Untitled spreadsheet - Sheet1

Question 1

Describe background of Paul v. Virginia

Answer 1

Paul applied to become licensed insurer in home state of VA for NY insurers. VA denied because insurers had not deposited required foreign insurer bond. Paul sold policies anyway and was arrested

Question 2

Describe Supreme Court verdict for Paul v. Virginia:

Answer 2

Insurance is a contract delivered locally thus insurance contract not interstate commerce. States could continue to regulate own insurance market without violating Constitution

Question 3

Briefly describe 2 schools of thought about insurance compacts:

Answer 3

Compacts deter open and free competition, In publicÕs best interests if it prevented insolvencies

Question 4

Briefly describe the Sherman Act of 1890

Answer 4

Prohibits collusion in attempts to gain monopoly power