The bill’s conclusions describe post-loss assignment of benefits as a contractual transfer of claim rights and benefits to a third party (often a restoration or mitigation contractor) and distinguish it from the insured’s authorization of payment directly to a contractor, and from policy terms prohibiting assignment of a policy without the insurer’s approval. The bill refers to the Washington Insurance Commissioner as the requester, and the bill would give the Commissioner enforcement authority where there is reason to believe that the prohibition has been violated, including the ability to bring action under RCW 48.02.080 and impose a fine of $50,000 per violation, as well as the ability to refer the fine to the State Treasurer for the General Fund. The bill also sets out exceptions, stating that the prohibition does not apply to the insured’s written agreement with a licensed public adjuster who represents only the policyholder’s financial interest at a loss; A written attorney agreement compensating the attorney by the percentage of monetary recovery allowed by the rules of professional conduct; Certain assignments or transfers to a federally insured financial institution, mortgagee, or subsequent purchaser of the property; Or liability coverage under personal or business lines.
Washington lawmakers are considering banning post-loss allocations of property insurance benefits & more related News Here
