The bill introduces a new section to chapter 48.18 RCW, mandating that all automobile insurance policies with first-party coverage for physical damage, issued or renewed after January 1, 2026, must include an appraisal provision to resolve disputes over the actual cash value and amount of loss for damaged vehicles. The appraisal clause must contain specific language that allows either party to request an appraisal if they cannot agree on the loss amount. The process involves each party selecting a competent and disinterested appraiser, who will assess the loss and, if necessary, appoint an umpire to resolve disagreements. The appraisers must complete their evaluations within 30 days, and if the appraisal results in a loss amount that exceeds the insurer's prior adjustment by $500 or more, the insurer is required to reimburse the policyholder for appraisal costs.

Additionally, the bill stipulates that neither party can demand an appraisal until 10 days after the insurer has received notification of the claim. Definitions for key terms such as "appraiser," "competent," "disinterested," and "umpire" are provided to clarify the roles and qualifications involved in the appraisal process. The commissioner is also granted the authority to adopt necessary rules for implementing this section.