YOU ASK:
What is the definition of McCarran-Ferguson Act?
WE ANSWER:
The McCarran-Ferguson Act provides the state with the continued power to regulate the insurance industry operating within its jurisdiction by enabling it to pass laws. These laws have the effect of regulating the industry. However, it also provides insurance companies with exemptions and limits with regards to federal anti-trust legislation.
The federal anti-trust law was declared not applicable to the insurance industry with the provision that the state continues to regulate it. The federal anti-trust laws will only be deemed applicable in instances where there is intimidation, coercion or a boycott imposed by the insurance companies.
This law was signed in 1945 and was sponsored by Senator Homer Ferguson and Senator Pat McCarran.
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