Committee hears bill to let insurance commissioner order restitution, raise fines for insurers; industry urges guardrails

The Consumer Protection & Business Committee held a public hearing Jan. 24 on House Bill 1199, a legislative request from the Office of the Insurance Commissioner that would allow the insurance commissioner to order restitution for consumers and amend existing fine authority for insurers.

Under the bill as presented to the committee, the insurance commissioner could order a person regulated by the insurance code to pay restitution when the person possesses or controls money or property that belongs to another, either after a hearing or with the person's consent. Restitution under the bill would carry 8% simple interest from the date the obligation arose and must be paid within 30 days of the commissioner's order. The bill also would amend a current fine (noted in testimony as $250) to a maximum of $10,000 and specify that the fine can be assessed per violation.

Patty Kuderer, Washington State insurance commissioner, told the committee the proposal is an agency-request bill designed to address a "foundational fairness to the…