McCarran-Ferguson Act

McCarran-Ferguson Act
Braden A. Borger, Author
Covered Events, Volume 1, Issue 1

In this double-edition of Covered Events, Braden A. Borger, an Associate in the Litigation Department and a member of Defense Research Institute's Insurance and Commercial Litigation committees, summarizes Weiss v. First Unum Life Ins. Co., a Racketeer Influenced and Corrupt Organizations Act (RICO) case involving a plaintiff who brought suit against his insurer.

The plaintiff claimed that the insurance company illegally discontinued his disability payments, exceeding more than $11,000 per month. Mr. Borger explains that the U.S. District Court for the District of New Jersey dismissed the RICO claims based on the reasoning they were barred by the McCarran-Ferguson Act, but that the Third Circuit Court of Appeals reversed this decision.