Free Legislative Session Webinar With 2 CE 1/27

Learn about the insurance issues being discussed in Olympia and Insurance Commissioner Patty Kuderer’s priorities in IIABW's free 2-hour webinar on January 27 from 2 - 4 pm. Issues will include:

• Agent restitution and penalties
• Wildfire scoring transparency 
• Changes to the OIC Rate Transparency Rule 
• Market access in wildfire areas
• Third-Party litigation funding
• Regulations of Artificial Intelligence in insurance

Wildfire Transparency Bill

IIABW testified on behalf of the Wildfire Transparency bill (SB 5928) last week. The bill would require an insurer to share the following about their wildfire risk scores with their customers: the range of possible scores, who created it, the date it was created, key factors that adversely contributed to the score and steps the consumer can take to improve it.

An insurer shall include both property-specific and community-level mitigation actions in their wildfire score and post on its website premium discounts for these mitigation actions and the process for appealing a score. Models must be filed with the OIC, which will be kept confidential as trade secrets. 

3rd Party Litigation Financing Bill

IIABW will be testify this week on the Transparency for Third-Party Litigation Financing bill (HB 2255). Under current Washington law, there is not requirement to disclose when a case is being funded by private equity, hedge funds, and foreign governments. This can obscure conflicts of interest, complicate negotiations and increases settlements. The bill establishes baseline disclosure requirements and ethical safeguards to ensure that civil litigation remains controlled by the actual parties and their counsel, rather than undisclosed outside investors.

Employer Tax on High Earners

The legislature is holding a hearing on House Bill 2100, which would impose a 5% payroll tax on private employers with workers earning more than $125,000 a year. It applies to companies with more than 20 employees, payroll in excess of $7 million and gross receipts of more than $5 million.

Governor’s Speech & Budget

In his State of the State address last week, Gov. Bob Ferguson touched on flood recovery, building more housing, and investing billions into road preservation. He also reiterated support for an income tax on Washingtonians earning more than $1 million a year. However, no bill has been introduced yet proposing the tax.

Gov. Ferguson recently unveiled a $79 billion supplemental budget that increases state spending by $1.2 billion. The plan draws from the Rainy Day Fund and carbon tax revenues to offset budget cuts and federally or legally mandated spending increases. The budget aims to close a $2.3 billion gap between maintaining current programs and expected tax revenues. Some lawmakers estimate the shortfall could reach $4 billion. 

Insurance Women Summit 3/19 in Kirkland

IIABW will be hosting our first Insurance Women Summit on March 19 at the Heathman Hotel in Kirkland. This groundbreaking event is dedicated to empowering women to thrive in every facet of the insurance industry. Through inspiring presentations, bold conversations, and transformative ideas, this day event will provide the tools, insights, and connections you need to elevate your career and leadership journey.

OIC Licensing Changes 

The OIC is transitioning core insurance licensing transactions from the OIC Online system to the National Insurance Producer Registry (NIPR). Effective on January 21, 

• All core licensing for individual license transactions must be completed through NIPR – applications, renewals, reinstatements, reissues and name/address changes. OIC Online will continue to support DBA changes, license printing, and education history.
• Business entity name and address changes must also be completed through NIPR. All other business entity transactions remain unchanged.

NFL Weekly Pick Contest 

This year’s NFL Weekly Pick Contest was sponsored by the IIABW Young Agents, AmWins Access and Peoples Premium Finance. We would like to congratulate the overall winners of the contest:

1st Place: Austin Hargarten, AmWins

2nd Place: Sydney Giesinger, AmWins

3rd Place: Joseph Johnson, North Town Insurance

Share Your Seahawks Spirit With IIABW

Congrats to our Seahawks for being one game away from the Super Bowl! As your staff comes together to cheer on our home team, IIABW encourages you to share a picture of your staff celebrating. We will post them on our Facebook page and in our Big I Washington Magazine. Hit 'reply' to this email and attach the picture or a link to your social media page.

Counties Purchasing Flooded Homes

The Seattle Times recently published an article about counties “flood buyout” or “property acquisition” programs, of prone or -damaged properties. Snohomish, Pierce and Whatcom have such programs and several others provide funding to eligible residents looking to elevate their homes or give free guidance on how to prevent or lessen future flood damage on their property. 

Renter Disclosure of Flood

Unlike Oregon and California, Washington law does not require landlords to tell renters that a unit is prone to flooding. In Washington, home sellers must disclose to buyers whether a property is on a flood plain and whether the property has experienced any flooding, standing water or drainage problems in the past.

Big I Industry Articles

• Dog Bite Claims Cost $1.6 Billion in 2024, Rising 86%
• How Nuclear and Thermonuclear Verdicts Are Adversely Impacting the Market
• Roof Claim Costs Increased 30% from 2022 to 2024
• Demands to Add Language to Certificates
• Rising Homeowners Coverage Gaps Underscore Agents’ Expanding Role
• 4 Things You Should Do If Your Carrier Has Been Hacked
• How to Explain the Homeowners Market to Your Clients
• Should We Obtain Sign Applications from Our New Insureds We Obtain Via Broker of Record?
• Understanding Hired, Non-Owned & Drive Other Car Coverages
• Intro to Agency Purchases & Mergers
• Contractors Professional and Pollution Liability Coverage

Western Wildfire Update

• Beginning January 1, 2026, Nevada home insurers are permitted to remove wildfire coverage from standard homeowners policies and also allow them to offer wildfire-only policies as standalone coverage. Nevada does not have a FAIR Plan. It is not known if mortgage lenders will require wildfire coverage in the state’s highest-risk areas?

• On the first anniversary of the California Palisades and Eaton fires, which killed 31 people and destroyed 13,000 homes, fewer than a dozen homes have been rebuilt and 900 homes are under construction. More than 600 properties have been sold. Less than 20% of people who experienced total home loss had settled their insurance claims.

• Hawaiian Electric Industries agreed to a $48 million settlement for misleading investors about its safety protocols ahead of wildfires in Maui in 2023. In a different settlement in 2024, Hawaiian Electric agreed to contribute $2 billion toward a $4 billion settlement to compensate fire victims. A Federal report found the August 2023 fire was sparked by the re-energization of downed power lines. The fire killed more than 102 people and destroyed 2,200 structures in Lahaina.

Big I Flood 

Looking for an insurer to write both NFIP and private flood policies? The Big I has partnered with Selective for over 30 years. With personalized support, competitive commissions, and a streamlined quoting platform, Selective makes writing flood insurance easy and profitable. 

Big I Marketing Resources 

Trusted Choice has a full suite of marketing resources designed to help independent agents amplify their local marketing efforts- all FREE for all Big I members.

• Social Media Support
• The Digital Performance Hub
• Custom Advertising Materials
• Toolkits & Guides
• $1,000 in Reimbursement Funds

Big I Social Media Posts for February

The February calendar includes ready-made graphics for winter, personal property, and life insurance. There are templates in Canva that can be customized and caption suggestions that you can customize for your agency. 

How Does Your Personal Umbrella Compare? 

The Big I Personal Umbrella program encourages you to review our RLI vs. the Competition flyer, which offers a side-by-side comparison for measuring our endorsed umbrella partner RLI against other umbrella carriers. With RLI's PUP program, the insured can maintain their auto or home coverage with any company they choose. For more product features and eligibility information, visit the personal umbrella program homepage or contact Ridge Ostling on our staff. 

25% off Big I CE Webinars

Aben Winter CE sale! Save 25% with code WINTER (use code at checkout) on over 50 webinars,