Which act granted states the power to regulate insurance matters?

Which act granted states the power to regulate insurance matters?

• A. Sherman Antitrust Act.
• B. Dodd-Frank Act.
• C. Glass-Steagall Act.
• D. McCarran-Ferguson Act of 1945.

Answer: (D)

The essential point is that regulation of insurance is primarily a state responsibility. The McCarran-Ferguson Act of 1945 specifies that the business of insurance shall be subject to state regulation and that federal antitrust laws do not apply to the business of insurance to the extent it is regulated by state law. This preserves state authority over insurance matters, with federal intervention only where a federal law explicitly governs. The other acts address different areas—antitrust in general, broader federal financial oversight, and banking practices—without establishing state regulatory power over insurance. So, the act that granted states the power to regulate insurance matters is the McCarran-Ferguson Act of 1945.

The essential point is that regulation of insurance is primarily a state responsibility. The McCarran-Ferguson Act of 1945 specifies that the business of insurance shall be subject to state regulation and that federal antitrust laws do not apply to the business of insurance to the extent it is regulated by state law. This preserves state authority over insurance matters, with federal intervention only where a federal law explicitly governs. The other acts address different areas—antitrust in general, broader federal financial oversight, and banking practices—without establishing state regulatory power over insurance. So, the act that granted states the power to regulate insurance matters is the McCarran-Ferguson Act of 1945.