The bill aims to enhance public safety by strengthening the enforcement of crimes related to insurance fraud and other offenses affecting the insurance industry and its consumers. It amends various sections of the Revised Code of Washington (RCW) to update definitions and broaden the scope of insurance fraud. A significant addition is the new definition of "insurer," along with a clarification that the insurance fraud program will address not only insurance fraud but also other crimes impacting the insurance sector. The legislation emphasizes the importance of restitution for victims and seeks to alleviate the financial burden of fraudulent claims on insurance premiums.

Additionally, the bill outlines the responsibilities of the insurance commissioner and the insurance fraud program, granting them the authority to conduct investigations, hire personnel, and collaborate with law enforcement. It classifies insurance fraud as a class B felony, with each instance treated as a separate offense, and mandates that insurers and licensees report suspected fraudulent activities. The bill also requires state and local law enforcement agencies to disclose relevant information to the commissioner when insurance fraud is suspected and mandates that businesses financing insurance premiums send copies of their agreements to the commissioner. Furthermore, it modifies the definition of victims in insurance fraud cases to include insured persons, insurance companies, consumers, or beneficiaries, and establishes a ten-year statute of limitations for prosecuting such offenses.

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
Engrossed substitute: 48.135.005, 48.135.010, 48.135.020, 48.135.040, 48.135.050, 48.135.060, 48.135.070