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Principles of Insurance Law and Regulation
Resource 5 . 1 . 3
1 minute

McCarran Ferguson Act

Seth J. Chandler

1. The McCarran Ferguson Act functions as a kind of "constitutional amendment" about federalism in the area of insurance regulation.

2. How does section 3(b) of the Act relate to the Southeastern Underwriters case that preceded it?

15 U.S.C. sec. 1011 (Section 1)

Congress hereby declares that the continued regulation and taxation by the several States of the business of insurance is in the public interest, and that silence on the part of the Congress shall not be construed to impose any barrier to the regulation or taxation of such business by the several States.

15 U.S.C. sec. 1012 (Section 2)

(a)State regulation

The business of insurance, and every person engaged therein, shall be subject to the laws of the several States which relate to the regulation or taxation of such business.

(b)Federal regulation

No Act of Congress shall be construed to invalidate, impair, or supersede any law enacted by any State for the purpose of regulating the business of insurance, or which imposes a fee or tax upon such business, unless such Act specifically relates to the business of insurance: Provided, That after June 30, 1948, the Act of July 2, 1890, as amended, known as the Sherman Act, and the Act of October 15, 1914, as amended, known as the Clayton Act, and the Act of September 26, 1914, known as the Federal Trade Commission Act, as amended [15 U.S.C. 41 et seq.], shall be applicable to the business of insurance to the extent that such business is not regulated by State Law.

15 U.S.C. sec. 1013 (Section 3)

(a)

...

(b)

Nothing contained in this chapter shall render the said Sherman Act inapplicable to any agreement to boycott, coerce, or intimidate, or act of boycott, coercion, or intimidation.

 

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