We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Insurance Industry Antitrust Exemption - Essay Example

Comments (0) Cite this document
Summary to essay on topic "Insurance Industry Antitrust Exemption"
Since 1945, state regulation and taxation of insurance companies has been protected by the McCarran-Ferguson Act, 15 U.S.C.1011-1012 ("McCarran-Ferguson"). McCarran-Ferguson's overall purpose is to reserve to the states the right to regulate and tax insurance companies…
Download full paper
Polish This Essay
Insurance Industry Antitrust Exemption
Read TextPreview

Extract of essay "Insurance Industry Antitrust Exemption"

Download file "Insurance Industry Antitrust Exemption" to see previous pages... The United States Supreme Court has made clear that the scope of the general exemption is broad, while the scope of the antitrust exemption is more limited.
According to this Act, the states are given the authority to regulate the "insurance business." The regulation of the insurance business will be without the interference of the federal regulation.
Let us write or edit the essay on your topic "Insurance Industry Antitrust Exemption" with a personal 20% discount.. Try it now
Unless the federal law specifically provides any regulation, there will be no interference of the federal regulation.
The act provides that the "business of insurance, and every person engaged therein, shall be subject to the laws of the several States which relate to the regulation or taxation of such business." The McCarran Ferguson Act was passed by the congress which was in response to the case at the Supreme Court. The case at the court was of United States v. South-Eastern Underwriters Ass'n, 322 U.S. 533, 64 S. Ct. 1162, 88 L. Ed. 1440 (1944). Prior to this case, the issuance of an insurance policy was not considered as a commercial transaction, which according to the federal regulation would fall under the COMMERCIAL CLAUSE. It was held by the court that an insurance company that conducted substantial business across state lines was engaged in interstate commerce and thus was subject to federal antitrust regulations.
Within a span of one year from the Southeas...
Within a span of one year from the Southeastern Underwriters, the McCarran Ferguson Act was enacted by the Congress. The Congress also stated that, no longer would the insurance industry would be regulated by them within their boundaries.
The McCarran-Ferguson Act provides that state law shall govern the regulation of insurance and that no act of Congress shall invalidate any state law unless the federal law specifically relates to insurance. The act thus mandates that a federal law that does not specifically regulate the business of insurance will not PREEMPT a state law enacted for that purpose. A state law has the purpose of regulating the insurance industry if it has the "end, intention or aim of adjusting, managing, or controlling the business of insurance"
Limited Antitrust Exemption under the McCarran Ferguson Act
The limited antitrust exemption under McCarran-Ferguson allows insurers to pool historic loss information so that they are better able to project future losses and charge an actuarially based price for their products. It also allows for joint development of policy forms.
The act does not exempt insurers from state antitrust laws, which explicitly prohibit insurers (and all businesses), from conspiring to fix prices or otherwise restrict competition. The McCarran-Ferguson Act in no way results in any kind of restraint on competition.
Under the act, insurers remain subject to rate and form regulation in every state.
The home-owners policies cover all sorts of perils and hence are believed to be a federal regulator.
The act's exemption applies only if three conditions are met:
1. The insurer's action pertains to the business of insurance.
2. The action must be regulated by state law.
3. The action must not be designed to boycott, coerce or ...Download file "Insurance Industry Antitrust Exemption" to see next pagesRead More
Cite this document "Insurance Industry Antitrust Exemption"
  • APA
  • MLA
  • CHICAGO
(“Insurance Industry Antitrust Exemption Essay Example | Topics and Well Written Essays - 1500 words”, n.d.)
Insurance Industry Antitrust Exemption Essay Example | Topics and Well Written Essays - 1500 words. Retrieved from https://studentshare.org/miscellaneous/1510981-insurance-industry-antitrust-exemption
(Insurance Industry Antitrust Exemption Essay Example | Topics and Well Written Essays - 1500 Words)
Insurance Industry Antitrust Exemption Essay Example | Topics and Well Written Essays - 1500 Words. https://studentshare.org/miscellaneous/1510981-insurance-industry-antitrust-exemption.
“Insurance Industry Antitrust Exemption Essay Example | Topics and Well Written Essays - 1500 Words”, n.d. https://studentshare.org/miscellaneous/1510981-insurance-industry-antitrust-exemption.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC "Insurance Industry Antitrust Exemption"
Tort reform for the health insurance industry
But inspite of all these getting a health insurance has become one of the most important thing for any individual in the US, since nobody knows when a medical emergency will crop up. The possession of a health insurance will really safeguard any individual from the extremely high costs, which will be incurred during the course of the medical treatment, by taking care of the medical bills.
3 Pages(750 words)Essay
Insurance Industry in the UK
Introduction In the context of the modern market, the development of business activities in all industrial sectors has become a challenging task – mostly because of the global financial crisis but also of the increase of competition. The insurance industry is one of the business sectors which has managed to keep its competitiveness – compared the other industries, a fact which is related to the de-centralization of each activities and the flexibility regarding the structure/ management of its operations.
10 Pages(2500 words)Essay
The UK Motor Insurance Industry
With the advent of direct motor insurance, the market has become highly competitive and price-driven. Insurers are now fighting a tough battle to attract and retain customers. Fierce competition has driven down premiums while at the same time the market has had to contend with increased costs (Lorenz 2002 p.12).
4 Pages(1000 words)Essay
Sherman Antitrust Act
The law is meant to facilitate healthy commercial competition that keeps American business and the American economy vibrant. When more companies are able to compete within a given industry, there will arguably be more jobs, more stable pricing that keeps inflation in check, and greater innovation that keeps American business on the cutting edge.
2 Pages(500 words)Essay
Insurance
The insurance companies are there to help us in the time of our needs. But there are no free lunches in the world. The insurance customer needs to pay to an insurance company to buy the satisfaction that if anything bad happens to him/her they will be there to fix everything.
5 Pages(1250 words)Essay
Different construction insurance mechanisms currently utilized by the construction industry
Construction involves a lot of risks caused by either accident or negligence. In order to counter the high risks of construction, construction companies generally apply for construction insurance. Construction insurance is the type of insurance generally availed of by construction companies to indemnify them of any material loss before the project is completed.
4 Pages(1000 words)Essay
Adverse Selection in the Health Insurance Industry
It is irrefutable that all the industries in the economy face specific risks, which directly contribute to the profitability and attractiveness of the sector. These risks, in turn are brought about by inevitable forces that compels businesses to devise strategic actions and moves to offset their negative externalities.One such risk is brought about by information asymmetry.
5 Pages(1250 words)Essay
Insurance industry issues: Uk and USA
Many individuals face situations where economic loss may be unpredictable both as to amount and time. Risk-averse individuals and firms will be willing to pay a premium to transfer the risk of loss to insurers thus protecting their resources.
16 Pages(4000 words)Essay
Antitrust Practices
F.T.C investigators were looking for a wide range of Google business malpractices like displaying results that favor Google commerce services
2 Pages(500 words)Essay
Major League Baseballs Antitrust Exemption
The central idea of the draft is that Major League Baseball should continue to have antitrust exemption. Because the antitrust exemption is a contentious issue that has attracted distinct
2 Pages(500 words)Assignment
Let us find you another Essay on topic Insurance Industry Antitrust Exemption for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us