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STEPHENS v. AMERICAN INTERN. INS. CO.

No. 1516, Docket 94-9143.

66 F.3d 41 (1995)

Don W. STEPHENS, Commissioner of Insurance, Commonwealth of Kentucky as Liquidator of Delta America Re Insurance Company, Plaintiff-Appellant, v. AMERICAN INTERNATIONAL INS. CO.; Granite State Insurance Co.; Lexington Insurance Company; New Hampshire Insurance Company; American Modern Home Ins. Co.; Canal Ins. Co.; North River Insurance Company, Defendants, Home Insurance Company; U.S. International Reinsurance Company, Defendants-Appellees, Imperial Casualty & Indemnity; Le Re-union Aerienne Groupment D'Interet Economique; Mead Reinsurance Corp.; Mony Reinsurance Corporation; Scottsdale Ins. Co.; Employers Insurance Company of Wausau; Nationwide Mutual Insurance Company; Northwestern National Ins. Co.; Universal Reinsurance Corp.; Mt. Hawley Ins. Co., Defendants, Royal Insurance Company of America; Royal Indemnity Company; St. Paul Surplus Lines Ins. Co., Defendants-Appellees, St. Paul Fire & Marine Insurance Co.; Transamerica Insurance Company, Defendants, Constitution State Insurance Company, Defendant-Appellee, Great Southwest Fire Ins. Co.; Lloyd's Syndicates E.P. Cowen, D.H. Forest, D.J. Walker, F.R. White, and K.F. Adler, Defendants, I.A.G.M.; British Aviation Ins. Co., Ltd., Defendants-Appellees, Association of Commercial Property Insurers; English & American Insurance Group, PLC, Defendants, Reinsurance Corporation of New York, Defendant-Appellee.

United States Court of Appeals, Second Circuit.

Decided September 14, 1995.

Attorney(s) appearing for the Case

William F. Costigan, New York City (Andrew J. Costigan, Costigan & Berns, P.C., New York City, Jacqueline Syers Duncan, Kevin M. McGuire, Jackson & Kelly, Lexington, KY, of counsel), for plaintiff-appellant.

James D. Veach, New York City (Guy P. Dauerty, Mound, Cotton & Wollan, of counsel), for defendants-appellees St. Paul Surplus Lines Ins. Co., Reins. Corp. of New York, Constitution State Ins. Co., Home Ins. Co., U.S. Intern. Reins. Co., Royal Ins. Co. of America, and Royal Indem. Co.

David J. Grais, New York City, Grais & Phillips, for defendant-appellee British Aviation Ins. Co., Ltd.

Debra J. Hall, George M. Brady III, Anthony J. Mormino, Washington, DC, submitted a brief for amicus curiae The Reinsurance Association of America.

Stephen W. Schwab, Rudnick & Wolfe, Chicago, IL, Ellen G. Robinson, Robinson, Curley & Clayton, Chicago, IL, submitted a brief for amicus curiae James W. Schacht, Acting Director of Insurance of the State of Illinois, Liquidator of numerous insolvent insurers.

Before: NEWMAN, McLAUGHLIN and PARKER, Circuit Judges.

PARKER, Circuit Judge:

The issue presented on this appeal is whether an anti-arbitration provision in the Kentucky Insurers Rehabilitation and Liquidation Law is enacted "for the purpose of regulating the business of insurance" and thus preserved by the McCarran-Ferguson Act from preemption by the Federal Arbitration Act. For the following reasons, we hold that the anti-arbitration provision of the Kentucky Insurers Rehabilitation and Liquidation Law is preserved...

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