Barnett Banks of Marion County, N.A. v. Gallagher

Summary

The United States District Court for the Middle District of Florida considered whether Florida Statute § 626.988, restricting insurance activities by financial institutions, was preempted by 12 U.S.C. § 92, which authorizes certain national banks to act as insurance agents. The court held that § 626.988 regulates the business of insurance under the McCarran-Ferguson Act and that § 92 neither specifically relates to insurance nor expressly requires preemption of state insurance laws. The court denied Barnett Banks' requests for preliminary and permanent injunctive and declaratory relief, entered judgment for the defendants, and closed the case.

Holdings

1. Section 92 remains current law and authorizes a national bank located and doing business in a community with a population of no more than 5,000 to act as an insurance agent under the statutory conditions.
2. Section 92 places no limitation on the geographic scope of insurance sales authorized under the statute, provided that the bank sells the insurance from a community of fewer than 5,000 inhabitants.
3. Florida Statutes section 626.988 is a law enacted for the purpose of regulating the business of insurance within the meaning of 15 U.S.C. § 1012(b).
4. Section 92 neither specifically relates to the business of insurance nor expressly requires preemption of conflicting state insurance laws.
5. Section 626.988 is saved from preemption by the McCarran-Ferguson Act and remains valid and effective notwithstanding section 92.

Questions Presented

1. Whether 12 U.S.C. § 92 authorizes a national bank with a branch in a locality of fewer than 5,000 inhabitants to sell insurance without geographic limits on where the insurance may be sold.
2. Whether Florida Statutes section 626.988 is a law enacted for the purpose of regulating the business of insurance under the McCarran-Ferguson Act.
3. Whether 12 U.S.C. § 92 specifically relates to the business of insurance or expressly requires preemption of state insurance laws under the McCarran-Ferguson Act.
4. Whether section 626.988 is preempted by 12 U.S.C. § 92.

Disposition

other