Rationale: The McCarran-Ferguson Act clarifies that the regulation of insurance is primarily a state responsibility, affirming that insurance transactions are not considered interstate commerce. This means states retain the authority to regulate insurance practices without interference from federal oversight.
Option A is incorrect as the Act does not redefine the authority of state and federal governments; rather, it emphasizes state control. Option B is misleading since the Act does not focus on the authority of insurance companies to issue policies. Option C is wrong because the Act does not assign advertising regulation to the FCC; it maintains state jurisdiction over insurance advertising.
