Bill > SB6178

This bill aims to prohibit the practice of "post-loss assignment of benefits" in property insurance, meaning that after a property loss occurs, an insured person cannot transfer their insurance claim rights and benefits to a third party, typically a contractor who performs repairs. The bill clarifies that this prohibition does not apply to situations where an insured hires a licensed public adjuster to represent their financial interests, retains an attorney, assigns benefits to a financial institution or a new property owner, or in cases of liability coverage. It also clarifies that this does not prevent policyholders from authorizing direct payments to contractors for services rendered. The bill defines an "assignment agreement" as any document transferring post-loss insurance benefits, including the right to sue the insurer, to a service provider. Violations of this prohibition can result in fines of $50,000 per violation, with the commissioner of insurance empowered to take enforcement actions. The legislature's intent is to ensure that policyholders maintain control over their insurance claims with their insurers, as consumer protections in insurance are designed for the policyholder's benefit.

Business and Industry

https://app.leg.wa.gov/billsummary?BillNumber=6178&Year=2025&Initiative=false