Federal Legislation And The Insurance Industry: A Rising Tide
Source: Starphire Technologies
The McCarran-Ferguson Act was a federal law passed by the U.S. Congress in response to the U.S. Supreme Court holding in the case of United States v. South-Eastern Underwriters Association, which found that the federal government could regulate insurance companies pursuant to the authority of the Commerce Clause in the United States Constitution. The McCarran-Ferguson Act exempted the business of insurance from almost all federal regulation. Specifically, McCarran-Ferguson states that 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."