Senate Bill 5419, State of Washington, 2025 Regular Session (Reports of Fire Losses)

Summary

Senate Bill 5419 of the State of Washington, 69th Legislature, 2025 Regular Session, by Senators Lovick, Muzzall, Nobles, and Shewmake, by request of Insurance Commissioner, read first time 01/22/25 and referred to the Committee on Business, Financial Services & Trade. The title describes an act relating to reports of fire losses, amending RCW 42.56.400, 48.05.320, and 48.50.040. Section 2 amends RCW 48.05.320 so that an authorized insurer reports within 30 days of closing a claim related to a fire loss or damage. Section 3 amends RCW 48.50.040 to provide that an insurer notifies the insurance commissioner, in place of the chief of the Washington state patrol, when it has reason to believe a fire loss may be of other than accidental cause.

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     Z-0316.2

                               SENATE BILL 5419


     State of Washington       69th Legislature          2025 Regular Session

     By Senators Lovick, Muzzall, Nobles, and Shewmake; by request of
     Insurance Commissioner

     Read first time 01/22/25.      Referred   to    Committee     on   Business,
     Financial Services & Trade.




1        AN ACT Relating to reports of      fire   losses;   and   amending   RCW
2    42.56.400, 48.05.320, and 48.50.040.


3    BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:


 4       Sec. 1.   RCW 42.56.400 and 2023 c 149 s 12 are each amended to
 5   read as follows:
 6       The following information relating to insurance and financial
 7   institutions is exempt from disclosure under this chapter:
 8       (1) Records maintained by the board of industrial insurance
 9   appeals that are related to appeals of crime victims' compensation
10   claims filed with the board under RCW 7.68.110;
11       (2) Information obtained and exempted or withheld from public
12   inspection by the health care authority under RCW 41.05.026, whether
13   retained by the authority, transferred to another state purchased
14   health care program by the authority, or transferred by the authority
15   to   a  technical   review  committee   created   to  facilitate   the
16   development, acquisition, or implementation of state purchased health
17   care under chapter 41.05 RCW;
18       (3) The names and individual identification data of either all
19   owners or all insureds, or both, received by the insurance
20   commissioner under chapter 48.102 RCW;
21       (4) Information provided under RCW 48.30A.045 through 48.30A.060;
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 1       (5) Information provided under RCW 48.05.510 through 48.05.535,
 2   48.43.200 through 48.43.225, 48.44.530 through 48.44.555, and
 3   48.46.600 through 48.46.625;
 4       (6)   Examination  reports  and   information  obtained   by  the
 5   department of financial institutions from banks under RCW 30A.04.075,
 6   from savings banks under RCW 32.04.220, from savings and loan
 7   associations under RCW 33.04.110, from credit unions under RCW
 8   31.12.565, from check cashers and sellers under RCW 31.45.030(3), and
 9   from securities brokers and investment advisers under RCW 21.20.100,
10   information that could reasonably be expected to reveal the identity
11   of a whistleblower under RCW 21.40.090, and information received
12   under RCW 43.320.190, all of which are confidential and privileged
13   information;
14       (7) Information provided to the insurance commissioner under RCW
15   48.110.040(3);
16       (8) Documents, materials, or information obtained by the
17   insurance commissioner under RCW 48.02.065, all of which are
18   confidential and privileged;
19       (9) Documents, materials, or information obtained or provided by
20   the insurance commissioner under RCW 48.31B.015(2) (l) and (m),
21   48.31B.025, 48.31B.030, 48.31B.035, and 48.31B.036, all of which are
22   confidential and privileged;
23       (10) Data filed under RCW 48.140.020, 48.140.030, 48.140.050, and
24   7.70.140 that, alone or in combination with any other data, may
25   reveal the identity of a claimant, health care provider, health care
26   facility, insuring entity, or self-insurer involved in a particular
27   claim or a collection of claims. For the purposes of this subsection:
28       (a) "Claimant" has the same meaning as in RCW 48.140.010(2).
29       (b) "Health care facility" has the same meaning as in RCW
30   48.140.010(6).
31       (c) "Health care provider" has the same meaning as in RCW
32   48.140.010(7).
33       (d)   "Insuring  entity"   has  the   same  meaning   as  in   RCW
34   48.140.010(8).
35       (e) "Self-insurer" has the same meaning as in RCW 48.140.010(11);
36       (11) Documents, materials, or information obtained by the
37   insurance commissioner under RCW 48.135.060;
38       (12) Documents, materials, or information obtained by the
39   insurance commissioner under RCW 48.37.060;


