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More Wind From Rep. Gene Taylor: A Bill to Repeal McCarran-Ferguson

Rep. Gene Taylor (D-Miss.) has introduced a bill in the House which would repeal the insurance industry's limited antitrust exemption under the McCarran-Ferguson Act, but...
April 28, 2009

Rep. Gene Taylor (D-Miss.) has introduced a bill in the House which would repeal the insurance industry's limited antitrust exemption under the McCarran-Ferguson Act, but would retain state regulation.  The Insurance Industry Competition Act of 2009 (H.R. 1583) would repeal the exemption and give the Department of Justice and the Federal Trade Commission authority to apply antitrust laws to anticompetitive behavior by insurance companies.

Rep. Taylor and House colleagues who support the bill say they are counting on the controversy over bonuses paid to AIG employees to help advance their measure -- despite the fact that AIG's insurance entities were not involved in the bonus controversy.

Rep. Taylor has been criticizing the insurance industry and proposing legislation that would change its regulation ever since Hurricane Katrina damaged his Bay St. Louis, Mississippi home in 2005, prompting him to file a lawsuit against his insurer State Farm for what he thought was an inadequate settlement of his claim. He later reached a settlement with State Farm. Rep. Taylor has also introduced legislation that would add a requirement for the National Flood Insurance Program (NFIP) to offer wind damage coverage.

What It Means to Agents:  PIA supports the continuation of the insurance industry's limited antitrust exemption and opposes efforts to repeal McCarran-Ferguson. PIA opposes requiring the NFIP to offer wind coverage.