A property insurer, having paid for covered damage, can recover
the loss by seeking reimbursement from its insured where the
insured has recovered funds from a responsible third-party, or the
insurer may pursue a claim directly against the third-party. If the
insurer makes a direct claim against the responsible party, to what
extent must the insurer allocate the money it recovers to reimburse
the insured for its deductible? In an opinion issued on July 3,
2019, the Washington Supreme Court held that a fault-free insured
must receive the full amount of its deductible before the insurer
may allocate any of the recovered funds to itself. Daniels v.
State Farm Mutual Automobile Insurance Co., Wash., No.
96185-9, 2019 WL 2909308 (July 3, 2019).
