Insurance Fraud Bill Unanimously Passes Washington Senate

A bill intended to combat insurance fraud by updating a 20-year-old law passed the Washington state senate in late February.

Senate Bill 6031 defines insurance fraud as its own crime, a Class B felony.

The bill passed on a unanimous vote.

SB 6031 was pushed for by Washington Insurance Commissioner Patty Kuderer.

State law established the Office of the Insurance Commissioner’s Criminal Investigation Unit in 2006, but the law hasn’t been updated since.

With SB 6031, Kuderer believes this gives the unit modern tools to investigate modern fraud.

The bill expands “victims of insurance fraud” to include insurance consumers and insurance beneficiaries, making them eligible for criminal restitution.

SB 6031 would also expand statutory reporting of suspected insurance fraud to the commissioner by adding regulators of healthcare or financial services professions, and other law enforcement and public safety agencies as among the required reporters of suspected fraud.

The bill now moves to the state House of Representatives for consideration.