OLYMPIA, Wash. — Washington state Insurance Commissioner Patty Kuderer issued fines totaling $828,500 for insurance law violations in July, August, September, and early October of 2025. That included a $100,000 fine for Regence BlueShield, which incorrectly denied 954 claims for treatment, and a $550,000 fine against Premera — announced in August — for violations of the Health Parity and Addiction Equity Act and Washington’s provider directory regulations.
The third-quarter total brings the amount collected since 2001 to over $44 million, which the Office of the Insurance Commissioner (OIC) sends to the state’s general fund to pay for state services.
Regence fined $100,000 for incorrectly denying claims
Kuderer fined Regence Blueshield $100,000 for incorrectly denying 954 claims for treatment based on a lack of preauthorization. The denials took place between June 11, 2020, and May 25, 2022, and included chiropractic, physical therapy, occupational therapy, acupuncture and Eastern medicine, massage therapy, and speech and hearing therapies.
Regence reprocessed the claims, after which Regence’s amount paid increased from $11,139 to $85,982. The patient portion also increased — from $6,114 to $31,724 — after reprocessing because policyholder cost-shares and deductibles were now applied.
Additional fines
Jonathan Ayers, Vancouver, Wash.; fined $3,000 (order 25-0099).
- Ayers lowered the deductible on a policy for his own travel trailer from $1,000 to $250 and misrepresented the date of the loss on a claim filed under the policy. The consent order imposed two years of probation, bars him from acting as the agent on his own policies for two years, and requires Ayers to complete 10 hours of ethics training within one year of the order.
Dentegra Insurance Company, Wilmington, Del.; fined $75,000 (order 25-0102).
- Dentegra failed to timely file its 2026 dental network access plan and GeoNetwork reports, placing approximately 11,000 enrollees at risk of coverage disruption or loss.
- Dentegra was fined $75,000 and agreed to cover at least $25,000 in basic dental care and services, including preventive cleanings and checkups, as well as basic restorative services, for uninsured Washingtonians by January 14, 2026.
PacificSource Health Plans, Springfield, Ore.; fined $25,000 (order 25-0054).
- Due to a system coding error, PacificSource issued adverse benefit determinations that didn’t disclose members’ appeal rights on prescription drug denials for 116 members.
Midvale Indemnity Company, Madison, Wis.; fined $5,000 (order 25-0079).
- Midvale incorrectly applied rating factors on 233 business policies in effect in 2023. The company returned, with interest, the $461 in resulting overcharges and waived $6,619 in resulting undercharges.
Heartland Dental LLC, Wilmington, Del.; fined $15,000 (order 25-0100).
- Heartland failed to timely report health care benefit manager credentialing contracts with 17 carriers.
KeyCorp Insurance Agency USA, Inc., Brooklyn, Ohio; fined $10,000 (order 25-0065).
- KeyCorp failed to competently and timely resolve an identified annuity issue, failed to competently oversee two of its affiliated producers, and conducted business under something other than its legal name.
Premera Blue Cross, Mountlake Terrace, Wash.; fined $550,000 (order 24-0108).
Prestige International Insurance Group, Tamarac, Fla.; fined $1,000 (order 25-0095).
- Prestige failed to notify an insurance company, and required an additional form to be signed upon receiving a customer’s request to cancel their policy.
The Corporation of Haverford College, Haverford, Penn.; fined $12,500 (order 25-0122).
- The college issued five charitable gift annuities in Washington from 1993 to 2021 — with an aggregate value of $501,317 — before obtaining a certificate of exemption from the OIC and issued annuities that didn’t comply with state law.
Eagle West Insurance Company, Monterey, Calif.; fined $5,000 (order 25-0103).
- Eagle West used incorrect base rates for its 680 Washington commercial farm and ranch policies in the first five months of 2023. The company waived $261,673 in undercharged premiums on 315 policies and refunded $559 in overpayments on nine policies.
Accredited Surety and Casualty Company, Orlando, Fla.; fined $15,000 (order 25-0126).
- The company issued ocean marine insurance policies without being authorized for that line of insurance in Washington state.
Grange Insurance Association, Seattle, Wash.; fined $5,000 (order 25-0107).
- The company applied incorrect protection classification codes to an estimated 149 farm policies in 2023 and 2024, resulting in an estimated $133,206 in undercharged premiums.
Ying Sun, Bellevue, Wash.; fined $5,000 (order 25-0136).
- Sun made false statements on 12 submitted applications for life insurance policies, stating the applications were signed in various California cities when they were actually signed in Washington. The consent order also imposed two years of probation, including a requirement that Sun have a mentor review their insurance work in Washington during the probation.
Bankers Fidelity Life Insurance Company, Atlanta, Ga.; fined $2,000 (order 25-0146).
- The company filed its annual Medicare Supplement Premium Rates and Experience form and its annual Medicare Supplement Refund Calculation form after the deadline of May 31, 2024.
About the office
The OIC publishes disciplinary orders against companies, agents, and brokers. Consumers can also look up complaints against insurance companies.
For an insurance question or complaint, you may contact Kuderer’s consumer advocates online or by phone at 800-562-6900.