Posted On: June 6, 2007, 2:01 pm CDT

Posted By: Been Around Too Long

To Sam: I can't buy your arguments. I can't see that Federal Regulation would eliminate or reduce competition. To the contrary, the McCarren Ferguson Act exempts Insurance Companies from Anti Trust Actions by the Federal Government. While Federal Regulation may introduce new filing requirements and some additional paper work, there is no way this additional cost could come close to a National Carrier's filing forms and rate changes with 50 different Insurance Commissions, let alone the administrative nightmare of filing administration. Who would regulate the carriers? Probably a Federal Commission would be created, with the Anti Trust people watching over their shoulder. You talk about the formation of "monopolies". Take a look at the number of mergers and consolidation that have occurred in the last 10 to 15 years. There are a handful of large P&C insurers now compared to a few years ago. Need I name them? The drift to mega-carriers has occurred in spite of State Regulation. Should the Federal Government determine that consolidation of insurers reach the point of "no competiton", the "Monopolies" would be broken up as the Oil and Telephone Companies have been split apart. Your statement that things have "worked OK" with State Regulation, obviously you don't live in Florida. I do.