What was the immediate effect of the SEUA decisions?

• A. Federal legislation now applied to insurance
• B. State regulation continued without change
• C. Insurance was exempt from antitrust laws
• D. Insurance companies were required to consolidate

Answer: (A)

The key idea is that these decisions broadened the regulatory reach to include federal law in matters involving insurance. Before, regulation was largely seen as the domain of states, but the SEUA decisions clarified that federal statutes also apply to insurance activities, especially when they affect interstate commerce or national interests. That means insurers faced federal requirements in addition to state rules, changing the regulatory landscape from purely state-driven to a federal‑included framework.

This is why the best choice is that federal legislation now applied to insurance. The other options would imply no change, a blanket exemption from federal rules, or a requirement for consolidation—none of which align with the immediate effect described by these decisions.