The bill aims to enhance public safety and improve the enforcement of crimes related to insurance fraud in Washington State. It introduces a new section to define "insurer" and updates the existing insurance fraud chapter to encompass a broader range of crimes affecting the insurance sector. The legislation emphasizes the need for updated definitions to address sophisticated fraud schemes and outlines a comprehensive approach to detect, reduce, and prosecute such crimes, including mandating restitution for victims and expenses incurred by insurers due to fraudulent activities. Additionally, it expands the powers of the insurance commissioner, allowing for the employment of various personnel and the use of technology to combat insurance fraud, while establishing a framework for cooperation between insurers, law enforcement, and regulatory agencies.

The bill also includes several amendments to existing laws regarding insurance agreements and the prosecution of certain crimes. It requires any business entity registered in the state that enters into an agreement to finance an insurance premium to send a copy of the executed agreement and the associated insurance policy to the commissioner within 30 days. Furthermore, it clarifies that specific documents related to insurance fraud investigations are exempt from public inspection and can be shared with regulatory and law enforcement agencies. The bill modifies the statute of limitations for prosecuting certain offenses, stating that violations of RCW 48.135.010 may not be prosecuted more than 10 years after their commission or discovery, with provisions for extending limitation periods under specific circumstances. It concludes with a severability clause to ensure the enforceability of remaining provisions if any part of the act is deemed invalid.

Statutes affected:
Original bill: 48.135.005, 48.135.010, 48.135.020, 48.135.040, 48.135.050, 48.135.060, 48.135.070
Substitute bill: 48.135.005, 48.135.010, 48.135.020, 48.135.040, 48.135.050, 48.135.060, 48.135.070