McCarran-Ferguson Act
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The McCarran-Ferguson Act, 15 U.S.C. 20, is a United States federal law. The McCarran-Ferguson Act was passed by Congress in 1945 after the Supreme Court ruled in U.S. v. South-Eastern Underwriters that insurance could be regulated by the federal government via the Commerce Clause, or, in other words, that insurance was interstate commerce.
The McCarran-Ferguson Act does not itself regulate insurance, nor does it mandate that states regulate insurance. However, it does empower Congress to pass laws in the future that will have the effect of regulating the "business of insurance." However, federal acts that do not expressly purport to regulate the "business of insurance" will not preempt state laws and regulations that regulate the "business of insurance."
The Act also provides that federal anti-trust laws will not apply to the "business of insurance" as long as the state regulate in the area, but federal anti-trust laws will apply in cases of boycott, coercion, and intimidation.
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Categories: United States federal antitrust legislation | United States federal commercial legislation | 1945 in law | Insurance legislation
