States to 
     enforce the requirements under regulations issued under 
     subsection (a).

     SEC. 17. ENFORCEMENT.

       (a) Civil Penalties.--Any insurer who is determined by the 
     Secretary, after providing opportunity for a hearing on the 
     record, to have violated any requirement pursuant to this Act 
     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 referred to in subsection (a).
       (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. 18. REPORTS.

       (a) Annual Report.--The Secretary shall annually report to 
     the Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the appropriate committees of the House of 
     Representatives on the implementation of this Act and shall 
     make recommendations to such committees on such additional 
     legislation as the Secretary deems appropriate to carry out 
     this Act. The Secretary shall include in each annual report a 
     description of any complaints or problems resulting from the 
     implementation of this Act, of which the Secretary has 
     knowledge, made by (or on behalf of) insurance policyholders 
     that concern the disclosure of information regarding 
     policyholders and any recommendations for addressing such 
     problems.
       (b) GAO Reports.--
       (1) In general.--The Comptroller General of the United 
     States shall submit a report under this subsection to the 
     Secretary and the Congress for each 5-year period referred to 
     in sections 6(c)(2) and 13(a)(2), which contains information 
     to be used by the Secretary in implementing this Act during 
     such period.
       (2) Timing.--The report under this subsection for each such 
     5-year period shall be submitted not later than 18 months 
     before the commencement of the period to which the report 
     relates.
       (3) Contents.--A report under this subsection shall include 
     the following information:
       (A) An analysis of the adequacy of the implementation of 
     this Act and any recommendations of the Comptroller General 
     for improving the implementation.
       (B) The costs to the Federal Government, insurers, and 
     consumers of implementing and complying with this Act.
       (C) Any beneficial or harmful effects resulting from the 
     requirements of this Act.
       (D) An analysis of whether, considering the purposes of 
     this Act, insurers are required by this Act (or by 
     implementing regulations) to submit appropriate information.
       (E) An analysis of whether sufficient evidence exists of 
     patterns of disparities in the availability, affordability, 
     and quality or type of insurance coverage to warrant 
     continued applicability of the requirements of this Act.
       (F) An analysis of whether the group of designated MSA's in 
     effect at the time of the report are appropriate for purposes 
     of this Act.
       (G) Specific recommendations, for use by the Secretary in 
     designating MSA's for the 5-year period for which the report 
     is made, with regard to--
       (i) the characteristics of MSA's that should be included in 
     the group of designated MSA's;
       (ii) the number of MSA's that should be included in the 
     group;
       (iii) the number of MSA's having each particular 
     characteristic that should be included in the group; and
       (iv) the characteristics of MSA's, and number of MSA's 
     having each such characteristic, that should be removed from 
     the group of designated MSA's in effect at the time of the 
     report.
       (H) With respect only to the first report required under 
     this subsection, recommendations of whether the study 
     conducted under section 5 should be continued beyond the date 
     in section 5(b)(8) and, if so, whether the requirements 
     regarding the submission of information under the study 
     should be expanded or changed with respect to insurers, 
     MSA's, lines, sublines or coverage types of insurance, and 
     types of small businesses, or whether the study should be 
     allowed to terminate under law.
       (I) An analysis of whether the group of designated rural 
     areas in effect at the time of the report are appropriate for 
     purposes of this Act.
       (J) Specific recommendations, for use by the Secretary in 
     designating rural areas for purposes of section 6 for the 5-
     year period for which the report is made, with regard to--
       (i) the characteristics of rural areas that should be 
     included in the group of designated rural areas under such 
     section;
       (ii) the number of rural areas having each particular 
     characteristic that should be included in the group; and
       (iii) the characteristics of rural areas, and number of 
     rural areas having each such characteristic, that should be 
     removed from the group of designated rural areas in effect at 
     the time of the report.
       (K) Any other information or recommendations relating to 
     the requirements or implementation of this Act that the 
     Comptroller General considers appropriate.
       (4) Consultation.--In preparing each report under this 
     subsection, the Comptroller General shall consult with 
     Federal agencies having appropriate expertise, the National 
     Association of Insurance Commissioners, State insurance 
     regulators, statistical agents, representatives of small 
     businesses, representatives of insurance agents (including 
     minority insurance agents) and property and 
     casualty insurers, and community, consumer, and civil 
     rights organizations.

