OLYMPIA, Wash. — A bill that would allow Washington’s Insurance Commissioner to order insurance companies to pay restitution to harmed policyholders was approved by the state Senate Business, Financial Services and Trade Committee on Wednesday.  

According to a press release from the Office of the Insurance Commissioner, Senate Bill 5331 sponsored by Sen. Adrian Cortes (D-Battle Ground), would also increase fines for property and casualty insurance companies to $10,000 per violation. Currently, the total fine is capped at $10,000, regardless of the number of violations. Health insurers are already subject to fines of $10,000 per violation, and the bill would make the rules the same for all insurers.  

The Insurance Commissioner’s Office (OIC) can currently fine insurance companies or professionals that break the law but cannot order them to pay restitution directly to policyholders. Instead, fines collected by the OIC go to the state’s general fund.  

“The Office of the Insurance Commissioner is a quasi-legal and quasi-judiciary agency with our own administrative law judge and law enforcement officers,” said Washington State Insurance Commissioner Patty Kuderer. “It was designed to be a one-stop shop for policyholders. But under the current law, we cannot give people what they really want when they’ve been wronged by an insurance company or individual — their money back.”  

The bill will now move to the full Senate for further consideration.