Document: 362 U.S. 293 80 S.Ct. 717 4 L.Ed.2d 724 FEDERAL TRADE COMMISSION, Petitioner,v.TRAVELERS HEALTH ASSOCIATION. No. 51. Argued Dec. 10, 1959. Decided March 28, 1960. Mr. Charles H. Weston, Washington, D.C., for petitioner. C. Fraizer, Lincoln, Neb., respondent. Justice STEWART delivered the opinion of Court. 1 Section 2(b) McCarran-Ferguson Act provides that '(T)he Federal Trade Commission Act, * shall be applicable to business insurance extent such is not regulated by State law.'1 The in which respondent incorporated prohibits unfair or deceptive practices there 'in any other state.' question presented whether respondent's interstate mail order thereby 'regulated law' so as insulate its commerce from regulative authority Commission. 2 respondent, a Nebraska corporation, engaged selling health insurance. Licensed only States and Virginia, sells no policies through agents, but office Omaha transacts with residents every State. It solicits mailing circular letters prospective buyers recommended existing policyholders. All carried on direct office; it are issued, premiums paid claims filed. 3 A statute provides: 'No person engage this state methods competition acts conduct No domiciled resident state, territory, possession, province, country, district.'2 Court Appeals set aside cease-and-desist prohibiting making certain statements representations found misleading violation Act. 15 U.S.C. § 45, U.S.C.A. 45. court concluded '(w)ith activity (respondent), business, subject supervision control Director Insurance Nebraska, we think (respondent's) solicitation elsewhere reasonably realistically cannot held unregulated law.' accordingly decided was 'without regulate (respondent) soliciting insurance.' 262 F.2d 241, 244. Judge Vogel dissented, stating his belief 'impractical ineffective' 'force citizens states rely upon Nebraska's regulation long distance advertising promotion sale otherwise outside Nebraska.' view state' 'the kind law Congress had mind' enacting 245. Certiorari granted 359 988, 79 1122, 978, resolve an important left undecided Comm. v. National Casualty Co., 357 560, 78 1260, 1540. 5 In case issue involved effect laws regulating companies were licensed do within programs requiring distribution material local agents. those circumstances 'no possess ample means their respective boundaries.' at page 564, 1262. 'withdrew respondents' under own laws.' 563, 1261. expressed intent regard constitutional reasons effectively *.' 6 here thus quite different Casualty. relied displace federal protective legislation whose targets question. Rather, asked hold operates oust jurisdiction reason single State's attempted domiciliary's extraterritorial activities.3 But believe takes protection Act.4 our provided should operate deception practiced has impact. 7 passed 1945. Its basic purpose allay doubts, thought have been raised Court's decision previous year United South-Eastern Underwriters Ass'n, 322 533, 64 1162, 88 L.Ed. 1440, continuing power tax insurance.5 See Prudential Co. Benjamin, 328 408, 429—433, 66 1142, 1154—1156, 90 1342; Maryland Cushing, 347 409, 413, 74 608, 610, 98 806; Securities & Exchange Variable Annuity Life Ins. 65, 99, 618, 636, 640 (dissenting opinion). original bills both Senate House would made completely inapplicable business. S. 340, 79th Cong., 1st Sess., 91 Cong.Rec. 478—488, 1085, 1093—1094. During debate House, however, several members objected provision exempting (91 1027—1028, 1086, 1089, 1092—1093), Representative Sumners, Chairman Judiciary Committee, stated conference he support amendment make same Sherman Clayton Acts, et seq., 12 1093. Thus form finally enacted first appeared recommendation Conference Committee two Houses. H.R.Conf.Rep. 213, Sess. 8 Since accepted Report without debate, 1396, discussion present occurred Senate. Yet, somewhat limited well earlier Houses clear viewed solely terms where sought regulated. There indication could activities beyond borders. 9 report bill stated: 'It intention enactment clothe they prior Supreme Southeastern Association case. Briefly, your committee provide continued taxation States, always, limitations out controlling decisions Court, as, instance, Allgeyer (State of) Louisiana (165 578 (17 427, 41 832)), St. Louis Cotton Compress Arkansas (260 346 (43 125, 67 297)), Connecticut General (Life) Johnson (303 77 (58 436, 82 673)), hold, inter alia, does contracts reinsurance entered into individuals corporations therein covering risks transactions way.' (H.R.Rep. 143, 3.) 10 Significantly, when Senator McCarran agreed conference, began reading most foregoing quotation part explanation bill. 1442. ensuing centered around 2(b). three conferees, Senators McCarran, O'Mahoney, Ferguson, repeatedly emphasized did authorize activities. See, e.g., 1481, 1483, 1484. Typical following statement O'Mahoney: 'When moratorium period passes, come life again field commerce, regulation. Nothing proposed try private group association commerce.' 1483. 11 Not specific legislative history, also motivating policy behind movement culminated serve confirm conclusion displaced 'regulated' law, referred operative force. One major arguments advanced proponents leaving close proximity people affected and, therefore, better position than Government. 