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
Same as term Dynamic: changing state of the economy associated with changes in human wants and desires such that losses or gains occur. Dynamic changes are not insurable. ...
Funding of an employee's benefits in a pension plan for his or her beginning past service of employment. This is a significant cost factor in pension planning and financing of future ...
Type of guaranteed investment contract in which the interest rate credited is tied to an external index such as the United States Treasury Bond Index. ...
Policy used to provide the funds for buy and sell agreements under which an income payment or a series of income payments is paid to the buyer of the disabled partner's interest contained ...
State law that limits the admitted value of an insurance company's EDP equipment to 3% of the company's ADJUSTED SURPLUS. ...
Unfunded trust that acts as the owner of a life insurance policy. The trust receives a donor's cash payments on a periodic basis, from which the beneficiary of the trust has a specified ...
Specified amount received by an insured at the end of an endowment period (usually the face amount of the endowment policy), or by the owner of an ordinary life policy (usually the ...
Explicit liability reserve, required by the national association of insurance commissioners (naic), established for all invested asset classes. Specific reserves are established for real ...
Bonds that are less than investment grade plus the bonds that are in or approaching default, which comprise part of the insurance company's investment bond portfolio. ...
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