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 mandates restitution for victims, ensuring protection for both insurers and consumers. Additionally, it amends several statutes to expand the powers of the insurance commissioner, allowing for the employment of legal and investigative staff, conducting investigations, sharing information with law enforcement, and pursuing prosecutions for crimes impacting the insurance industry.

Moreover, the bill requires any business entity registered in the state that finances an insurance premium to send a copy of the executed agreement and associated policy to the commissioner within 30 days. It clarifies that certain documents related to insurance fraud investigations are exempt from public inspection, facilitating information sharing with regulatory and law enforcement entities. The bill also expands the definition of victims in criminal prosecutions to include insured persons and beneficiaries, establishes a ten-year statute of limitations for prosecuting insurance fraud violations, and includes a provision ensuring the enforceability of remaining sections 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