The Supreme Court upheld a state law when a congressional enactment explicitly delegated the right to regulate a federal activity to the states.
By an 8-0 vote, the Supreme Court upheld a South Carolina statute that imposed a tax on insurance premiums for policies written in South Carolina by foreign (out-of-state) insurance companies, but not on policies written by domestic companies. Prudential, a New Jersey company, sued, asserting that the South Carolina law interfered with an interstate commerce power that properly belonged to the federal government. Although supported by the Court’s decisions in United States v. South-Eastern Underwriters Association
Commerce, regulation of
Cooley v. Board of Wardens of the Port of Philadelphia
South-Eastern Underwriters Association, United States v.