Unfair and Deceptive Acts and Practices: 2.3.1.3 State Insurance Code Displacement of UDAP Applicability
A frequently litigated issue is whether a state UDAP statute applies to insurance practices where those practices are already regulated by the state insurance code, but where the UDAP statute does not explicitly exempt insurance companies. Insurers often argue that the state insurance statute prohibiting unfair and deceptive insurance practices (the UNIP statute)1397 displaces UDAP coverage.