Claims News Service, Feb. 22, 3:26 p.m.- According to theProperty Casualty Insurers Association of America (PCI), theWashington state Senate Consumer Protection and Housing Committeerecently approved two bills that would increase consumers'insurance costs as well as slow the claim settlement process andimpede the investigations of fraudulent claims.

PCI said that SB 5344 could result in reprimands for insurancecompanies that conduct thorough investigations when claims arefiled, and SB 5726 would discourage insurance companies fromdenying any claim in order to avoid a lawsuit alleging bad faithfrom the claimant, and face potentially paying up to three timesthe amount of damages.

“Policyholders benefit when insurers conduct thoroughinvestigations so they can evaluate claims fairly and pay onlythose claims that are covered under the policy contract,” said PCINorthwest Regional Manager Kenton Brine, in a release. “Enactingthese bills works against the best interest of Washington consumersby stifling insurers' ability to manage costs and help keeppremiums affordable for consumers.”

The two bills will proceed to the Senate Rules Committee forfurther debate and then to the full Senate for debate.

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