Renewal Notices Sent Electronically Are Legal, Approved by the State and Effective
Post 5000
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Washington state law allows insurers to deliver insurance notices and documents electronically if the party has affirmatively consented to that method of delivery and has not withdrawn the consent. The Plaintiffs argued that the terms and conditions statement was not “conspicuous” because it was hidden behind a hyperlink included in a single line of small text. The court found that the statement was sufficiently conspicuous as it was bolded and set off from the surrounding text in bright blue text.
In James Hughes et al. v. American Strategic Insurance Corp et al., No. 3:24-cv-05114-DGE, United States District Court (February 14, 2025) the USDC resolved the dispute.
The court’s reasoning focused on two main points:
1 whether the Plaintiffs’ consented to receive electronic notices and
2 whether the notice provided by ASI satisfied Washington law.
Consent to Receive Electronic Notice
The court found that the terms and conditions statement was clear in informing the Plaintiffs that they were consenting to receive insurance policy documents electronically.
Whether the Notice Satisfied Washington Law
Washington law requires insurers to renew any insurance policy unless they have communicated their willingness to renew in writing to the named insured at least twenty days prior to its expiration date and included a statement of the amount of the premium required to be paid by the insured to renew the policy. The USDC found that ASI’s renewal notice, which was emailed to the Plaintiffs on July 15, 2022, complied with these requirements because the notice came 61 days before the renewal deadline and stated the amount required to be paid to maintain the policy.
The USDC noted that although ASI’s system of attaching renewal notices in lengthy packets was not ideal, it did not violate the law. The court also noted that insureds in Washington have an affirmative duty to read their policy and be on notice of its terms and conditions.
The Renewal Premium Notice
A “Renewal Premium Notice” was contained in the packet attached to the email. In relevant part, the Notice stated: “To accept this renewal offer and maintain your coverage, please pay the minimum amount due shown below.” The Notice listed “total amount due” as $1,471.00 and listed September 14, 2020, as the “due date.”
Plaintiffs did not pay the renewal by September 14, 2022, and the policy lapsed.
Plaintiffs’ house was destroyed by a fire on August 11, 2023 almost a year after the due date with no attempt made by Mr. Hughes to pay the premium.
When Mr. Hughes called to report the claim on August 12, 2023, he was informed that the policy had lapsed. Plaintiffs alleged that they incurred $750,000 in damages for the loss.
DISCUSSION
The USDC noted that the Plaintiffs were actually aware that they were receiving renewal notices by email. Indeed, the terms and conditions statement uses the words “insurance policy documents” three times, making it clear that the “types of notices and documents” contemplated are those that pertain to the signor’s insurance policy.
Mr. Hughes confirmed receipt of the July 15, 2022, email containing the renewal packet. The “Renewal Premium Notice” in the packet instructed Plaintiffs to pay the minimum amount due to maintain their coverage and listed “total amount due” as $1,471.00. Since the notice came in 61 days before the renewal deadline and stated the amount required to be paid in order to maintain the policy it complied with Washington law.
Plaintiffs’ policy validly lapsed when they did not make the renewal payment.
ZALMA OPINION
Mr. Hughes agreed to accept all communications from ASI electronically and admitted that he received the communication stating when, and how much, he needed to pay to renew his policy. He did not pay the premium and the policy lapsed. ASI even wrote to Hughes about the lapse and he did nothing to renew the policy or find a new policy. I would feel for the man if he did not receive the notice but he admitted he received it and claimed that the premium requirement was hidden from his view even though it was made bold and in blue, ASI wrote to him to explain the lapse and so did his agent.. He had no one to blame for the loss except himself.
(c) 2025 Barry Zalma & ClaimSchool, Inc.
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The Professional Claims Handler
Post 5218
Read the full article at https://www.linkedin.com/pulse/zalma-philosophy-claims-handling-part-8-barry-zalma-esq-cfe-zdwsc, see the full video at https://rumble.com/v70zl4s-the-zalma-philosophy-of-claims-handling-part-8.html and at https://youtu.be/MIYcF71ffRQ, and at https://zalma.com/blog plus more than 5200 posts.
Claims Commandment X – Thou Shall Not Pretend to be a Lawyer
Some experienced and professional claims people know the law in their area of expertise better than most lawyers.
Adjusters should be adjusters and leave lawyering to lawyers. Similarly, lawyers should be lawyers and never try to be adjusters.
Claims Commandment XI – Thou Shall Empathize With the Claimant
Everyone presenting a claim is unhappy, disturbed, shocked, injured and needs help.
