OIC staff recovers more than $100M for consumers in the 2023-25 biennium

OLYMPIA, Wash. — Washington state Insurance Commissioner Patty Kuderer’s office recovered more than $100 million for consumers experiencing insurance issues during the 2023-25 biennium.

The Office of the Insurance Commissioner’s Consumer Advocacy Program closed out the biennium with $100,801,393.86 in recovered funds. That figure came from more than 200,000 consumer inquiries received and answered, though not every case involved a recovery; some inquiries are informational.

“Our mission is consumer protection and our staff is dedicated to helping Washingtonians solve their insurance issues,” Kuderer said. “The increased amounts we’re seeing year-over-year highlight how much the highlight both how important it is to have consumer advocates in your corner and why customers should reach out to the OIC when they have questions or disagree with a decision their insurer has made. I’m proud of my team and the work they do to assist Washington residents.”

CAP recovered $61.8 million in the 2021-23 biennium, $59.4 million in the 2019-21 biennium, and $30.5 million in the 2017-2019 biennium. 

People contact CAP with questions or issues and, when appropriate, insurance experts reach out to insurance companies on people’s behalf. Some of the recoveries are in the millions and impact dozens of people, while the smallest recovery to date was $1.98.

The total “recovery” amounts include claim payments and premium refunds made to the consumer through CAP’s complaint resolution services. 

The recent highlights include:

• CAP helped a health clinic receive payment under its fraud coverage, recovering $1.6 million after months of delays.
• Escalating concerns related to a stop-loss policy, which resulted in $1.5 million in medical claims paid out to Washington residents.
• A life insurer wrongly cancelled dozens of policies due to a system error, but thanks to a CAP expert’s determination, 69 policies were reinstated and $4.4 million in payments were made to deserving families.

The figure is a testament to CAP staff’s persistence in holding insurance companies accountable to their policyholders and commitment to standing up for Washington consumers, Kuderer said. She added that the amount recovered on behalf of consumers could be greater if her office had the authority to order restitution — which was part of legislation Kuderer requested last year and will be bringing back next year. 

“The recovery totals are great, but holding the worst of the bad actors accountable by ordering them to repay the people they’ve harmed would provide even more protection,” Kuderer said. “Our CAP staff has had great results working with reputable insurance companies to encourage them to do right by their policyholders. The option to order restitution would ensure we could do the same with the insurance companies who won’t.” 

For an insurance question or complaint, contact Kuderer’s consumer advocates online or by phone at 800-562-6900.