INSURANCE COMMISSIONER

[Insurance Commissioner Matter R 2025-04—Filed November 4, 2025, 2:24 p.m.]

Preproposal statement of inquiry was filed as WSR 25-13-103.

Title of Rule and Other Identifying Information: Registering and identifying auto umpires.

Hearing Location(s): On December 9, 2025, at 11:00 a.m. - 12:00 p.m. PT, via Zoom at https://wa-oic.zoom.us/meeting/register/JuQazzmuQ_2CJM0p_XupkQ.

Date of Intended Adoption: December 15, 2025.

Submit Written Comments to: Rules Coordinator, P.O. Box 40255, Olympia, WA 98504-0255, email RulesCoordinator@oic.wa.gov, fax 360-586-3109/3535, beginning November 4, 2025, at 12:00 a.m. PT, by December 10, 2025, at 11:59 p.m. PT.

Assistance for Persons with Disabilities: Contact rules coordinator, phone 360-725-7171, fax 360-586-3109/3535, TTY 360-586-0241, email RulesCoordinator@oic.wa.gov, by close of business on December 8, 2025.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The legislature passed ESB 5721 relating to the creation of a standard automobile insurance appraisal clause language. The new law requires the office of the insurance commissioner (OIC) to register competent and disinterested umpires who will be identified to appraisers if they are unable to agree on an umpire to resolve their loss dispute.

Reasons Supporting Proposal: WAC revisions are needed to implement ESB 5721. This rule provides guidance on how to register and request umpires for automotive insurance appraisals operating under the appraisal clause.

Statutory Authority for Adoption: RCW 48.02.060; and chapter 225, Laws of 2025.

Statute Being Implemented: RCW 48.18.620; and chapter 394, Laws of 2025.

Rule is not necessitated by federal law, federal or state court decision.

Name of Proponent: Patty Kuderer, governmental.

Name of Agency Personnel Responsible for Drafting: Lauren Burnes, P.O. Box 40255, Olympia, WA 98504-0255, 360-725-7171; Implementation: Amanda Jackson, P.O. Box 40255, Olympia, WA 98504-0255, 360-725-7000; and Enforcement: Sofia Pasarow, P.O. Box 40255, Olympia, WA 98504-0255, 360-725-7000.

A school district fiscal impact statement is not required under RCW 28A.305.135.

A cost-benefit analysis is required under RCW 34.05.328. A preliminary cost-benefit analysis may be obtained by contacting Rules Coordinator, P.O. Box 40255, Olympia, WA 98504-0255, phone 360-725-7171, fax 360-586-3109/3535, TTY 360-586-0241, email RulesCoordinator@oic.wa.gov.

This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal:

Is exempt under RCW 19.85.025(3) as the rule content is explicitly and specifically dictated by statute.

Is exempt under RCW 19.85.025(4).

Explanation of exemptions: Legal Obligations: Chapter 19.85 RCW states that "… an agency shall prepare a small business economic impact statement: (i) If the proposed rule will impose more than minor costs on businesses in an industry …"1 The small business economic impact statement (SBEIS) must include "… a brief description of the reporting, recordkeeping, and other compliance requirements of the proposed rule, and the kinds of professional services that a small business is likely to need in order to comply with such requirements… To determine whether the proposed rule will have a disproportionate cost impact on small businesses."2

This rule proposal, or portions of the proposal, are exempt from requirements of the Regulatory Fairness Act under:


•	RCW 34.05.310 (4)(e) - rules the content of which is explicitly and specifically dictated by statute.
•	RCW 19.85.025(4) - the businesses that must comply with the proposed rule are not small businesses, under chapter 19.85 RCW. OIC has found that none of the existing insurance issuers may be considered small businesses under RCW 19.85.020(3).

Rationale for Exemptions:

Auto Insurance Carriers: OIC determined that auto insurance carriers may be impacted by this rule. Based on preliminary 2024 employment security department (ESD) covered employment data, direct property and casualty insurance carriers (including those offering auto insurance) are not considered small businesses, as they have an average of 52.9 employees per firm (4,178 average annual employees/79 average firms).

Auto Umpires: OIC determined that an auto umpire may be a small business. Based on preliminary 2024 ESD covered employment data, claims adjusting businesses (including auto umpires) have an average of 4.5 employees per firm (404 average annual employment/89 average firms).

The rule does not cause a more-than-minor cost to auto umpires because:


•	Registration is optional; and
•	If an auto umpire chooses to register: The registration process is free of cost; and the registration form consists of a few simple questions and can be completed in fewer than 30 minutes. The average weekly wage is $2,106, or an average hourly wage of $52.65. The estimated cost in wages to complete the survey is well below the minor cost threshold.

NAICS Code	Estimated Cost of Compliance	NAICS Code Title	Minor Cost Estimate3	1% of Average Annual Payroll4	0.3% of Average Annual Gross Business Income5
524291	$0	Claims adjusting	$2,110	$442,441	$2,110

OIC determines that this rule is exempt from SBEIS requirements because: Auto insurance carriers are not considered small businesses under RCW 19.85.020(3); and the proposed rule will not impose more-than-minor costs on auto appraisal umpires.

Determination: OIC determines that this rule is exempt from SBEIS requirements.

RCW 19.85.030: http://app.leg.wa.gov/RCW/default.aspx?cite=19.85.030.

RCW 19.85.040: http://app.leg.wa.gov/RCW/default.aspx?cite=19.85.040.

Minor cost means a cost per business that is the lesser of: a) three-tenths of one percent of annual revenue or income or one hundred dollars, whichever is greater; or b) one percent of annual payroll. RCW 19.85.020.

Employment Security Department, Preliminary 2024 Annual Averages (Covered employment, NAICS code 6 digits) Labor market report library | Employment Security Department.

Department of Revenue, 2024 Gross Business Income Data.

Scope of exemption for rule proposal:

Insurance Commissioner

WAC 284-20-310Automobile insurance appraisal—Umpire.

(1) In accordance with RCW 48.18.620, instructions for appraisers to request that the commissioner appoint a registered competent and disinterested umpire may be found on the commissioner's website at www.insurance.wa.gov. Additionally, instructions for an umpire to become registered may be found on the commissioner's website at www.insurance.wa.gov.

(2) To become a registered umpire, one must possess the following:

(a) A minimum of five years of experience as an appraiser of auto claims or a collision repair specialist;

(b) A minimum of five times serving on an appraisal panel as an umpire;

(i) An associate degree or equivalent in auto repair; or

(ii) A professional auto repair certification or designation from one of the following or an equivalent:

(A) The Inter-Industry Conference on Auto Collision Repair;

(B) An original equipment manufacturer; or

(d) An additional appraisal certification or designation from one of the following or an equivalent:

(i) The Bureau of Certified Auto Appraisers;

(ii) The American Society of Certified Auto Appraisers;

(iii) The National Automotive Appraiser Association; or

(iv) The Insurance Appraisal and Umpire Association.

(3) Prior to presiding over an appraisal panel, a registered umpire is required to complete an attestation form and attest that they are competent and disinterested as those terms are defined in RCW 48.18.620. The attestation form and process for submitting the form to the commissioner may be found on the commissioner's website at www.insurance.wa.gov.