The insurance industry, calling itself Consumers Against Higher Insurance Rates, has raised more than $650,000 to repeal a new state insurance law. A referendum to ask voters if they want to retain the law was filed last month with the Secretary of State’s office. The industry wants Ref. 67 on the ballot, then it will campaign against it. If the referendum is defeated, the law would be repealed.
According to the most recent reports at the Public Disclosure Commission, 13 insurance companies — most from outside the state — donated a total of $651,511 since mid May. The campaign has until July 21 to collect 112,4440 signatures to qualify the referendum for the ballot.
On the other side, the Washington Trial Lawyers donated $100,000 earlier this month.
I hadn’t realized the referendum was going ahead until I saw a press release today from Rep. Steve Kirby, D-Tacoma. Kirby is chairman of the House Insurance, Financial Services and Consumer Protection Committee and was a strong backer of the insurance bill, ESSB 5726.
The bill, among other things, allows a court to approve triple damages if an insurance company is found to have violated the so-called Insurance Fair Conduct Act and unreasonably denied coverage or payment. You can read a good explanation of the bill in the final bill report.
Kirby’s release says, “Citizens should beware that signature gatherers for a new referendum are working to overturn a new consumer protection law.”:
“The law we passed simply says the insurance industry must treat consumers fairly. If you paid your premium and file a legitimate claim, the insurance company must honor its commitment.”
The bill was a hot topic during the legislative session. It was a priority for Democrats and trial attorneys, but was at the top of the list Republicans and the insurance industry wanted to stop. In the House, the tension exploded when Rep. Dan Roach complained the bill was a favor to House Majority Leader Lynn Kessler’s husband. Her husband, Keith, is an attorney but had no involvement with the bill and Roach later apologized for his remarks.

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