Insurance Companies Seeking Ways to Mitigate the Insurance Fair Conduct Act (Referendum 67)

The Insurance Fair Conduct Act (formerly Referendum 67) was recently passed by Washington State voters last November.  This new law became effective Dec. 6, 2007.  And insurance companies are seeking ways to mitigate it's impact.  One attorney who represents insurance companies is giving advice to them on his own "insurance law blog." 

All claims brought under the Insurance Fair Conduct Act must be preceded by a 20-day notice of the claim to the insurance company and the insurance commissioner. (The Office of the Insurance Commissioner has created a cover sheet for the notice.)

An action may be brought only if the insurance company fails to resolve the basis for the action.  One defense to the claim is if the carrier relies on a "written opinion" from an "authorized agency" that the claim is still being investigated or that the claim is fraudulent.  If the carrier does not resolve the claim within the required 20 day period, a lawsuit may be initiated.

The Insurance Fair Conduct Act prohibits conduct by the carrier during the claims handling process that is considered "unreasonable."  Presumably, a violation of the claims handling regulations found at WAC 284-30 et seq. would be considered unreasonable and therefore provide a basis under the Act.  If the insured person prevails, the judge may triple the amount of damages.  The judge's decision to triple the damages is discretionary.  Another advantage of the Act is that it provides attorney fees to the successful claimant.  This will allow persons with smaller claims to bring a claim under the Act.  Without such an attorney fee provision, most people could not afford to incur the legal expenses necessary to go after the insurance company for a violation of the Act.

If you believe that you have been treated unfairly and unreasonably by the insurance company, please contact or call Davis Law Group for a free consultation about your rights.  No fee will be assessed to discuss your case.