Insurance Competition Improvement Act of 1987

Insurance Competition Improvement Act of 1987 - Amends the McCarran-Ferguson Act to declare that the continued exemption of the business of insurance from the Federal antitrust laws is not in the public interest. Provides that the antitrust laws shall apply to the business of insurance with certain exceptions. Specifies limited activities that may be subject to an exempt agreement, understanding, or concert of action between or among insurers, members of an advisory organization, or other persons. Permits insurers or other persons participating in joint underwriting, pools, or residual market mechanisms to cooperate with each other in the making of rates, rating systems, policy forms, underwriting rules, surveys, inspections, and investigations if the residual market mechanism is required by law or approved by a State regulatory agency, or if the joint underwriting or pools do not unreasonably restrain trade. Permits any State to: (1) establish or approve a residual market mechanism; and (2) require a workers' compensation and employers' liability insurer to adhere to the uniform classification system and uniform rating plan applicable to such types of insurance in such State, provided that no such insurer shall agree with any other insurer or with an advisory organization to use any rate.

States that treble damages and criminal penalties for alleged violations of Federal antitrust law may not result from conduct (which would have been lawful under the McCarran-Ferguson Act) occurring within two years of enactment of this Act.

Provides that no relief shall be granted against any person for conduct occurring within two years of enactment of this Act if the defendant relied in good faith on an advisory opinion issued by the Department of Justice.