Thousands of consumers in Washington file complaints with the Office of the Insurance Commissioner against insurance companies every year because legitimate claims have been unfairly denied or delayed. Under our current law, there is no penalty for insurance companies that do not deal honestly with consumers. Unfortunately, some bad companies abuse the system by intentionally delaying or denying payment of legitimate claims.
If an insurance company unfairly denies a legitimate claim, your only recourse is to sue. But if you win, the only thing they have to pay is the amount of the original claim. Referendum 67 creates an incentive to treat legitimate claims fairly by allowing the court to assess penalties if an insurance company illegally denies or delays payment of a legitimate claim.
Referendum 67 would help to ensure that the insurance industry honor their commitments to treat all policyholders honestly by making it against the law to unreasonably delay or deny legitimate claims.
Referendum 67 covers claims related to homeowner’s insurance, auto insurance, long-term care insurance, property insurance and small business insurance. For more info see Approve67.org

Letter from Mike Kreidler - Washington State Insurance Commissioner

Please join me in voting to Approve Referendum 67 this November.

Every year, my office receives thousands of complaints from auto owners, homeowners, property owners, and small business owners about delays and denials of legitimate insurance claims.

That's unacceptable -- and that's why I'm urging all Washington voters to Approve Referendum 67.

Please join me and show your support for Referendum 67 -- invite your friends and family to sign the Approve 67 online petition now!

Consumers just want their insurance companies to honor the commitments they made to them. Referendum 67 will help ensure that insurance companies treat Washington consumers fairly. It's a common sense ballot measure that's good for the hard-working people of our state.

Unfortunately, the insurance industry is threatening to spend nearly $8 million to try to defeat Referendum 67 with a campaign of misinformation. So let me help set the record straight:

• Auto and homeowner insurance premiums will not go up because of Referendum 67. The fact is that if insurance companies treat their own policyholders the way they are required to be treated by law, insurance rates won't change. The only insurance companies with something to fear are those who make a practice of acting in bad faith with their own customers.
• Health insurance premiums will not go up because of Referendum 67. The fact is that health insurance plans are specifically excluded from being covered.
  
• Insurers will not be deluged by frivolous claims because of Referendum 67. Referendum 67 simply requires insurance companies to pay legitimate claims in a timely fashion and makes it illegal if they don't. Insurance companies playing by the rules will not have any additional requirements under Referendum 67.
  
• In fact, insurance companies who treat their customers fairly will actually have an advantage in the marketplace because competitors that don't treat policyholders fairly will be subject to court-approved penalties. What's more, all penalties assessed against an insurance company charged with unfair practices must be court-approved under Referendum 67.

Here's the bottom line: Referendum 67 simply will make sure that insurance companies treat Washington consumers fairly. Is that really too much to ask?

I hope you'll join me in supporting Referendum 67 -- invite your friends and family to sign the Approve 67 online petition now!

The insurance industry is spending millions of dollars to defeat this common sense initiative -- but with your support, we can spread the word and Approve 67 this November.

Thanks for your help!

Sincerely,
Mike Kreidler
Washington State Insurance Commissioner

Letter copied from:
http://www.washblog.com/story/2007/9/17/20425/1544

Governor Christine Gregoire
Insurance Commissioner Mike Kreidler
King County Executive Ron Sims
Pierce County Executive John Ladenburg
Snohomish County Executive Aaron Reardon
Seattle Mayor Greg Nickels
East Wenatchee Mayor Steve Lacy

AARP
Mormons 4 Justice
American Federation of Teachers – Washington
American Federation of Teachers – Local 4184
Brain Injury Association of Washington
Carpenters Union #1797
Center for Justice and Democracy
Clark County Labor Roundtable
Coalition of Labor Union Women (CLUW) – Puget Sound Chapter
El Centro De La Raza
Graphic Communications Conference / International Brotherhood of Teamsters #767M
Foundation for Taxpayer and Consumer Rights
International Association of Machinists #751
International Union of Operating Engineers #302
International Union of Painters and Allied Trades #5
Joint Council of Teamsters #28
Lathing Acoustical Drywall Systems (LADS) #1144
Laborers Local 252
Legacy of Equality, Leadership, and Organizing (LELO)
Washington State Labor Council (AFL-CIO)
Washington State Building and Construction Trades Council
Washington State Chiropractic Association
Washington State Council of Firefighters
Washington State Democratic Party
Washington Federation of State Employees (AFSCME)
Washington State National Organization of Women (NOW)
Washington State Senior Citizens’ Lobby

Seattle Post-Intelligencer
Seattle Times
Tacoma News Tribune
The Columbian
The Olympian
The Stranger
Tri-City Herald
Walla Walla Union-Bulletin
Wenatchee World
Yakima Herald-Republic
Everett Herald
Kitsap Sun
Longview Daily News

Mental Health Association of Washington
NAACP State Conference
National Alliance on Mental Illness – Greater Seattle
Northwest Federation of Community Organizations
Northwest Paralyzed Veterans of America
Pierce County Building and Construction Trades Council
Public Citizen
Puget Sound Alliance for Retired Americans
Resident Councils of Washington
Retired Public Employees’ Council of Washington
Seattle National Organization of Women (NOW)
Service Employees International Union – State Council
Sheet Metal Workers #66
Snohomish County Labor Council
United Food and Commercial Workers
USAction
WashPIRG (Washington Public Interest Research Group)
Washington Community Action Network
Washington Education Association
Washington Fraternal Order of Police
Washington State Alliance for Retired Americans

Former Farmers Insurance Senior Adjuster Robert Dietz endorses Washington State Insurance Fair Conduct Act "As a former senior claims adjuster for Farmers Insurance Exchange and a nationally recognized claims practices expert, I know firsthand to what lengths insurance companies will go to save money by not paying claims. Many insurance companies tie employee salaries and bonuses to practices that encourage and condone the delay, denial, underpayment and forced litigation of claims. The Insurance Fair Conduct Act, now being considered by the Washington Legislature, would make the insurance claims system more fair for consumers in Washington state. SB5726 creates financial incentives for automobile and property/casualty insurers to investigate and settle cases in a reasonable time frame and for reasonable amounts. If they don't, they face penalties."..."It's time for consumers to get what they are owed, without taking legal action. It's time for insurance companies to resolve claims promptly and reasonably." 4/3/07 seattlepi.nwsource.com | 2007 Senate Bill 5726 | Robert Dietz discuss Farmers Insurance's Bad Faith (Must Read!)