Health insurers in the state were already subject to a fine of $10,000 per violation or offense, so SB5331 evens the field with property and casualty insurers when it comes to accountability to their insureds. (Credit: Dragonstock/Adobe Stock)
Several bills have recently been advanced by the Washington State Senate that address rating in the insurance industry and protections for consumers.
Senate Bill 5331 (SB5331) gives the state insurance commissioner the authority to order restitution for consumers who are victims of illegal acts from companies or individuals. It also gives the Office of the Insurance Commissioner (OIC) the power to fine property and casualty insurers up to $10,000 for each of these violations.
Currently, the Washington Insurance Commissioner only has the power to fine insurance companies for violations. These fines go to the state’s general fund, but there is no recourse to provide compensation to affected consumers.
Health insurers in the state were already subject to a fine of $10,000 per violation or offense, so this bill evens the field with property and casualty insurers when it comes to accountability to consumers.
A second insurance-related bill (SB5589) that passed the Senate requires the OIC to conduct a study about how insurance carriers use consumers’ credit history, credit-based insurance scores and other rating factors. This study would seek alternate methods that could be used in determining premiums.
The Senate also passed the OIC’s fire loss reporting bill (SB5419), which shifts authority for collecting fire loss insurance data from the State Fire Marshall to the OIC.
“This is great news for the people of Washington,” state Insurance Commissioner Patty Kuderer said in a release. “These consumer protection bills take important steps to hold insurance companies accountable for how they treat their policyholders and how my office is able to enforce violations of our insurance laws.”
The bills will move through the Washington House of Representatives next and must pass out of that chamber by April 16.
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