Repeal Insurance Industry Antitrust Exemption
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Author:
n/a -
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U. S. Congress
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LutzDemocrats -
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Repeal the insurance industrys exemption from federal antitrust regulation.
The media often speak of major league baseballs exemption from antitrust regulation as being unique. An exemption much more important to all Americans was given to the insurance industry in 1945. (http://www.antitrustinstitute.org/links/exempt.cfm#insurance)
Most public discussion of insurance rate problems begins from a premise that market forces should operate in the insurance industry as they do in so many other parts of American economic life.
Actually, market forces produce an optimal or fair price only where buyers and sellers all have equivalent information. That balance is almost never achieved in any market, and it certainly does not exist in the insurance market.
Even the average local insurance company knows much more about risks, etc., than the average homeowner. The re-insurers, the parent companies at national and international levels, have a lot more information than anybody else has. Even the states, which in the American federal system are expected to regulate the industry, cannot get access to all the information that those collaborating insurance firms have.
Because the federal McCarran-Ferguson Act of 1945 exempted the insurance industry from anti-trust regulation, the major firms that handle reinsurance can and do collude on risk assessment and rate-setting in ways that would be illegal in any other industry.
That is why, as the Los Angeles Times reported, The companies that provide Americans with their homeowners and auto insurance made a record $44.8-billion profit last year even after accounting for the claims of policyholders wiped out by Hurricane Katrina and the other big storms of 2005, according to the firms' filings with state regulators(Los Angeles Times, 4/5/06).
A 2006 report of the insurance industry financial situation states, Over the past seven years, 1999 through 2005, the insurance industry has seen its profits nearly double, while adding almost $100 million to its surplus reserves. According to data provided by the Insurance Information Institute, industry profits increased from $22.2 billion in 1999 to $43 billion in 2005. The data also indicate that the insurance industry has seen its surpluses grow by a third from $336.30 billion in 1999 to $427.1 billion in 2005 (p.11, in Pattern of Greed: How Insurance Companies put Profits over Policyholders, available at
http://www.beasleyallen.com/publications/Pattern\%20of\%20Greed.pdf
Instead of trying to correct the natural imbalance in the insurance market to protect consumers and local governments, the United States government years ago came down on the side of the insurance companies. Our state legislators cannot fix that.
We ought to be pressuring our representatives in congress to at least make a start by repealing the unique exemption of the insurance industry from antitrust laws.
The media often speak of major league baseballs exemption from antitrust regulation as being unique. An exemption much more important to all Americans was given to the insurance industry in 1945. (http://www.antitrustinstitute.org/links/exempt.cfm#insurance)
Most public discussion of insurance rate problems begins from a premise that market forces should operate in the insurance industry as they do in so many other parts of American economic life.
Actually, market forces produce an optimal or fair price only where buyers and sellers all have equivalent information. That balance is almost never achieved in any market, and it certainly does not exist in the insurance market.
Even the average local insurance company knows much more about risks, etc., than the average homeowner. The re-insurers, the parent companies at national and international levels, have a lot more information than anybody else has. Even the states, which in the American federal system are expected to regulate the industry, cannot get access to all the information that those collaborating insurance firms have.
Because the federal McCarran-Ferguson Act of 1945 exempted the insurance industry from anti-trust regulation, the major firms that handle reinsurance can and do collude on risk assessment and rate-setting in ways that would be illegal in any other industry.
That is why, as the Los Angeles Times reported, The companies that provide Americans with their homeowners and auto insurance made a record $44.8-billion profit last year even after accounting for the claims of policyholders wiped out by Hurricane Katrina and the other big storms of 2005, according to the firms' filings with state regulators(Los Angeles Times, 4/5/06).
A 2006 report of the insurance industry financial situation states, Over the past seven years, 1999 through 2005, the insurance industry has seen its profits nearly double, while adding almost $100 million to its surplus reserves. According to data provided by the Insurance Information Institute, industry profits increased from $22.2 billion in 1999 to $43 billion in 2005. The data also indicate that the insurance industry has seen its surpluses grow by a third from $336.30 billion in 1999 to $427.1 billion in 2005 (p.11, in Pattern of Greed: How Insurance Companies put Profits over Policyholders, available at
http://www.beasleyallen.com/publications/Pattern\%20of\%20Greed.pdf
Instead of trying to correct the natural imbalance in the insurance market to protect consumers and local governments, the United States government years ago came down on the side of the insurance companies. Our state legislators cannot fix that.
We ought to be pressuring our representatives in congress to at least make a start by repealing the unique exemption of the insurance industry from antitrust laws.
1163 Signatures
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Ralph D
- Comments
- Now is the time to act !
