The bill amends existing Washington state laws regarding property insurance to enhance risk mitigation strategies. It allows property insurers to include goods and services aimed at reducing the likelihood or severity of losses from covered events in their policies, with prior approval from the commissioner. Notably, the bill removes the restriction on commercial property insurance, thereby allowing these provisions to apply to all types of property insurance. The value of the goods and services that can be provided is increased to $7,500 or ten percent of the annual policy premium, whichever is greater, within a 12-month period. Insurers must provide detailed descriptions of the goods or services offered and the criteria for selecting insureds to receive them.

Additionally, the bill introduces provisions for pilot programs that allow insurers to offer risk mitigation or prevention goods and services without the need for prior rate filing approval. These pilot programs can last up to two years and are exempt from certain regulatory requirements. The commissioner is granted the authority to adopt rules to implement these changes, including requirements for notifying insureds about their options to opt out of receiving such goods and services. The bill also clarifies that it does not apply to disaster or emergency response activities of property insurers.

Statutes affected:
Original Bill: 48.18.558, 48.19.530
Substitute Bill: 48.18.558, 48.19.530
Bill as Passed Legislature: 48.18.558, 48.18.559
Session Law: 48.18.558, 48.18.559