Bill > SB5928

This bill requires insurers in Washington State to provide greater transparency regarding wildfire risk scores used in property insurance. If an insurer uses a wildfire risk score to determine eligibility for coverage, set premiums, or both, and this score leads to a nonrenewal, cancellation, or an increase in premiums, the insurer must disclose to the policyholder and their insurance producer the current wildfire risk score, the possible range of scores, the entity that created the score, its creation date, and the key factors that negatively impacted the score, along with steps consumers can take to improve it if the factors are within their control. For premium increases, this information must be included in the renewal notice, and for nonrenewals or cancellations, it must be in the respective notices. Insurers must also allow policyholders to request a revised wildfire risk score or classification once per policy period if they provide documentation of property-specific or community-level mitigation actions that reduce wildfire risk. Policyholders can appeal their wildfire risk score or related discounts directly to the insurer, who must acknowledge and respond to the appeal within specific timeframes. Furthermore, insurers must file their wildfire risk models, including descriptions, impact on rates, actuarial justifications, and how they account for mitigation activities, with the Insurance Commissioner, with this information generally kept confidential as trade secrets. The models must also incorporate property-specific and community-level mitigation actions, and insurers must post information on their websites about available discounts for mitigation efforts and the appeal process.

Business and Industry

https://app.leg.wa.gov/billsummary?BillNumber=5928&Year=2025&Initiative=false