BILL REQ. #:  H-0574.2 

Read first time 01/22/2007.   Referred to Committee on Insurance, Financial Service & Consumer Protection.

     AN ACT Relating to arbitration under certain insurance policies; and amending RCW 48.22.085.

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

Sec. 1   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 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. When arbitration results in additional benefits to the insured, the costs of the arbitrator shall be paid by the insurer, along with the reasonable attorneys' fees and actual litigation costs including expert witness fees, incurred in establishing the insured's claim to additional benefits.