Washington Senate Passes Consumer Restitution Bill

Washington Insurance Commissioner Patty Kuderer sponsored a bill to give consumers restitution from insurers or agents that caused them financial harm. It passed the Washington Senate by a 29 to 20 vote and is now in the hands of the Washington House.

The bill allows the insurance commissioner’s office to force an insurer, an agent or broker, or other people and businesses, violating the state’s insurance laws, to pay restitution to the wronged consumer. Kuderer’s bill also provides for “fining parity” for all insurers regulated by her office.

“As the consumer watchdog, people expect us to help them when they’ve been harmed by a company they’ve trusted,” Kuderer said. “They expect us to be able to make them whole.”

The commissioner says under current law if an insurer charges higher rates than approved by her office, there is no mechanism in place for her — or any future commissioner — to order restitution.

An insurance agent collecting premiums not sending the money to the insurance company, and leaving that consumer without coverage, cannot be forced to repay the money taken.

Current law says no matter how many violations, the commissioner’s office can only fine insurers — or others — $10,000. If passed, SB 5331 will allow $10,000 fines per incident.

“Fines help incentivize the insurer or individual to come back into compliance and helps deter them from harming consumers in the future,” she noted.

Source link: Washington Department of Insurance — https://bit.ly/3ZyVTPB

Source link: Insurance Journal — https://bit.ly/46gQwIu

Source link: PropertyCasualty360.com — https://bit.ly/3ZyVNYf