Voters Approve Insurance Fair Conduct Act


On November 6, 2007, Washington voters approved

R-67, a referral to the people of the legislation

entitled "Insurance Fair Conduct Act." We first

reported on this legislation in May, when it was

signed by Gov. Christine Gregoire. The referendum

effort to repeal the legislation stayed the effective

date. Now that voters have approved this legislation,

the Act will go into effect on December 6, 2007.

What is the Insurance Fair Conduct Act?

The Act allows recovery of uncapped treble damages

for unreasonable denial of a claim for coverage or

payment of benefits, and recovery of uncapped treble

damages for violation of certain claims handling


Who may bring a claim under this Act?

Any "first party claimant" may bring a claim under

this Act, provided the claimant serves advance notice

to the insurer as required under the Act. "First party

claimant" means anyone asserting a right to payment

as a covered person under an insurance policy or


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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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