Insurance-Regulation Under the McCarran-Ferguson Act-FTC Jurisdiction Not Ousted by a State Statute Proporting to Control Deceptive Advertising Mailed to Other States

Authors

Thomas D. Heekin, University of Michigan Law SchoolFollow

Abstract

Petitioner issued a cease-and-desist order prohibiting respondent from making statements in its advertising materials which violated the Federal Trade Commission Act. Respondent, a Nebraska health insurance company, mailed its circulars to residents of every state. The McCarran-Ferguson Act provides that "the Federal Trade Commission Act ... shall be applicable to the business of insurance to the extent that such business is not regulated by State law." A Nebraska statute prohibits an insurer domiciled there from engaging in unfair business practices in any state. In an action to set aside the FTC cease-and-desist order, the Court of Appeals for the Eighth Circuit accepted respondent's argument that its business was regulated by Nebraska law and thus insulated from FTC authority. On certiorari to the United States Supreme Court, held, judgment vacated, and case remanded for further proceedings, three Justices dissenting. Congress did not intend extraterritorial regulation by the state of domicile to displace FTC jurisdiction. FTC v. Travelers Health Ass'n, 362 U.S. 293 (1960).

Recommended Citation

Thomas D. Heekin, Insurance-Regulation Under the McCarran-Ferguson Act-FTC Jurisdiction Not Ousted by a State Statute Proporting to Control Deceptive Advertising Mailed to Other States, 59 Mich. L. Rev. 794 (1961).
Available at: https://repository.law.umich.edu/mlr/vol59/iss5/8