109th CONGRESS
2d Session
S. 3239
To require full disclosure of insurance coverage and noncoverage
by insurance companies and provide for Federal Trade Commission enforcement.
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.
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 `Uniform Insurance Non-Coverage Disclosure
Act'.
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.
END
