United States V. The South-Eastern Underwriter Association

Filed Under » , ,
Dictionary Says

Definition of 'United States V. The South-Eastern Underwriter Association'

A United States Supreme Court case involving the federal antitrust statute and the insurance industry. United States v. The South-Eastern Underwriter Association (322 U.S. 533), which was decided on June 5, 1944, determined that the insurance industry is subject to regulation by the United States Congress, under the Commerce Clause.

The case came before the Supreme Court on appeal from a Northern District of Georgia court. The South-Eastern Underwriters Association had control of 90% of fire and other insurance markets in six southern states and was believed to have an unfair monopoly, brought on through price fixing. The case focused on whether or not insurance was a type of interstate commerce that should fall under the United States Commerce Clause and the Sherman Antitrust Act.

Investopedia Says

Investopedia explains 'United States V. The South-Eastern Underwriter Association'

The Supreme Court held that insurance companies that conduct significant portions of their business across state lines, were in fact engaging in interstate commerce. The ruling held that the insurance industry could be regulated by Federal law, rather than only state laws.

The following year, in 1945, Congress passed the McCarran-Ferguson Act (Public Law 15), overruling the Supreme Court decision and prescribing that insurance regulation was a matter for the states and not the Federal government. The McCarran-Ferguson Act exempted the insurance industry from most Federal regulation, including anti-trust laws.

Articles Of Interest

  1.

    The History Of Economic Thought

    Economics is a vital part of every day life. Discover the major players who shaped its development.

  2. What is an antitrust law?

    Antitrust laws - also referred to as "competition laws" - are statutes developed by the U.S. Government to protect consumers from predatory business practices by ensuring that fair competition ...

  3. A History Of U.S. Monopolies

    These monoliths helped develop the economy and infrastructure at the expense of competition.

  4. Antitrust Defined

    Check out the history and reasons behind antitrust laws, as well as the arguments over them.

  5. How did Dow Chemical defeat an international monopoly in the 1900s?

    Herbert Henry Dow, a Canadian by birth, was a remarkable man. A chemist and an entrepreneur, Dow was one of the first people to realize that brine, an abundant mixture of chemicals that often ...

  6. Should You Add A Securities License To Your Qualifications?

    Clients love planners who sell securities, but a securities license takes a lot of work. Learn if the stress and study are worth it.

  7. How To Report A Tax Cheat

    If you report a tax evader to the IRS, you could be eligible for a reward.

  8. Do You Dare Sue Your Broker?

    A financial damages claim is not for the fainthearted, but it may be worth it in the end.

  9. GAAP And The IFRS Standards Convergence Efforts In 3 Substantial Areas

    Understand the specific steps that have been taken in hopes of converging the GAAP and the IFRS accounting standards, despite the philosophically and culturally based methodological differences ...

  10. How Much Will Your Taxes Rise Based On Your Salary?

    Find out how high your taxes will rise this year.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Yield Elbow

    The point on the yield curve indicating the year in which the economy's highest interest rates occur. The yield elbow is the peak of the yield curve, signifying where the highest interest rates occurred.

  2. Xenocurrency

    A currency that trades in markets outside of its domestic borders.

  3. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.

  4. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.

  5. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.

  6. Samurai Bond

    A yen-denominated bond issued in Tokyo by a non-Japanese company and subject to Japanese regulations.
Trading Center
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=8e9f8854fbe0a185ab7ce6c3b622d217