Bill
Bill > SB1540
summary
Introduced
02/02/2026
02/02/2026
In Committee
02/17/2026
02/17/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Legislative Measures
Bill Summary
The statement includes a measure digest written in compliance with applicable readability standards. Digest: Tells an insurer to give to a state agency the details of models the insurer uses to score property for wildfire risk. Tells the insurer to give notice about what actions a policy holder can take to better the risk score. Takes effect 91 days after the session ends. (Flesch Readability Score: 62.4). Requires an insurer that uses a catastrophe model or wildfire risk model or scoring method to provide the Director of the Department of Consumer and Business Services a description of each model or scoring method , along with related information, and an explanation of how the insurer uses the model or scoring method in underwriting decisions. Specifies elements that an insurer must include in incorporate applicable community-level mitigation actions and property- specific mitigation actions into each model and requires the insurer to give a premium discount or adjustment, or other incentive, to a policy holder that demonstrates having undertaken a property-specific mitigation action or that a community-level mitigation action occurred in proximity to the policy holder’s property. Requires an insurer to post on the insurer’s website, and provide to an applicant for insurance or a policy holder seeking a renewal, information about premium discounts or adjustments, or other incentives, that are available to applicants or policy holders that undertake a property-specific mit- igation action or demonstrate that a community-level mitigation action occurred in proximity to the applicant’s or policy holder’s property. Permits an applicant or policy holder to appeal an insurer’s classification of the applicant’s or policy holder’s property or to dispute the amount of a premium discount or adjustment or other in- centive the insurer provides. Takes effect on the 91st day following adjournment sine die.
AI Summary
This bill requires insurance companies that use models to assess wildfire risk for properties to submit detailed descriptions of these models, including how they incorporate community-level and property-specific mitigation actions, to the Director of the Department of Consumer and Business Services. Mitigation actions are defined as scientifically based efforts to reduce wildfire risk, such as forest treatments, fire-resistant landscaping, or community certifications. Insurers must also provide premium discounts or other incentives to policyholders who undertake property-specific mitigation or whose properties are near community-level mitigation efforts. Furthermore, insurers must clearly post information about available discounts and the process for appealing risk classifications or disputes over incentives on their websites, and provide this information to applicants and policyholders, explaining how their property's risk score was determined and what actions could lead to a better score or lower premium. Policyholders will have the right to appeal their wildfire risk classification or dispute the amount of any discount or incentive offered. The bill takes effect on July 1, 2027, and applies to policies issued or renewed on or after that date, with provisions for rule adoption before the operative date.
Committee Categories
Agriculture and Natural Resources
Sponsors (0)
No sponsors listed
Last Action
Referred to Rules by order of the President. (on 02/17/2026)
Official Document
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