Which case is noted for establishing that insurance is interstate commerce and subject to federal antitrust laws?

• A. It stated insurance is locally regulated only
• B. It established that insurance is interstate commerce and subject to federal antitrust legislation
• C. It mandated federal licensing for insurers
• D. It required uniform federal rates

Answer: (B)

Insurance being interstate commerce and subject to federal antitrust laws is established by United States v. South-Eastern Underwriters Association (1944). The Supreme Court held that insurance transactions cross state lines and are part of interstate commerce, so federal antitrust statutes apply to those activities. This means anticompetitive practices in the insurance industry, like price fixing or market allocation, can be challenged under federal law, not just state regulation. The decision shifted the view from seeing insurance as purely local regulation to recognizing its interstate implications under the Commerce Clause. The other options don’t fit because they describe local-only regulation, federal licensing, or uniform federal rates, none of which reflect the case’s holding.