Who is primarily responsible for insurance regulation in the United States?

The primary responsibility for insurance regulation in the United States lies with state governments. This state-centric approach is enshrined in the McCarran-Ferguson Act of 1945, which grants states the authority to regulate the insurance industry. Each state has its own regulatory framework that governs the licensing of insurers, the standards for policy forms, and the financial solvency requirements for insurance companies operating within its jurisdiction.

State regulators, such as insurance commissioners, oversee the industry to ensure that companies remain solvent, treat policyholders fairly, and adhere to established laws. This decentralized system allows states to tailor their regulations to meet the specific needs of their residents and respond to local market conditions.

The role of federal government involvement in insurance regulation is limited, primarily focusing on anti-trust laws and ensuring compliance with federal laws rather than direct oversight of the insurance market. Local municipalities and international organizations do not have primary regulatory authority over insurance matters in the U.S. Thus, state governments are the correct answer as they hold the main responsibility for supervising and regulating the insurance industry.