Risk Model Use in Property Insurance Policies

Insurers must now provide premium discounts to policyholders who can demonstrate they have taken property-specific or community-level mitigation actions that reduce loss risk.

Insurers are required to post information about premium discounts, incentives, or mitigation actions on their public websites in a readily accessible manner.

Updated sponsor list to include additional legislators (Bacon, Bird, Boesenecker, Joseph, Lindsay, Marshall, McCluskie, Ricks, Stewart K., Story) and added Senate sponsors (Wallace, Winter F.).

Changed committee assignments from 'Business Affairs & Labor' to 'Business, Labor, & Technology' for the Senate.

Added reading status headers indicating '3rd Reading Unamended' and 'Amended 2nd Reading' with specific dates.

Minor formatting adjustments including line number changes and text reorganization without substantive policy impact.

The main title of the statute was changed from 'Homeowner insurance' to 'Homeowner and commercial insurance' to explicitly include commercial property policies under the new wildfire risk underwriting requirements.

A bill summary section was added to explain the bill's purpose to the public, noting that insurers using wildfire risk models must share information with the commissioner and provide notices to policyholders.

The document was reformatted from a final signed act version to a preliminary committee amendment version, including new header information about the legislative session and committee status.

Formatting instructions were added to the text explaining that shading denotes house amendments and double underlining denotes senate amendments.

Removed standard bill header and sponsor information from the initial page

Added administrative note indicating the bill has been prepared for signatures and directing readers to legislative status sheets

Reorganized text layout with page breaks and formatting adjustments during the transition from draft to final act

Deleted a paragraph regarding revised wildfire risk score requests for policyholders who completed mitigation actions since their last application

Updated sponsor lists to include additional representatives and senators.

Reorganized and clarified definitions of catastrophe models, community-level mitigation actions, and wildfire risk models.

Added requirement for insurers to provide annual written notices explaining wildfire risk scores and classifications to policyholders and applicants.

Added requirement for insurers to post detailed information on premium discounts and mitigation actions on their public websites.

Added specific timelines for providing wildfire risk scores to applicants (15 days) and policyholders (30 days for revised scores).

Added five new House co-sponsors: Bacon, Bird, Boesenecker, Joseph, Lindsay, Marshall, McCluskie, Ricks, Stewart K., and Story.

Updated the bill summary note to clarify that a new summary will be available after third reading in the House of Introduction, with a date stamp of March 20, 2025.

Added new definitions for 'community-level mitigation action' and 'property-specific mitigation action' to clarify what qualifies for risk reduction credits.

Added requirement for insurers to submit actuarial justifications for all rating factors, including mitigation discounts, to the commissioner.

Added requirement for insurers to incorporate state-wide mitigation activities, such as utility wildfire mitigation plans, into their risk models.

Modified the notice requirements to include specific information about property-specific and community-level mitigation actions that could reduce risk scores.

Added trade secret protections for wildfire risk models submitted to the commissioner, limiting disclosure under public records laws.