You are here:HomeNews CenterInsurance News2007PIA West Criticizes Washington Gov. Christine Gregoire For Signing "Bad Faith" Bill

PIA West Criticizes Washington Gov. Christine Gregoire For Signing "Bad Faith" Bill

PIA West has criticized Washington State Gov. Chris Gregoire (D) for signing into law the Insurance Fair Conduct Act. The bill. provides insurance consumers with...
May 22, 2007

PIA West has criticized Washington State Gov. Chris Gregoire (D) for signing into law the Insurance Fair Conduct Act. The bill. provides insurance consumers with additional remedies for what they perceive to be unwarranted claim denials. It increases allowable monetary damages, requires payment of costs and attorneys' fees and permits the courts to award triple damages as a punitive measure.

PIA Washington/Alaska Executive Vice President Clark Sitzes said the PIA agrees with the American Insurance Association (AIA), the National Association of Mutual Insurance Companies (NAMIC), and the Property Casualty Insurers Association of America (PCI) that this is bad public policy, bad for consumers and bad for business in Washington State.

"More liability for insurance companies and the potential of a lawsuit in every policy written is not good for business and it is definitely not good for consumers," Sitzes said. "All it will lead to is higher premiums because of a rise in risk for insurance companies." The bill will become law on July 22, 2007.

PIA Criticizes Wash. Governor for Signing Bad Faith Bill (Insurance Broadcasting 5/20/07)

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