In a letter to the Washington State House Consumer Protection and Business Committee, the Consumer Federation of America urged the Committee 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.

Under the current system, if insurance companies break Washington state law in ways that financially harm policyholders, OIC does not have the authority to order restitution to the impacted policyholders. For example, the $2.9 million in fines stemming from OIC actions in 2025 was paid to the state’s general fund, but the actions resulted in no return of money to the consumers victimized by the insurers’ improprieties and illegalities.

SB 5331 gives the Commissioner the power to order restitution payments to consumers who have been financially harmed by insurance companies or agents. After the OIC issues the order, the money must 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.