1944, United States – vs – Southeastern Underwriters (SEUA)

1944, United States – vs – Southeastern Underwriters (SEUA)

• Established an actual need for Federal Regulation and deemed the business of insurance to be a form of interstate commerce.

Paul vs Virginia was upheld for 75 years until the State – vs – Federal regulation needed to be re-addressed.  

The United States Supreme Court overturned the previous 1868 Paul vs Virginia ruling and determined the business of insurance was in fact subject to certain federal regulations.  This new ruling rendered many state laws which governed the business of insurance ineffective because, they contradicted the NEW superseding federal laws.  

The US Supreme Court ruling didn’t take away a state’s ability to regulate the business of insurance.  The ruling did however, help begin the process of standardization within the business of insurance by overruling conflicting state laws.  

The United States -vs- Southeastern Underwriters case signifies a clear tipping point and marks the beginning of a regulatory shift toward federal regulations, despite the fact insurance marketplaces are predominately regulated by each individual state today.