Regulation By The Office Of The Insurance Commissioner

The Office of the Insurance Commissioner (“OIC”) regulates the insurance industry in Washington state to make sure its rules are followed. OIC’s regulatory authority extends over insurance agents. OIC investigates complaints by consumers relating to agents and companies.You can request a hearing in front of a administrative law judge if you have been investigated by OIC and they are proposing a punishment. It is important to understand that the judge who will initially preside over your case is an employee of OIC. OIC does not offer an independent judiciary to oversee its own complaints. The problems with this regulatory scheme have recently been highlighted by the complaints of a judge working for OIC. That judge, Patricia Peterson, complained because she felt that a supervisor within OIC was trying to influence her decisions in cases. That accusation belies the problem of the entire system. When agencies retain their own judges to hear cases that they bring against their licensees, any notion of an independent review is abandoned.The second issue arising out of Ms. Peterson’s complaint is the lack of qualifications and competency of many administrative law judges. Ms. Peterson herself is now being investigated for improper conduct. The twist in all of this is that she is being denied whistleblower protection because of the maneuverings of the Department. In other words, not even Judge Peterson could deal with OIC effectively without it turning on her and biting her.It is about time that the administrative law system in Washington state is changed. We need an independent administrative law judge in all cases. We also need better qualified judges who have the resources to provide a fair hearing to licensees. This complex regulatory scheme means that it is very important that you be represented by an attorney familiar with the OIC.