Z-0531.2
SENATE BILL 6178
State of Washington
69th Legislature
2026 Regular Session
By Senators Hunt, Cortes, Frame, and Nobles; by request of Insurance Commissioner
Read first time 01/15/26. Referred to Committee on Business, Trade & Economic Development.
AN ACT Relating to prohibiting the post-loss assignment of benefits in property insurance; adding a new section to chapter 48.30 RCW; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. The legislature finds that a post-loss assignment of benefits in property claims is a contractual agreement that, once signed, transfers the insurance claim rights and benefits within the policyholder's insurance policy to a third party. This contractual arrangement usually involves a restoration or mitigation contractor doing some, or all, of the repairs of the covered property. This assignment agreement is different than the policyholder authorizing direct payment to the restoration or mitigation contractor from the insurance company. It is also different than the assignment clause found in the conditions section within a property policy that prohibits the policyholder from assigning the policy to another entity unless approved by the insurance company.
The legislature further finds that a post-loss assignment agreement can allow, but not limit, the third party to: Collect insurance payments without the involvement of the policyholder; restrict communications on the claim to prohibit the policyholder's involvement; and sue the insurance company without the consent of the policyholder.