INSURANCE Act of 2021

I 117TH CONGRESS 1ST SESSION H. R. 2687 To increase the minimum levels of financial responsibility for transporting property, and to index future increases to changes in inflation relating to medical care. IN THE HOUSE OF REPRESENTATIVES APRIL 20, 2021 Mr. GARCI´A of Illinois (for himself, Mr. HUFFMAN, Mr. JOHNSON of Georgia, Mr. GARAMENDI, Mr. JONES, Ms. JOHNSON of Texas, Mr. COHEN, Mr. ESPAILLAT, and Mr. LOWENTHAL) introduced the following bill; which was referred to the Committee on Transportation and Infrastructure A BILL To increase the minimum levels of financial responsibility for transporting property, and to index future increases to changes in inflation relating to medical care. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Improving National 4 Safety by Updating the Required Amount of Insurance 5 Needed by Commercial Motor Vehicles per Event Act of 6 2021’’ or the ‘‘INSURANCE Act of 2021’’. 7 VerDate Sep 11 2014 23:37 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2687.IH H2687 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 2687 IH SEC. 2. FINDINGS. 1 The Congress finds the following: 2 (1) In passing the Motor Carrier Act of 1980, 3 Public Law 96–296, Congress intended for the min- 4 imum insurance levels to maintain safety. According 5 to the House Report No. 96–1069, ‘‘the action of 6 the Committee in increasing financial responsibility 7 is to encourage the carriers to engage in practices 8 and procedures that will enhance the safety of their 9 equipment so as to afford the best protection to the 10 public.’’. 11 (2) The National Transportation Policy Study 12 Commission (which consisted of six Members of the 13 Senate, six Members of the House of Representa- 14 tives, and seven public members appointed by the 15 President) recommended mandatory minimum insur- 16 ance requirements of $1,000,000, in its 1979 Final 17 Report to the Congress, National Transportation 18 Policies through the Year 2000. The Report stated: 19 ‘‘As an example, all certificated motor carriers oper- 20 ating upon the highways should be obligated to carry 21 adequate insurance (or proof of financial responsi- 22 bility equal to such insurance) to protect the public. 23 The insurance should cover public liability, property, 24 damage, cargo and environmental restoration with a 25 $1 million for single occurrence, or another min- 26 VerDate Sep 11 2014 23:37 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2687.IH H2687 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 2687 IH imum amount sufficient to require periodic ‘on site’ 1 inspection by the insurance company, with the min- 2 imum to be updated regularly. Non-certificated 3 motor carriers should be subject to similar stand- 4 ards.’’. 5 (3) According to the U.S. Bureau of Labor Sta- 6 tistics, the amount of $750,000, set in 1980 (the 7 year of enactment), would have the same purchasing 8 power as $5,193,665.62 in 2020, if the amount was 9 raised to account for medical-cost inflation. 10 SEC. 3. MINIMUM FINANCIAL RESPONSIBILITY FOR TRANS- 11 PORTING PROPERTY. 12 (a) IN GENERAL.—Section 31139(b) of title 49, 13 United States Code, is amended— 14 (1) in paragraph (2), by striking ‘‘$750,000’’ 15 and inserting ‘‘$5,000,000’’; and 16 (2) by adding at the end the following: 17 ‘‘(3) ADJUSTMENT.—The Secretary, in con- 18 sultation with the Bureau of Labor Statistics, shall 19 adjust the minimum level of financial responsibility 20 under paragraph (2) quinquennially for inflation re- 21 lating to medical care.’’. 22 VerDate Sep 11 2014 23:37 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2687.IH H2687 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 2687 IH (b) EFFECTIVE DATE.—The amendments made by 1 subsection (a) shall take effect on the date that is 1 year 2 after the date of enactment of this Act. 3 Æ VerDate Sep 11 2014 23:37 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H2687.IH H2687 kjohnson on DSK79L0C42PROD with BILLS