Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: While the state's total number of automobile and homeowners' insurance claims have remained consistent over the past six years, the office of the insurance commissioner (commissioner) has received an increase in consumer complaints and Insurance Fair Conduct Act notices, which indicate a consumer's intent to sue their insurer. The spike in consumer complaints and lawsuits against insurers indicate potential insurance code violations.

The commissioner held a claims process public meeting in 2023 where consumers shared dozens of comments and hours of testimony outlining their difficulties with insurance claims. The commissioner also has received studies and reports from local and national observers of the claim environment detailing delays and inaccuracies from the insurance company that harm consumers. Furthermore, the commissioner has received articles, reports, and studies from insurance experts that the insurance industry is changing their claim process from an in-person, on-site, loss examination to the use of artificial intelligence and photo-based loss adjusting to maximize efficiencies.

The commissioner is considering rule making relating to conduct that may be unfair or deceptive to clarify and update the minimum standards that first-party and third-party insurers must comply with during any claim investigation and adjustment. Claim process disputes can occur when the insurance company fails to fairly and fully investigate the loss, and at times forces the consumer to complete the insurance company's investigative duties. With a changing technological and workforce environment, rule making may update and clarify requirements to maintain a fair claim environment for consumers that will provide transparency into the decisions that affect their financial recovery.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting David Forte, 302 Sid Snyder Avenue S.W., Olympia, WA 98504, phone 360-725-7268, fax 360-586-3109, TTY 360-586-0241, email rulescoordinator@oic.wa.gov, website www.insurance.wa.gov.