This bill amends existing insurance enforcement law (amending RCW 48.02.080 and 48.05.185) to expand and clarify enforcement powers of the Insurance Commissioner. It expressly authorizes the Commissioner to prosecute actions in court to enforce orders, to certify suspected penal violations to the public prosecutor where the offense occurred, to issue cease-and-desist orders, to seek injunctive relief, and to order payment of restitution. The Attorney General and county prosecuting attorneys are required to prosecute or defend proceedings under the insurance code when requested by the Commissioner. The bill establishes procedures and limits for Commissioner-ordered restitution: restitution may be ordered after a Title 34 RCW hearing or with the consent of the obligated person, is limited to demonstrated economic damages (excluding payments to defined “providers”), accrues simple interest at 8% from the date the obligation arose, and must be paid to the person owed within 30 days of the order. The statute defines “date the obligation arose” differently for insurance claim payments (30 days from receipt by the insurer of all information necessary to determine liability and payment, unless the investigation cannot reasonably be completed within 30 days), for premium payments (the date the premium was charged), and for other obligations (the date performance was required or the date written notice of noncompliance was first given). “Provider” is defined to include entities such as health care providers, restoration or mitigation contractors, and auto body repair shops. The bill also creates a civil penalty scheme and related procedures: the Commissioner may levy fines against insurers of $250 to $10,000 per violation in addition to or instead of suspending, revoking, or refusing to renew a certificate of authority; fine orders must set a payment period of 15 to 30 days, failure to pay authorizes revocation of the insurer’s certificate (if not already revoked) and civil recovery by the Attorney General, and collected fines are deposited to the state general fund. The text notes that subsection (5)(c) does not interfere with RCW 48.49.040. Important context is missing from the extracted text: the broader statutory framework being amended is not shown, the referenced Title 34 RCW and RCW 48.49.040 provisions are not provided, and no effective date or retroactivity information is included.

If enacted, the insurance commissioner would have clearer power to take court action, issue cease-and-desist orders, require restitution to harmed non-provider consumers, and levy fines of $250 to $10,000 per violation; fines unpaid within the 15–30 day payment window specified by the order can trigger revocation of an insurer’s certificate of authority and be collected by the Attorney General, with proceeds going to the state general fund. People owed restitution (excluding service providers like health care or repair shops) would be entitled to demonstrated economic damages plus simple interest at 8% starting from a defined “date the obligation arose” (for claim payments, 30 days after the insurer has all information needed to pay), and restitution must be paid to the person within 30 days of the commissioner’s order. The Office of the Insurance Commissioner would take on more direct enforcement duties and could increase referrals to the Attorney General and county prosecutors, who are required to prosecute or defend actions when asked and may see increased workload; insurers holding Washington certificates face greater compliance risk, potential fines, and the possibility of losing their certificate if fines go unpaid. It is unclear from the provided text when these changes would take effect, how they interact with the referenced Title 34 provisions or RCW 48.49.040, or whether there are other related statutory limits not shown here.