Final answer:
The McCarran-Ferguson Act exempts the insurance industry from federal legislation and allows states to regulate the insurance industry primarily at the state level.
Step-by-step explanation:
The McCarran-Ferguson Act exempts the insurance industry from federal legislation to the degree that it allows states to regulate the insurance industry primarily at the state level. The act was passed in 1945 and provides that the business of insurance should be regulated by the states, rather than by the federal government. This means that state insurance regulators have the authority to oversee the insurance industry and set regulations and standards for insurance companies in their respective states.