BILL REQ. #:  H-1669.1 

Read first time 02/14/2005.   Referred to Committee on Financial Institutions & Insurance.

     AN ACT Relating to insurance fraud; and creating a new section.

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

NEW SECTION.  Sec. 1   The legislature finds that insurance fraud is inimical to public safety, welfare, and order within the state of Washington. Insurance fraud increases insurance premiums, to the detriment of individual policyholders, small businesses, large corporations, and governmental entities. All Washingtonians ultimately bear the societal burdens and costs caused by those who commit insurance fraud.
     The insurance commissioner and the attorney general, together, shall study the extent of insurance fraud in Washington and the current laws which are in place to combat insurance fraud. In studying this issue, consideration should also be given to the experiences and approaches taken by other states in fighting fraud. Recommendations should address, among other things: What changes in law are necessary to more effectively fight insurance fraud; whether Washington should establish a dedicated insurance fraud bureau; where such a bureau should be located; the resources which would be necessary to establish such a bureau; and the potential sources of funding.
     In the conduct of this study, the insurance commissioner and the attorney general shall consult with insurance carriers; insurance agents and brokers; public and independent adjusters; the association of Washington business; the Washington state bar association; the Washington state medical association; the American civil liberties union; Columbia legal services; the Washington association of sheriffs and police chiefs; the Washington state patrol; the state department of health; the state department of labor and industries; and representatives of local governments.
     The insurance commissioner and the attorney general shall report the results of this study to the legislature not later than December 1, 2005.