{
  "id": "RS22639",
  "type": "CRS Report",
  "typeId": "REPORTS",
  "number": "RS22639",
  "active": false,
  "source": "EveryCRSReport.com",
  "versions": [
    {
      "source": "EveryCRSReport.com",
      "id": 356795,
      "date": "2009-02-04",
      "retrieved": "2016-04-07T02:47:59.329643",
      "title": "Impact of the Abolition of McCarran-Ferguson Antitrust Exemption for the \u201cBusiness of Insurance\u201d",
      "summary": "Identical, bipartisan bills, S. 618 and H.R. 1081, that would have eliminated the antitrust exemption for the \u201cbusiness of insurance\u201d in the McCarran-Ferguson Act (15 U.S.C. \u00a7\u00a7 1011-1015), in force since 1945, were introduced in the 110th Congress, and similar legislation may be introduced in the 111th Congress. The impact of S. 618 and H.R. 1081, had they been enacted, is unclear. They would each have amended 15 U.S.C. \u00a7 1012(b) to make the antitrust laws and the Federal Trade Commission (FTC) Act \u201cas it relates to unfair methods of competition\u201d specifically applicable to such business. The FTC Act, \u201cas it relates to areas other than unfair competition\u201d (emphasis added) would, however, have continued to apply to the \u201cbusiness of insurance\u201d \u201cto the extent that [it] is not regulated by State law.\u201d Due largely to the importance of information sharing to insurers, the insurance industry in the past has cooperated in a variety of ways, including sharing loss information, jointly developing policy forms and rates, operating residual market mechanisms, and participating in state guaranty funds. Some forms of cooperation, particularly joint rate making and mandatory advisory rates, have already been curtailed because of antitrust concerns. Other forms of industry cooperation, however, might be considered illegal under federal antitrust laws if legislation such as S. 618 or H.R. 1081 were to be enacted. The precise impact of such bills on the insurance industry would depend critically on future court decisions.\nThe cooperation that insurance companies currently undertake might be judged legally permissible, however, even notwithstanding any deletion of the antitrust exemption for \u201cthe business of insurance,\u201d under the \u201cstate action\u201d doctrine. That doctrine immunizes from the federal antitrust laws actions by public or private entities that are legislatively mandated or authorized by the states. Similarly, before this area of law were settled, however, it would arguably involve numerous lawsuits. This report will be updated as events warrant.",
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      "typeId": "REPORTS",
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}