[1] The Holocaust Victim Insurance Relief Act (HVIRA) was enacted in 1999 by the California State Legislature in "an attempt to facilitate Holocaust-era insurance claims by California residents."

American Insurance, along with several other insurance companies and trade associations filed suit claiming that the Act exceeded the powers of the State of California since it is the federal government that has the power to regulate commerce and foreign affairs.

[3] Does the HVIRA "interfere with the federal government's sovereignty over foreign affairs established by Article 1 of the Constitution?

"[4] In a 5–4 decision in favor of American Insurance Association, Justice Souter wrote the majority opinion for the Supreme Court.

The Court held that California's HVIRA "interfere with the president's ability to conduct the nation's foreign policy and is therefore preempted.