Washington’s New Insurance Commissioner & a Restitution Bill

The Washington Legislature is looking at a bill that would give the state’s new insurance commissioner, Patty Kuderer the power to require insurers to give restitution payments directly to policyholders for legal violations.

The bill also will allow her to fine insurance companies on each individual violation.

So far there isn’t a lot of opposition — at least outright — to the bill and Kuderer’s stance on the issue. Most associations have noted that the commissioner already has the power to fine the insurers and order restitution. And they wonder why this bill is even necessary.

The new commissioner disagrees and says as things stand now, a policyholder wanting to get satisfaction for violations have to take the insurer to court. Kuderer says that’s “inefficient.”

She also says this is a top priority for her first year in office. “Any fine we collect goes into the state general fund,” she said. “It does not make the policyholder whole.”

And the commissioner said restitution payments will need to include an 8% simple interest charge from the date of the obligation. 

Source link: Business Insurance America — https://bit.ly/40PpANT