H-4007.1  _______________________________________________

                          HOUSE BILL 2554

          _______________________________________________

State of Washington      55th Legislature     1998 Regular Session

By Representatives Zellinsky, L. Thomas, Sullivan and Carrell

Read first time 01/15/98.  Referred to Committee on Financial Institutions & Insurance.

Prohibiting offers of incentives to insurance claimants to reimburse claimants for costs of service.

    AN ACT Relating to insurance fraud; amending RCW 48.30A.015; and prescribing penalties.

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

    Sec. 1.  RCW 48.30A.015 and 1995 c 285 s 3 are each amended to read as follows:

    (1) It is unlawful for a person:

    (a) Knowing that the payment is for the referral of a claimant to a service provider, either to accept payment from a service provider or, being a service provider, to pay another; or

    (b) To provide or claim or represent to have provided services to a claimant, knowing the claimant was referred in violation of (a) of this subsection.

    (2) ((It is unlawful for a service provider to engage in a regular practice of waiving, rebating, giving, paying, or offering to waive, rebate, give, or pay all or any part of a claimant's casualty or property insurance deductible.))  It is unlawful for a service provider to offer a claimant a cash incentive, a material incentive, or a nonmaterial incentive, regardless of actual monetary value, when a property and casualty insurance claim will be filed to reimburse the claimant for the cost of service.

(3) The legislature finds that the practices covered by this section are matters vitally affecting the public interest for the purpose of applying the consumer protection act, chapter 19.86 RCW.  Violations of this chapter are not reasonable in relation to the development and preservation of business.  A violation of this chapter is an unfair or deceptive act in trade or commerce and an unfair method of competition for the purpose of applying the consumer protection act, chapter 19.86 RCW.

                            --- END ---