Wash. Rev. Code » Title 48 · Chapter 48.22
Revised Code of Washington

Wash. Rev. Code § 48.22.040 (2026)

✓ current as of May 2026
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(1) The term "underinsured motor vehicles" with reference to coverage offered under any insurance policy regulated under this chapter shall, subject to the terms and conditions of such coverage, be deemed to include an insured motor vehicle where the liability insurer thereof is unable to make payment with respect to the legal liability of its insured within the limits specified therein because of insolvency.
(2) An insurer's insolvency protection shall be applicable only to accidents occurring during a policy period in which its insured's underinsured motorist coverage is in effect where the liability insurer of the tort-feasor becomes insolvent within three years after such an accident. Nothing herein contained shall be construed to prevent any insurer from affording insolvency protection under terms and conditions more favorable to its insureds than is provided hereunder.
(3) In the event of payment to an insured under the coverage required by this chapter and subject to the terms and conditions of such coverage, the insurer making such payment shall, to the extent thereof, be entitled to the proceeds of any settlement or judgment resulting from the exercise of any rights of recovery of such insured against any person or organization legally responsible for the bodily injury, death, or property damage for which such payment is made, including the proceeds recoverable from the assets of the insolvent insurer. Whenever an insurer shall make payment under the coverage required by this section and which payment is occasioned by an insolvency, such insurer's right of recovery or reimbursement shall not include any rights against the insured of said insolvent insurer for any amounts which would have been paid by the insolvent insurer. Such paying insurer shall have the right to proceed directly against the insolvent insurer or its receiver, and in pursuance of such right such paying insurer shall possess any rights which the insured of the insolvent company might otherwise have had, if the insured of the insolvent insurer had personally made the payment.
[ 1983 c 182 s 2; 1980 c 117 s 2; 1967 ex.s. c 95 s 3.]

Notes:

