Your diagnostic
What the questions look like
Every question in the free Exam 6U bank carries a full worked solution. Here is one from the pool:
Question 1
Medium
Applying the criteria courts use to define the 'business of insurance,' which activity is most likely entitled to the McCarran-Ferguson antitrust exemption?
Solution
A is correct. Courts ask whether a practice transfers or spreads policyholder risk, is an integral part of the policy relationship between insurer and insured, and is confined to entities within the insurance industry. Setting premium rates goes to the core risk-transfer function and satisfies these criteria, so it falls within the business of insurance eligible for the exemption. Ancillary provider arrangements and ordinary commercial purchases do not spread policyholder risk, and boycotts are expressly outside the exemption.
