Supreme Court of the United States

Nationsbank of North Carolina, N. A. v. Variable Annuity Life Insurance Co.

January 19, 1995513 U.S. 251

Summary

The Court held that the Comptroller of the Currency’s interpretation that national banks may act as agents in the sale of annuities is a reasonable construction of the National Bank Act and therefore entitled to Chevron deference, reversing the Fifth Circuit’s decision. The decision rests on the view that brokerage of annuities falls within the “business of banking” and that annuities are not “insurance” under 12 U.S.C. §92.

Holding

  • Whether the Comptroller’s interpretation of the National Bank Act’s “business of banking” authority to permit banks to broker annuities is entitled to Chevron deference.. The Comptroller’s construction is a reasonable interpretation of the National Bank Act and is entitled to Chevron deference; consequently, national banks may act as agents in the sale of annuities.
  • Whether annuities are “insurance” within the meaning of 12 U.S.C. §92 and thus barred for banks in towns over 5,000 inhabitants.. Annuities are not “insurance” for purposes of §92, so the prohibition does not apply to national banks selling them as agents.
  • Whether the enumerated powers in §24 Seventh limit the scope of the “business of banking” to those specific activities.. The “business of banking” language is not limited to the enumerated powers; the Comptroller may authorize activities beyond those specific listings.
  • Whether the Fifth Circuit erred in reversing the district court’s grant of summary judgment to the Comptroller.. The Fifth Circuit erred; the district court’s judgment is affirmed and the Fifth Circuit’s reversal is reversed.

Docket 93-1612

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