In testimony before the Washington State House Consumer Protection & Business Committee, the Consumer Federation of America urged the Committee to pass SB 5331, a bill that gives the Insurance Commissioner the power to order restitution from insurance companies to policyholders who have been unfairly treated or overcharged.

Right now there is a significant loophole in current law that prevents consumers from getting fair repayments when the OIC determines an insurer’s practice overcharged them or denied them money or services they were due. SB 5331 would close this loophole and ensure consumers who have been cheated get their money back. It also clarifies that the maximum fine that the OIC can impose on property and casualty insurers is $10,000 per violation, to ensure that the scale of the fine reflects the scale of the misbehavior.