S. 4025

Insurance Industry Antitrust Enforcement Act of 2006

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II

109th CONGRESS

2d Session

S. 4025

IN THE SENATE OF THE UNITED STATES

September 29, 2006

Mr. Specter (for himself, Mr. Lott, Mr. Leahy, and Ms. Landrieu) introduced the following bill; which was read twice and referred to the Committee on the Judiciary

A BILL

To strengthen antitrust enforcement in the insurance industry.

1.

Short title

This Act may be cited as the Insurance Industry Antitrust Enforcement Act of 2006.

2.

Amendments

Section 2(b) of the Act of March 9, 1945 (15 U.S.C. 1012(b)), commonly known as the McCarran-Ferguson Act, is amended by—

(1)

inserting section 5 of after Clayton Act, and;

(2)

inserting as section 5 relates to unfair methods of competition, after Commission Act, as amended,;

(3)

striking to the extent that and all that follows through law. and inserting the following: “except to the extent—

(1)

the conduct of a person engaged in the business of insurance is undertaken pursuant to a clearly articulated policy of a State that is actively supervised by that State; or

(2)

the conduct involves a third party not engaged in the business of insurance—

(A)

that collects, compiles or disseminates aggregated historical loss data;

(B)

that develops and disseminates standardized insurance policy forms, contracts addendums or language; or

(C)

that—

(i)

facilitates other joint conduct pursuant to guidelines issued by the Federal Trade Commission or existing law; and

(ii)

does not include—

(I)

exchanging information among competitors relating to sales, profitability, prices, marketing, or distribution of any product, process, or service that is not reasonably required for the purposes enumerated in subparagraph (A) or (B);

(II)

entering into any agreement or engaging in any other conduct that would allocate a market with a competitor; or

(III)

entering into any agreement or conspiracy that would set or restrain prices of any good or service.

; and

(4)

adding at the end the following:

Except as it relates to unfair methods of competition, the Federal Trade Commission Act shall be applicable to the business of insurance to the extent that such business is not regulated by State law.

.