Senate Bill Report - SB 5928, Wildfire Risk Models and Score Disclosure (Senate, January 13, 2026)
Summary
A Senate Bill Report on SB 5928, as of January 13, 2026, for the Senate Committee on Business, Trade & Economic Development, with Senators Warnick and Short as sponsors, by request of Insurance Commissioner, and committee activity dated 1/15/26. The brief summary says the bill specifies requirements for property insurers in disclosing wildfire risk scores and risk classifications, revising them and handling appeals, and for insurers using wildfire risk models in filing rates with the Office of the Insurance Commissioner. It also provides for confidentiality of certain information and authorizes the Office of the Insurance Commissioner to adopt rules. The background states that the Legislature created a wildfire mitigation and resiliency standards work group in 2025.
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“Senate Bill Report - SB 5928, Wildfire Risk Models and Score Disclosure (Senate, January 13, 2026).”
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SENATE BILL REPORT
SB 5928
As of January 13, 2026
Title: An act relating to wildfire risk models and wildfire risk score disclosure.
Brief Description: Concerning wildfire risk models and score disclosure.
Sponsors: Senators Warnick and Short; by request of Insurance Commissioner.
Brief History:
Committee Activity: Business, Trade & Economic Development: 1/15/26.
Brief Summary of Bill
• Specifies requirements and procedures for authorized property insurers
in disclosing to applicants and insureds wildfire risk scores and risk
classifications, revising such scores and classifications, and handling
appeals.
• Specifies requirements for insurers using wildfire risk models,
catastrophe models, or scoring methods in filing rates with the Office of
the Insurance Commissioner (OIC), in underwriting and pricing, and in
publicly disclosing information.
• Provides for confidentiality and an exemption from public inspection
requirements for certain information.
• Authorizes OIC to adopt rules.
SENATE COMMITTEE ON BUSINESS, TRADE & ECONOMIC DEVELOPMENT
Staff: John Kim (786-7453)
Background: In 2025, the Legislature created a wildfire mitigation and resiliency
standards work group (work group) to study and make recommendations on such standards
This analysis was prepared by non-partisan legislative staff for the use of legislative
members in their deliberations. This analysis is not part of the legislation nor does it
constitute a statement of legislative intent.
Senate Bill Report -1- SB 5928
to the Legislature. The work group was co-chaired by the Insurance Commissioner and the
Commissioner of Public Lands for the Department of Natural Resources and included
members and ex officio members from various stakeholder groups.
The Legislature required the work group to develop recommendations in five areas. One
area was specified as improving transparency for consumers regarding wildfire hazard and
risk, including through disclosures to policyholders for insurance policy nonrenewals
primarily related to wildfire risk, with the intent of increasing the availability of insurance,
decreasing nonrenewals, and enhancing market stability informed by industry and consumer
data.
The work group published its final report to the Legislature in December 2025. Regarding
wildfire hazard and risk transparency, the report concluded there were some areas of
alignment but divergent perspectives across participants.
Summary of Bill: Insurer Requirements Relating to Wildfire Risk Scores and Risk
Classifications. Disclosure. An insurer authorized in this state that uses a wildfire risk score
relating to property insurance and in connection with either the underwriting of real
property regarding eligibility for coverage, or in rating of real property to generate a
premium, or both, must provide the applicant or the insured, and the relevant insurance
producer, the following information:
• the current wildfire risk score of the property to be covered;
• the range of possible wildfire risk scores under the model used;
• the name of the person or entity that created the wildfire risk score for the property;
• the date on which the wildfire risk score was created for the property; and
• the key factors that adversely contributed to the wildfire risk score of the property and
steps the consumer can take to improve it.
An insurer must provide such information in writing and in plain language to the property
owner no later than 15 days after a decline or acceptance of property coverage the consumer
applied for. It must be provided within a renewal, nonrenewal, or cancellation notice.
A wildfire risk score is defined as a numerical value, rating, or categorization derived from
a statistical tool, modeling system, algorithm, or other process used for the purpose of
predicting the future wildfire-related insurance loss exposure of a property to measure or
assess wildfire risk for a residential property for the purposes of property evaluation in
either underwriting or rating, or both.
Revised Wildfire Risk Scores or Risk Classifications. An insurer must provide a revised
wildfire risk score or wildfire risk classification no later than 30 calendar days after receipt
of a policyholder's or an applicant's documentation that since the last evaluation, the
policyholder or applicant:
• has completed a property-specific mitigation action to reduce the risk of loss; or
• provides evidence of a community-level mitigation action in sufficient proximity to
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the property to reduce the risk of loss.
