BILL REQ. #:  H-2097.2 

READ FIRST TIME 2/28/07.   

     AN ACT Relating to arbitration under certain insurance policies; amending RCW 48.22.085; and creating a new section.

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

NEW SECTION.  Sec. 1   The legislature finds that the nature of personal injury protection coverage and the types of disputes that arise under such coverage requires a more expeditious and cost-efficient mechanism to resolve them. The nature of these disputes usually involves questions over the payment of ongoing health care coverage, and the continuation of this coverage in a timely fashion is necessary to restoring the health of the injured person. The legislature further finds that the costs in dispute are usually in an amount that will quickly be exceeded by the cost of having to go to trial in superior court, and that such a remedy also is not timely enough to provide the continuing health care coverage needed to regain full health. Therefore, the legislature further finds that in order to protect the integrity of an insureds' right to a remedy under the law, under this form of no-fault automobile insurance, an expeditious and low-cost arbitration mechanism is the best mechanism to provide an insured with a remedy under the law.

Sec. 2   RCW 48.22.085 and 2003 c 115 s 2 are each amended to read as follows:
     (1) No new automobile liability insurance policy or renewal of such an existing policy may be issued unless personal injury protection coverage is offered as an optional coverage.
     (2) A named insured may reject, in writing, personal injury protection coverage and the requirements of subsection (1) of this section shall not apply. If a named insured rejects personal injury protection coverage:
     (a) That rejection is valid and binding as to all levels of coverage and on all persons who might have otherwise been insured under such coverage; and
     (b) The insurer is not required to include personal injury protection coverage in any supplemental, renewal, or replacement policy unless a named insured subsequently requests such coverage in writing.
     (3) All automobile liability insurance policies sold in this state that contain personal injury protection coverage benefits shall contain binding arbitration clauses to resolve disputes between the insured and the insurer regarding the amount of medical and hospital expenses, funeral expenses, income continuation, and loss of services sustained by an insured because of bodily injury caused by an automobile accident.
     When a dispute regarding the amount of personal injury protection coverage benefits under a single policy arises, arbitration may be requested by either the insurer or insured. In any event, a request for arbitration must be made in writing and the parties shall select an arbitrator to hear the dispute within thirty days of a written request. The failure to agree on an arbitrator within the required time is resolved under RCW 7.04A.110. The costs of the arbitrator shall be paid by the insurer. When arbitration results in additional benefits to the insured, actual arbitration costs, including expert witness fees, incurred in establishing the insured's claim to additional benefits shall be paid by the insurer.