     SEC. 19. TASK FORCE ON AGENCY APPOINTMENTS.

       (a) Establishment.--Not later than 90 days after the date 
     of enactment of this Act, the Secretary shall establish a 
     task force on insurance agency appointments (hereafter in 
     this section referred to as the ``Task Force''). 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 
     insurers, State insurance regulators, and community, 
     consumer, and civil rights organizations;
       (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 insurers and consider the effects such problems have 
     on the availability, affordability, and quality or type of 
     insurance, especially in underserved areas;
       (2) review the practices of insurers in terminating agents 
     and consider the effects such practices have on the 
     availability, affordability, and quality or type 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 insurers should take to increase their appointments 
     of such agents.
       (c) Report and Termination.--The Task Force shall report to 
     the Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the appropriate committees of the House of 
     Representatives its findings under paragraphs (1) and (2) of 
     subsection (b) and its recommendations under paragraph (3) of 
     subsection (b) not later than 2 years after the date of 
     enactment of this Act. The Task Force shall terminate on the 
     date on which the report is submitted to the committees.

     SEC. 20. STUDIES.

       (a) Study of Insurance Prescreening.--
       (1) In general.--The Secretary shall conduct a study to 
     determine the feasibility and utility of requiring insurers 
     to report 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 insured persons 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 racial characteristics of the prospective insured;
       (iii) the racial 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, 
     Housing, and Urban Affairs of the Senate and the appropriate 
     committees of the House of Representatives, not later than 2 
     years after the date of enactment of this Act. The report 
     shall include recommendations of the Secretary--
       (A) with respect to requiring insurers to report on the 
     disposition of oral and written applications for insurance; 
     and
       (B) for any legislation that the Secretary considers 
     appropriate regarding the issues described in the report.
       (b) Study of Insurer Actions To Meet Insurance Needs of 
     Certain Neighborhoods.--The Secretary shall conduct a study 
     of various practices, actions, 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 shall report the results of the 
     study, including any recommendations, to the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     appropriate committees of the House of Representatives, 
     not later than 2 years after the date of enactment of this 
     Act.
       (c) Study of Disparate Claims 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 on the 
     racial characteristics and income levels of the area in which 
     the insured risk is located. In conducting the study, the 
     Secretary shall specifically consider whether 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 to the Committee on Banking, Housing, 
     and Urban Affairs of the Senate and the appropriate 
     committees of the House of Representatives, not later than 2 
     years after the date of 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 premium amounts 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, Housing, 
     and Urban Affairs of the Senate and the appropriate 
     committees of the House of Representatives, not later than 12 
     months after the date of enactment of this Act.
       (e) Study of Insurer 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 report the results of the 
     study, including any such recommendations, to the Committee 
     on Banking, Housing, and Urban Affairs of the Senate and the 
     appropriate committees of the House of Representatives, not 
     later than 6 months after the conclusion of the first annual 
     reporting period to which the reporting requirements under 
     this Act apply (pursuant to section 26).

     SEC. 21. EXEMPTION AND RELATION TO STATE LAWS.

       (a) Exemption for United States Programs.--Reporting shall 
     not be required under this Act with respect to insurance 
     provided by any program underwritten or administered by the 
     United States.
       (b) Relation to State Laws.--This Act does not annul, 
     alter, or 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, 
     submission of information, and recordkeeping.

     SEC. 22. REGULATIONS.

       (a) In General.--The Secretary shall issue any regulations 
     required under this Act and any other regulations that may be 
     necessary to carry out this Act. The regulations shall be 
     issued through rulemaking in accordance with the procedures 
     under section 553 of title 5, United States Code, for 
     substantive rules. Except as otherwise provided in this Act, 
     such final regulations shall be issued not later than the 
     expiration of the 18-month period beginning on the date of 
     enactment of this Act.
       (b) Burdens.--In prescribing such regulations, 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. 23. DEFINITIONS.

