Barber Practice State Board Practice Exam

Federal laws govern which type of insurance?

1. Health insurance

2. Disability insurance

3. Unemployment insurance

4. Liability insurance

The correct answer is: Unemployment insurance

Federal laws primarily govern unemployment insurance. This is because unemployment insurance is a program established under federal law, specifically through the Federal Unemployment Tax Act (FUTA). Although states administer unemployment insurance programs and have the flexibility to set their own rules and benefits, there are overarching federal guidelines that dictate certain aspects, such as eligibility criteria and the taxation of employers. The other insurance types mentioned—health, disability, and liability insurance—are primarily regulated at the state level. Each state has its own laws and regulations regarding these types of insurance, and while federal laws do play a role in some areas (such as employer mandates under the Affordable Care Act for health insurance), the fundamental governance of health, disability, and liability insurance remains largely within state jurisdiction. Thus, unemployment insurance stands out as the type governed more directly by federal regulation.