NAMIC Starts Web Weapon To Keep McCarran-Ferguson

The National Association of Mutual Insurance Companies said it has created an online resource center dedicated to addressing “concerns and misconceptions” about insurers limited antitrust exemption.

Insurers' exemption is contained in the McCarran-Ferguson Act, and NAMIC has created a McCarran-Ferguson Act Resource Center at http://www.namic.org/policy/mfa.asp.

NAMIC said the site offers objective information on the law that is “vital to assuring a competitive insurance marketplace and stable rates for consumers.”

It includes explanations of the act and how it promotes competition within the insurance industry, issue statements and position papers, NAMIC news releases, industry coverage, and opposing viewpoints.

Also posted are action steps to prevent repeal and bloggers' comments.

NAMIC noted that during the past few months, legislation has been introduced in Congress to repeal or alter the existing limited antitrust exemptions afforded under the act.

Chuck Chamness, NAMIC's president and chief executive officer, said his organization opposes “any change to, or repeal of, the existing antitrust exemptions afforded under the McCarran-Ferguson Act. Such actions could place smaller and regional firms at a distinct disadvantage, increase consumer costs, reduce consumer choice, and seriously undermine competition.”

NAMIC said McCarran-Ferguson includes a narrow exemption to federal antitrust laws.

According to the group, the existence of the exemption promotes competition in the insurance marketplace by allowing companies to exchange critical data regarding losses and other factors, allows development of standardized policy language, facilitates participation and oversight of state guaranty funds, permits state control over liquidations, and enables the development and operation of assigned risk plans.

NAMIC said the act also establishes a “careful and well-working balance between regulation and antitrust enforcement for the state-regulated insurance industry and ensures parity with other financial services industries.”

Mr. Chamness said NAMIC encourages visitors to peruse the available information carefully so they have a thorough understanding of the issue and why it is imperative for insurance consumers, the public and the insurance marketplace to keep McCarran-Ferguson intact.”

Passed in 1945, the McCarran-Ferguson Act entrusts states with the authority and responsibility to regulate the business of insurance.

NAMIC said states regulate virtually every aspect of insurance, from licensing to market practices and financial solvency, and every state has an Unfair Trade Practices Act providing the authority to investigate and, if appropriate, correct and punish unfair practices.