The Washington Office of the Insurance Commissioner published a news release announcing updated claim handling rules following a revision to the state's unfair claims settlement practices, which haven't been changed since 1978.
The updated rules establish specific timelines and documentation requirements for communication, investigations, denials, and payments. Insurers may not deny a claim before conducting an investigation; the investigation must not rely solely on the use of a database. Insurers must notify the insured within 30 days on if a claim has been accepted or denied.
The updated rules set detailed standards for auto damage and total loss claims, including inspection requirements and communication standards. An insured can request an in-person inspection if the insurer uses virtual photos.
Insurers are required to explain denials, provide policy references, share valuation reports, and disclose data sources used for the valuation of a vehicle. Finally, insureds have the right to access their own claim file and insurers are required to explain what has been redacted.
The news release can be found here.
Ray Sugrim
Ray Sugrim is an Insurance Editor with FC&S Expert Coverage Interpretation, a division of National Underwriter Company and Arc Network. Ray is responsible for helping develop and edit content for subscribers. Ray is a St John’s University graduate with a degree in Risk Management & Insurance and is a CPCU candidate.