McCarran-Ferguson Lands A Jab On Federal Arbitration Act

Law360, New York (October 22, 2015, 11:03 AM EDT) -- As reported late last year, the U.S. Supreme Court's decision in AT&T Mobility LLC v. Concepcion, 131 S.Ct. 1740, 1745 (2011), tilted the scales toward federal power in the field of arbitration, preempting state laws that may stand in the way of enforcing arbitration agreements pursuant to the Federal Arbitration Act. Naturally, this left the McCarran-Ferguson Act spoiling for a fight, given its restoration to the states of all power to regulate insurance.

The two came to blows in the Seventh Circuit Court of Appeals last year, where the issue was whether or not an Illinois state law that allowed certain...

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