What significant legal case allows states to regulate insurance independently?

The significant legal case that allows states to regulate insurance independently is Paul vs. Virginia. This landmark case, decided in 1868, is crucial because it established that insurance is to be regulated by the states rather than the federal government. The Supreme Court ruled that insurance policies are contracts and therefore fall under state jurisdiction, which allows states to impose regulations governing the insurance industry. This decision reinforced the framework for state regulation of insurance, which has been a foundational principle in the insurance landscape ever since.

While the McCarran-Ferguson Act is important for affirming states' rights to regulate the business of insurance without federal interference, it was the Paul vs. Virginia case that initially set the precedent. The other options listed do not have the same level of historical significance in establishing state regulatory authority over insurance, making Paul vs. Virginia the pivotal case in this context.