WA| The Washington State Senate has passed four bills with significant implications for insurance regulation, now advancing to the House of Representatives. Senate Bill 5331 empowers the Insurance Commissioner to order restitution for harmed policyholders and increases fines for property and casualty insurers to $10,000 per violation, aligning with existing health insurance penalties. Senate Bill 5589 mandates a study on the use of credit scores and other rating factors in insurance, aiming to identify potential discrimination and explore alternatives, with a preliminary report due by December 31, 2025. Additionally, Senate Bill 5262 updates outdated language in state insurance codes, while SB 5419 transfers fire loss data collection authority from the State Fire Marshal to the Office of the Insurance Commissioner.
Key Points:
- Restitution Authority: SB 5331 allows the Insurance Commissioner to order restitution for wronged policyholders and increases fines for violations.
- Credit Scoring Study: SB 5589 requires an analysis of credit-based insurance scores and alternatives to prevent discriminatory practices.
- Administrative Updates: SB 5262 modernizes insurance code language, and SB 54199 shifts fire loss data responsibilities to the Insurance Commissioner.