3rd party auto. appraisals

AN ACT Relating to creating a third-party claimant's right to 1
appraisal under automobile liability insurance policies; adding a new 2
section to chapter 48.18 RCW; creating new sections; prescribing 3
penalties; and providing an effective date. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. (1) The legislature finds that:6
(a) Under Washington law, persons injured by another's negligent 7
operation of a motor vehicle are entitled to recover the full measure 8
of their property damages, including the reasonable cost of necessary 9
repairs, the diminished value of repaired vehicles, and compensation 10
for loss of use, as outlined in Washington pattern jury instructions 11
30.10 and Grothe v. Kushnivich , No. 39010-1-III (Wash. Ct. App. Dec. 12
6, 2022); 13
(b) At present, the only means by which a third-party claimant 14
may obtain a judicially enforceable resolution of a property damage 15
dispute with an automobile liability insurer is to file a civil 16
lawsuit. For many consumers, the cost of retaining counsel and 17
litigating such claims is disproportionate to the value of the loss, 18
leaving them without an effective remedy; 19
S-6033.1
SENATE BILL 6359
State of Washington 69th Legislature 2026 Regular Session
By Senator Stanford
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(c) Washington has already recognized through RCW 48.18.620 that 1
appraisal is an efficient, fair, and cost-effective method to resolve 2
first-party disputes over automobile property damage; and3
(d) Other states, including North Carolina and Rhode Island, have 4
enacted statutes allowing third-party claimants to invoke appraisal 5
in disputes over automobile property damage, including total losses, 6
repairs, diminished value, and loss of use. 7
(2) It is therefore the intent of the legislature to:8
(a) Provide Washington consumers with a statutory right to 9
appraisal in third-party automobile property damage claims, 10
consistent with existing law on the measure of damages;11
(b) Ensure that this right is enforceable directly by claimants, 12
without regard to whether insurers include this policy language; and13
(c) Provide clear enforcement mechanisms, either through the 14
consumer protection act or through the insurance commissioner, to 15
guarantee that insurers comply with this statutory right.16
NEW SECTION. Sec. 2. A new section is added to chapter 48.18 17
RCW to read as follows: 18
(1) A third-party claimant asserting a property damage claim 19
against an automobile liability insurer may demand appraisal when the 20
claimant and the insurer are unable to agree on the amount of loss. 21
This right exists independently of the policy language and applies to 22
all automobile liability insurance policies issued or renewed on or 23
after January 1, 2027. 24
(2) Either the insurer or the third-party claimant may make a 25
written demand for appraisal. Within 10 days of the demand, each 26
party shall select a competent and disinterested appraiser and notify 27
the other of its selection. The appraisers shall separately appraise 28
the amount of loss and, if unable to agree, shall select a competent 29
and disinterested umpire. If the appraisers cannot agree upon an 30
umpire within 15 days, either party may petition the commissioner to 31
appoint one. The appraisers shall submit their differences to the 32
umpire. An agreement of any two is binding as to the amount of loss.33
(3) Each party must bear the cost of its own appraiser, and the 34
cost of the umpire must be shared equally. 35
(4) An insurer that fails to comply with this section is subject 36
to enforcement action by the commissioner, including fines of up to 37
$10,000 per violation, suspension or revocation of its certificate of 38
authority, and any other remedies authorized under this title.39
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(5) Nothing in this section affects a claimant's right to elect 1
civil remedies in addition to or in lieu of an appraisal under this 2
section. 3
(6) The commissioner shall administer and enforce this section 4
and may adopt rules to implement the requirements of this section.5
(7) For purposes of this section, the following definitions 6
apply: 7
(a) "Competent" has the same meaning as defined in RCW 48.18.620;8
(b) "Disinterested" has the same meaning as defined in RCW 9
48.18.620; 10
(c) "Property damage" includes: 11
(i) The reasonable cost of necessary repairs; 12
(ii) The total loss value of the damaged vehicle;13
(iii) Diminished value of the vehicle after repair; and14
(iv) Loss of use, including reasonable rental car costs or cash 15
compensation; and 16
(d) "Umpire" means a person selected by the appraisers 17
representing the insurer and the third-party claimant, or, if the 18
appraisers cannot agree, by the commissioner. 19
NEW SECTION. Sec. 3. Nothing in this act expands or contracts 20
the substantive measure of damages recoverable in tort under 21
Washington law. This act provides only an alternative, nonjudicial 22
means of resolving disputes over the amount of property damage.23
NEW SECTION. Sec. 4. This act takes effect January 1, 2027.24
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