Strengthening consumer protection by increasing insurer accountability for violations of the insurance code (HB 1199 / SB 5331)
This bill gives the insurance commissioner authority to order restitution, including interest, for consumers harmed by an insurance company’s violation of Washington state insurance laws.
HB 1199 / SB 5331 recommends a simple interest rate of 8% applied to money paid back to consumers, which is the current practice. It also gives the insurance commissioner authority to assess fines against insurers for each violation of state insurance laws, which aligns the fine schedule for insurers with other regulated entities.
For entities the insurance commissioner regulates, fines are capped at $10,000 per violation or offense. Currently, the commissioner’s authority to fine property and casualty insurers — like home and auto insurance companies — is limited to $10,000, regardless of the number of violations. The restitution bill would eliminate that disparity.
Protecting consumers by prohibiting post-loss assignment of benefits in insurance claims (HB 2399 / SB 6178)
Post-loss assignment of benefits (AOB) is an agreement that allows a third party, like a contractor, to stand in for the policyholder and receive insurance payments directly from the insurance company. These are presented as a convenience for policyholders, but the practice has been abused in other states after natural disasters. Once a consumer signs this agreement, they lose control over their insurance benefits, which leads to inflated claims, unnecessary litigation, and higher premiums.
HB 2399 / SB 6178 would prohibit post-loss AOBs, which is a proactive step to preserving consumer protections, promoting transparency, and maintaining a stable insurance market.
Protecting consumers by modernizing Washington’s insurance fraud laws (HB 2394 / SB 6031)
HB 2394 / SB 6031 defines insurance fraud as its own crime in state law. The definition includes billing an insurance company or consumer for services not provided, impersonating others in insurance-related claims or transactions, and stealing insurance premium payments or premium financing loans.
It expands “victims of insurance fraud” to include insurance consumers and insurance beneficiaries, eligible for criminal restitution. It authorizes the OIC’s criminal investigators to investigate other crimes that impact the insurance industry, or insurance consumers or beneficiaries.
The bill would also expand statutory reporting of suspected insurance fraud to the insurance commissioner by adding regulators of health care or financial services professions, and other law enforcement and public safety agencies as required reporters. It also requires Washington businesses to submit executed insurance premium financing agreements to the insurance commissioner.
Preventive services bill (HB 2242 / SB 5967)
HB 2242 / SB 5967 would preserve several provisions of the Affordable Care Act that are already part of Washington state law, including access to preventive services protections.
State law currently links required coverage of preventive services to recommendations from the federal Advisory Committee on Immunization Practices (ACIP), though recent federal actions have narrowed access to vaccines. This bill would preserve access to preventive services without cost-sharing for Washingtonians who use these services.
The bill would amend our preventive services coverage law to refer to the state Department of Health’s recommendations for immunization coverage, rather than the ACIP’s, and set the preventive services coverage standards to recommendations from the U.S. Preventive Health Services Task Force (USPHSTF) and Health Resources and Services Administration (HRSA) as of June 30, 2025. It would give the insurance commissioner authority to issue rules consistent with the amendments to current law in the bill.
Concerning wildfire risk models and score disclosure (HB 2277 / SB 5928)
Insurers are increasingly using wildfire risk scores to evaluate a property’s exposure and determine eligibility, pricing, and renewals. These scores significantly affect the availability and cost of insurance, yet consumers never learn their score, who created it, what factors influenced it, or how to improve it. Models may also fail to account for community or property-level mitigation efforts.
SB 5928 / HB 2277 would require insurers to disclose wildfire risk scores when used, explain the factors behind the score, and provide plain-language steps that consumers can take to improve their score. If the insured has done mitigation work since the last evaluation, or there are demonstrable inaccuracies with the current evaluation, they can appeal. Requiring disclosure strengthens consumer protections, supports beneficial mitigation, and promotes a fair and stable insurance market for Washington families and communities.
Reducing nonrenewal and cancellations of insurance policies due to wildfire risk (HB 2407 / SB 6079)
Wildfire losses are increasing across Washington. Many homeowners, particularly in high-risk areas, face insurance nonrenewals or difficulty securing property insurance due to wildfire exposure. The Strengthen Washington Homes Program, HB 2407 / SB 6079, proposed by Insurance Commissioner Patty Kuderer, creates a voluntary grant program to help retrofit existing homes using the Insurance Institute for Business & Home Safety (IBHS) Wildfire Prepared Home standards.
Home-hardening, using proven standards like IBHS, drives insurer confidence and market stability by directly reducing the likelihood of a home igniting. Investing in these proven upgrades helps protect homes, communities, and access to essential insurance coverage.
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