Financial Planner

Answer: C - Insurance companies are associated with the McCarran-Ferguson Act. In this Act, Congress reaffirmed the right of the federal government to regulate insurance, but agreed it would not exercise this right as long as the industry was adequately regulated by the states. In effect, the law explicitly grants the states the power to regulate the insurance business. The National Association of Insurance Commissioners is composed of the commissioners of insurance from all states. It has no legal power over insurance regulation, but the Commissioner of Insurance in each state is charged with the administration of the state’s insurance laws and operations and recommends legislation.