Which act requires that states must follow federal law regarding insurance?

The McCarran-Ferguson Act is the correct answer because it established that states have the authority to regulate the business of insurance, but it also stipulates that states must adhere to federal law concerning insurance practices. Enacted in 1945, this act essentially gives states the power to regulate insurance as long as they do not conflict with federal regulations. This means that while states can create their own insurance laws and regulations, they must do so in a way that is consistent with federal standards.

This act is significant because it balances states' rights to regulate the insurance industry with the need to ensure that insurance is conducted in a manner that aligns with federal law. This harmonization aims to protect consumers and ensure fair practices across state lines.

The other options pertain to different aspects of insurance law and regulatory practices but do not address the relationship between state and federal law as effectively as the McCarran-Ferguson Act. For example, the Fair Credit Reporting Act deals with the accuracy and privacy of credit reporting, while US vs. South-Eastern Underwriters Association is a landmark Supreme Court case that essentially affirmed federal jurisdiction over the insurance industry but does not mandate states to follow federal law. Paul vs. Virginia is another Supreme Court case that historically undersc