United States V. The South-Eastern Underwriter Association

AAA

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 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.

RELATED TERMS
  1. Sherman Antitrust Act

    Anti-monopoly U.S. legislation which attempted to increase economic ...
  2. Antitrust

    The antitrust laws apply to virtually all industries and to every ...
  3. Price Fixing

    Establishing the price of a product or service, rather than allowing ...
  4. Monopoly

    A situation in which a single company or group owns all or nearly ...
  5. Clayton Antitrust Act

    An amendment passed by the U.S. Congress in 1914 that provides ...
  6. Fair Housing Act

    This law (Title VIII of the Civil Rights Act of 1968) forbids ...
RELATED FAQS
  1. What is an antitrust law?

    Antitrust laws - also referred to as "competition laws" - are statutes developed by the U.S. Government to protect consumers ... Read Full Answer >>
  2. 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 ... Read Full Answer >>
  3. What kinds of financial instruments are designated as “Securities” by Cabinet Order?

    In Japan, securities are regulated by the Diet and the Financial Services Agency, or FSA. Rulings about securities come down ... Read Full Answer >>
  4. What's the difference between cash-on-delivery differ and delivery against payment?

    Cash on delivery and delivery versus payment describe different procedures and timing of payments. Cash on delivery describes ... Read Full Answer >>
  5. What are the different ways I can file my income tax return?

    In contractual law, a letter of intent is a document that represents an agreement between parties before the final agreement ... Read Full Answer >>
  6. How are corporate poison pills regulated in the United States?

    The Delaware Supreme Court was the first legal authority to declare poison pills a valid initiative. This defense is either ... Read Full Answer >>
Related Articles
  1. Economics

    The History Of Economic Thought

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

    A History Of U.S. Monopolies

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

    Antitrust Defined

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

    What is a Resident Alien?

    A resident alien is a foreigner who is a permanent resident of the country in which he or she resides but does not have citizenship.
  5. Entrepreneurship

    Employment Negotiations: What To Ask For & How

    Improving their first offer: What you should know
  6. Entrepreneurship

    How To Talk To Headhunters

    8 tips on forging a fruitful relationship with an executive recruiter.
  7. Investing

    Should Amtrak Be Privatized?

    This story examines whether or not Amtrak, the US consumer rail system, should be privatized in the wake of its tragic accident.
  8. Personal Finance

    The Purpose Of a FMLA Form

    Parsing the different types of paperwork that accompany a leave of absence under the Family Medical Leave Act.
  9. Personal Finance

    8 Ways To Seriously Blow It With A Headhunter

    Job hunters, beware. These are the 8 things that blow your chances with headhunters. So pay attention to your behavior when you're being interviewed.
  10. Fundamental Analysis

    The Business Model Of Private Prisons

    How does the business model of private prisons work?

You May Also Like

Hot Definitions
  1. Inbound Cash Flow

    Any currency that a company or individual receives through conducting a transaction with another party. Inbound cash flow ...
  2. Social Security

    A United States federal program of social insurance and benefits developed in 1935. The Social Security program's benefits ...
  3. American Dream

    The belief that anyone, regardless of where they were born or what class they were born into, can attain their own version ...
  4. Multicurrency Note Facility

    A credit facility that finances short- to medium-term Euro notes. Multicurrency note facilities are denominated in many currencies. ...
  5. National Currency

    The currency or legal tender issued by a nation's central bank or monetary authority. The national currency of a nation is ...
  6. Treasury Yield

    The return on investment, expressed as a percentage, on the debt obligations of the U.S. government. Treasuries are considered ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!