Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Consumer Protection & Business Committee

HB 2367

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Summary of Bill

Excludes a membership subscription that provides legal assistance to members after a self-defense incident from the definition of insurer in the state's insurance law.
Prohibits a subscription company's legal assistance plan benefit from paying civil damages and associated fines and penalties arising from a self-defense incident.
Prohibits a subscription company member found not guilty by reason of self-defense from being reimbursed for legal costs except for lost time and other legal services.

Background:

Insurance Regulation. The Office of the Insurance Commissioner (OIC) regulates insurance carriers and insurance products in Washington, including the regulation of persons, property, and activities related to insurance. Under Washington law, insurance is a contract whereby one undertakes to indemnify another to pay a specified amount upon determinable contingencies. States regulate insurance to ensure that insurers fulfill the contracts they make with consumers. States also require insurers and insurance-related businesses to obtain a certificate of authority prior to selling products or services.

Reimbursement for a Person Found Not Guilty by Reason of Self-Defense. Washington law provides for reimbursement for all reasonable costs, including loss of time, legal fees incurred, and other defense expenses when the trier of fact finds the defendant's self-defense claim is sustained by a preponderance of evidence. The judge may reduce or deny the award if the trier of fact also determines the defendant was engaged in criminal conduct related to the events giving rise to the charges filed. The reimbursement requires a special verdict in the form provided in the statute.

Summary of Bill:

A subscription company providing a self-defense incident legal assistance plan is excluded from the definition of an insurer. A subscription company's legal assistance plan may not pay civil damages or associated fines and penalties arising from a self-defense incident. A member of a self-defense legal assistance plan who is found not guilty by reason if self-defense is not eligible for reimbursement for legal costs, except for lost time and other legal services.