Washington Insurance Commissioner Patty Kuderer testified to the House Consumer Protection and Business Committee Friday on legislation that would grant her office the authority to require a company or person committing illegal actions to pay restitution. 

The agency-requested legislation, HB1199, was introduced earlier this month by Rep. Jamila Taylor (D-30). 

Kuderer said policyholders are forced to go to court if insurance companies violate Washington state law. She said Friday that the legislation would help provide policyholders financial justice quicker, without clogging the court system. 

“As the new insurance commissioner for Washington state, I don’t believe we should be passing people off to seek help in the already clogged court system when we could be providing restitution directly,” Kuderer said in a press release. “Our primary mission at the OIC is consumer protection. People expect us to help them when they’ve been so clearly wronged.”

She said during the committee meeting that her office won’t fine insurance companies that make minor mistakes. Companies will be fined for knowingly breaking state code.

“This is for the bad actors,” Kuderer said. 

Kuderer gave an example of an insurance company charging premium rates over the state-approved amount. A press release also gives examples of unauthorized insurers defrauding policyholders or an insurance agency that collects premiums but doesn’t forward the money to the insurance company. 

HB 1199 would also change the fine schedule for home and auto insurance companies. Current state law limits fines to up to $10,000 regardless of the number of violations, the press release says. Under the legislation, each violation could result in a fine of up to $10,000. 

The press release notes that fines collected by the OIC go to the state’s general fund.

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Photo is screenshoot of Washington House Consumer Protection and Business Committee meeting.