H-0372.1  _______________________________________________

                          HOUSE BILL 1077

          _______________________________________________

State of Washington      56th Legislature     1999 Regular Session

By Representatives Dunshee, Stensen, Hurst and Lovick

Read first time 01/14/1999.  Referred to Committee on Financial Institutions & Insurance.

Requiring prompt payment of insurance claims.

    AN ACT Relating to prompt payment of insurance claims; adding a new section to chapter 48.18 RCW; and prescribing penalties.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 48.18 RCW to read as follows:

    (1) Insurers have a duty to process claims for benefits under an insurance policy in a prompt and fair manner.  An insurer shall pay a claim within forty-five days of receipt unless the insurer complies with standards for prompt investigation and settlement of claims adopted by the commissioner by rule, as currently existing or as hereafter amended.  If the insurer disputes part of the claim and agrees to part, the insurer shall pay the part agreed to immediately and resolve the disputed amount in a prompt and fair manner.  The insurance commissioner may investigate a policyholder's complaint that a claim has not been processed in a prompt or fair manner and take appropriate action against the insured, including imposing a fine of up to ten thousand dollars to be deposited in the general fund, if the commissioner finds that the insurer did not process the claim in a prompt or fair manner and that the insured has not resolved the claim as directed by the commissioner.

    (2) This section does not limit other actions or remedies available to the commissioner or the insured under statute, rule, contract, or common law.

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