Which act is considered federal law in regulating insurance?

The Insurance Companies Act is the correct choice because it is a piece of federal legislation in Canada that specifically regulates the activities of insurance companies. This act establishes the framework within which insurance companies operate, sets out requirements for the incorporation and amalgamation of insurance companies, and governs their solvency and financial disclosure obligations. It is a crucial element in ensuring the stability and integrity of the insurance industry on a national level.

In contrast, the other acts listed serve different purposes. The Highway Traffic Act is primarily focused on the regulation of traffic and vehicle operation on highways, falling under provincial jurisdiction. The Insurance Act addresses issues related to insurance contracts and regulations within a specific province rather than at the federal level. The Insurance Regulation Act does not exist as a recognized federal statute but may pertain to various provincial regulations of insurance practices. Thus, the Insurance Companies Act stands out as the federal law that directly regulates insurance companies in Canada.