                                     p. 2                          SB 5419
 1       (13) Confidential and privileged documents obtained or produced
 2   by the insurance commissioner and identified in RCW 48.37.080;
 3       (14) Documents, materials, or information obtained by the
 4   insurance commissioner under RCW 48.37.140;
 5       (15) Documents, materials, or information obtained by the
 6   insurance commissioner under RCW 48.17.595;
 7       (16) Documents, materials, or information obtained by the
 8   insurance commissioner under RCW 48.102.051(1) and 48.102.140 (3) and
 9   (7)(a)(ii);
10       (17) Documents, materials, or information obtained by the
11   insurance commissioner in the commissioner's capacity as receiver
12   under RCW 48.31.025 and 48.99.017, which are records under the
13   jurisdiction and control of the receivership court. The commissioner
14   is not required to search for, log, produce, or otherwise comply with
15   the public records act for any records that the commissioner obtains
16   under chapters 48.31 and 48.99 RCW in the commissioner's capacity as
17   a receiver, except as directed by the receivership court;
18       (18) Documents, materials, or information obtained by the
19   insurance commissioner under RCW 48.13.151;
20       (19) Data, information, and documents provided by a carrier
21   pursuant to section 1, chapter 172, Laws of 2010;
22       (20) Information in a filing of usage-based insurance about the
23   usage-based component of the rate pursuant to RCW 48.19.040(5)(b);
24       (21) Data, information, and documents that are submitted to the
25   office of the insurance commissioner by an entity providing health
26   care coverage pursuant to RCW 28A.400.275;
27       (22) Data, information, and documents obtained by the insurance
28   commissioner under RCW 48.29.017;
29       (23) Information not subject to public inspection or public
30   disclosure under RCW 48.43.730(5);
31       (24) Documents, materials, or information obtained by the
32   insurance commissioner under chapter 48.05A RCW;
33       (25) Documents, materials, or information obtained by the
34   insurance commissioner under RCW 48.74.025, 48.74.028, 48.74.100(6),
35   48.74.110(2) (b) and (c), and 48.74.120 to the extent such documents,
36   materials, or information independently qualify for exemption from
37   disclosure as documents, materials, or information in possession of
38   the commissioner pursuant to a financial conduct examination and
39   exempt from disclosure under RCW 48.02.065;


                                     p. 3                          SB 5419
 1       (26) Nonpublic personal health information obtained by, disclosed
 2   to, or in the custody of the insurance commissioner, as provided in
 3   RCW 48.02.068;
 4       (27) Data, information, and documents obtained by the insurance
 5   commissioner under RCW 48.02.230;
 6       (28) Documents, materials, or other information, including the
 7   corporate annual disclosure obtained by the insurance commissioner
 8   under RCW 48.195.020;
 9       (29) Findings and orders disapproving acquisition of a trust
10   institution under RCW 30B.53.100(3);
11       (30) All claims data, including health care and financial related
12   data received under RCW 41.05.890, received and held by the health
13   care authority; ((and))
14       (31) Contracts not subject to public disclosure under RCW
15   48.200.040 and 48.43.731; and
16       (32) Data, information, and documents obtained from an insurer,
17   or by or from the insurance commissioner, under RCW 48.05.320.


