House Bill 1199 amends existing insurance statutes, specifically RCW 48.02.080 and RCW 48.05.185, and expands the enforcement and remedial powers of the Office of the Insurance Commissioner. The bill authorizes the commissioner to prosecute actions in court to enforce orders under the insurance code, to certify suspected penal violations to the local public prosecutor, and to take enforcement measures when a violation is occurring or imminent, including issuing cease and desist orders, seeking injunctions, and ordering restitution either alone or in combination. The bill adds specific restitution and penalty procedures: restitution ordered by the commissioner must be paid to the entitled person within 30 days and accrues eight percent simple interest from the date the obligation arose. The commissioner may levy fines on insurers of not less than $250 and not more than $10,000 per violation, with an order specifying a payment period of 15 to 30 days; unpaid fines can result in revocation of an insurer’s certificate of authority. Collected fines are to be recovered in a civil action by the attorney general and deposited to the state treasurer for the general fund. The attorney general and county prosecuting attorneys are required to prosecute or defend proceedings under the insurance code when requested by the commissioner. This is a modification of existing law that creates additional enforcement, remedial, and penalty mechanisms (procedural changes and penalty provisions) rather than creating a new crime. The extracted text does not provide statutory definitions for terms like “commissioner” or “person regulated under this code,” and the chunk does not include the full surrounding statutory text, so how these changes interact with other provisions of the insurance code is uncertain. The bill was prefiled 01/08/25 and read for the first time 01/13/25.

If enacted, this bill gives the Office of the Insurance Commissioner stronger, faster tools to stop and remedy wrongdoing: the commissioner can seek court orders to stop violations, order that money or property be returned to harmed parties with 8% simple interest from when the obligation arose, and levy fines of $250 to $10,000 per violation that must be paid within 15–30 days or risk revocation of an insurer’s certificate of authority. Insurers and other people regulated under the insurance code face clearer financial risks and tighter timetables for payment and compliance, and harmed consumers could see quicker restitution if the commissioner orders it (the restitution must be paid within 30 days of the order). The bill also formalizes coordination with prosecutors: the commissioner must refer suspected criminal violations to the local public prosecutor, and the attorney general and county prosecutors will prosecute or defend proceedings when asked, with collected fines recovered by the attorney general paid into the state general fund. Important context is missing here — the definitions of “commissioner,” who exactly counts as a “person regulated under this code,” and how these changes fit with other parts of the insurance law are not included, so the practical reach of these powers and who will be targeted most often is somewhat uncertain.