Severability—1983 c 182: See note following RCW 48.22.030.
Effective date—1980 c 117: See note following RCW 48.22.030.
Notes of Decisions
Cited in 22 cases (3 in the last 5 years), 1971–2026 · leading case: Allstate Ins. v. Dejbod, 818 P.2d 608 (Wash. Ct. App. 1991).
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Allstate Ins. v. Dejbod, 818 P.2d 608 (Wash. Ct. App. 1991). · cites it 4× “For a third example, if there is one claimant against two tortfeasors, each of whom has a liability policy with limits of $100,000, the combined stated limits may be $200,000, but the limits legally available to pay the claimant will vary according to whether the liability of…”
Blackburn v. Safeco Ins. Co., 794 P.2d 1259 (Wash. 1990). · cites it 2× “" RCW 48.22.040(1). [3] One commentator noted that even after multiple amendments, "the statute remains a patchwork of provisions that create ambiguity and confusion.”
Strunk v. State Farm Mut. Auto. Ins., 580 P.2d 622 (Wash. 1978). · cites it 2× “If the statute were intended to have the broad, liberal interpretation contended for by the plaintiffs, it would hardly be necessary to enact a section that being insured by an insolvent insurer constitutes being uninsured. If a motorist is insured by an insolvent insurer, it is…”
Hamilton v. Farmers Ins. Co., 733 P.2d 213 (Wash. 1987). “RCW 48.22.040(3), in part. The reimbursement provision does not address subrogation rights, but provides an insurer a right of reimbursement of its payments from any excess recovery of the insured resulting from a settlement or judgment.”
Liberty Mut. Ins. v. Tripp, 144 Wash. 2d 1 (Wash. 2001). “We also *13 believe it significant that RCW 48.22.040(3) expressly allows UIM insurers a right of reimbursement when their insureds obtain a recovery from a third party.”
Kral v. Am. Hardware Mut. Ins. Co., 784 P.2d 759 (Colo. 1989). “Stat. title 36, § 3636(E) (Cum.Supp. West 1989); Ore.”
Finney v. Farmers Ins., 586 P.2d 519 (Wash. Ct. App. 1978). “RCW 48.22.040(3), dealing with uninsured motorist coverage, provides: In the event of payment to an insured .”
Liberty Mut. Ins. Co. v. Tripp, 25 P.3d 997 (Wash. 2001). “We also believe it significant that RCW 48.22.040(3) expressly allows UIM insurers a right of reimbursement when their insureds obtain a recovery from a third party.”
Am. Econ. Ins. v. Lyford, 971 P.2d 964 (Wash. Ct. App. 1999). · cites it 3× “That statute, RCW 48.22.040(3), provides: [T]he insurer making such payment shall, to the extent thereof, be entitled to the proceeds of any settlement or judgment resulting from the exercise of any rights of recovery of such insured against any person or organization legally…”
Hawaiian Ins. & Guar. Co. v. Mead, 538 P.2d 865 (Wash. Ct. App. 1975). · cites it 2× “” RCW 48.22.040 (3) provides: “In the event of payment to an insured under the coverage required by this chapter and subject to the terms and conditions of such coverage, the insurer making such payment shall, to the extent thereof, be entitled to the proceeds of any settlement…”
Safeco Ins. Co. v. Woodley, 8 P.3d 304 (Wash. Ct. App. 2000). · cites it 2× “Liability Settlement Offset Woodley next argues that the provisions in Safeco's policy that permit the insurer to offset her full recovery from the tortfeasor violate RCW 48.22.040(3), which provides the UIM insurer with a right of reimbursement from "the proceeds of any…”
DeVany v. Farmers Ins., 139 P.3d 352 (Wash. Ct. App. 2006). “040(3), Washington’s Legislature specifically provided insurers a right of reimbursement: In the event of payment to an insured under the coverage required by this chapter and subject to the terms and conditions of such coverage, the insurer making such payment shall, to the…”
Show all 22 citing cases →
— Wash. Rev. Code § 48.22.040(1) — 3 cases
Allstate Ins. v. Dejbod, 818 P.2d 608 (Wash. Ct. App. 1991). “For a third example, if there is one claimant against two tortfeasors, each of whom has a liability policy with limits of $100,000, the combined stated limits may be $200,000, but the limits legally available to pay the claimant will vary according to whether the liability of…”
Blackburn v. Safeco Ins. Co., 794 P.2d 1259 (Wash. 1990). “" RCW 48.22.040(1). [3] One commentator noted that even after multiple amendments, "the statute remains a patchwork of provisions that create ambiguity and confusion.”
Alamo Rent a Car, Inc. v. Schulman, 897 P.2d 405 (Wash. Ct. App. 1995).
— Wash. Rev. Code § 48.22.040(3) — 14 cases
Hamilton v. Farmers Ins. Co., 733 P.2d 213 (Wash. 1987). “RCW 48.22.040(3), in part. The reimbursement provision does not address subrogation rights, but provides an insurer a right of reimbursement of its payments from any excess recovery of the insured resulting from a settlement or judgment.”
Liberty Mut. Ins. v. Tripp, 144 Wash. 2d 1 (Wash. 2001). “We also *13 believe it significant that RCW 48.22.040(3) expressly allows UIM insurers a right of reimbursement when their insureds obtain a recovery from a third party.”
Kral v. Am. Hardware Mut. Ins. Co., 784 P.2d 759 (Colo. 1989). “Stat. title 36, § 3636(E) (Cum.Supp. West 1989); Ore.”
Finney v. Farmers Ins., 586 P.2d 519 (Wash. Ct. App. 1978). “RCW 48.22.040(3), dealing with uninsured motorist coverage, provides: In the event of payment to an insured .”
Liberty Mut. Ins. Co. v. Tripp, 25 P.3d 997 (Wash. 2001). “We also believe it significant that RCW 48.22.040(3) expressly allows UIM insurers a right of reimbursement when their insureds obtain a recovery from a third party.”
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