Washington Bill Would Provide Restitution for Policyholders Harmed by Insurers

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