What is the McCarran – Ferguson Act?

The McCarran Ferguson Act is a law that makes the insurance industry exempt from most federal regulations including some (but not all ) of the antitrust laws. The Act was passed in 1945 after the Supreme Court ruled that the federal government was permitted to regulate insurance companies under the Commerce Clause of the Constitution. This ruling came as a part of the United States vs South-Eastern Underwriters’ Association case.

Senators Pat McCarran and Homer Ferguson sponsored the act, which provides that ‘Acts of Congress’ which are not expressly aimed at the regulation of the insurance industry will not over-rule laws or regulations that are intended to regulate the business of insurance.

The McCarran-Ferguson act still applies today, and it remains an important one. Indeed, one of the recent proposals for healthcare reform made by the Republicans may require the McCarran-Ferguson Act to be modified. In February 2010, the House of Representatives voted in favour of repealing the Act in terms of how it applies to health insurance, but other types of insurance are still covered.

The act protects certain state laws regarding insurance and allows each state to regulate the insurance industry, including establishing their own licensing requirements for insurance. It also exempts insurance companies from federal anti-trust legislation, at least in part, and protects the insurance industry from a federal take-over. It is widely felt that insurance is one of the most regulated industries in the USA, and insurance companies were concerned about the possibility of even more regulation from the federal government, on top of what the individual states were already doing. State insurance regulators were concerned about the outcome of the South Eastern Underwriters’ Association case, and while Attorney General Biddle denied that the government had any intent of increasing regulation, the McCarran-Ferguson Act of 1945 helped to offset those concerns.

Information On Unfair Claims Settlement Act

Imagine running a business and all of a sudden it is flooded.

You will be running around looking to have things repaired, and that’s normal. However, if the loss is too great, you will want to make a claim to your insurance agency based on the plan that was signed in advance.

Now, what if the insurance agency starts using delay tactics by stating they lost their forms or misplaced things? What if you are in need of the funds right away? What will happen then?

Your Albany lawyers should tell you that this is where the Unfair Claims Settlement Act comes into action as a solution.

Let’s take a look at what this act involves.

Purpose of Act

The primary objective of the Act is to protect individuals and businesses from insurance agencies who don’t work in good faith.

If the court deems their behavior abnormal or based around delay tactics, this act is invoked, and an immediate verdict is sent through to speed up the process.

Benefits of Act

1) Speeds Up Process

The purpose of using this act in the court of law is to ensure the process is sped up. There is nothing worse than having a flooded business or a fire go through without having funds to start repair work.

It leads to significant losses that are hard to recover in the short or long-term.

2) Protects Against Shady Insurers

A major benefit is knowing shady insurers will not be able to scheme their way out of making a payment based on the agreement that was signed. This is important for those who are dealing with an accident and need the funds as soon as possible.

The Unfair Claims Settlement Act is one of those policies that are required to ensure things are managed safely for all parties.