Tennessee Insurance Practice Exam

In what year was the McCarran-Ferguson Act enacted?

1. 1935

2. 1940

3. 1945

4. 1950

The correct answer is: 1945

The McCarran-Ferguson Act was enacted in 1945, which is significant because it established that states have the authority to regulate the insurance industry without interference from federal legislation, as long as the state laws are not found to be discriminatory or void. This act recognized the unique nature of the insurance market and acknowledged the principle that insurance should be regulated primarily at the state level. This legislation was important in ensuring that states retained the ability to regulate their insurance practices, thus promoting consumer protections and maintaining a balance between state and federal powers in the realm of insurance regulation. The timing of the act in 1945 also coincided with a post-World War II era where there was a burgeoning insurance industry that required defined regulatory structures.