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March 26, 2007 at 06:03 AM
Many insurance company trade groups have joined with the U.S. Chamber of Commerce to sign a letter asking Congress to oppose repeal of the McCarran-Ferguson Act.
“We are writing to express our strong opposition to S. 618 and H.R. 1081,” group officials write in the letter. “These recently introduced bills would repeal the state insurance regulation provisions of the McCarran-Ferguson Act that are designed to prevent federal antitrust lawsuits from undercutting state insurance and antitrust laws.”
The antitrust provisions of the bills “would create an inconsistent and unpredictable multi-layered morass of state and federal insurance rules,” industry officials write.
“Moreover, repealing McCarran-Ferguson in the name of ‘competition’ would almost certainly result in new anti-competitive regulation by the states that, ironically, will reduce competition, thus thwarting the basic purpose of the federal antitrust laws: the promotion of competition in a free market environment,” the signers write.
The letter was signed by officials of the American Council of Life Insurers, Washington, as well as by officials of the U.S. Chamber, Washington.
Other groups with officials signing the letter include the Council of Insurance Agents and Brokers, Washington; the Financial Services Roundtable, Washington; the Independent Agents & Brokers of America, Alexandria, Va.; the National Association of Mutual Insurance Companies, Indianapolis; the National Association of Professional Insurance Agents, Alexandria, Va.; the Property Casualty Insurers Association of America, Des Plaines, Ill.; and the Reinsurance Association of America, Washington.
The National Association of Financial Advisors, Falls Church, Va., and the Alliance for Advanced Life Underwriting, Falls Church, did not sign the letter because they are not chamber members, but they do support the chamber’s position, officials say.
