SB 5331 Washington Senate · 2025-2026 Regular Session

Strengthening consumer protection through increased insurer accountability for violations of the insurance code.

SB 5331 aims to strengthen consumer protection by increasing accountability for insurance companies that violate the state's insurance code. The bill grants the Insurance Commissioner new authority to order insurers to pay restitution directly to consumers for demonstrated economic damages, including interest, for various types of obligations. It also clarifies that the Commissioner can levy fines between $250 and $10,000 per violation against insurers. These provisions empower the Commissioner to better address consumer harm and ensure insurers adhere to regulations.

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Mar 2025

Senate Passage

Jan 2026

House Passage

Governor

Introduced Jan 12, 2026 Last action Mar 12, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Bill → Substitute Bill · 3 edits

MINOR

This bill amends the Washington insurance code to strengthen consumer protections by clarifying when insurers must pay restitution for unpaid claims or premiums. It explicitly defines 'economic damages' to exclude services from providers like doctors or auto repair shops, preventing insurers from being forced to pay for third-party services they did not directly control. The bill also updates the definition of when a financial obligation 'arose' to ensure restitution interest starts at the correct time, and it adjusts the minimum fine for insurance violations from $250 to $250 while removing conflicting strike-through text.

Scope change

The bill narrows the scope of restitution liability by excluding 'providers' (such as healthcare providers and contractors) from the definition of who can receive restitution payments from insurers, ensuring insurers are only liable for direct economic damages.

DEFINITION

Added a new definition for 'provider' to exclude entities like health care providers and auto body shops from receiving restitution, limiting insurer liability to direct economic damages.

TIMELINE

Clarified the 'date the obligation arose' for restitution interest, specifying different start dates for insurance claims, premiums, and other obligations to ensure accurate interest calculations.

ENFORCEMENT

Updated the fine structure for insurance violations, removing conflicting text and confirming the fine range is between $250 and $10,000 per violation.

Floor votes · Senate Jan 21, 2026

How they voted

31–20

Passed

Total votes 51

Jan 21, 2026

D Democratic31

30 Yea 1 Nay

96% Yea

R Republican20

1 Yea 19 Nay

95% Nay

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jan 21, 2026

Senate · Passed

Senate Vote: pass (31-20)

senate

Jan 12, 2026

Introduced

By resolution, reintroduced and retained in present status.

upper

Mar 26, 2025

Lower · Passed

Executive session scheduled, but no action was taken in the House Committee on Consumer Protection & Business at 1:30 PM.

lower

Mar 19, 2025

Lower · Passed

Public hearing in the House Committee on Consumer Protection & Business at 1:30 PM.

lower

Feb 19, 2025

Upper · Passed

Minority; without recommendation.

upper

Feb 19, 2025

Upper · Passed

Minority; do not pass.

upper

Feb 19, 2025

Upper · Passed

Executive action taken in the Senate Committee on Business, Financial Services & Trade at 8:00 AM.

upper

Jan 30, 2025

Upper · Passed

Public hearing in the Senate Committee on Business, Financial Services & Trade at 8:00 AM.

upper

1 primary · 10 co-sponsors