Empathy is identification with and understanding of another’s situation, feelings, and motives. It is the ability to understand another person’s circumstances, point of view, thoughts, and feelings....
HOW TO CREATE AN EXCELLENCE IN CLAIMS HANDLING PROGRAM
See the full video at https://rumble.com/v70wb2i-the-zalma-philosophy-of-claims-handling-part-6.html and at https://youtu.be/tL5nDKPEs40 and at https://zalma.com/blog plus more than 5200 posts.
Post 5217
This is a change from my normal blog postings. It is my attempt. in more than one post, to explain the need for professional claims representatives who comply with the basic custom and practice of the insurance industry.
An Excellence in Claims Handling program begins with a statement in the insurer’s claims manual or statement of professionalism that it is dedicated to providing excellence in claims handling to every insured who presents a claim.
The excellence in claims handling program should include, at a minimum:
A series of lectures supported by text materials explaining:
A definition of insurance.
How to read and understand an insurance policy.
How to interview an insured, witness, or claimant.
How to assist an insured in the insured’s obligation to ...
The Professional Claims Handler
Post 5216
Read the full article at https://www.linkedin.com/pulse/zalma-philosophy-claims-handling-part-5-barry-zalma-esq-cfe-jde8c, see the full video at https://rumble.com/v70q4x8-the-zalma-philosophy-of-claims-handling-part-5.html and at https://youtu.be/6b9tZQsEkB4, and at https://zalma.com/blog plus more than 5200 posts.
This is a change from my normal blog postings. It is my attempt. in more than one post, to explain the need for professional claims representatives who comply with the basic custom and practice of the insurance industry.
Standards to be a Professional Claims Adjuster
The Insurance claims professional should be a person who:
1. Can read and understand the insurance policies issued by the insurer.
2. Understands the promises made by the policy.
3. Understand their obligation, as an insurer’s claims staff, to fulfill the promises made.
4. Are competent investigators.
5. Have empathy and recognize the difference between empathy and sympathy.
6. ...
The Professional Claims Handler
Post 5219
Posted on October 31, 2025 by Barry Zalma
An Insurance claims professionals should be a person who:
Can read and understand the insurance policies issued by the insurer.
Understands the promises made by the policy.
Understand their obligation, as an insurer’s claims staff, to fulfill the promises made.
Are competent investigators.
Have empathy and recognize the difference between empathy and sympathy.
Understand medicine relating to traumatic injuries and are sufficiently versed in tort law to deal with lawyers as equals.
Understand how to repair damage to real and personal property and the value of the repairs or the property.
Understand how to negotiate a fair and reasonable settlement with the insured that is fair and reasonable to both the insured and the insurer.
How to Create Claims Professionals
To avoid fraudulent claims, claims of breach of contract, bad faith, punitive damages, unresolved losses, and to make a profit, insurers ...
The History Behind the Creation of a Claims Handling Expert
The Insurance Industry Needs to Implement Excellence in Claims Handling or Fail
Post 5210
This is a change from my normal blog postings. It is my attempt. in more than one post, to explain the need for professional claims representatives who comply with the basic custom and practice of the insurance industry. This statement of my philosophy on claims handling starts with my history as a claims adjuster, insurance defense and coverage lawyer and insurance claims handling expert.
My Training to be an Insurance Claims Adjuster
When I was discharged from the US Army in 1967 I was hired as an insurance adjuster trainee by a professional and well respected insurance company. The insurer took a chance on me because I had been an Army Intelligence Investigator for my three years in the military and could use that training and experience to be a basis to become a professional insurance adjuster.
I was initially sat at a desk reading a text-book on insurance ...
The History Behind the Creation of a Claims Handling Expert
The Insurance Industry Needs to Implement Excellence in Claims Handling or Fail
Post 5210
This is a change from my normal blog postings. It is my attempt. in more than one post, to explain the need for professional claims representatives who comply with the basic custom and practice of the insurance industry. This statement of my philosophy on claims handling starts with my history as a claims adjuster, insurance defense and coverage lawyer and insurance claims handling expert.
My Training to be an Insurance Claims Adjuster
When I was discharged from the US Army in 1967 I was hired as an insurance adjuster trainee by a professional and well respected insurance company. The insurer took a chance on me because I had been an Army Intelligence Investigator for my three years in the military and could use that training and experience to be a basis to become a professional insurance adjuster.
I was initially sat at a desk reading a text-book on insurance ...
