[Congressional Record Volume 152, Number 68 (Friday, May 26, 2006)]
[Senate]
[Page S5344]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DAYTON (for himself and Mr. Lott):
  S. 3239. A bill to require full disclosure of insurance coverage and 
noncoverage by insurance companies and provide for Federal Trade 
Commission enforcement; to the Committee on Commerce, Science, and 
Transportation.
  Mr. DAYTON. Mr. President, I ask unanimous consent that the text of 
S. 3239, the Honesty Is the Best Insurance Policy Act of 2006, be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 3239

       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 ``Honesty is the Best 
     Insurance Policy Act of 2006''.

     SEC. 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.

     SEC. 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.

     SEC. 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.
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