BILL REQ. #:  H-4241.1 

Read first time 01/24/2006.   Referred to Committee on Financial Institutions & Insurance.

     AN ACT Relating to automobile claims settlements; and adding a new section to chapter 48.22 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   A new section is added to chapter 48.22 RCW to read as follows:
     (1)(a) An insurer authorized to write automobile liability insurance policies may offer an automobile liability insurance policy that includes cost-savings claims settlement features if the insurer allows the insured the choice of:
     (i) A policy that includes cost-savings claims settlement features; and
     (ii) A policy that offers comprehensive settlement features.
     (b) Examples of cost-savings features include but are not limited to:
     (i) Replacement parts that are of like kind and quality as the original equipment manufacturer parts; and
     (ii) Insurer designation of the repair shop for the insured's automobile.
     (c) A policy that includes comprehensive settlement benefits must include:
     (i) Replacement parts that are original equipment manufacturer parts; and
     (ii) The insured's choice of repair shops.
     (2) If an insurer offers the policy that includes the cost-savings claims settlement features, the premium must be reduced to reflect the reduction in possible settlement expenses.
     (3) An insurer that offers a policy that includes cost-savings claims settlement features and a policy that includes comprehensive settlement features must clearly disclose the difference in claims settlement practices. An insured must proactively select the policy that includes cost-savings claims settlement features.
     (4) For the purposes of this section, parts are of like kind and quality as the original equipment manufacturer parts if they are certified as equal or better quality in terms of safety, fit, and performance as the original equipment manufacturer parts by an independent, third-party organization that certifies the quality of automotive parts.