South-eastern Underwriters Association (SEUA) Case
Important 1944 U.S. Supreme Court ruling that the insurance business constituted interstate commerce and was thus subject to the SHERMAN antitrust act. This decision came in U.S. v. South-Eastern Underwriters Association, a price-fixing case, brought against a fire insurance rate-making group by the U.S. Attorney General, at the urging of the state of Missouri. SEUA relied for its defense on the 1869 Paul v. Virginia decision by the Supreme Court that insurance activities were not commerce and the Sherman Act did not apply. The high court subsequently accepted the argument that the industry was subject to the antitrust law. In response, Congress passed the MCCARRAN-FERGUSON act (public law 15) in 1945, in effect overruling the court by stating affirmatively that regulation of insurance was the job of the states, not the federal government. The law exempted insurance from federal antitrust rules if it was covered by state regulation.
Popular Insurance Terms
Life is unpredictable so to compensate this, people have invented insurance. Insurance deals with unforeseen events. Sometimes insurance companies cover only a part of your losses and a few ...
Procedure whereby there is no amortization of the employer's liability for the supplemental cost of an employee's future benefits to be paid at retirement. ...
Same as term Yield on Assets: annual or other periodic rate of return on investments. Because life insurance companies act as custodians of premiums for many years, until money must be ...
Same as term Cancellation Provision Clause: provision permitting an insured or an insurance company to cancel a property and casualty or a health insurance policy (circumstances vary; see ...
That which cannot be touched; having no meaning to the senses. It is represented by incorporeal rights in property (that which is evidence or represents value; for example, a copyright). ...
Annuity that begins payments after a single premium is paid. For example, the annuitant pays a single premium of $100,000 on June 1 of the current year and begins receiving a monthly income ...
Deductible that applies for the year. For example, a business pays for the first $40,000 of losses incurred during the year and the insurance company pays for all losses above that amount ...
Insurance company that underwrites and sells more than one line of insurance. ...
Actuarial method of crediting retirement benefits earned and the costs associated with these earned retirement benefits. An increment (unit) of benefit is credited for each year of ...
Have a question or comment?
We're here to help.