The primary purpose of the NYUCPA is to protect consumers from unfair practices. However, without penalties, the act falls short of fully achieving this goal. Effective consumer protection laws typically include both standards of conduct and penalties for non-compliance, ensuring that there are real consequences for misconduct.
 

The lack of penalties in the New York Unfair Claims Practices Act undermines its effectiveness in protecting consumers. It allows insurance carriers to potentially engage in unfair practices with minimal risk, leaving consumers vulnerable and without adequate means to enforce their rights. To fully protect consumers, the act would need to include specific, enforceable penalties for misconduct, thereby deterring bad practices and ensuring that companies are held accountable.