       For purposes of this Act, the following definitions shall 
     apply:
       (1) Agent.--The term ``agent'' means, with respect to an 
     insurer, an agent licensed by a State who sells property and 
     casualty insurance. The term includes agents who are 
     employees of the insurer, agents who are independent 
     contractors working exclusively for the insurer, and agents 
     who are independent contractors appointed to represent the 
     insurer on a nonexclusive basis.
       (2) Applicable region.--The term ``applicable region'' 
     means, with respect to a designated MSA--
       (A) for any county located within the MSA that has a 
     population of more than 30,000, the applicable census tract 
     within the county; or
       (B) for any county located within the MSA that has a 
     population of 30,000 or less, the applicable county.
       (3) Commercial insurance.--The term ``commercial 
     insurance'' means any line of property and casualty 
     insurance, except homeowner's, dwelling fire, allied lines, 
     and other personal lines of insurance.
       (4) Designated insurer.--The term ``designated insurer'' 
     means, with respect to a designated line, an insurer 
     designated for a State by the Secretary under section 13(b) 
     as a designated insurer for such line or any insurer that is 
     part of an insurer group selected under such section.
       (5) Designated line.--The term ``designated line'' means a 
     line of insurance designated by the Secretary under section 
     13(c).
       (6) Exposures.--The term ``exposures'' means, with respect 
     to an insurance policy, an expression of an exposure unit 
     covered under the policy compared to the duration of the 
     policy (pursuant to standards established by the Secretary 
     for uniform reporting of exposures).
       (7) Exposure units.--The term ``exposure units'' means a 
     dwelling covered under an insurance policy for homeowners, 
     dwelling fire, or allied lines coverage.
       (8) Insurance.--The term ``insurance'' means property and 
     casualty insurance. Such term includes primary insurance, 
     surplus lines insurance, and any other arrangement for the 
     shifting and distributing of risks that is determined to be 
     insurance under the law of any State in which the insurer or 
     insurer group engages in an insurance business.
       (9) Insurer.--Except with respect to section 8, the term 
     ``insurer'' means any corporation, association, society, 
     order, firm, company, mutual, partnership, individual, 
     aggregation of individuals, or any other legal entity that is 
     authorized to transact the business of property or casualty 
     insurance in any State or that is engaged in a property or 
     casualty insurance business. The term includes any certified 
     foreign direct insurer, but does not include an individual or 
     entity which represents an insurer as agent solely for the 
     purpose of selling or which represents a consumer as a broker 
     solely for the purpose of buying insurance.
       (10) Issued.--The term ``issued'' means, with respect to an 
     insurance policy, newly issued or renewed.
       (11) Joint underwriting association.--The term ``joint 
     underwriting association'' means an unincorporated 
     association of insurers established to provide a particular 
     form of insurance to the public.
       (12) Mortgage insurance.--The term ``mortgage insurance'' 
     means insurance against the nonpayment of, or default on, a 
     mortgage or loan for residential or commercial property.
       (13) MSA.--The term ``MSA'' means a Metropolitan 
     Statistical Area or a Primary Metropolitan Statistical Area.
       (14) Private mortgage insurance.--The term ``private 
     mortgage insurance'' means mortgage insurance other than 
     mortgage insurance made available under the National Housing 
     Act, title 38 of the United States Code, or title V of the 
     Housing Act of 1949.
       (15) 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. Such term does 
     not include workers' compensation, professional liability, or 
     title insurance.
       (16) 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. The term 
     includes each statewide plan under part A of title XII of the 
     National Housing Act to assure fair access to insurance 
     requirements.
       (17) Rural area.--The term ``rural area'' means any area 
     that--
       (A) has a population of 10,000 or more;
       (B) has a continuous boundary; and
       (C) contains only areas that are rural areas, as such term 
     is defined in section 520 of the Housing Act of 1949 (except 
     that clause (3)(B) of such section 520 shall not apply for 
     purposes of this Act).
       (18) Secretary.--The term ``Secretary'' means the Secretary 
     of Housing and Urban Development.
       (19) State.--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. 24. EFFECTIVE DATE.

       The requirements of this Act relating to reporting of 
     information by insurers shall take effect with respect to the 
     first annual reporting period that begins not less than 2 
     years after the date of enactment of this Act.

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