True or False: The Sherman Act only applies to the insurance business when not regulated by state law.

The Sherman Act is a fundamental piece of antitrust legislation in the United States that aims to promote fair competition and prevent monopolistic practices. It primarily applies to interstate commerce and serves as a federal law to regulate business practices.

In the context of the insurance industry, the application of the Sherman Act can be complex. The act does have a limited scope regarding insurance businesses that are subject to extensive regulation by state law. When state regulation is present, it may shield certain conduct within the insurance sector from antitrust scrutiny under federal law. This means that while the Sherman Act applies broadly to commerce, its enforcement in the insurance industry is conditional upon the degree to which state law governs that industry.

Therefore, the statement is true: the Sherman Act applies to the insurance business primarily in instances where state statute does not provide in-depth regulation. This leads to a unique situation where federal and state laws coexist, with states often holding the primary regulatory authority over the insurance sector.