In a letter to the Washington State Senate, the Consumer Federation of America urged Senators to support SB 5331, which gives the Insurance Commissioner the power to order restitution from insurance companies to policyholders who have been unfairly treated or overcharged. The bill was just approved by the Senate Business, Financial Services and Trade Committee.

The bill gives the Commissioner the power to order restitution payments to consumers who have been financially harmed by insurance companies or agents. After the order is issued, the money has to be paid to the policyholders within thirty days and the restitution will also be paid with 8% simple interest from the date the obligation arose. It also increases the maximum fine that the Commissioner can impose on property and casualty insurers to $10,000 per violation instead of $10,000 total, to ensure that the scale of the fine reflects the scale of the misbehavior.