1945, McCarran – Ferguson Act

1945, McCarran – Ferguson Act  

  • The McCarran – Ferguson Act resolved issues which were created by the Southeastern Underwriters (SEUA) case.

This law basically states the ongoing regulation of insurance was in the best interest of the insurance buying public and therefore deemed it necessary to subject the insurance industry to Federal Anti-Trust laws.  


The changed forced states to once again adjust state laws to comply with federal guidelines.


The Republican party has long been a proponent of modifying interstate insurance restrictions.  It’s believed the modification of interstate insurance commerce laws to make it easier for insurers to conduct business in non-resident states will encourage wide scale participation and bring more insurers into the marketplace.  


In theory, more insurers in the marketplace, increases competition which historically, drives consumer cost down.  In 2010, the House of Representatives voted 406 to 19 to repeal the McCarran – Ferguson Act.   


*Licensing Requirements & Continued Education are types of consumer protections.