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Senate Bill Report — SB 5331, Insurer Accountability for Violations of the Insurance Code (As of January 27, 2025)

Summary

This Senate Bill Report on SB 5331, as of January 27, 2025, covers an act relating to strengthening consumer protection through increased insurer accountability for violations of the insurance code, by request of Insurance Commissioner. The brief summary states that the bill authorizes the Office of the Insurance Commissioner to order the payment of restitution in enforcement actions and to levy fines against authorized insurers of up to $10,000 per violation, rather than $10,000 total. The summary of the bill states that restitution must be paid with 8 percent simple interest from the date the obligation arose. The background states that the amount of a fine may not be less than $250 and may not be more than $10,000.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Issuer
Congressional materials
Document type
Report
Date
2025-01-30
Case
2025 01 30 A32585 D276464 Bill Report 5331 Sba Bft 25

Cite this document

“Senate Bill Report — SB 5331, Insurer Accountability for Violations of the Insurance Code (As of January 27, 2025).” Original at app.leg.wa.gov, dated 2025-01-30. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2025-01-30-2025-01-30-a32585-d276464-bill-report-5331-sba-bft-25/, SHA-256 67bfecb66d63b272e231b9b541dbd1ac226ed273469e7daad92f61da3060f38c.

Full text

                            SENATE BILL REPORT
                                  SB 5331

                                      As of January 27, 2025

Title: An act relating to strengthening consumer protection through increased insurer
     accountability for violations of the insurance code.

Brief Description: Strengthening consumer protection through increased insurer accountability
     for violations of the insurance code.

Sponsors: Senators Cortes, Frame, Hasegawa, Kauffman, Lovelett, Lovick, Nobles, Orwall,
    Stanford, Trudeau and Wilson, C.; by request of Insurance Commissioner.

Brief History:
     Committee Activity: Business, Financial Services & Trade: 1/30/25.


                                     Brief Summary of Bill
           • Authorizes the Office of the Insurance Commissioner to order the
             payment of restitution in enforcement actions.
           • Authorizes the Office of the Insurance Commissioner to levy fines
             against authorized insurers of up to $10,000 per violation, rather than
             $10,000 total.


SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES & TRADE

     Staff: John Kim (786-7453)

     Background: The Office of the Insurance Commissioner (OIC) administers the
     Washington Insurance Code (code) and oversees insurance companies and insurance
     professionals conducting business in the state. As part of its enforcement authority, the OIC
     may prosecute an action in any court of competent jurisdiction to enforce an order by the
     commissioner pursuant to any provision of the code. If the OIC has cause to believe that
     any person is violating or is about to violate any provision of the code or any regulation or




     This analysis was prepared by non-partisan legislative staff for the use of legislative
     members in their deliberations. This analysis is not part of the legislation nor does it
     constitute a statement of legislative intent.

Senate Bill Report                              -1-                                             SB 5331
     order of the commissioner, the OIC may issue a cease and desist order or bring an action to
     enjoin the person from continuing the violation or doing any action in furtherance thereof.

     An authorized insurer is an insurer transacting insurance in the state through a certificate of
     authority issued by the OIC. In imposing disciplinary actions against an authorized insurer,
     the OIC is authorized to levy a fine in addition to or in lieu of suspending, revoking, or
     refusing to review the insurer's certificate of authority. The amount of the fine may not be
     less than $250 and may not be more than $10,000.

     Summary of Bill: Authority to Order Restitution. In addition to its authority to issue cease
     and desist orders and bring actions for injunctive relief, the OIC may also order the payment
     of restitution when a person regulated under the code possesses or controls, directly or
     indirectly, such fees, money, funds, or other property that belongs to, is due to, or is owed to
     another person.

     After hearing or with the consent of the person, the OIC may order such person to pay
     restitution to any person entitled to restitution in the form of fees, money, funds, or other
     property.

     Restitution must be paid with 8 percent simple interest from the date the obligation arose. It
     must be paid to the person to whom it is due within 30 days of the date of the order.

     Authorized Insurer Fines. The OIC may levy fines against authorized insurers of up to
     $10,000 per violation, rather than $10,000 total.

     Appropriation: None.

     Fiscal Note: Requested on January 22, 2025.

     Creates Committee/Commission/Task Force that includes Legislative members: No.

     Effective Date: Ninety days after adjournment of session in which bill is passed.




Senate Bill Report                              -2-                                          SB 5331

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2025-01-30_a32585_d276464_bill-report-5331-sba-bft-25.pdf
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Original
app.leg.wa.gov
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