The appellant argued that Miss. Code Ann. § 83-11-109 (2013) does not reverse preempt the FAA via the McCarran-Ferguson Act.[4] Specifically, the appellant argued that Miss. Code Ann. § 83-11-109 (2013) does not “regulat[e] the business of insurance,” as the second prong of the Act requires.[5]
The Fifth Circuit began its discussion by articulating the McCarran-Ferguson Act’s test for reverse preemption, namely: “(1) [whether] the federal statute does not specifically relate to the ‘business of insurance;’ (2) [whether] the state law was enacted for the ‘purpose of regulating the business of insurance;’ and (3) [whether] the federal statute operates to ‘invalidate, impair, or supercede’ the state law.”[6]
