Question

(finance risk insurance and management)

1. What are the significant arguments for and against repealing the McCarran-Ferguson Act?

2. What are some of the various purposes of insurance regulation?

Answer 1

The McCarran-Ferguson Act And Market Conduct Of Insurers Perhaps the most perplexing accusation recently brought against insurance carriers is that the limited antitrust exemption provided in McCarran somehow facilitates unethical market conduct in claims settlements. For example, in testimony before the U.S. House of Representatives Committee on Financial Services, Rep. Gene Taylor (D-MS) declared:

For

Insurance co. does not need and exemption relatedto board antitrust anymore. some activities are to exempt from the law

due to defectin the state regulation, requirement of federal regulation is required

against

Due to this small insurance co. will be harmed, because it is very difficult for them to develop exact and correct rates to cover their loses and expenses

Dual regulation result in to the misunderstanding in the law as a result law will note enforce effectively