Proposed Washington Code amendments modify insurer claims handling requirements

Proposed Washington Administrative Code amendments would tighten the deadlines and increase insurers’ requirements while simultaneously finding a single misstep a basis for a violation. 

Always on the lookout for Washington state issues relevant to our insurer clients, we want to bring to your attention proposed changes to the Washington Administrative Code, WAC 284-30-300, et seq. (the “WACs”).  These changes linked here most significantly would provide that a business pattern or practice is not necessary to establish a violation.  Other changes shorten response deadlines to 5 business days to respond to notice of a claim (or communications from a claimant reasonably suggesting that a response is expected) under an individual policy or 10 business days under a group policy.  They also include a new definition of “notification of claim” that would now include notification by third party claimants.  Within 30 calendar days of receipt of notification of a claim, the insurer would have to notify the claimant whether the claim has been accepted or denied. Insurers needing more time to investigate a claim must notify the claimant in writing of the reasons it needs more time and provide written notice every 30 days thereafter.   

The proposed amendments to the WACs also contain new detailed provisions requiring insurers to accept first party claimants’ emergency mitigation invoices where the policy imposes a duty to protect the property from further damage after a loss.  They also allow first party claimants the right to request and receive from the insurer any portion of the claim file including reports, estimates, bids, engineer and contractor reports, and other documents that are not legally privileged or if nondisclosure is essential to effective investigation of alleged criminal activity.  The insurer has 15 business days to provide to the first party claimant all appropriate requested claim documents.

The comment period for these proposed amendments will run through August 8, 2025. Comments can be submitted via email to the OIC at rulescoordinator@oic.wa.gov. An interested party meeting to discuss the updates will be held via Zoom on July 31, 2025.

We will be closely tracking any changes as they are finalized.

Please reach out to the Kennedys Seattle team for more information or with any questions.