What act, passed by Congress in 1945, affirms that state regulation of insurance is in the public interest?

The McCarran-Ferguson Act, passed in 1945, affirms that state regulation of insurance is in the public interest by affirmatively allowing states the authority to regulate the insurance industry without interference from federal laws. This legislation was a significant move toward recognizing the importance of state oversight and allowed states to continue to regulate the business of insurance as they saw fit.

By specifying that the federal government would not interfere in the regulation of insurance provided that states were actively regulating, the McCarran-Ferguson Act helped to establish a framework that balanced federal interest with state control. This was particularly important in maintaining consumer protections and ensuring that insurance products were tailored to meet the needs of local markets.

The act also acknowledged the historical precedent of state regulation and sought to protect the insurance industry from federal oversight that might not align with regional market conditions. This commitment to state sovereignty in insurance matters has had lasting implications on how the insurance industry operates across the United States.