"Preserving" Civil RICO: How the Model Unfair Trade Practices Act Affects Rico's Private Right of Action Under the Mccarran-Ferguson Act‪.‬

INTRODUCTION In August 2007, a confidential report surfaced exposing widespread fraud in the insurance industry. (1) Written by the influential consulting firm McKinsey&Company, (2) the report explained how insurance companies could fraudulently increase profits by decreasing payments to customers. (3) When a policyholder filed a claim, the report said, the insurer should begin by offering them a lower settlement than their policy promised. (4) If someone refused to accept this lower offer, McKinsey recommended the company fight back against the customer, and delay making required payments as long as possible. (5) In so doing, the insurer could pressure policyholders to drop existing challenges, discourage others from even filing claims in the first place, or--at the very least--earn extra interest on its investments. (6) Following McKinsey's "slow-pay, low-pay, no-pay" (7) tactics, the industry earned record profits. (8)