- State, Zip Code
- Ballston Spa, NY 12020
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Archie D. A
- State, Zip Code
- 40207
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SCOTT A
- State, Zip Code
- INDIANA 47126
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Tonya C
- State, Zip Code
- KY 40165
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Kris R
- Comments
- PLEASE: Level the playing field as President Truman intended. The exemption should never have been allowed.
- State, Zip Code
- KY 40207
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Deborah V
- State, Zip Code
- Ky 40207
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JEREMY W
- State, Zip Code
- 40031
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James C
- State, Zip Code
- Louisville, KY 40014
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Gary L
- Comments
- This has to happen! I am a collision repair specialist on flat rate and can barely afford to live, while the insurance FAT CATS enjoy all the profit!
- State, Zip Code
- 41014
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Robert T
- State, Zip Code
- 41014
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Timothy S
- State, Zip Code
- Indiana 46516
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Charles B
- State, Zip Code
- NJ 07753
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Mike P
- State, Zip Code
- Rutland, VT 05701
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Charlie B
- State, Zip Code
- Chester Springs, PA 19425
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Van T
- Comments
- I feel very strongly that the exemption should be repealed.
- State, Zip Code
- Honolulu, Hi 96813
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Ed K
- State, Zip Code
- 11790
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Michelle L
- Comments
- В
- State, Zip Code
- Ohio, 45208
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John A B
- State, Zip Code
- 45030
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Barbara H
- Comments
- Its been too long...1940's?? Why so long.
- State, Zip Code
- New Jersey, 07003
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William D
- Comments
- I support this Repeal
- State, Zip Code
- Meriden Ct 06450
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c a p
- Comments
- JUst make it fair to all concerned
- State, Zip Code
- 74401
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William J
- State, Zip Code
- Vermont 05142
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George L
- State, Zip Code
- MARYLAND 21702
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Robert S
- State, Zip Code
- Ct. 06712
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gordon h
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RANDY B
- State, Zip Code
- 02893
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Skitch D
- Comments
- Collision shop owner, seeking level playing field, Thank you.
- State, Zip Code
- Missouri, 64079
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GARY H
- State, Zip Code
- 20777
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Donald O
- State, Zip Code
- New Jersey 07095
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Thomas Bruce N
- State, Zip Code
- ca,91367
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craig k
- State, Zip Code
- ca, 91325
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Horacio C
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James R. B
- Comments
- The insurance industry is evil to the core
- State, Zip Code
- Texas, 77338
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Roger W
- Comments
- Repeal the exemption to allow the courts to keep everyone obeying the present laws that are on the books.
- State, Zip Code
- Ma.
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Kristen H
- State, Zip Code
- CA 91362
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Darin D
- State, Zip Code
- Illinois
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w. j. b
- Comments
- insurance lobbyists do not represent the consumer
- State, Zip Code
- ca. 91377
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John K. H
- Comments
- Make Insurance play by the same rules as others.
- State, Zip Code
- Illinois
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Jeff B
- Comments
- Insurance companies fix prices and limit payment to consumers in a fation that would be illegal to all others. Protect consumers and level the playing field for service providers who are getting ripped off by insurers and have no means to fight back. Therefor fraud is proliferated as there is no means to make a profit as insurers have squeezed any profit from providers in to their own pockets. Under this beurocrocy, the price of services goes up with out any meaningfull gains to consumers. just higher costs.
- State, Zip Code
- Washington
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Timothy S
- State, Zip Code
- Florida
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Bela J S
- Comments
- Insurers have been gouging consumers and businesses alike, hiding behind the antitrust exemption even when it didn't apply. Just leave the regulation to the states.
- State, Zip Code
- Ohio, 44060
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Michael L
- Comments
- The antitrust exemption for the Insurance industry must be repealed for the collision repair industry to survive.
- State, Zip Code
- Ohio,45338
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Douglas A
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James P
- State, Zip Code
- 05701
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steve d
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Nicholas C. L
- State, Zip Code
- 45238
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Patricia M. L
- State, Zip Code
- 45238
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Barrett R. Smith A
- Comments
- Perhaps in 1963 we had truly Good Neighbors and The Good Hands People and the exemption truly helped the consumer, today we have greedy corporate thugs who are collecting unjust enrichment at the expense of the victimized consumer. Just see our health care professionals, auto body repairers, contractors and all others who provide services to consumers which are paid by insurers. Stop the insidious practices of insurers. Begin by repealing this well intended but horrifically abused exemption.
- State, Zip Code
- Florida, 33511
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Lucy Y
- Comments
- Agree
- State, Zip Code
- OHIO 43701
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Lucianna (Lou) R
- Comments
- The insurance industry has used this to abuse consumers long enough
- State, Zip Code
- Reno, Nevada 89503
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1163
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