This bill creates a new statutory right allowing a third-party claimant to demand an appraisal to resolve disputes about the amount of automobile liability property damage when the claimant and insurer disagree. The right is created by adding a new section to chapter 48.18 RCW and applies to automobile liability policies issued or renewed on or after January 1, 2027. The bill sets a procedural process: either the insurer or the claimant may make a written demand for appraisal; within 10 days each side must select a competent, disinterested appraiser and notify the other; appraisers separately value the loss and, if they disagree, must select a competent, disinterested umpire or seek appointment of an umpire from the insurance commissioner if they cannot agree within 15 days. An agreement of any two (either two appraisers or one appraiser and the umpire) is binding on the amount of loss. Each party pays its own appraiser and the parties share the umpire’s cost equally. Claimants may still choose civil remedies instead of, or in addition to, appraisal. The insurance commissioner administers and enforces the new section and may adopt implementing rules. Insurers that fail to comply may face enforcement actions by the commissioner, including fines up to $10,000 per violation, suspension or revocation of their certificate of authority, and other remedies authorized under the title. The bill cross-references RCW 48.18.620 for the meanings of “competent” and “disinterested” and takes effect January 1, 2027. The extracted text does not include the exact statutory language of the definitions for “competent” and “disinterested,” does not define the full scope of “this title” when it refers to other remedies, and is unclear about how any consumer protection act enforcement referenced in the findings would operate with the commissioner’s explicit enforcement provisions.

If enacted, people who are not the insured (third-party claimants) will be able to force a nonjudicial appraisal to settle how much auto property damage is worth for policies issued or renewed on or after January 1, 2027. Practically, either side can demand appraisal, each side picks an appraiser within 10 days, and if those appraisers can’t agree they pick an umpire or ask the insurance commissioner to appoint one; each party pays its own appraiser and splits the umpire cost, and an agreement by two of the three decision-makers will bind the amount of loss. Claimants still can sue instead of or in addition to using appraisal. Insurers will face new routine steps, costs, and enforcement risk: they must participate in the appraisal process, pay their appraiser (and half the umpire), and could be fined up to $10,000 per violation or have their certificate of authority suspended or revoked for noncompliance. The insurance commissioner will take on appointment, enforcement, and rulemaking duties. Important details not provided here include the precise meanings of “competent” and “disinterested” (those are in RCW 48.18.620) and how other remedies under “this title” or the consumer protection act might interact with the commissioner’s enforcement.