State Insurance Law Doesn't Trump Int'l Pact, 4th Circ. Rules

Law360, New York (July 9, 2012, 9:14 PM EDT) -- The Fourth Circuit ruled Monday that the McCarran-Ferguson Act, which puts insurance regulation largely in states' hands, doesn't preempt international treaties, forcing a welding equipment manufacturer to arbitrate in Sweden a multimillion dollar dispute with Zurich Insurance Co. over coverage of product liability suits.

Disagreeing with the Second Circuit and falling in line with the Fifth Circuit, the appeals court held that state laws could not preempt the Convention Act, which was passed to help enforce an international treaty calling on countries to enforce written agreements...
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