Guest Editorial: Dean L. Cameron, Director, Idaho Department of Insurance

Why 1945 Changed Insurance Forever — And Why It Still Matters Today

*** Editor’s note: Director Cameron refers to his department of insurance and the state of Idaho in this editorial. His references to Idaho applies to any state in the country. All states are regulated by insurance and those departments are there to help.

While 1945 is remembered for major events like the end of World War II and the passing of President Franklin D. Roosevelt, it also marked a turning point for the U.S. insurance industry — the passage of the McCarran-Ferguson Act. Though not as well-known, this law has shaped how insurance is regulated for the last 80 years.

In simple terms, the McCarran-Ferguson Act is a law that gives each state the power to regulate its own insurance. That means your home, car, health, and business insurance are all handled at the state level — not by the federal government in Washington, D.C.

Why that’s a good thing:

Every state has different needs. For example, Idaho has wildfires, Florida deals with hurricanes and Oklahoma faces tornadoes. What works in one place might not work in another. State regulators understand their local risks, so they can propose rules and laws that make sense for their residents. Idaho solutions are unique to Idaho needs

How it helps you:

Thanks to this system, you can call the Idaho Department of Insurance [Editor’s note: or any state department of insurance] directly if you have a problem — like a denied claim or confusing coverage. State officials are there to help, and they’re close to home. Idaho solutions are developed more efficiently, and our elected officials are more responsive to our needs.

It also encourages better choices and prices.

Because insurance companies have to follow Idaho laws and rules, they compete to offer better coverage and prices. Some states, like Idaho, lead the way in creating new types of insurance, like our proposals for State-based Health Insurance, Idaho’s High Risk Reinsurance Pool, and this year our Property Insurance Mitigation and Stabilization Fund.

Our efforts in Idaho have led to more health carriers, with more options, and better prices. We are working diligently and creatively to improve the property insurance market, as is every state in the country.

States work together, too.

Even though each state regulates its own insurance system, they also team up. Organizations like the NAIC (National Association of Insurance Commissioners) help states share ideas, set standards, and keep things fair and consistent. They assure that if you purchase coverage from a company regulated in another state, that they are meeting the standards that protect you as a consumer.

Looking ahead:

The insurance world is always changing — with new risks, new technology, and new challenges. But the McCarran-Ferguson Act remains the foundation of insurance regulation in the U.S. It helps keep insurance strong, fair, and flexible — and it continues to protect people all across the country.

Weekly Industry News thanks Director Cameron for his straight to the point, and very important, editorial. Like the Director Cameron and other state regulators, the PIA believes deeply in the state regulation of insurance.

Your association supports legislation to repeal or reform the Federal Insurance Office (FIO). Created in 2010 by the Dodd-Frank Wall Street Reform and Consumer Protection Act, it is an ongoing threat to the successful state insurance regulatory system.

PIA National has led the insurance industry on the movement to repeal the FIO, and we’re please that Montana Rep. Troy Downing (a former insurance commissioner) has introduced legislation in the House (H.R. 643) to do so.

There is no greater threat to the state regulation of insurance than this federal bureaucratic office that consistently seeks to increase its power, and PIA is proud to be an industry leader on this issue of critical importance to independent agents.

For more information on this issue, and to contact your members of Congress to support this repeal, go to PIA National’s Advocacy page: https://bit.ly/42R1p1b