Which Act mandated that insurance would be regulated by the states?

The McCarran-Ferguson Act is the correct answer because this legislation, enacted in 1945, explicitly allows states to regulate the business of insurance without interference from federal authorities. The Act recognized the importance of state regulation in promoting the health and availability of insurance within the marketplace. It provides that insurance is primarily regulated by the states, affirming that states have the right to introduce their own insurance laws, ensuring that insurance companies operate according to the specific needs and circumstances of their local jurisdictions. This law essentially confirmed that the insurance industry should be treated differently than other financial services, which are often subject to more direct federal oversight.

In contrast, the other acts listed focus on different aspects of finance and healthcare. The Gramm-Leach-Bliley Act primarily deals with banking and financial services, promoting the merger of commercial banks, investment banks, and insurance companies. The Health Insurance Portability and Accountability Act (HIPAA) primarily governs the privacy and security of health information, providing guidelines for the management of personal health data. The Affordable Care Act (ACA) focuses on expanding access to health insurance and improving healthcare quality rather than on the regulation of insurance at the state level. Thus, the McCarran-Ferguson Act stands out as the foundational legislation that