General Insurance PrinciplesQuestion 194 of 474
Under the McCarran-Ferguson Act, regulation of the business of insurance is:
a.shared equally between Congress and the courts of each state
b.assigned to a federal insurance agency that licenses insurers
c.handled by the industry itself through a national trade body
d.left mainly to the states, as Congress intended
Explanation
Congress declared that continued regulation by the states is in the public interest and that federal antitrust law applies to insurance only to the extent the business is not regulated by state law. There is no federal agency licensing insurers under the act, so that answer describes something that does not exist. Trade associations may draft model wording, but they do not regulate anyone.
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