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Free 3 CE Seminars in 7 Cities on 3/31-4/16
IIABW will be collaborating with Cochrane & Co. and WSRB on 3 CE training seminars in Spokane 3/31; Tri-Cities 4/1; Wenatchee 4/2; Bellevue 4/15; Everett 4/15; Tacoma 4/16; Tukwila 4/16. It will cover:
- how to use data to better understand natural hazard risk with demos of underwriting products available.
- The ABCs of building a great application so it can get to the top of your underwriters’ stacks.
- A review of the 2026 legislative session and OIC priorities, including: agent restitution penalties, wildfire and rate transparency, third-party litigation funding, taxes, etc.
Historic Final Vote on Income Tax This Week
Our state’s 2026 legislative session will conclude in 3 days and Legislators are expected to vote on the proposed millionaires’ income tax. Momentum behind the proposal increased recently after Governor Ferguson said he would sign the legislation because of revisions to the bill — including tax relief provisions and investments in childcare and education.
The proposal would create a new state income tax of 9.9% on couples earnings of over $1 million a year. That would impact 30,000 taxpayers, with taxes owed starting in 2028. This new tax would impact insurance agencies and other small businesses that are structured as pass-through entities (S-corps/ partnerships/ LLCs) where business income is reported on the owner’s individual return. Pass-through income can trigger the tax even without cash distribution to the owners. Under this tax, agency owners can face this proposed new Washington income tax on profits retained within the business for payroll, debt service, or expansion. Here is a 2 page summary of the bill's impact on pass-through companies - 90% of all independent insurance agencies.
IIABW has been lobbying against this bill because of the impact it will have on independent agencies. We have been mobilizing IIABW members to contact targeted legislators who are undecided.
Insurance Agent Behind 1933 Income Tax Ruling
During the Great Depression, Washington approved by more than 70% Initiative 69, which created a state income tax. The business community took the state to court. The lead plaintiff against the tax was William Culliton, who owned a Seattle insurance agency. Our state Supreme Court ruled with Culliton that the tax violated the state constitution and this ruling has stood 90+ years.
The majority decision said income is a form of property under the state constitution and our state constitution requires property to be taxed at a “uniform” rate. The majority reasoned that a flat income tax would be fine, but the graduated-rate tax that voters had just approved was unconstitutional.
If the income tax passes this week, our supreme court will have another opportunity to rule on the issue if income is property. Three years ago, our state supreme court upheld the state’s new capital gains tax on investment income, rejecting arguments that it was an unconstitutional income tax. That decision did not revisit the Culliton ruling but said the capital gains tax was an excise tax.
Since 1933, Washingtonians have voted 10 times against income taxes on the ballot. Most recently, in 2010, a proposed tax on people earning more than $200,000 a year was soundly defeated, losing in 38 of 39 counties. If the income tax passes this week, opponents are expected to seek another public vote.
OIC Rate Transparency Rule Change Proposed
The OIC will be holding a public hearing on 4/16 regarding a change to its rate transparency rule. The OIC is proposing the creation of a new phase two and to delay the implementation of the original phase two, now the new phase three, until 2029.
The new phase two, which will begin 1/1/27, will require insurers to provide reasonable explanations for at least the top three primary factors that caused the premium increases. Policy holders can request the explanation of the rate increase by email.
The new phase three, which will begin on 1/1/29, will require insurers to provide premium change notices automatically when a renewal will result in a 10%+ premium increase. The notice must include more details on the primary factors that caused the increase, including claims history, discounts, fees and surcharges, premium capping, base rate changes, and demographic factors and how much each factor impacted the increase.
IIABW Meetings in Washington D.C. 4/22-24
15+ IIABW members will be meeting with our Congressional delegation in Washington D.C. as part of IIABA’s Legislative conference on April 22–24. We will be lobbying on the following issues:
- Protecting our courts by cracking down on lawsuit sbuse
- Addressing the insurance market crisis by encouraging disaster preparedness
- Modernizing and reauthorizing the National Flood Insurance Program (NFIP).
- Securing the national economy and insurance marketplace from the threat of terrorism
- Advancing reforms to lower health insurance costs and increase transparency
IIAB of Spokane Hockey Night 3/11
On March 11, IIABS will hold their annual family Hockey Night in Spokane which will include the hockey ticket, hot dog bar and raffle prizes.
IIABKSC Paint & Sip 4/16 in Kirkland
IIAB of King & Snohomish Counties will be holding a Paint & Sip event on April 16 in Kirkland. To register, click here.
Big I Coverage Checklists
Use of coverage checklists can help agencies avoid E&O claims and increase production. The Big I has created 20+ coverage checklists, including: Business Income, BOP, Commercial Property, Contractual Review.
Big I Articles
RLI Upgraded to ‘A++’
AM Best announced upgrades to the financial strength ratings of RLI Group from A++ to A+. IIABW's endorsed and administered RLI Standalone Personal Umbrella features:
- Limits up to $5 million
- Excess UM/UIM
- The insured can keep their current homeowner/auto insurer
- New drivers accepted – no age limit on drivers
- Up to one DWI/DUI per household allowed
- 250/500/50 auto limits accepted
- Competitive, low premiums for increased limits of liability
- Simple, self-underwriting application that lets you know immediately if the insured is accepted
- E-signature and online payment options
For more information about the RLI Umbrella, contact Ridge Ostling or go to our website.
Commercial P&C Market Softest Since 2017
Commercial P & C premiums in the fourth quarter 2025 were the softest they have been since 2017. Nine lines of business—cyber, business interruption, commercial property, construction, D & O, employment practices, surety bonds, terrorism, and workers’ compensation—saw premiums decrease.
Will AI Tools Deliver? Webinar 3/11
On March 11 at 10 am, the Big I’s Agents Council for Technology (ACT) will sponsor a free webinar that provides a framework for evaluating AI solutions.
- What to demand from vendors
- How to tell if a tool will actually integrate with your operations
- How to avoid the most common (and expensive) mistakes agencies make when buying AI
April Social Media Posts
The Big I's Social Media April calendar includes content for distracted driving, homeowners insurance, and spring. Download the calendar for ready-made graphics that you can post throughout the month. There are templates in Canva that you can use to customize posts.
IIABW Conferences in 2026
- 9/16-18 GO BIG Conference at the NEW Snoqualmie Hotel and Casino
Big I Hires
Big I Hires is a robust online recruiting platform developed to help insurance agencies of all sizes hire top-performing sales and service staff. As an exclusive benefit, Big I members can access a free, limited-access account and benefit from core platform features. An array of tools and resources are available to find the right candidate with a few simple clicks and manage the entire process in one online location.
25% off Big I CE Webinars
Aben Winter CE sale! Save 25% with code SPRING (use code at checkout) on over 50 webinars,
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