What Does Public Law 15 Mean?
Public Law 15 is a law that that states that insurance does not have to be subject to anti-trust laws if it is regulated at the state level. The goal of this law was to prevent unnecessary over-regulation of insurance policies and products. The thought behind it was that state regulation was enough to prevent needing federal anti-trust regulation.
Public Law 15 is also known as the McCarran-Ferguson Act or simply the McCarran Act.
Insuranceopedia Explains Public Law 15
Public Law 15 was put into place in 1945. The court case that this law resulted from was called the United States v. South-Eastern Underwriters Association. Despite the fact that Public Law 15 prevents insurers from having to worry about federal anti-trust laws, it makes them have to concentrate even more on complying with state regulation. This is because there is an increased burden on state regulators to monitor insurance companies under this act.
McCarran Act, McCarran-Ferguson Act