Washington drafts rules on umpire registration for auto insurance appraisals

The Washington Office of the Insurance Commissioner (OIC) recently released a pre-publication draft of its requirements for appraisal umpires to register on its site. 

Earlier this year, the legislature passed SB 5721, a bill that created a standard automobile insurance appraisal clause. 

The new law states that if the appraisers do not appoint a competent and disinterested umpire within 15 days, either appraiser may notify the commissioner, who will identify a registered competent and disinterested umpire to be used according to the process that the commissioner specifies by rule.

OIC sent a notice of rulemaking for the umpire rule in June. The pre-publication draft is the first document released outlining what the rule could look like. 

Public comment on the draft is open until Sunday and can be submitted here.

The rule states that instructions for how appraisers request an umpire through the OIC will be listed on its website, insurance.wa.gov, as well as additional instructions for an umpire to become registered. 

It states that to become a registered umpire, one must possess the following: 

• • A minimum of five years of experience as an appraiser of auto claims or a collision repair specialist
  • A minimum of five times serving on an appraisal panel as an umpire

The umpire is also required to have an associate’s degree or equivalent in auto repair or a professional certificate.

The draft states certificates should be from one of the following, or equivalent: 

• • The Inter-Industry Conference on Auto Collision Repair (I-CAR)
  • Manufacturer-designated certifications in auto repair, including but not limited to, OEM and the National Institute for Automotive Service Excellence (ASE) 
  • The Bureau of Certified Auto Appraisers (BOCAA)
  • The American Society of Certified Auto Appraisers (ASCAA)
  • The National Automotive Appraiser Association (NAAA)
  • The Insurance Appraisal and Umpire Association (IAUA)

A registered umpire would also be required to complete an attestation form stating they are competent and disinterested. 

Gov. Bob Ferguson signed SB 5721 into law in May. 

The bill provides policyholders the right to an appraisal to resolve disputes about the actual cash value and amount of loss on a damaged vehicle. It passed the Senate 46-2 and the House 96-1. 

“Senate Bill 5721 makes important changes to laws regulating auto insurance,” Ferguson said just before signing the bill. “This change protects consumers and provides a clear method to resolve valuation disputes without having to hire legal representation. This bill requires every auto insurance policy starting in January to include a right to an appraisal to resolve disputes between the insured and the insurer about the cash value and amount of loss on a damaged automobile.”

Images

Featured image: Screenshot of Commissioner Patty Kuderer testifying during a Washington House Consumer Protection and Business Committee meeting.