Automobile insurance

AN ACT Relating to enhancing consumer protections for automobile 1
insurance coverage; and adding a new section to chapter 48.18 RCW.2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:3
NEW SECTION. Sec. 1. A new section is added to chapter 48.18 4
RCW to read as follows: 5
(1) Every automobile insurance policy that includes first-party 6
coverage for physical damage issued or renewed effective on or after 7
January 1, 2026, must include a provision for the right to an 8
appraisal to resolve disputes between the insurer and the insured 9
regarding the actual cash value and amount of loss on the damaged 10
automobile. The appraisal clause must include the following language, 11
or corresponding language that in the opinion of the commissioner is 12
at least as favorable to the insured: 13
"If . . . (the insurance company) . . . and . . . (the 14
policyholder) . . . are unable to agree as to the amount of loss, 15
either party may make a written demand for an appraisal, and within 16
10 days each party shall select a competent and disinterested 17
appraiser and notify the other party of its selection.18
The selected appraisers shall appoint a competent and 19
disinterested umpire. If the appraisers do not appoint a competent 20
H-0768.1
HOUSE BILL 1645
State of Washington 69th Legislature 2025 Regular Session
By Representatives Peterson, Reed, Doglio, Salahuddin, Scott, Berry,
Gregerson, Macri, Simmons, and Nance
Read first time 01/28/25. Referred to Committee on Consumer
Protection & Business.
p. 1 HB 1645
and disinterested umpire within 10 days, either appraiser may notify 1
the commissioner, and the commissioner shall identify a registered 2
competent and disinterested umpire that will be used according to the 3
process that the commissioner specifies by rule. 4
The appraisers shall then each appraise the loss, make separate 5
findings regarding the amount of loss for each element of loss, and 6
exchange their completed appraisals. If the appraisers are unable to 7
agree on the losses, they shall submit their differences to the 8
umpire. 9
The amount of loss must be determined either by agreement of the 10
appraisers or by agreement of one appraiser and the umpire.11
Each party is responsible for their appraisal expenses, and each 12
party is equally responsible for the cost of the umpire.13
If the amount of loss determined through the appraisal process is 14
greater than the amount of loss . . . (the insurance company) . . . 15
adjusted before the appraisal process was invoked by an amount of 16
$500 or more, . . . (the insurance company) . . . will 17
reimburse . . . (the policyholder) . . . for the costs incurred for 18
the appraisal process. 19
The appraisal process costs include reasonable appraiser 20
professional charges, reasonable attorneys' fees, and other necessary 21
actual costs." 22
(2) Neither party may demand an appraisal until 10 days after the 23
insurer receives notification of the claim. 24
(3) For purposes of this section, the following definitions 25
apply: 26
(a) "Appraiser" means a person selected by the insurer or the 27
insured to place a value on or estimate the amount of loss under an 28
appraisal clause in an insurance contract; 29
(b) "Competent" means the person has subject matter expertise, 30
relevant training, and experience to make decisions and valuations 31
relating to the amount of loss; 32
(c) "Disinterested" means the person does not have a direct 33
financial interest in the outcome of the appraisal process; and34
(d) "Umpire" means a person selected by the appraisers 35
representing the insurer and the insured, or, if the appraisers 36
cannot agree, by the commissioner, who is charged with resolving 37
issues that the appraisers are unable to agree upon during the course 38
of an appraisal. 39
p. 2 HB 1645
(4) The commissioner may adopt rules as necessary to implement 1
this section. 2
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p. 3 HB 1645