Washington Bill for Consumer Protection Fails in House Committee

A bill in Washington aimed at empowering the insurance commissioner to order restitution for harmed policyholders has failed to pass out of a House committee. Substitute Senate Bill 5331, which was originally requested by Insurance Commissioner Patty Kuderer, passed in the Senate but met obstacles in the House Consumer Protection and Business Committee.

Currently, while the commissioner can impose fines on violating insurance entities, they lack the authority to compel restitution to consumers who have suffered losses due to such violations. SB 5331 sought to improve consumer protections by enabling restitution orders and increasing penalty fines for property and casualty insurers per violation.

Commissioner Kuderer expressed disappointment at the committee’s decision, attributing the failure to an anti-consumer amendment that capped total fines, which swayed potential supporters to vote against the bill. This setback highlights ongoing challenges in enhancing consumer protections in the insurance sector.