On Wednesday, July 29, ASA leaders met with Rep. Gene Taylor, D-Miss., sponsor of U.S. House Bill 1583, which would repeal the McCarran-Ferguson Act. Since 1945, insurance companies have had a "limited" exemption from federal antitrust laws that apply to most other industries ensured to them through an act of Congress. The McCarran-Ferguson Act provides that federal antitrust law applies to the "business of insurance" only to the extent that such business is not regulated by state law. The anti-competitive consequences of McCarran impact both consumers and small businesses that have to deal with insurers.

ASA supports H.R. 1583, which is co-sponsored by Rep. Peter DeFazio, D-Ore., because:

• Insurers have argued that this exemption allows them to keep insurance rates low. This is simply not the case. A competitive marketplace will only enhance consumers' options.

• The state insurance regulatory structure has failed for consumers and collision repairers. Without federal regulatory recourse, consumer and small business complaints are left to generally ill-equipped state regulators. After years of complaints, many states lag in addressing important consumer and small business property and casualty issues: i.e., consumer steering, insurer pressure to use inferior auto parts, paint caps, etc. These problems are increasing for consumers and repairers, not decreasing.

• State regulators are less likely to recruit top professional employees to oversee increasingly complex insurance products offered by insurers as well as deal with more complicated insurance issues that arise. Federal regulators have access to a degree of human resource and other capital that state agencies do not enjoy.

The Automotive Service Association is the largest not-for-profit trade association of its kind dedicated to and governed by independent automotive service and repair professionals. ASA serves an international membership base that includes numerous affiliate, state and chapter groups from both the mechanical and collision repair segments of the automotive service industry. ASA's headquarters is in Bedford, Texas.

ASA advances professionalism and excellence in the automotive repair industry through education, representation and member services. For additional information about ASA, including past news releases, go to www.ASAshop.org, or visit ASA's legislative Web site at www.TakingTheHill.com.