More members of Congress recently signed on to repeal the McCarran-Ferguson act. U.S. Rep. Louise McIntosh Slaughter, D-New York, and U.S. Rep. Eric Massa, D-New York, have signed on as co-sponsors to H.R. 1583, legislation that would repeal the McCarran-Ferguson Act as it applies to property-casualty insurers. The bill now has eight co-sponsors.
Since 1945, insurance companies have had a limited exemption from federal antitrust laws that apply to most other industries assured to them through the McCarran-Ferguson Act, which provides that federal antitrust law applies to the business of insurance only to the extent that such business is not regulated by state law.
The Automotive Service Association (ASA) hosted a Capitol Hill Fly-In in July to show support for this bill. ASA leaders from across the United States met with their representatives to discuss the benefits of repealing the McCarran-Ferguson Act.
ASA says it supports H.R. 1583 because:
• A competitive marketplace would only enhance consumers’ options.
• The state insurance regulatory structure has failed for consumers and collision repairers.
ASA claims that many states lag in addressing an increasing number of consumer and small-business property and casualty issues such as consumer steering, insurer pressure to use inferior auto parts, paint caps, etc.
To view the text of this legislation, visit www.takingthehill.com.
Recently, a similar bill was introduced to repeal the McCarran-Ferguson Act as it applies to health insurers. Click HERE to read more.
