Washington's Claims-Handling Regulations are Changing on October 18, 2026: What Insurers Need to Know

On August 18, 2026, the Washington Office of the Insurance Commissioner adopted amendments to fifteen sections of the state's Unfair Claims Settlement Practices Regulation, WAC 284-30-300 through -395. The amended rules take effect October 18, 2026.

Not every change is new law. Some provisions codify standards Washington courts have applied for decades; others sharpen existing duties; and many impose obligations that did not exist before. Below is a summary of newly imposed obligations:

1. Investigations may not rely solely on a database. The amended rule provides that a reasonable investigation may not rely solely on a database, estimating software, or benchmarks. No Washington court had previously imposed that limit, and as recently as 2024 the Washington Supreme Court declined to hold that a benchmark-based bill-review practice was inherently unfair under the Consumer Protection Act (“CPA”). The Commissioner has now defined sole reliance as an unfair practice. Insurers using estimating platforms or benchmark data for valuation, bill review, or pricing should expect plaintiffs' counsel to probe such practices in future claims and lawsuits.
2. Deadlines now run from notification of claim. Acceptance or denial of a first-party claim is due within 30 calendar days of notification of claim, replacing the 15-working-day clock that previously ran from a completed proof of loss. Extension letters must state all the reasons more time is needed. Moreover, follow-up notices every 30 days must now summarize the amount of loss, any consultants or medical providers retained, each item the insurer is waiting on, and, if the file has been reassigned, confirmation that the new adjuster has reviewed it. Additionally, responses to Commissioner inquiries drop from 15 to 10 business days.
3. Pre-suit access to the claim file. Insureds may now request any portion of the first-party claim file, including notes, estimates, engineer and contractor reports, photographs, and communications, and the insurer has 15 business days to produce it. Withholding is limited to privileged material, third-party financial information, and investigative records tied to suspected criminal activity, and the insurer must disclose that material was withheld and why. Until now, insureds obtained the file only through litigation discovery. This significant change essentially creates a pathway for insureds to conduct pre-litigation discovery.
4. Disclosure of pricing data. On request, an insurer that uses a database, survey, or estimating software for material or labor pricing must disclose when it collected the data, where it came from, and which businesses supplied it.
5. Mitigation and appraisal. Insurers must approve or respond to a first-party claimant's scope of mitigation within five business days and must itemize in dollars any rejected items. Insurers may not require an appraiser to adjust a valuation during the appraisal process.
6. Motor vehicle claims. Insurers may not require photo-only evaluation as a condition of coverage, must disclose at notification of claim that an in-person inspection is available, and must conduct one within five business days when a virtual inspection produces a dispute. Written responses to supplemental estimates and final invoices are due within five business days. Claimants and shops may not be forced onto internet-only claim platforms, and storage and towing coverage must be explained in writing within five business days of notice. On total losses, comparable-vehicle searches are capped at 150 miles, appraisers must be advised of the regulatory valuation methods, condition-based deductions must be supported with photographs and documentation, and rental coverage must remain available for at least seven days after payment. One change is less restrictive on insurers: the prior rule that made denial of a repair estimate based solely on a shop's hourly rate per se arbitrary has been removed.

What do these changes mean for insurance carriers in Washington? Primarily, insurers and their third-party adjusters should review their claims manuals, diary practices, template correspondence, vendor and software reliance, file-access procedures, and auto-claim workflows before October 18 to ensure compliance with these new regulations.

Wood Smith Henning & Berman's Washington experienced insurance coverage team advises carriers on regulatory compliance and represents insurers in coverage disputes, extra-contractual litigation, and declaratory judgment actions. If you would like guidance on how these amendments affect your claims operations, or need representation in a Washington coverage matter, we welcome the opportunity to speak with you.

This update is provided for general informational purposes and does not constitute legal advice.