Right to Appeal a Wildfire Risk Score or Risk Classification. A policyholder or applicant for
a property insurance policy may appeal an inaccurate wildfire risk model score, wildfire risk
classification of the property, or applicable mitigation discount directly to the insurer if the
policyholder or applicant provides evidence of the property-specific or community-level
mitigation action. The insurer must notify the policyholder or applicant of this right to
appeal when the score, classification, or discount is provided to the policyholder or
applicant.
The insurer must acknowledge receipt of the appeal within ten calendar days and must
respond in writing with a reconsideration and decision within 30 days after receipt of the
appeal. If the appeal is denied, the insurer must forward a copy of the appeal and the
insurer's response to the Office of the Insurance Commissioner (OIC) upon request.
Insurer Requirements Relating to Wildfire Risk Models, Catastrophe Models, or Scoring
Methods. Rate Filings. As part of an insurer's complete rate filing, an insurer that uses any
wildfire risk model or catastrophe model or scoring method to assign risk must provide to
OIC the model or method to assign risk, including:
• a description of the model;
• the impact of the model on rates;
• an actuarial justification for all rating factors, including mitigation discounts offered;
and
• an explanation of the use of the model in underwriting decisions.
A wildfire risk model is defined as a tool, instrumentality, means, or product, including a
map-based tool, a computer-based tool, or a simulation, used by an insurer in whole or in
part, to measure or assess the wildfire risk associated with a residential property or
community for purposes of rating, classifying, or pricing based on wildfire risk or
estimating risks or losses corresponding to the wildfire risk classifications.
To the extent data is available and as established by rule, an insurer must submit as part of
its rate filings information on how and whether the models are used for either underwriting
or rating account, or both, for statewide and local mitigation activities, such as forest
treatment, investments in wildfire fighting and mitigation equipment, and utility wildfire
mitigation activities.
Wildfire risk models may not be used to determine personal insurance rates, premiums, or
eligibility for coverage unless the scoring models are filed with OIC. Wildfire risk models
include all attributes and factors used in the calculation of a wildfire risk score.
An insurer that uses a wildfire risk model, a catastrophe model, or a combination of models
must ensure the following factors are either incorporated in the wildfire risk model,
catastrophe model, or combination of models or are otherwise demonstrably included in the
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insurer's underwriting and pricing:
• property-specific mitigation actions, such as establishing defensible space,
incorporating building hardening measures, or receiving certification from an entity
with expertise in mitigation of properties against wildfire; and
• community-level mitigation activities or designations, including forest treatment,
other fuel reduction activities, and local fire protection efforts.
A property-specific mitigation action is defined as a science-based mitigation action as
demonstrated by the Wildfire Prepared Home designation from the Insurance Institute for
Business and Home Safety or by a similar mitigation program that includes a verification
and certification process. A community-level mitigation action is defined as a science-based
mitigation action as demonstrated by a community-level or neighborhood-level designation
or certification or as undertaken by a government entity.
If an insurer does not incorporate property-specific and community-level mitigation actions
into its models, the insurer must provide discounts to policyholders who can demonstrate
that property-specific mitigation actions have been undertaken on the property or
community-level mitigation actions have been undertaken in sufficient proximity to the
property to reduce the risk of loss.
Confidentiality and Exemption from Public Inspection. Information filed regarding wildfire
risk models, catastrophe models, or scoring methods is exempt from public inspection
requirements. The information must be withheld from public inspection and kept
confidential by OIC, and are considered trade secrets. Such information may be made
public by OIC for the sole purpose of enforcement actions taken by OIC.
Public Disclosures. An insurer must post on its public website readily accessible
information on the premium discounts, incentives, or other premium adjustments available
to policyholders who undertake property-specific mitigation actions or provide evidence of
community-level mitigation actions, and the process for appealing a wildfire risk score. The
website must identify, as applicable:
• property-specific mitigation actions for the policyholder to undertake and
community-level mitigation actions that could result in a discount, incentive, or other
premium adjustment; and
• the amount of the discount, incentive, or other premium adjustment associated with
each action.
Rulemaking by the Office of the Insurance Commissioner. OIC may adopt necessary
implementing rules.
Appropriation: None.
Fiscal Note: Requested on January 7, 2026.
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Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.
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