A Key Bank Insurance Case Begins In Ohio
Monday, August 7th, 2000 Risk ManagementIn one of the most closely watched bank insurance cases, a federal court in Cincinnati will begin to determine just how far states can go in regulating bank insurance sales. The Sixth Circuit Court of Appeals heard oral arguments last week in the case of Association of Banks-in-Insurance v. Duryee, the first major case in which the question of what constitutes "significant interference" is being raised. At issue are three Ohio laws regulating bank insurance sales operations. The term "significant interference" derives from the case of Barnett Bank v. Marion, in which the U.S. Supreme Court said states cannot "prevent or significantly interfere" with bank insurance powers granted to national banks by Section 92 of the National Bank Act. However, the Supreme Court did not define the term "significantly interfere" in Barnett.
