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Senate passes bill to bar post-loss assignment of insurance benefits, sponsors say it protects homeowners
Summary
Lawmakers passed SB 6,178 to prohibit post-loss assignment of benefits that can shift homeowners’ insurance claims to third parties after a disaster; sponsors said the change preserves homeowner control of claims.
Senate Bill 6,178 passed the Washington State Senate on Feb. 4 after sponsors described cases in which homeowners, during crises, signed agreements that transferred insurance rights to contractors or other third parties.
Sen. Hahn, speaking in support, said the bill responds to constituent reports that homeowners sometimes sign paperwork after damage without understanding they may give up control of their claim. She described post-loss assignment as an agreement typically requested after a loss that can redirect insurance payments and remove the homeowner’s ability to speak with their insurer directly (sponsor remarks).
Supporters said the bill is narrow: it prevents assignment-of-benefits after a loss so homeowners retain control while still allowing homeowners to hire contractors and consult attorneys. Sen. Dozier and others voiced support in the record.
Sponsor quote: "This bill says that after a loss, insurance benefits cannot be signed away to a third party." — Sen. Hahn
The floor record indicates the Senate declared the bill passed with a constitutional majority. The bill’s enforcement and implementing guidance will be governed by the Office of the Insurance Commissioner and existing insurance statutes; no detailed fiscal or implementation plan was provided on the floor.
