NCOIL To Discuss McCarran Repeal

The National Conference of Insurance Legislators said its summer meeting that starts tomorrow will consider opposing federal legislation to eliminate state control of insurance regulation.

NCOIL also said it will release the first phase of its comprehensive study on state regulation of insurance at the session in Seattle.

The agenda contains a resolution opposing the bill in Congress to repeal the McCarran-Ferguson Act–the basis of state regulation of insurance.

McCarran repeal will be just one aspect of the study of the state regulation of insurance that NCOIL will look at.

NCOIL executive director Susan Nolan said there has been an ever-increasing blurring of the lines of responsibility with regard to state insurance regulation.

“The study will scrutinize the system now in place in order to make necessary improvements,” she said.

Insurance industry trade representatives are expected to urge support of the measure opposing repeal of the 1945 legislation.

“It is critical that NCOIL take a strong stance in support of the limited exemption from federal antitrust laws currently in the McCarran-Ferguson Act and voice their opposition to Congressional efforts to repeal that exemption,” said Tammy Velasquez, American Insurance Association vice president and director, state affairs.

The McCarran-Ferguson Act delegates authority to regulate the business of insurers to the states. McCarran creates a limited exemption from federal antitrust laws to the extent that the business of insurance–not the business of insurance companies–is regulated by the states.

The limited exemption from federal antitrust laws is designed to prevent federal antitrust enforcement from undercutting insurance regulatory systems established by the states, Ms. Velasquez said.