The McCarran-Ferguson Act, passed in 1945, gives states the authority to regulate the business of insurance without interference from federal regulation, unless federal law specifically provides otherwise. This means that while CGL insurance is a product offered across state lines, the specifics of the coverage, the regulation of the insurers, and the interpretation of the policies are primarily matters of state law. The Act also provides that no act of Congress shall be construed to invalidate, impair, or supersede any law enacted by any state for the purpose of regulating the business of insurance, unless the federal act specifically relates to the business of insurance.
The Federal Insurance Office Act of 2010 established the Federal Insurance Office within the Department of the Treasury. The FIO is authorized to monitor all aspects of the insurance industry, including the extent to which traditionally underserved communities and consumers, minorities, and low- and moderate-income persons have access to affordable insurance products regarding all lines of insurance, except health insurance. The FIO's role includes monitoring the availability and affordability of insurance products such as CGL insurance. The FIO has the authority to gather information, issue reports, and advise the Secretary of the Treasury on domestic and international insurance policy issues. However, the FIO does not have regulatory authority over the insurance industry; that remains with the states.
The Terrorism Risk Insurance Act of 2002 was enacted in response to the inability of businesses to secure terrorism risk insurance following the September 11, 2001 attacks. TRIA requires insurers to offer terrorism risk insurance and provides a federal backstop for such insurance to ensure its availability. The Act creates a shared public and private compensation system for insured losses resulting from acts of terrorism. The federal government covers a portion of the losses that exceed certain thresholds, subject to a cap. This can impact CGL policies that may include coverage for acts of terrorism, and it affects the risk assessment and underwriting practices of insurers offering CGL insurance.
The Gramm-Leach-Bliley Act, also known as the Financial Services Modernization Act of 1999, includes provisions to protect consumers' personal financial information held by financial institutions, which may include insurance companies that provide CGL insurance. The GLBA requires financial institutions to explain their information-sharing practices to their customers and to safeguard sensitive data. The Act also allows for the sharing of information between affiliates and third parties, subject to certain conditions and exceptions. Insurers providing CGL insurance must comply with the GLBA's privacy provisions and ensure that any sharing of nonpublic personal information is done in accordance with the law.