Dorothy A. Smulley v. Safeco Insurance Company of Illinois, et al.

The Internet revolution has forever altered the realities of the interstate marketplace. The Internet's prevalence and power changed the dynamics of the national and global economies and specifically, insurance industry practices. State insurance laws and regulations promulgated by respective state legislatures and enforced through enactment are neither adequate nor reasonable. Nor can any state law foresee or control the alleged fraudulent salvage trafficking activity taking place on a national scale under the protection of the McCarran-Ferguson Act (MFA) carve-out for the business of insurance. A resolution of this conflict is required. Infra 13, 17-22. Questions are,

1. Whether personal motor vehicle physical damage (MVPD) insurance valuations performed by a third party Software as a Service (SaaS) company over the Internet in digital real time transactions which stretch across state lines constitute Commerce among the several States and thus subject to regulation by Congress under the Commerce Clause. Infra 3.

2. Whether the SaaS as a registered entity is subject to Securities and Exchange Commission rules in the valuations created over the Internet. Infra 6.