Insurance code violations

AN ACT Relating to strengthening consumer protection through 1
increased insurer accountability for violations of the insurance 2
code; and amending RCW 48.02.080 and 48.05.185. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 48.02.080 and 2009 c 549 s 7005 are each amended to 5
read as follows: 6
(1) The commissioner may prosecute an action in any court of 7
competent jurisdiction to enforce any order made by him or her 8
pursuant to any provision of this code. 9
(2) If the commissioner has cause to believe that any person has 10
violated any penal provision of this code or of other laws relating 11
to insurance he or she shall certify the facts of the violation to 12
the public prosecutor of the jurisdiction in which the offense was 13
committed. 14
(3) If the commissioner has cause to believe that any person is 15
violating or is about to violate any provision of this code or any 16
regulation or order of the commissioner, he or she may:17
(a) ((issue)) Issue a cease and desist order; ((and/or))18
(b) ((bring)) Bring an action in any court of competent 19
jurisdiction to enjoin the person from continuing the violation or 20
doing any action in furtherance thereof;21
Z-0285.2
SENATE BILL 5331
State of Washington 69th Legislature 2025 Regular Session
By Senators Cortes, Frame, Hasegawa, Kauffman, Lovelett, Lovick,
Nobles, Orwall, Stanford, Trudeau, and C. Wilson; by request of
Insurance Commissioner
Read first time 01/17/25. Referred to Committee on Business,
Financial Services & Trade.
p. 1 SB 5331
(c) Order the payment of restitution as provided in subsection 1
(5) of this section; or2
(d) Any combination of (a), (b), and (c) of this subsection.3
(4) The attorney general and the several prosecuting attorneys 4
throughout the state shall prosecute or defend all proceedings 5
brought pursuant to the provisions of this code when requested by the 6
commissioner. 7
(5) The commissioner may order payment of restitution when a 8
person regulated under this code possesses or controls, directly or 9
indirectly, such fees, money, funds, or other property that belongs 10
to, is due to, or is owed to another person. After hearing or with 11
the consent of the person, the commissioner may order such person to 12
pay restitution to any person entitled to restitution in the form of 13
fees, money, funds, or other property. Restitution shall be paid with 14
eight percent simple interest from the date the obligation arose. Any 15
restitution ordered by the commissioner must be paid to the person to 16
whom it is due within 30 days of the date of the order.17
Sec. 2. RCW 48.05.185 and 1980 c 102 s 1 are each amended to 18
read as follows: 19
After hearing or with the consent of the insurer and in addition 20
to or in lieu of the suspension, revocation, or refusal to renew any 21
certificate of authority the commissioner may levy a fine upon the 22
insurer in an amount not less than ((two hundred fifty dollars)) $250 23
and not more than ((ten thousand dollars)) $10,000 per violation. The 24
order levying such fine shall specify the period within which the 25
fine shall be fully paid and which period shall not be less than 26
((fifteen)) 15 nor more than ((thirty)) 30 days from the date of such 27
order. Upon failure to pay any such fine when due the commissioner 28
shall revoke the certificate of authority of the insurer if not 29
already revoked, and the fine shall be recovered in a civil action 30
brought ((in)) on behalf of the commissioner by the attorney general. 31
Any fine so collected shall be paid by the commissioner to the state 32
treasurer for the account of the general fund. 33
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