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 Final insurance: premiums paid out of funds borrowed from the cash value of a life insurance policy. ...
Of four SEC divisions that regulates the securities markets and the participants within these markets. ...
Amount expressed as a liability on the insurance company's balance sheet for benefits owed to policy owners. These reserves must be maintained according to strict actuarial formulas as they ...
Government agency, under the McCarran-Ferguson act (public law 15), that has no authority over insurance matters to the extent the states regulate insurance to the satisfaction of Congress. ...
Relinquishment of rights to benefits when an employee withdraws previous contributions to a plan. An employee who had not withdrawn these contributions would have been entitled to full ...
Method of establishing rates in which the current year's premium is calculated to reflect the actual current year's loss experience. An initial premium is charged and then adjusted at the ...
Provision in a life insurance policy that protects its proceeds from the beneficiary's creditors. On payment, the beneficiary loses the protection of the spendthrift trust clause and the ...
Payment due on the renewal of an insurance policy. The premium may be adjusted up or down to reflect the loss experience of the underwriting classification to which the insured belongs. ...
Circumstance under which the insured maintains that, if an insurance policy covers at least two scheduled items of real or personal property, in the event of a loss applicable coverage ...
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