Washington Bill to Enhance Consumer Protection Fails in Committee

On April 3, 2025, the Substitute Senate Bill 5331 aimed to enhance consumer protection by allowing the Washington state insurance commissioner to mandate refunds to consumers from insurance companies violating state laws, failed to pass the House Consumer Protection and Business Committee. The bill, initiated by Insurance Commissioner Patty Kuderer and sponsored by Senator Adrian Cortes, sought to implement fine enforcement parity amongst regulated insurance entities. Kuderer expressed disappointment, stressing that the addition of an amendment capping total fines led to opposition from potential supporters, undermining consumer protection.

The current law directs insurance-related fines to the state's general fund, meaning that consumers must engage in separate lawsuits to reclaim their money from violations, a process that can be lengthy and burdensome. SSB 5331 aimed to rectify this by allowing fines to be directed back to affected consumers. Additionally, the bill intended to align fines for auto and homeowner insurers with those of other regulated sectors, addressing concerns that the existing fine cap is insufficient to deter violations. Kuderer criticized the amendment, arguing it protects bad actors and discourages compliance with the law.