In the landmark case Paul vs. Virginia, what was the primary legal determination regarding insurance?

The primary legal determination in the case of Paul vs. Virginia was that insurance is not subject to federal regulation. This case set a precedent regarding the nature of insurance as not being classified under interstate commerce, which means that it did not fall under federal oversight. The Supreme Court ruled that insurance transactions operate primarily within the confines of state laws and regulations, emphasizing the states' rights to regulate the insurance industry.

This determination underscores the states' authority to control insurance practices, leading to a fragmented but localized regulatory framework for insurance. As a result of this ruling, states became responsible for licensing insurers and establishing regulations that govern their operations, shaping how insurance companies could conduct business within their jurisdictions.