Document: 370 U.S. 451 82 S.Ct. 1380 8 L.Ed.2d 620 STATE BOARD OF INSURANCE et al., Petitioners,v.TODD SHIPYARDS CORPORATION. No. 144. Argued March 21, 1962. Decided June 25, Bob E. Shannon and Fred B. Werkenthin, Austin, Tex., for petitioners. Charles R. Vickery, Jr., Houston, respondent. Mr. Justice DOUGLAS delivered the opinion of Court. 1 When we held in United States v. South-Eastern Underwriters Ass'n, 322 533, 64 1162, 88 L.Ed. 1440, that modern business insurance was 'interstate commerce,' put it a category which Congress could regulate which, if our prior decisions controlled, not some respects be regulated by States, even absence federal regulation. See Frankfurter, The Commerce Clause (1937); Rutledge, A Declaration Legal Faith (1947). 2 promptly passed McCarran-Ferguson Act, 59 Stat. 33, 15 U.S.C. § 1011, U.S.C.A. provided regulation taxation should left to without restriction reason Clause.1 Subsequently, force upheld continued interstate transactions. Prudential Ins. Co. Benjamin, 328 408, 66 1142, 90 1342. 3 Prior decision, had given broad scope local business. Osborn Ozlin, 310 53, 60 758, 84 1074; Hoopeston Canning Cullen, 318 313, 63 602, 87 777. case Virginia requirement companies authorized do State must write policies through resident agents. case, while involved making out-of-state contracts, also servicing New York, regulating State. 4 Here, unlike cases, carry on no activities within Texas. Of course, insured does Texas property is located there. It earnestly argued that, unless philosophy restricted, present tax2 premiums paid contracts sustained. We are urged follow approach decisions, look aspects transactions taken as whole, decide there aer sufficient contacts with justify this tax under requirements due process. 5 Were cases bare bones Act only criteria would have presented question whether three decisions—Allgeyer 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, 673—have continuing vitality. first two were distinguished (310 U.S., at 66—67, 763) (318 318—319, 605—606) cases. Allgeyer Louisiana Due Process Fourteenth Amendment make misdemeanor effect risks an company licensed where use mails contracted York policy. invalid Arkansas policy risks, made having office or agents Arkansas. Insurance California one another reinsurance life written residents, though both California. Court stated: 6 'All appellant did effecting done state its transaction privilege license needful. cannot sustained either laid property, done, carried state, granted state.' 82, 439. 7 Civil Appeals, 340 S.W.2d 339, Supreme Court, feeling bound these unconstitutional, 162 Tex. 8, 343 241. certiorari, 368 810, 40, 20. litigation take place entirely outside insurance, principally against loss liability arising from damage negotiated issued All losses adjusted insurers Texas, solicit investigate claims 9 domiciliary but corporation doing Losses payable residents principal City. connection between fact covered physically 10 need de novo results (and reasons given) Allgeyer, Compress, sound acceptable. For history explicit. unequivocal statement so designed displace those decisions. House Report 11 'It intention enactment legislation clothe any power beyond they been possess decision Southeastern Association case. Briefly, your committee provide subject always, however, limitations set out controlling as, instance, (165 578 (,17 832)), (260 346 (,43 297)), (Life) Johnson (303 (,58 673)), hold, inter alia, entered into jurisdiction individuals corporations domiciled therein covering such way.' H.R.Rep. 143, 79th Cong., 1st Sess., p. 3, U.S.Code Cong. Service 1945, 670. 12 Senator McCarran, after reading foregoing part during Senate debate, stated, '* * give more powers than previously had, none time.' 91 Cong.Rec. 1442. 13 So, 1012(a), 'shall laws several relate business,'3 indicated ambiguity 'regulation taxation' kept limits 14 grant protection commerce (Bethlehem Steel Labor Relations Board, 330 767, 775—776, 1026, 1031, 1234; Rice Sante Fe Elevator Corp., 331 218, 235—236, 1146, 1154—1155, 1447) withhold (In re Rahrer, 140 545, 560 seq., 865, 868, 35 572; supra) complete4 ideas prevail. Congress, final say what constitutes process Amendment. And has authority enforce provisions (Ex parte Virginia, 100 25 676; Monroe Pape, 365 167, 81 473, 492), purport so. have, freedom change constitutionality laws. Smith Allwright, 321 649, 665, 757, 765, 987. But announced industry rely since 1897, when announced; advised amicus brief how severe impact small old rule changed. When, therefore, posited regime validity specific (see Federal Trade Comm. Travelers Health 362 293, 301—302, 80 717, 721—722, 724), loath them. 16 accepted status quo comparable situations. After Southern Pacific Jensen, 244 205, 37 524, 61 1086, compensation stevedores maritime work, enacted Longshoremen's Act. S.Rep. 973, 69th 16; 1767, 2d In Davis Department Labor, 317 249, 225, 246, took note passage 'accepted Jensen line demarcation jurisdiction' (id., 256, 229), spite become eyes derelict stream law. Toolson Yankees, Inc., 356, 357, 74 78, 98 64, refused re-examine holding baseball antitrust laws, stating '(t)he thus thirty years develop, understanding existing legislation.' remained silent, changing Here tailored new regulations reference Since earlier arch structure rests, rrefrain disturbing them lest design fashioned. 18 Affirmed. 19 FRANKFURTER 20 WHITE consideration 21 BLACK, dissenting. 22 withdrew ownership their borders merely because representatives insurer State, I think places unwarranted construction upon may seriously impair capacity other effective statute Legislature 1957 order protect State's comprehensive supervision being unercut practice insuring 1957, whole cost program placed subjected themselves qualifying express purpose equalizing burden placing purchasers unregulated roughly equal imposed directly companies. way tried qualified unfair competition sell cheaper pay program. Court's bars providing sort This seems me threaten foundation regulatory plainly encourages insure discourages subjecting 23 believe basically leave intended effect. 'declares public interest, silence shall construed impose barrier States'—a declaration language Nothing legislative relies persuades read impairs discharge responsibilities comprehensive, effective, well-integrated borders. adequate vast properties owned operated respondent therefore dissent. provides: 'Congress declares States.' 1012, provides, far relevant here: '(a) every person engaged therein, business.' Vernon's Tex.Civ.Stat., 1952 (Cum.Supp.1961), Art. 21.38, 2(e) 'If person, firm, association purchase manner agent Board five per cent (5%) amount gross insurance. Such later (30) days date premium unlicensed insurer.' Supra, 1. As stated supra, 434, 1157: 'The over exercised coordinated action states except Constitution expressly limitation forbids discriminate favor trade. Its plenary enables promote prohibit commerce, frequently great variety reasons. That run down one-way street narrowly fixed dimensions. keep open, confine broadly closely, close entirely, restrictions constitutional invade domains reserved exclusively states.'

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