The national basics guides cover the core P&C concepts: insurable interest, indemnity, negligence, actual cash value and replacement cost, and policy conditions. This guide collects the Washington rules that apply across property and casualty lines:

• the negligence rule
• cancellation and nonrenewal notice
• credit history limits
• overinsurance and replacement cost
• the Insurance Fair Conduct Act
• the guaranty association

Washington auto rules are in the Washington Personal Auto Policy guide. The FAIR plan and surplus lines are in the Washington Other Casualty guide. Claim-handling deadlines are in the Washington Insurance Regulation guide.

Negligence (RCW 4.22.005)

Washington uses pure comparative negligence. A claimant's own fault reduces the award in proportion but does not bar recovery.

Cancellation and nonrenewal (RCW 48.18.290 to 48.18.2901)

These rules cover most P&C policies. Private passenger auto has its own shorter notices, and surplus lines has separate minimums.

Other rules:

• Mortgagees, pledgees and other loss payees get the same notice (RCW 48.18.290(1)(e)).
• A fire policy under chapter 48.53 RCW may be cancelled on 5 days' notice, with a copy to the Commissioner. Mortgagees get at least 20 days (RCW 48.53.040).
• An affidavit by the person who mailed the notice is prima facie proof of mailing.
• Nonrenewal notice isn't required when the insured doesn't pay a renewal premium the insurer offered at least 20 days before expiration, or when the insured has bought equivalent coverage.
• If a renewal notice leaves out the amount of a premium increase or an explanation of changes, the policy renews on the expiring rates and terms (RCW 48.18.2901(2)).
• A policy written for more than one year is treated as successive one-year policies.
• An insured may cancel by phone. The insurer may ask for written confirmation but may not impose a waiting period (WAC 284-30-590(8)).
• Refunds for homeowners, dwelling fire and private auto (RCW 48.18.290(4), 48.18.300(2)):
  • When the insurer cancels: pro rata, within 45 days.
  • When the insured cancels: within 30 days.
• A notice must state the true and actual reason. "Doesn't meet underwriting standards" isn't enough (WAC 284-30-570). On written request, insurers give written reasons for canceling or refusing homeowners, dwelling fire and private auto coverage (RCW 48.30.320).
• No lawsuit may be based on statements made in a cancellation notice (RCW 48.18.293).

Credit history (RCW 48.18.545)

These rules cover personal insurance:

• private auto
• homeowners and renters
• dwelling property
• residential earthquake
• personal liability and theft
• personal inland marine
• mechanical breakdown

The rules:

• An insurer may not cancel or nonrenew personal insurance based in whole or in part on credit history or an insurance score.
• It may use credit to deny or rate coverage only together with other substantive underwriting factors.
• It may not deny because a person has no credit history, because of the number of inquiries, or because of medical collection accounts.
• An adverse action notice states the main credit factors and the right to a free copy of the report.

Overinsurance and replacement cost (chapter 48.27 RCW)

• Overinsurance is insurance above fair value, which is replacement cost less depreciation. No one may knowingly require or place coverage that would result in overinsurance.
• A lender may not require more property insurance than could reasonably be paid in a loss.
• Insurers may offer replacement cost coverage, with no deduction for depreciation, by special provision or endorsement (RCW 48.27.020).

Homeowners: licensed day care (WAC 284-30-700)

An insurer may not deny or terminate homeowners coverage mainly because the insured runs a licensed day care. It may still exclude or limit coverage for the day care business pursuits.

Insurance Fair Conduct Act (RCW 48.30.015)

A first-party claimant who is unreasonably denied coverage or payment may sue. The court may increase damages up to three times actual damages and award attorney fees. The claimant gives written notice to the insurer and the OIC 20 days before filing suit.

Fraud

• A false claim is a gross misdemeanor, or a class C felony over $1,500 (RCW 48.30.230).
• Hiding or destroying insured property to defraud the insurer is a class C felony (RCW 48.30.220).
• A repair shop or other service provider that routinely waives deductibles is trafficking in insurance claims (RCW 48.30A.015).

Guaranty association (chapter 48.32 RCW)

The Washington Insurance Guaranty Association pays covered claims of an insolvent authorized insurer:

• each claim over $100 and under $300,000, never more than the policy limit
• three accounts: automobile, longshore and harbor workers' compensation, and all other
• It doesn't cover life, disability, title, surety, credit, mortgage guaranty, ocean marine or workers compensation, except longshore.
• Surplus lines policies aren't covered.

Common exam traps

• Washington is pure comparative negligence.
• P&C cancellation and nonrenewal take 60 days with the actual reason. Nonpayment takes 10. Auto has its own 20/10 rule.
• The producer gets a copy of the notice within 5 working days.
• A midterm coverage change needs 45 days' notice.
• Credit history can never be the basis to cancel or nonrenew personal insurance.
• The Fair Conduct Act allows up to treble damages, after 20 days' notice.
• P&C guaranty coverage runs from $100 to $300,000.