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Mike Myers
Mike Myers
Contributor •

Much Needed Insurance Reform

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There are several interesting bills before the legislature. Though dealing with different issues, they are seek to bring about long-awaited and much needed insurance reform. A summary of the various bills appears below:

SHB 1491 & SSB 5726 – Insurance Fair Conduct Act

These bills are intended to heighten and clarify an insurer’s duty to act in good faith when handling first-party claims(applications for benefits like PIP from its own insureds) and creates a treble damages provision (that means three times the amount at issue in the claim) when they fail to do so.

SHB 1492 – Personal Injury Protection (PIP)

This bill is designed to accelerate the resolution of PIP disputes so injured people can get the treatment they deserve. It will require binding arbitration within 30 days of a dispute. It also will require insurers to pay for the cost of the arbitration and the injured persons’ costs if the arbitrator says the insurance company must pay for additional treatment.