On July 20, the State-Federal Relations Committee of the National Conference of Legislators (NCOIL) considered a proposed Resolution in Opposition to Amending or Repealing the McCarran-Ferguson Act, sponsored by NCOIL Officers, including President Sen. Alan Sanborn (MI), Vice President Rep. Brian Kennedy (RI), Secretary Sen. James Seward (NY), Treasurer Rep. Robert Damron (KY), and Executive Committee Chair Rep. George Keiser (ND).  The resolution affirms state authority to regulate insurance as authorized by the McCarran-Ferguson Act, recognizes the importance of McCarran-Ferguson’s limited insurer antitrust exemption, and opposes efforts, such as The Insurance Industry Competition Act (S.618/H.R. 1081), that would repeal the exemption and misinterpret the role of states in enforcing antitrust protections. 

The resolution makes clear that S.618/H.R. 1081 would jeopardize insurer practices that promote affordable coverage; expose insurance markets to uncertainty and litigation; and create an environment that inadvertently disadvantages consumers most in need.  The resolution also encourages state legislatures to oppose S.618/H.R. 1081 and to convey their concerns to their respective congressional delegations.

What It Means to Agents:  PIA strongly supports this resolution and expressed this support at the meeting.  Further, PIA National President Donna Pile has sent a letter to NCOIL President Senator Alan Sanborn (MI) thanking NCOIL for their unequivocal opposition to legislation that would alter and/or repeal McCarran.  Copies of the letter were sent to every NCOIL legislator as well as our affiliates.  This issue is a key part of PIA’s “Capitol Hill in Your Backyard” efforts.  In August we will bring the message to our Representatives that such legislation would be disastrous for the insurance industry.

PIA was pleased to see this resolution pass during the State-Federal Relations Committee meeting and then later pass unanimously at the Executive Committee.

July 31, 2007