SB 6359

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