Senate Bill 5331, Insurer Accountability for Violations of the Insurance Code (Washington, 2025)

Summary

Senate Bill 5331, State of Washington, 69th Legislature, 2025 Regular Session, by Senators Cortes, Frame, Hasegawa, Kauffman, Lovelett, Lovick, Nobles, Orwall, Stanford, Trudeau, and C. Wilson, by request of Insurance Commissioner, read first time 01/17/25 and referred to Committee on Business, Financial Services & Trade. The act relates to strengthening consumer protection through increased insurer accountability for violations of the insurance code and amends RCW 48.02.080 and 48.05.185. Section 1 covers restitution the commissioner may order, to be paid with eight percent simple interest from the date the obligation arose and within 30 days of the date of the order. Section 2 amends the fine the commissioner may levy on an insurer per violation.

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Full text

     Z-0285.2

                               SENATE BILL 5331


     State of Washington       69th Legislature        2025 Regular Session

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

     Read first time 01/17/25.      Referred   to   Committee   on   Business,
     Financial Services & Trade.




 1       AN ACT Relating to strengthening consumer protection through
 2   increased insurer accountability for violations of the insurance
 3   code; and amending RCW 48.02.080 and 48.05.185.


 4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:


 5       Sec. 1. RCW 48.02.080 and 2009 c 549 s 7005 are each amended to
 6   read as follows:
 7       (1) The commissioner may prosecute an action in any court of
 8   competent jurisdiction to enforce any order made by him or her
 9   pursuant to any provision of this code.
10       (2) If the commissioner has cause to believe that any person has
11   violated any penal provision of this code or of other laws relating
12   to insurance he or she shall certify the facts of the violation to
13   the public prosecutor of the jurisdiction in which the offense was
14   committed.
15       (3) If the commissioner has cause to believe that any person is
16   violating or is about to violate any provision of this code or any
17   regulation or order of the commissioner, he or she may:
18       (a) ((issue)) Issue a cease and desist order; ((and/or))
19       (b) ((bring)) Bring an action in any court of competent
20   jurisdiction to enjoin the person from continuing the violation or
21   doing any action in furtherance thereof;
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 1       (c) Order the payment of restitution as provided in subsection
 2   (5) of this section; or
 3       (d) Any combination of (a), (b), and (c) of this subsection.
 4       (4) The attorney general and the several prosecuting attorneys
 5   throughout the state shall prosecute or defend all proceedings
 6   brought pursuant to the provisions of this code when requested by the
 7   commissioner.
 8       (5) The commissioner may order payment of restitution when a
 9   person regulated under this code possesses or controls, directly or
10   indirectly, such fees, money, funds, or other property that belongs
11   to, is due to, or is owed to another person. After hearing or with
12   the consent of the person, the commissioner may order such person to
13   pay restitution to any person entitled to restitution in the form of
14   fees, money, funds, or other property. Restitution shall be paid with
15   eight percent simple interest from the date the obligation arose. Any
16   restitution ordered by the commissioner must be paid to the person to
17   whom it is due within 30 days of the date of the order.


18       Sec. 2.   RCW 48.05.185 and 1980 c 102 s 1 are each amended to
19   read as follows:
20       After hearing or with the consent of the insurer and in addition
21   to or in lieu of the suspension, revocation, or refusal to renew any
22   certificate of authority the commissioner may levy a fine upon the
23   insurer in an amount not less than ((two hundred fifty dollars)) $250
24   and not more than ((ten thousand dollars)) $10,000 per violation. The
25   order levying such fine shall specify the period within which the
26   fine shall be fully paid and which period shall not be less than
27   ((fifteen)) 15 nor more than ((thirty)) 30 days from the date of such
28   order. Upon failure to pay any such fine when due the commissioner
29   shall revoke the certificate of authority of the insurer if not
30   already revoked, and the fine shall be recovered in a civil action
31   brought ((in)) on behalf of the commissioner by the attorney general.
32   Any fine so collected shall be paid by the commissioner to the state
33   treasurer for the account of the general fund.

                                  --- END ---




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