Does Federal Law Trump State Law in Insurance Policy Arbitration Clause?

When McDonnel Groups, L.L.C., filed against its insurers for failing to pay on a claim related to covered property in Lousiana the insurers invoked the contract’s arbitration provision. The policy included a “conformity to statute” provision which required the policy terms to conform to the statutes of the jurisdiction where the insured property is located. Lousiana, where the property was located, has a state law which prohibits arbitration agreements in insurance contracts. Federal law, which requires arbitration under certain circumstances, trumps state law. The twist, in this case, is the McCarran-Ferguson Act which protects state laws regulating the insurance industry. Find out how the Fifth Circuit Cout of Appeals sorted through which statute to follow here: