Which act exempted certain insurance activities from federal antitrust laws?

• A. Dodd-Frank Act
• B. Sarbanes-Oxley Act
• C. McCarran-Ferguson Act
• D. Gramm-Leach-Bliley Act

Answer: (C)

The main idea is that the business of insurance can be exempt from federal antitrust laws when it is regulated by state law. The McCarran-Ferguson Act of 1945 clarified that the Sherman Act and other federal antitrust statutes do not apply to activities that are part of the business of insurance to the extent those activities are regulated by state regulation. In practice, this means state regulators handle things like rates, policy forms, and underwriting, and those actions aren’t automatically subject to federal antitrust challenges if they fall within the state-regulated framework. If an insurance activity isn’t regulated by state law, or isn’t truly part of the business of insurance, federal antitrust laws could apply.

The other acts mentioned aren’t about exempting insurance from antitrust laws. The Dodd-Frank Act focuses on financial reform; Sarbanes-Oxley targets corporate governance for public companies; and Gramm-Leach-Bliley deals with financial services integration.