Under Article 6 of the Constitution, federal laws are given precedence over conflicting state laws. However, the taxation and regulation of the insurance industry is an exception provided for under the McCarren-Ferguson Act. Since the Act was passed, several states have enacted laws that prohibit mandatory arbitration clauses in insurance policies. This comes into conflict with the United States’ obligations under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards which requires member states to refer parties to arbitration if they have a valid arbitration clause. Volume XLVIII staff editor Samanta Kolenovic argues that the Supreme Court should resolve the conflict to provide for more certainty for insurance companies doing business in the United States.
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