Under the legislation, insurers would be open to scrutiny for antitrust activity by the Federal Trade Commission unless:

o The insurer's conduct is within the business of insurance and “is pursuant to a clearly articulated policy of a state that is actively supervised by the state.”

o A company not involved in the business of insurance:

a). Collects, compiles, or disseminates aggregate historical loss data;

b). Develops standardized insurance forms, or

c). Performs some other task deemed acceptable by guidelines issued by the FTC.

A key provision that gives the states broad authority to impose rate and coverage restrictions could provide state regulators with a lever to force insurers to maintain low rates.

Insurance sector lobbyists said introduction of the legislation is expected to be the start of a continuing effort by coastal state legislators to pressure property-casualty insurers for quick hurricane claim settlements and continued windstorm coverage at reasonable rates in their areas.

The antitrust bill is identical to legislation introduced in the Senate last September by Sen. Arlen Specter, R-Pa., after insurance interests were successful in killing his asbestos injury bill.

In addition to the coming House antitrust bill, the Senate is expected to act shortly to put in bi-partisan legislation dealing with antitrust insurance issues.

The Senate bill will be sponsored by Sen. Specter, Senate Judiciary Committee Chairman Pat Leahy, D-Vt., Sen. Trent Lott, R-Miss., and Sen. Mary Landrieu, D-La.

Sen. Leahy was co-author of the asbestos bill with Sen. Specter. Sen. Lott, like Rep. Taylor, recently settled a legal action against State Farm over damage to his home from Hurricane Katrina.

Sen.. Landrieu is running for re-election in 2008. On Jan. 24, she was named by Sen. Joe Lieberman, D-Conn., chair of the Homeland Security and Governmental Affairs Committee, to head a new Subcommittee on Disaster Recovery.

Insurance industry lobbyists said privately they believe Sen. Landrieu will use this committee to hold hearings that would draw focus on the many Louisiana insurance claims from Hurricanes Katrina and Rita that remain outstanding.

While Rep. Fazio is the prime sponsor for the House bill, the initiative for the measure comes from Rep. Taylor, who has outlined efforts to put a bi-partisan stamp on the bill in his memorandum.

Last week his staff sent all members of the House a memo stating, “Mr. Taylor will co-sponsor and also take a co-lead role in pushing for action on the bill.” It noted that, “Rep. Bobby Jindal [R-La.] has signed on as a co-sponsor.”

In his letter, Rep. Taylor's staff said, “We are seeking additional Republican co-sponsors before we introduce the bill. We hope to have an equal number of original sponsors from each party.”

The letter adds, “Please let me know if your boss would like to be an original co-sponsor. We hope to introduce the bill next week.”

The McCarran-Ferguson Act currently exempts the “business of insurance” from federal antitrust laws, to the extent that it is regulated by the states.