We held a workshop in the summer of 2023 and invited consumers, repair professionals, and insurers to weigh in on the reasons for a historic increase in auto and home insurance complaints. The main issue was how long insurance companies took to address claims and make initial payment offers. 

Commissioner Kuderer updated the state unfair claims settlement practices rules (WAC 284-30-300 through 284-30-400), which take effect in October 2026. The rules define unfair claims practices and set minimum standards for how insurance companies must communicate about, investigate, and settle claims. 

Better communication 

The rule holds insurance companies to a higher standard in communicating relevant information with their consumers, with more oversight from our agency to hold insurers accountable if they don’t meet those requirements. 

It sets specific timelines addressing the cadence of communications: 

• Investigations must be completed within 30 days, unless a delay is fully justified.  
• Additional written updates must go out every 30 days until the claim is resolved. 
• In auto claims, adjusters must respond to supplemental estimates within five business days.  

They also must communicate repair decisions in writing and include the claimant when it’s requested, and provide written, policy-based explanations for every denial, reduction, or underpayment, including itemized dollar amounts. 

Higher claim standards 

The rule reinforces that all claims are unique and should be investigated as such.  

• Insurance companies can’t rely only on software or databases; they must conduct a reasonable investigation using real information. 
• Adjusters must review all available information, document what is still needed, and justify decisions with specific facts and policy citations. 
• Consumers can request in‑person inspections if virtual photos aren’t adequate. 
• Insurers must respond quickly to supplemental repair estimates. 
• Total‑loss valuations must be based on actual, current, and verifiable market data. 

Better transparency 

• Consumers have a right to see much of their claim file and receive written explanations citing policy language when something is denied or reduced. 
• Every denial, reduction, or underpayment must include a reasonable policy-based explanation, including itemized dollar amounts. 

The rules make it easier for the OIC to identify violations — especially around delays, lack of investigation, inaccurate valuations, or failure to provide documents. 

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