On Campus: Sen. Victoria Hunt and the assignment of benefits bill

On this episode of the OIC Answers podcast’s On Campus miniseries, Washington state Insurance Commissioner Patty Kuderer welcomes on Senator Victoria Hunt to discuss Senate Bill 6178. The bill, requested Commissioner Kuderer and sponsored by Senator Hunt, increases protections for insurance consumers by banning post-loss assignment of benefits agreements (AOB). It passed the Senate unanimously but was not brought to the floor for a vote in the House.An AOB allows a third party, like a contractor, to receive insurance payments directly from the consumer’s insurance company but also assume the rights of the policyholder — like negotiating with the insurance company. These agreements are presented as a convenience for policyholders, but the practice has been abused in other states after natural disasters. When a consumer signs the agreement, their right to negotiate with the insurance company shifts to the repair professional and they lose control over their claim. This can lead to delays in the repair work as these disagreements are resolved, as well as inflated claim costs, unnecessary litigation, and higher premiums.