Assignment of Benefits Bill Passes Washington Senate

A bill prohibiting post-loss assignment of benefits agreements passed the Washington Senate on Thursday on a unanimous vote.

Senate Bill 6178 was backed by Washington Insurance Commissioner Patty Kuderer, halting post-loss assignment of benefits, an agreement that allows a third party, such as a contractor, to receive insurance payments directly from the consumer’s insurance company.

The AOB practice has been abused in other states after natural disasters. When a consumer signs the agreement, their right to negotiate with the insurer shifts to the repair professional and they lose control over their claim. This has led to delays in repair work as disagreements are resolved, as well as inflated claim costs, litigation and higher premiums.

The bill, sponsored by Sen. Victoria Hunt (D-Issaquah), now moves to the House of Representatives.