Mayhall

1. Paul v. Virginia:
   • not commerce (local contracts / not tradeable goods) -> state regulation preserved
2. NAIC formed as a result to unify regulations and adopt common practices
3. US v. South-Eastern UW Association:
   • is commerce -> within fed power
   • fed anti-trust legislation (Sherman Act under Commerce) applied to insurance industry -> overturned Paul v. Virginia -> passed McCarran-Ferguson to preserve state regulation
4. McCarran-Ferguson Act:
   • state regulation is in public interest and primary except when pre-empted by fed laws relating to insurance business, i.e. Sherman Act, Clayton Act, fed Trade Commission Act (prevent and restrict anticompetitive practices)

• RBC requirements
• financial regulation accreditation standards
• initiative to codify accounting principles.

• Gramm-Leach-Bliley Financial Modernization Act
• Patient Protection and Affordable Care Act
• Dodd-Frank Wall Street Reform and Consumer Protection Act

• states should regulate insurance
• min standards state laws need to follow or face preemption by fed law.
• enabled banks to sell insurance, broke down restrictions against bank with insurers

Health insurance market reform creating specific req'ts for health benefit plans:

• plans to be marketed thru fedly-mandated insurance exchanges
• mandated coverage req'ts
• insurers must maintain specific med LRs set by fed law.

Authorize fed to collect data, monitor market, require state regulator to raise standards on insurers

• Establishes FIO (Federal Insurance Office) to collect info about insurance industry and develop fed regulatory framework
• Established FSOC (Federal Stability Oversight Committee) to oversee, id threats to financial stability of US economy
• Requires all states to apply uniform eligibility for surplus lines insurers