First National Bank of Eastern Arkansas v. Taylor
United States Court of Appeals for the Eighth Circuit
907 F.2d 775 (1990)
Facts
First National Bank of Eastern Arkansas (First National) (plaintiff) offered its customers debt-cancellation loans, which would be cancelled at the time of the borrower’s death. A federal regulation authorized national banks’ use of debt-cancellation loans. The Arkansas Insurance Department (the department) determined that the debt-cancellation loans were the same as credit-life-insurance policies and therefore were subject to state insurance laws. The department asked First National to stop offering the loans because it was not an insurance company. First National sought a declaration from a federal district court that the department’s authority was preempted by the National Banking Act. However, the department argued that because the debt-cancellation loans were effectively credit-life-insurance contracts, they were under the exclusive authority of the state pursuant to the McCarran-Ferguson Act, which exempts companies in the business of insurance from certain federal regulations. The district court held in First National’s favor, and the department appealed.
Rule of Law
Issue
Holding and Reasoning (Lay, C.J.)
What to do next…
Here's why 711,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 44,600 briefs, keyed to 983 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.
