HR 406 IH

To prohibit an insurer from treating a veteran differently in the terms or conditions of motor vehicle insurance because a motor vehicle operated by the veteran, during a period of military service by the veteran, was insured or owned by the United States.

February 6, 2001

Mr. ANDREWS introduced the following bill; which was referred to the Committee on Financial Services

To prohibit an insurer from treating a veteran differently in the terms or conditions of motor vehicle insurance because a motor vehicle operated by the veteran, during a period of military service by the veteran, was insured or owned by the United States.

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

SECTION 1. FAIR TREATMENT OF VETERANS IN THE TERMS AND CONDITIONS OF MOTOR VEHICLE INSURANCE.

(a) PROHIBITION- An insurer shall not deny a veteran a policy of motor vehicle insurance, or issue a policy of motor vehicle insurance that treats a veteran differently in its terms or conditions, because a motor vehicle operated by the veteran, during a period of active military, naval, or air service by the veteran, was insured or owned by the United States.

(b) CIVIL ACTION-

(1) IN GENERAL- Subject to paragraph (2), a veteran or a dependent of a veteran may bring a civil action for a violation of subsection (a) committed with respect to the veteran, in an appropriate court of the United States or a State for damages described in paragraph (5), costs of the action, and reasonable attorney's fees.

(2) LIMITATION- A veteran or a dependent may commence a civil action under this subsection only if--

(A) the veteran or dependent files a complaint alleging a violation of subsection (a) with the Secretary of Veterans Affairs; and

(B) the Secretary--

(i) finds in accordance with paragraph (3) that reasonable evidence of such violation exists; or

(ii) fails to make a finding in accordance with paragraph (3).

(3) FINDING BY SECRETARY- Not later than 90 days after receiving a complaint filed under paragraph (2)(A), the Secretary shall find whether or not reasonable evidence exists of a violation of subsection (a).

(4) STATUTE OF LIMITATIONS- A complaint may only be filed under paragraph (2) not later than 180 days after the veteran or dependent receives notice of the denial or issuance that allegedly violates subsection (a).

(5) DAMAGES- Damages referred to in paragraph (1) are the sum of the following:

(A) 3 times the amount of any economic loss suffered by the veteran or dependent, respectively, as a result of the violation of subsection (a).

(B) Such damages as are appropriate due to emotional distress suffered by the veteran or dependent, respectively, as a result of the violation of subsection (a).

(c) DEFINITIONS- For purposes of this section:

(1) DEPENDENT- The term `dependent' means a spouse, parent, or child.

(2) INSURER- The term `insurer' means any person engaged in interstate commerce in the business of issuing policies of insurance.

(3) SECRETARY- The term `Secretary' means the Secretary of Veterans Affairs.

(4) VETERAN- The term `veteran' has the meaning given that term in section 101(2) of title 38, United States Code.

END