492
Syllabus
ute to the extent that the latter furthers policyholders' interests. Pi-reno does not support petitioners' argument to the contrary, since the actual performance of an insurance contract satisfies each prong of the Pireno test: performance of the terms of an insurance policy (1) facilitates the transfer of risk from the insured to the insurer; (2) is central to the policy relationship between the insurer and the insured; and (3) is confined entirely to entities within the insurance industry. Thus, such actual performance is an essential part of the "business of insurance." Because the Ohio statute is integrally related to the performance of insurance contracts after bankruptcy, it is a law "enacted . . . for the purpose of regulating the business of insurance" within the meaning of § 2(b). This plain reading of the McCarran-Ferguson Act comports with the statute's purpose. Pp. 500-506. (c) Petitioners' contrary interpretation based on the legislative history is at odds with § 2(b)'s plain language and unravels upon close inspection. Pp. 506-508. (d) The preference accorded by Ohio to the expenses of administering the insolvency proceeding is reasonably necessary to further the goal of protecting policyholders, since liquidation could not even commence without payment of administrative costs. The preferences conferred upon employees and other general creditors, however, do not escape pre-emption because their connection to the ultimate aim of insurance is too tenuous. Pp. 508-510. 939 F. 2d 341, affirmed in part, reversed in part, and remanded.
Blackmun, J., delivered the opinion of the Court, in which Rehnquist, C. J., and White, Stevens, and O'Connor, JJ., joined. Kennedy, J., filed a dissenting opinion, in which Scalia, Souter, and Thomas, JJ., joined, post, p. 510.
Robert A. Long, Jr., argued the cause for petitioners. With him on the briefs were Solicitor General Starr, Assistant Attorney General Gerson, Deputy Solicitor General Mahoney, and William Kanter.
James R. Rishel argued the cause for respondent. With him on the brief were David A. Kopech and Zachary T. Donovan.*
*Briefs of amici curiae urging affirmance were filed for the Bureau of Insurance, Commonwealth of Virginia, et al. by Harold B. Gold and Randolph N. Wisener; for the Council of State Governments et al. by Richard Ruda and Michael J. Wahoske; for the National Association of Insurance
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