What does the McCarran-Ferguson Act primarily do for the insurance industry?

The McCarran-Ferguson Act primarily affirms the right of states to regulate the insurance industry, establishing that state laws related to insurance will take precedence over federal laws, unless Congress explicitly states otherwise. This means that while federal regulations exist, they do not interfere with a state's authority to regulate its own insurance companies and practices.

By allowing states to maintain regulatory authority, the McCarran-Ferguson Act encourages a robust local regulatory environment tailored to the specific needs of each state's insurance market. This decentralized approach helps ensure that the unique aspects of local markets are addressed and that state governments can implement laws that are better suited to the demographics and characteristics of their populations.

The other options suggest different frameworks and interventions that do not capture the essence of the McCarran-Ferguson Act's purpose, which is fundamentally centered on preserving state oversight rather than imposing federal requirements or limitations.