Claims News Service, Feb. 22, 3:26 p.m.- According to the Property Casualty Insurers Association of America (PCI), the Washington state Senate Consumer Protection and Housing Committee recently approved two bills that would increase consumers' insurance costs as well as slow the claim settlement process and impede the investigations of fraudulent claims.

PCI said that SB 5344 could result in reprimands for insurance companies that conduct thorough investigations when claims are filed, and SB 5726 would discourage insurance companies from denying any claim in order to avoid a lawsuit alleging bad faith from the claimant, and face potentially paying up to three times the amount of damages.

“Policyholders benefit when insurers conduct thorough investigations so they can evaluate claims fairly and pay only those claims that are covered under the policy contract,” said PCI Northwest Regional Manager Kenton Brine, in a release. “Enacting these bills works against the best interest of Washington consumers by stifling insurers' ability to manage costs and help keep premiums affordable for consumers.”

The two bills will proceed to the Senate Rules Committee for further debate and then to the full Senate for debate.

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