Who has the primary responsibility for regulating the insurance industry?

The primary responsibility for regulating the insurance industry falls primarily to the state government in the United States. Each state has its own insurance department, which oversees the insurance companies operating within its jurisdiction. These state regulators ensure that insurance companies comply with state laws and regulations, safeguard policyholder interests, and maintain fair marketplace practices.

While there is some federal oversight, particularly concerning certain aspects of insurance such as consumer protection and anti-discrimination measures, states typically retain the authority to regulate the rate-setting, licensing, and practices of insurance companies. Thus, the correct answer reflects the dominant role of state governments in this domain.

The presence of federal regulation does not negate the primary state responsibility, hence the incorrect nature of options suggesting exclusive federal control or an equal division between the two levels of government. Moreover, referencing a specific regulatory board might imply a more localized authority, which again underscores the primary state-level regulation rather than suggesting a single entity as the overall regulator.