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PIA Thanks NCOIL, NCSL for Opposing Bill to Repeal the Insurance Industry's Antitrust Exemption

WASHINGTON, July 12, 2007 - The National Association of Professional Insurance Agents (PIA) has thanked both the National Conference of Insurance Legislators (NCOIL)...
July 12, 2007

WASHINGTON, July 12, 2007  - The National Association of Professional Insurance Agents (PIA) has thanked both the National Conference of Insurance Legislators (NCOIL) and the National Conference of State Legislatures (NCSL) for opposing a bill in Congress to repeal the insurance industry's limited antitrust exemption under the 62-year-old McCarran-Ferguson Act.

Both NCOIL and NCSL have expressed opposition to the proposed legislation, the Insurance Industry Competition Act (H.R. 1081) (S. 618).  In addition, the state-federal relations committee of NCOIL will consider a proposed resolution in opposition to amending or repealing the McCarran-Ferguson Act on July 20, during its summer meeting in Seattle. PIA strongly supports this resolution.

"The limited antitrust exemption espoused in the McCarran-Ferguson Act affirms states' rights to regulate the insurance industry," states PIA, in letters to both organizations. "In addition, the exemption permits insurers to collaborate only for purposes of data collection and rate-and-form development, keeping rates low for consumers."

"The federal oversight championed by the Insurance Industry Competition Act would create confusing legal questions as to who really regulates the insurance industry, thus directly undermining and interfering with the states' right and obligation to regulate the business of insurance," PIA stated. "The bill would stifle open competition by insurers and exclude small to mid-size insurers from the market by creating an information barrier to entry, which would inevitably result in fewer choices for consumers."

PIA supports state regulation of insurance and therefore adamantly opposes the Insurance Industry Competition Act, as well as bills in Congress that call for federal regulation of insurance through enactment of optional federal charters.

Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance, but specialize in coverage of automobiles, homes and businesses. PIA members are Local Agents Serving Main Street America (SM). PIA's web address is www.pianet.com.

PIA Letter to NCOIL

PIA Letter to NCSL 

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