Senate adopts rule requiring insurers to disclose wildfire-risk scoring factors
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Summary
Senate approved a bill requiring insurers to explain factors that adversely affected wildfire risk scores used in policy decisions; sponsors described the measure as a measured approach that protects confidential underwriting while giving homeowners clearer explanations.
The Senate passed an engrossed substitute to Senate Bill 5928 that requires insurers to disclose the factors that adversely affected wildfire risk scores used in underwriting or pricing decisions. Sponsor Senator Warnick (as recorded on the floor) described a negotiated striking amendment and said the measure will give homeowners more clarity about what drove insurers’ decisions while protecting insurers’ confidential information.
Warnick said the approach has worked in other states and balances homeowner information needs with carrier confidentiality; the bill clarifies that insurers need only supply a summary explanation to the Office of the Insurance Commissioner rather than full underwriting manuals. The roll call recorded 48 ayes and 1 nay and the bill was declared passed.
Why it matters: In areas facing wildfire risk, homeowner insurance availability and pricing have become a policy concern; supporters said disclosure will give homeowners leverage to mitigate risk and address cost drivers.
What’s next: The OIC will have an ongoing role in receiving summaries and monitoring disclosures per the bill language.