103d CONGRESS
  2d Session
                                 H. R. 9

    To modify the antitrust exemption applicable to the business of 
                               insurance.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 5, 1993

  Mr. Brooks introduced the following bill; which was referred to the 
                       Committee on the Judiciary

                              June 2, 1994

    Additional sponsors: Mr. Edwards of California, Miss Collins of 
          Michigan, Mr. Kopetski, and Mr. Johnston of Florida

_______________________________________________________________________

                                 A BILL


 
    To modify the antitrust exemption applicable to the business of 
                               insurance.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Insurance Competitive Pricing Act of 
1993''.

SEC. 2. AMENDMENTS.

    Section 2 of the Act of March 9, 1945 (59 Stat. 34; 15 U.S.C. 
1012), commonly known as the McCarran-Ferguson Act, is amended--
            (1) in subsection (b)--
                    (A) by striking ``: Provided, That after June 30, 
                1948,'' and inserting ``, except that'',
                    (B) by inserting ``section 5 of'' after ``Clayton 
                Act, and'',
                    (C) by inserting ``as such section 5 relates to 
                monopolies, attempts to monopolize, and unlawful 
                restraints of trade,'' after ``Commission Act, as 
                amended,'', and
                    (D) by striking ``that such business'' and all that 
                follows through ``law.'' and inserting the following:
``that--
            ``(1) such business is not regulated by State law; or
            ``(2) the conduct of a person engaged in such business 
        involves--
                    ``(A) price fixing;
                    ``(B) allocating with a competitor a geographical 
                area in which, or persons to whom, insurance will be 
                offered for sale;
                    ``(C) unlawfully tying the sale or purchase of--
                            ``(i) one type of insurance to the sale or 
                        purchase of another type of insurance; or
                            ``(ii) any type of insurance to the sale or 
                        purchase of any other service or product; or
                    ``(D) monopolizing, or attempting to monopolize, 
                any part of the business of insurance.'', and
            (2) by adding at the end the following:
    ``(c) The conduct referred to in subsection (b)(2) shall not 
include making a contract, or engaging in a combination or conspiracy--
            ``(1) to collect, compile, or disseminate historical loss 
        data;
            ``(2) to determine a loss development factor applicable to 
        historical loss data; or
            ``(3) to perform actuarial services if such contract, 
        combination, or conspiracy does not involve a restraint of 
        trade.
    ``(d) During the transition period, the conduct referred to in 
subsection (b)(2) shall not include making a contract, or engaging in a 
combination or conspiracy, to determine a trend factor.
    ``(e) For purposes of this section--
            ``(1) the term `historical loss data' means information 
        respecting claims paid, or reserves held for claims reported, 
        by any person engaged in the business of insurance;
            ``(2) the term `loss development factor' means an 
        adjustment to be made to reserves held for losses incurred for 
        claims reported by any person engaged in the business of 
        insurance, for the purpose of bringing such reserves to an 
        ultimate paid basis;
            ``(3) the term `transition period' means--
                    ``(A) the 4-year period beginning on the effective 
                date of the Insurance Competitive Pricing Act of 1993, 
                in the case of a person--
                            ``(i) that wrote insurance having an 
                        aggregate amount of annual premiums less than 
                        $20,000,000; and
                            ``(ii) not more than 50 percent of which 
                        was owned or controlled by another person 
                        engaged in the business of insurance;
                in the then most recently ended 1-year period; or
                    ``(B) the 2-year period beginning on such effective 
                date, in the case of any person to which subparagraph 
                (A) does not apply; and
            ``(4) the term `trend factor' means an adjustment to be 
        made to losses incurred for claims reported by any person 
        engaged in the business of insurance, to reflect a change in 
        inflation or any other change in the estimated loss costs 
        incurred by persons engaged in the business of insurance.''.

SEC. 3. EFFECTIVE DATE.

    This Act shall take effect 1 year after the date of the enactment 
of this Act.

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