18       Sec. 2.   RCW 48.05.320 and 1995 c 369 s 24 are each amended to
19   read as follows:
20       (1) ((Each)) Within 30 days of closing a claim or any subsequent
21   adjustment or further investigation related to a fire loss or damage,
22   an authorized insurer shall ((promptly)) report to the ((chief of the
23   Washington state patrol, through the director of fire protection,
24   upon forms as prescribed and furnished by him or her)) insurance
25   commissioner, in the manner prescribed by the insurance commissioner,
26   each fire loss of property in this state reported to ((it and)) the
27   insurer. At a minimum, the reported information must include:
28       (a) The property address;
29       (b) The date of loss;
30       (c) The amount that the insurer paid on each coverage;
31       (d) The known or suspected origin and cause of the loss or
32   damage, including whether the loss is due to criminal activity or to
33   undetermined causes((.
34       (2) Each such insurer shall likewise report to the chief of the
35   Washington state patrol, through the director of fire protection,
36   upon claims paid by it for loss or damage by fire in this state.
37   Copies of all reports required by this section shall be promptly
38   transmitted to the state insurance commissioner)); and
39       (e) Any other information required by the insurance commissioner.
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 1       (2)(a) In addition to the report of information required under
 2   subsection (1) of this section, whenever an insurer knows or suspects
 3   that a fire loss or damage may be due to criminal activity, the
 4   insurer shall immediately report to the local or tribal law
 5   enforcement agency of jurisdiction, and the insurance commissioner,
 6   the details of the loss or damage and the basis for the insurer's
 7   knowledge or suspicion that it may be due to criminal activity, and
 8   upon request, provide a complete copy of any full or partial
 9   investigation of the claim or loss conducted by the insurer.
10       (b) Upon receipt of a report from an insurer made pursuant to (a)
11   of this subsection, the local or tribal law enforcement agency shall
12   timely share all information received from the insurer with the
13   individual responsible for fire investigation under RCW 43.44.050(1),
14   and shall coordinate with that individual consistent with RCW
15   43.44.050.
16       (c) Unless actual malice, fraud, or bad faith is shown, an
17   insurer is immune from liability in any civil action or suit arising
18   from its (i) report of information to law enforcement and the
19   insurance commissioner pursuant to this subsection (2), or (ii)
20   cooperation with a duly issued subpoena for a criminal investigation
21   or prosecution.
22       (3) Except as provided in this subsection (3), documents,
23   materials, reports, data, investigations, and other information
24   described in subsections (1) and (2) of this section are confidential
25   by law and privileged, are not subject to public disclosure under
26   chapter 42.56 RCW, and are not subject to a civil matter subpoena
27   directed to the insurance commissioner or any person who processes
28   information received pursuant to this section. Neither the insurance
29   commissioner, staff of the office of the insurance commissioner, nor
30   anyone receiving or processing information pursuant to this section
31   is permitted or required to testify in any private civil action
32   concerning any information that is confidential and privileged under
33   this subsection (3). Nothing in this subsection prohibits cooperation
34   with subpoenas for documents or testimony in criminal matters.
35       (a) The commissioner may share documents, materials, reports,
36   data,   investigations,   and   other   information,   including   the
37   confidential and privileged information received pursuant to this
38   section,   with:   (i)   The   national   association   of   insurance
39   commissioners and its affiliates and subsidiaries; (ii) regulatory,
40   law enforcement, and prosecutorial officials of other states and
                                     p. 5                          SB 5419
 1   nations,    the   federal    government,    tribal  governments,   and
 2   international authorities; (iii) agencies of this state; (iv) rating
 3   bureaus; (v) the state fire marshal's office; and (vi) local or
 4   tribal law enforcement officials, prosecutors, or fire chiefs in this
 5   state. Except as provided in (b) through (e) of this subsection, the
 6   commissioner must require a recipient of information shared pursuant
 7   to this subsection (3)(a) to maintain the confidentiality and
 8   privileged status of the information.
 9       (b) The state fire marshal's office may use information shared
10   under (a) of this subsection for wildfire and resiliency planning
11   purposes, so long as it does not publicly disclose information that
12   contains   personally   identifiable   information about   properties,
13   property owners, policyholders, losses, claimants, or claims.
14       (c) Rating bureaus may use the information shared under (a) of
15   this subsection to analyze and inform rating classifications, so long
16   as they do not publicly disclose, other than to rating subscribers,
17   information that contains personally identifiable information about
18   property owners, policyholders, losses, claimants, claims, or
19   properties, other than aggregated by zip code or fire district
20   boundary.
21       (d) Local or tribal law enforcement officials, prosecutors, and
22   fire chiefs in this state may use information shared under (a) of
23   this subsection for public safety planning purposes, so long as they
24   do not publicly disclose information that contains personally
25   identifiable   information   about   properties,    property   owners,
26   policyholders, losses, claimants, or claims, other than aggregated by
27   zip code.
28       (e) Local, tribal, state, or federal law enforcement officials,
29   prosecutors, and fire chiefs in this state, and limited authority
30   peace officers employed by the insurance commissioner may use
31   information referenced under this section to investigate and
32   prosecute crime, and in so doing, may release information received
33   under   this  section   as   is  necessary   for   investigative   and
34   prosecutorial purposes, to comply with all due process rights of
35   criminally accused individuals, and to comply with public records
36   obligations applicable to criminal investigations or prosecutions.
37   Nothing in this section is intended to modify criminal investigative
38   procedures or prosecutions or any authority, process, right, or
39   obligation related to them.


                                     p. 6                          SB 5419
 1       (4) The insurance commissioner may adopt rules as necessary to
 2   implement this section.


 3       Sec. 3.   RCW 48.50.040 and 2000 c 254 s 2 are each amended to
 4   read as follows:
 5       (1) When an insurer has reason to believe that a fire loss
 6   reported to the insurer may be of other than accidental cause, the
 7   insurer shall notify the ((chief of the Washington state patrol,
 8   through the director of fire protection)) insurance commissioner, in
 9   the   manner   prescribed   under   RCW   48.05.320   concerning  the
10   circumstances of the fire loss, including any and all relevant
11   material developed from the insurer's inquiry into the fire loss.
12       (2) Notification of the ((chief of the Washington state patrol,
13   through the director of fire protection,)) insurance commissioner
14   under subsection (1) of this section does not relieve the insurer of
15   the duty to respond to a request for information from any other
16   authorized agency and does not bar an insurer from other reporting
17   under RCW 48.50.030(2).

                                  --- END ---




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