Around the PIA Western Alliance States – Week of August 25, 2025

California — Escrow Claim Interest Back to Consumers: If Governor Gavin Newsom hasn’t signed the bill into law at press time, he soon will. A new law has been passed by the California Legislature to require insurance companies to pay interest to those posting homeowners claims whose payments are made out to the them and to a mortgage company.

Typically, the check is placed into escrow where it earns interest and is later sent to the homeowner. The interest goes to the lender.

This law changes came about because of the devastating wildfires in Los Angeles last year. Assemblymember John Harabedian, who authored the bill, says it is about time.

“Homeowners, not insurance companies, should receive the interest earned on their insurance payouts,” he said. “Many Angelenos devastated by these wildfires have lost nearly everything; they are struggling and need every bit of financial support. This bill puts people over profits, ensuring that rightful insurance payments go to those who need them most.”

The law will require lenders to pay homeowners at least 2% interest if a payment is put into escrow.

“If the homeowners are not given their money right away, the interest on that money, which the banks and the mortgage lenders are holding onto and earning [interest on], should be paid to the homeowner, not the banks,” Harabedian said. “The more we looked into this, the more we realized that this was a huge problem across the board.”

Source link: PropertyCasualty360.com — https://bit.ly/46g6r9x

Washington — Notice of rulemaking on service contracts and protection product guarantees (R 2025-09): We are starting rulemaking (R 2025-09) to implement HB 1006 and clarify what a motor vehicle service contract is and which forms must be filed with the our office before use.

HB 1006 allows motor vehicle service contract and protection product guarantee providers additional ways to demonstrate financial responsibility. Rulemaking is necessary to ensure these statutory changes are reflected in the Washington Administrative Code (WAC).

The Commissioner is also considering rulemaking to clarify what a motor vehicle service contract is and which forms must be filed with our office under RCW 48.110.073. This may result in new requirements that certain service contract forms must be filed with and approved by the Commissioner before they can be used. The rulemaking may include, but not be limited to, service contracts covering the following services:

Tire and wheel repair and replacement

Motor vehicle dent, ding, and crease removal

Motor vehicle windshield repair or replacement

Motor vehicle key fob repair or replacement

The comment period for this rule began on August 20, 2025 and will close on September 17, 2025. Please send comments to rulescoordinator@oic.wa.gov.

For more information, including the notice to start rulemaking (CR-101), please visit the rule webpage.

Washington — Clarifying rules on title insurer educational programs prepublication draft posted (R 2025-08): We released a prepublication draft for the title insurer educational programs rule (R 2025-08). This rulemaking seeks to clarify the circumstances under which title insurers are permitted to conduct or sponsor educational programs. 

Comments on the prepublication draft are due by September 4, 2025 and can be sent to rulescoordinator@oic.wa.gov.

For more information, including the text of the pre-publication draft, please visit the rule's webpage.

Washington — Notice of rulemaking on Mental Health Parity (R 2025-13): We are starting rulemaking (R 2025-13) due to the recent passage of E2SHB 1432 and other changes in law. Multiple provisions of health care and insurance regulations in the Washington Administrative Code (WAC) may need to be updated by the OIC to be consistent with the legislation passed and codified in the Revised Code of Washington (RCW).

This rulemaking may include but is not limited to improving access to appropriate mental health and substance use disorder services. This rulemaking may create new sections in WAC chapter 284-43 and may include but is not limited to the following authorities: WAC 284-43 Subchapter K; WAC 284-43-0160; WAC 284-43-2000; WAC 284-43-2020; WAC 284-43-2021; WAC 284-43-2050; WAC 284-43-3030; WAC 284-43-3070; WAC 284-43-4040; WAC 284-43-5130; and WAC 284-170-130.

The comment period for this rule began on August 20, 2025 and will close on September 17, 2025. Please send comments to rulescoordinator@oic.wa.gov.

For more information, including the notice to start rulemaking (CR-101), please visit the rule webpage.