The 3d Circuit weighs in on the debate over the McCarran-Ferguson Act's preclusion of RICO and other federal claims for insurance-related fraud
Article Abstract:
The United States Court of Appeals for the 3d Circuit in Sabo v. Metropolitan Life Insurance Co dealt with the McCarran-Ferguson Act question in the context of RICO claims based on alleged life insurance sales fraud. The ruling seems to narrowly interpret McCarran-Ferguson, requiring that RICO directly conflict with state insurance law before McCarran-Ferguson preclusion of resort to the federal statute exists. However, the case's unique factual situation makes it less than a conclusive statement of McCarran-Ferguson application in the context of insurance-related RICO claims.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1998
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Suits charge fraud in secret discounts to health insurers
Article Abstract:
Insurance companies are facing many suits charging that hospitals gave them secret discounts which they failed to pass on to customers. Several class actions filed in 1993 charge insurers with figuring out subscriber co-payments based on non-discounted hospital rates while secretly negotiating discounts and thus trimming their 80 percent payment. Plaintiffs' attorneys charge that this practice violates ERISA's fiduciary duty requirements and constitutes fraud. Defense attorneys claim the discounts are passed on to customers as lower premiums.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1993
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Proposal on swaps angers exchanges, but pleases others
Article Abstract:
The Commodity Futures Trading Commission (CFTC) has proposed a rule which would give swaps an exemption from Commodity Exchange Act regulation. The CFTC feels the rule would provide legal certainty because it would no longer be possible to renege on an unprofitable swap by asserting the deal's illegality. Detractors are afraid it will still be possible to renege by claiming a swap was not covered by the CFTC exemption.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1993
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