Insurance Commissioner Dave Jones applauded the ruling, noting the California Department of Insurance found PacifiCare committed 908,547 separate violations of the Unfair Insurance Practices Act
. Jones imposed fines aggregating $173,603,750.
The decision ends years of legal wrangling over the regulations that implement the Unfair Insurance Practices Act
, which prescribe how insurance companies must process insurance claims.
It is also meant to examine the PPACA's impact on NAIC Model Laws such as the Unfair Insurance Practices Act
, Producer Licensing Model Act and Model Law on Examinations.
Justice Ginsburg, writing for a unanimous Supreme Court, stated, "When federal law does not directly conflict with state regulation, and when application of the federal law would not frustrate any declared state policy or interfere with a state's administrative regime, the McCarran-Ferguson Act does not preclude its application." She pointed out that Nevada has an unfair insurance practices act
that enables both the state insurance commissioner and private parties to proceed against various forms of insurance fraud and misrepresentation.