Number: RL33683
Title: Courts Narrow McCarran-Ferguson Antitrust Exemption for "Business of Insurance"; Viability of "State Action" Doctrine as an Alternative
Authors: Janice E. Rubin, American Law Division 
Abstract: Inasmuch as "[t]he primary purpose of the McCarran-Ferguson Act was to preserve state regulation of the activities of insurance companies since it was the power of the states to regulate and tax insurance companies that was threatened after ... South-Eastern Underwriters ...," we first answer the questions, "What is insurance?"; and, "is it defined pursuant to state or federal law?" Then, given that the statute addresses itself to the "business of insurance," this report sets out some judicial opinions about just what does - and does not - constitute the "business of insurance," as well as state regulation of such business, and the scope of McCarran's "boycott" exception. Finally, it will note legislation introduced to date in the 110th Congress, as well as some McCarran-related legislation introduced in the 109th Congress, and discuss, briefly, the possible consequences of similarly worded measures, especially in light of the non-statutory state-action doctrine in antitrust law.
Pages: 12
Date: March 12, 2007