This bill establishes a statutory right for third-party claimants to demand appraisal in disputes over property damage claims against automobile liability insurers in Washington. It aims to provide a more efficient and cost-effective resolution method for individuals who may find the costs of litigation disproportionate to their claims. The new section added to chapter 48.18 RCW outlines the process for appraisal, including the selection of appraisers and an umpire if necessary, and specifies that this right applies to all automobile liability insurance policies issued or renewed on or after January 1, 2027. Insurers that fail to comply with the appraisal process may face enforcement actions, including fines and potential suspension or revocation of their operating authority.

Additionally, the bill clarifies that it does not alter the substantive measure of damages recoverable under Washington law, but rather provides an alternative, nonjudicial means for resolving disputes regarding property damage amounts. The definitions of key terms such as "competent," "disinterested," and "property damage" are also included to ensure clarity in the implementation of this new right. The bill is set to take effect on January 1, 2027.