New Jersey Life Insurance Exam Practice Question
The McCarran-Ferguson Act was passed by Congress to
Correct Answer: A
Rationale: The McCarran-Ferguson Act was designed to clarify the regulatory framework for the insurance industry, emphasizing the role of state governments in overseeing insurance practices.
Option A accurately reflects this intent by highlighting the redefined authority of state and federal governments in regulating insurance.
Option B misinterprets the Act's purpose; it does not focus on the authority of insurance companies themselves.
Option C incorrectly assigns exclusive advertising regulation to the FCC, while the Act actually allows states to regulate insurance advertising.
Option D is misleading, as the Act recognizes insurance transactions as part of interstate commerce but allows states to regulate them.
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