1087; 6532. Joint Hearings before Subcommittees Committees 1362, H.R. 3269, 3270, 78th 17, 37, 117, 238—239, 242—243, 244, 252. Such hardly served delegating one sole administrative affecting Union. This 'unwisdom, unfairness injustice permitting policyholders seek redress some distant insurer incorporated.' Travelers Health Ass's Com. 339 643, 649, 70 927, 930, 94 1154. Because meaning need consider questions might arise applicability misrepresentations States. Compare Alaska Packers Ass'n Industrial Accident Commission, 294 532, 55 518, 1044; Western Union Telegraph Brown, 234 542, 34 955, 58 1457; Sligh Kirkwood, 237 52, 35 501, 59 835. Suffice note impediments, contingencies, doubts create given aspect 13 follows judgment must vacated, remanded further proceedings consistent views opinion. 14 Vacated remanded. HARLAN, whom FRANKFURTER WHITTAKER join, dissenting. 16 marks second time inroads pervasively restored insurance, function until Curt's Association, traditionally considered exclusively theirs. Last Term variable annuity policies, sold across lines, 93—101, 633—637, Today holds materials mailed company, already respect out-of-state transmission materials, least matter sent. 17 holding based 'that (in Act) force.' I data relies much too meagre justify conclusion, believe, did, these foreclosed jurisdiction. 18 What majority 'specific history' us seems me fall far short being persuasive towards statute. bill, store placed, directed, read it, differentiating between kinds would, after ended,1 exempt all aspects,2 general proposition new enlarge narrow regulatory existed case, supra. That more can got manifest McCarran's Senate—an episode refers. Quoting report, said: 'That expression (meaning report) explanation. words, give powers previously take none them.'3 19 fragments relies, indicate report.4 true, my opinion, expressions during relating desirability authorities because were, speak, ground, which, correctly observes, reflected 'a Act.' And since very gingerly throws possible questions, appropriate say right police company domiciliaries, sent seriously open doubt. Hammond Packing Arkansas, 212 322, 29 370, 53 530; certainly nothing 1044, points contrary. 20 temptation strong, doubt, ask innovate may fallen short. Two years ago declined invited supra, pages 564—565, unwise now yield encore innovation apt lead another, ultimately result hybrid scheme regulation, bringing about uncertainties duplications avoided. 21 'Obviously Congress' broadly future systems taxing done ways. removing obstructions flow power, dormant exercised, except expressly itself legislation. declaring affirmatively public interest who 'shall to' respects. 22 'Moreover, taking action full knowledge nation-wide existence taxation; fact differ greatly scope character regulations imposed taxes exacted; many, if all, include features extent, applied generally unacquainted facts evidently throw whole weight systems, notwithstanding variations.' 429—430, 1155, 1342. 23 Wilburn Boat Fireman's Fund 348 310, 318—321; 75 368, 372—374, 99 337; 68—69, dissenting 93 620—621, 633. 24 If innovations desirable, Congress, us. 25 affirm. pertinent portions follows: hereby declares interest, silence construed impose barrier 'Sec. 2(a) therein, relate '(b) invalidate, impair, supersede imposes fee unless specifically relates insurance: Provided, June 30, 1948, law. *' Stat. 33, amended, 61 448, 1012(a, b). 44—1503 Reissue Revised Statutes 1943 amended Emergency May 14, 1957, Laws c. 191, 2. 'Unfair Competition Practices' 1947, (§§ 44—1501 44—1521, 1943, 1957 Cumulative Supplement, 191.) Other provisions empower (1) prefer charges against has, elsewhere, act business,' notice hearing (§ 44—1506); (2) evidence 44 1507); (3) determines wrongful charged 44—1509). difference Commissioner Gwynne's sepaate concurring Commission's proceeding. He pointed dissented assumption American Hospital proceeding, 'insurance operated agents various states, duly laws,' 'every adopted Model Code, equivalent legislation,' 'advertising practice complained bundles home company's disseminated agents.' F.T.C. 548, 558—559. (Commissioner lack proceeding upheld disposed Company Company.) contrast, Gwynne induce sales 'this type (that is, purporting protect another advertising) said makes refers operating extraterritorially.' 563. Gwynne, member participated debates leading passage 1090. 6534—6536. argued lacked 'all states' conducts To petitioner replies raise argument waived it; statutes 'other' purport apply unlicensed, nonresident having agents; even purported insurers, still proviso enforced gave consideration 'regulation' Nebraska. accord principles, decline issues record, them 'to what worth below, Marconi Wireless Tel. America Simon, 246 46, 57, 38 275, 277, 62 568. Tunstall Brotherhood, 323 210, 214, 65 235, 237, 89 187; Beach, 324 193, 196, 602, 603, 865; Communications WJR, 337 265, 285, 69 1097, 1108, 1353. While appeal pending here, abortive attempts Seventy-eighth immunize antitrust laws. Sess.; H.R.R.ep. 873, 7686, 10532, 10659—10664. addition forth 295, 718, 3(a) 1013(a) 'Until July 2, 1890, known October 15, 1914, September 26, 19, 1936, Robinson-Patman Anti-discrimination thereof.' 3(b) 'Nothing contained render agreement boycott, coerce, intimidate coercion, intimidation.' stopped last clause (following citation cases) quoted 301, 721. observing hypothetical put Ferguson Pepper Florida, opponent related permit disregard laws, Florida rates fixed rating bureau, replied affirmative. 1481. Yet finds offensive concept content companies. reserves 'for worth' legislate jurisdictions. proved practical matter, foreign office, assets legislating, nonetheless presumably exclude jurisdiction, depart 1540, legislation, effectiveness factor. distinction that, us, difference.

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