Panel approves restitution amendment to insurance oversight bill; committee passes measure as amended

The Industry, Business and Labor Committee considered House Bill 1088, a measure modifying enforcement powers within insurance law to allow the Insurance Commissioner to require restitution to consumers who suffer proven financial harm.

Commissioner John Godfrey told the committee the department had encountered cases where fines alone did not make harmed consumers whole and that the proposed language would give the department an enforcement tool to require restitution payments to victims. "At the end of the day, we don't have any ability to enforce that... this is another tool for us to come after to help make consumers whole," Godfrey said.

Members discussed statutory caps and standards. Representative Koppelman and others asked whether restitution should be limited or whether fines should be stacked per violation; Representative Casper cited a recent rebating consent order that resulted in a large penalty and expressed concern about administrative enforcement power. The commissioner said the rebating consent order resulted from negotiated enforcement and noted the department had due‑process options including contested hearings.

Representative Schauer moved a verbal amendment to add restitution language: "In addition to or in lieu of a monetary fine, the commissioner may require restitution in the amount of direct financial loss be made to any person directly harmed by a violation of this title." The committee voted to adopt the amendment by roll call.

The committee then voted to give House Bill 1088 a do‑pass recommendation as amended. Roll call votes were recorded on both the amendment and the final motion.

What’s next: The bill, as amended in committee, will be reported out with a do‑pass recommendation; any further changes would require floor amendment or additional committee action.