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FTC V. TRAVELERS HEALTH ASSOCIATION, 362 U. S. 293 (1960)

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U.S. Supreme Court

FTC v. Travelers Health Association, 362 U.S. 293 (1960)

Federal Trade Commission v. Travelers Health Association

No. 51

Argued December 10, 1959

Decided March 28, 1960

362 U.S. 293

Syllabus

Respondent, a Nebraska corporation engaged in the business of selling health insurance to residents of all States, is licensed only in Nebraska and Virginia. All of its business is transacted by mail from an office in Nebraska, where policies are issued, premiums are paid, and claims are filed. A Nebraska statute prohibits unfair or deceptive practices in the insurance business there or "in any other state."

Held: as to alleged deceptive practices outside the State of Nebraska, this statute is not sufficient to bring respondent within § 2 (b) of the McCarran-Ferguson Act, which exempts the insurance business from the Federal Trade Commission Act to the extent that it is "regulated by State law." Pp. 362 U. S. 294-302.

(a) Federal Trade Commission v. National Casualty Co., 357 U. S. 560, distinguished. Pp. 362 U. S. 297-298.

(b) The state regulation which Congress provided should operate to displace the Federal Trade Commission Act means regulation by the State in which the deception is practiced and has its impact. Pp. 362 U. S. 298-302.

262 F.2d 241, judgment vacated and case remanded. chanroblesvirtualawlibrary

Page 362 U. S. 294





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