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Insurance trade groups and consumers testify for and against SB 5721 appraisal, fee-shifting changes
Summary
Supporters including a public adjuster and consumers urged the House Labor & Commerce Committee to pass Senate Bill 5721 to add an appraisal process and fee‑shifting for disputed auto claims; insurers and trade groups warned the measure could raise costs and slow repairs. Committee closed the public hearing and recessed for caucus.
Chair Wallen (chair, House Committee on Labor & Commerce) opened public testimony on engrossed Senate Bill 5721, which would change dispute-resolution processes for auto-claims appraisal and include a fee‑shifting “loser pays” provision.
Brandon Vick, National Association of Mutual Insurance Companies, told the committee the trade groups have been negotiating with proponents but remain concerned about cost drivers in the bill. “We really do want to express our thanks to the chair for her flexibility,” Vick said, adding the industry is watching for provisions that could increase repair delays and settlements. He told the committee the average insurer-paid repair cost rose from about $3,200 in 2014 to roughly $6,000 in 2023 and that bodily-injury claim averages have increased from about $15,000 to $25,000 over the same period.
Justin Morgan, an attorney from Spokane, testified in favor of SB 5721 based on his personal experience with a disputed repair. Morgan said his car returned from a shop with undetected frame damage and that he spent “over half a year” fighting his insurer; he urged passage so consumers without legal training can enforce claims. “I ask for you to support the senate bill 5721,” Morgan said.
Jeff Butler, a public insurance adjuster and auto-damage appraiser with Collision Consulting of Washington, also testified for the bill, describing frequent calls from consumers who receive low settlements. “Both the insurance policy and the law require the insurance company to conduct their own competent investigation and accurately assess the value of the claim,” Butler said, adding that legal enforcement is often impractical for small claims. Butler described a draft appraisal process in the bill as “very quick, and it's very timely.” He told members that a typical appraisal fee runs about $600 and that an umpire usually costs about $300–$350 (split between parties).
Committee staff recorded 86 pro and 837 con written or signed-in testimonies for the public hearing on SB 5721 before closing the hearing. Chair Wallen then recessed the committee for caucus; no executive action on SB 5721 was taken during the meeting.
The public testimony highlighted a central tension: proponents framed the bill as strengthening consumer enforcement and faster remedies without needing expensive legal representation, while insurers and industry representatives warned the bill could raise claim costs, lengthen repair timelines and increase premiums if not narrowed in amendment.
Next steps: committee members indicated they would continue negotiations; witnesses said the sides planned follow-up discussions after the hearing.
