H-4066.1  _______________________________________________

                          HOUSE BILL 2455

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State of Washington      54th Legislature     1996 Regular Session

By Representatives Mitchell, L. Thomas, Regala, Murray, Conway, R. Fisher, Robertson, Pelesky, Scheuerman, Wolfe and Campbell

Read first time 01/11/96.  Referred to Committee on Financial Institutions & Insurance.

Allowing the recovery of consequential damages in insurance claims cases.

    AN ACT Relating to insurance coverage; and adding a new section to chapter 48.30 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 48.30 RCW to read as follows:

    When an insured prevails in an insurance coverage proceeding against an insurer, the insured is entitled to recover all consequential damages caused directly or indirectly by a delay in the resolution of its insurance claim, regardless of whether the insured's total recovery may exceed the insurance policy's limits.

    An award of consequential damages is necessary to deter unfair claims handling practices by insurers.

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