Washington Bill Would Provide Restitution for Policyholders Harmed by Insurers

February 24, 2025

A bill to allow the Washington’s insurance commissioner to order restitution for policyholders harmed by insurance companies moved out of the state Senate Business, Financial Services, and Trade Committee.

Senate Bill 5331 gives the commissioner authority to require insurers to compensate insureds who have been wronged in the insurance process, addressing a current gap in the law that limits enforcement to fines without restitution. Fines collected by the OIC go to the state’s general fund.

The bill, sponsored by Senator Adrian Cortes, D-Battle Ground, also authorizes the commissioner to fine property/casualty insurers companies up to $10,000 per violation, rather than issue a total fine of $10,000. For health insurers, the limit is already $10,000 per violation or offense. SB 5331 would align the two.

Insurance Commissioner Patty Kuderer said the bill will enable the state to provide more direct aid to victims.

The bill now moves to the full Senate for further consideration.

Topics Carriers Washington

Was this article valuable?

Here are more articles you may enjoy.

Latest Comments

  • February 25, 2025 at 11:35 am
    Rob says:
    Did you read the article? This is RESTITUTION, making customers whole who've been wronged. With the public perception of insurance being what it is, this seems like something ... read more
  • February 24, 2025 at 4:35 pm
    SurePolarBea says:
    I'm not a fan of onerous regulation...but when insurance companies look at fines as a 'cost of doing business' that allow them to stick it to the end consumer...maybe there is... read more
  • February 24, 2025 at 10:17 am
    PolarBeaRepeal says:
    Two things may happen; insurers will withdraw or reduce their portfolios in Washington state, and or they will pass those penalties back to customers. Brilliant move by Wash... read more

Add a CommentSee All Comments (3)Add a Comment

Your email address will not be published. Required fields are marked *

*

More News
More News Features