Wildfire risk models

AN ACT Relating to wildfire risk models and wildfire risk score 1
disclosure; adding a new section to chapter 48.18 RCW; and adding a 2
new section to chapter 48.19 RCW. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW SECTION. Sec. 1. A new section is added to chapter 48.18 5
RCW to read as follows: 6
(1) An insurer that uses a wildfire risk score relating to 7
property insurance and in connection with either the underwriting of 8
real property regarding eligibility for coverage, or in rating of 9
real property to generate a premium, or both, shall provide the 10
applicant or the insured, and the relevant insurance producer, the 11
following information to enhance transparency: 12
(a) The current wildfire risk score of the property to be 13
covered; 14
(b) The range of possible wildfire risk scores under the model 15
used; 16
(c) The name of the person or entity that created the wildfire 17
risk score for the property; 18
(d) The date on which the wildfire risk score was created for the 19
property; and 20
Z-0514.2
HOUSE BILL 2277
State of Washington 69th Legislature 2026 Regular Session
By Representatives Hall, Abell, Reed, Ramel, Zahn, Engell, Kloba,
Ormsby, Berg, Salahuddin, Pollet, and Donaghy; by request of
Insurance Commissioner
Prefiled 01/06/26. Read first time 01/12/26. Referred to Committee
on Consumer Protection & Business.
p. 1 HB 2277
(e) The key factors that adversely contributed to the wildfire 1
risk score of the property and steps the consumer can take to improve 2
it. 3
(2) An insurer shall provide to a property owner in writing and 4
in plain language the information listed in subsection (1) of this 5
section no later than 15 days after a decline or acceptance of 6
property coverage the consumer applied for. 7
(3) An insurer shall provide the property owner in writing and in 8
plain language the information listed in subsection (1) of this 9
section within the renewal, nonrenewal, or cancellation notice.10
(a) For a policy nonrenewal, the information may be provided in 11
the notice required in RCW 48.18.2901. 12
(b) For a policy cancellation, the information may be provided in 13
the notice required in RCW 48.18.290. 14
(4) An insurer shall provide a revised wildfire risk score or 15
wildfire risk classification no later than 30 calendar days after 16
receipt of the policyholder's or applicant's documentation that since 17
the last evaluation the policyholder or applicant:18
(a) Has completed a property-specific mitigation action to reduce 19
the risk of loss; or 20
(b) Provides evidence of a community-level mitigation action in 21
sufficient proximity to the property to reduce the risk of loss.22
(5)(a) A policyholder or applicant for a policy of property 23
insurance whose wildfire risk model score, wildfire risk 24
classification assigned to the property, or applicable mitigation 25
discount is inaccurate, and provides evidence of the property-26
specific or community-level mitigation action may appeal the score 27
directly to the insurer. The insurer shall notify the policyholder or 28
applicant in writing of the right to appeal the wildfire risk score 29
or other wildfire risk classification or applicable mitigation 30
discount when the score, classification, or discount is provided to 31
the policyholder or applicant as required by subsections (2) and (3) 32
of this section. 33
(b) If the policyholder or applicant appeals the wildfire risk 34
score or other wildfire risk classification or applicable wildfire 35
discount, the insurer shall acknowledge receipt of the appeal in 36
writing within 10 calendar days after receipt of the appeal. The 37
insurer shall respond to the appeal in writing with a reconsideration 38
and decision within 30 calendar days after receiving the appeal. If 39
an appeal is denied, the insurer shall, upon request by the 40
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commissioner, forward a copy of the appeal and the insurer's 1
response, to the commissioner. 2
(6) For purposes of this section: 3
(a) "Insurer" means authorized insurers in this state; and4
(b) "Wildfire risk score" means a numerical value, rating, or 5
categorization derived from a statistical tool, modeling system, 6
algorithm, or other process that is used for the purpose of 7
predicting the future wildfire related insurance loss exposure of a 8
property to measure or assess wildfire risk for a residential 9
property for the purposes of property evaluation in either 10
underwriting, or rating, or both. 11
(7) The commissioner may adopt rules as necessary to implement 12
this section. 13
NEW SECTION. Sec. 2. A new section is added to chapter 48.19 14
RCW to read as follows: 15
(1)(a) An insurer that uses any wildfire risk model or a 16
catastrophe model or scoring method to assign risk shall provide the 17
wildfire risk model, catastrophe model, or scoring method used to 18
assign risk, including a description of the model, the impact of the 19
model on rates, an actuarial justification for all rating factors, 20
including mitigation discounts offered, and an explanation of the use 21
of the model in underwriting decisions, to the commissioner as part 22
of the insurer's complete rate filing. 23
(b) To the extent data is available and as established by rule, 24
an insurer shall submit to the commissioner, as part of their rate 25
filings, information on how and whether the models used for either 26
underwriting, or rating account, or both, for statewide and local 27
mitigation activities, such as forest treatment, investments in 28
wildfire fighting and mitigation equipment, and utility wildfire 29
mitigation activities. 30
(c) Wildfire risk models must not be used to determine personal 31
insurance rates, premiums, or eligibility for coverage unless the 32
scoring models are filed with the commissioner. Wildfire risk models 33
include all attributes and factors used in the calculation of a 34
wildfire risk score. RCW 48.19.040(5) does not apply to any 35
information filed under this subsection, and the information must be 36
withheld from public inspection and kept confidential by the 37
commissioner. All information filed under this subsection is 38
considered trade secrets under RCW 48.02.120(3). Information filed 39
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under this subsection may be made public by the commissioner for the 1
sole purpose of enforcement actions taken by the commissioner.2
(2) An insurer that uses a wildfire risk model, a catastrophe 3
model, or a combination of models shall ensure the following factors 4
are either incorporated in the wildfire risk model, catastrophe 5
model, or combination of models or are otherwise demonstrably 6
included in the insurer's underwriting and pricing:7
(a) Property-specific mitigation actions, such as establishing 8
defensible space, incorporating building hardening measures, or 9
receiving certification from an entity with expertise in mitigation 10
of properties against wildfire; and 11
(b) Community-level mitigation activities or designations, 12
including forest treatment, other fuel reduction activities, and 13
local fire protection efforts. 14
(3) If an insurer does not incorporate property-specific and 15
community-level mitigation actions into its models, the insurer must 16
provide discounts to policyholders who can demonstrate that property-17
specific mitigation actions have been undertaken on the property or 18
community-level mitigation actions have been undertaken in sufficient 19
proximity to the property to reduce the risk of loss.20
(4) An insurer shall post on its public website readily 21
accessible information on the premium discounts, incentives, or other 22
premium adjustments that are available to policyholders who undertake 23
property-specific mitigation actions or provide evidence of 24
community-level mitigation actions and the process for appealing a 25
wildfire risk score. The website must identify, as applicable:26
(a) Property-specific mitigation actions for the policyholder to 27
undertake and community-level mitigation actions that could result in 28
a discount, incentive, or other premium adjustment; and29
(b) The amount of the discount, incentive, or other premium 30
adjustment associated with each action. 31
(5) For the purposes of this section: 32
(a) "Catastrophe model" means a tool, instrumentality, means, or 33
product, including a map-based tool, a computer-based tool, or a 34
simulation that is used by an insurer to estimate potential losses 35
from catastrophic events; 36
(b) "Community-level mitigation action" means a science-based 37
mitigation action as demonstrated by a community-level or 38
neighborhood-level designation or certification or as undertaken by a 39
government entity; 40
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(c) "Property-specific mitigation action" means a science-based 1
mitigation action as demonstrated by the "wildfire prepared home" 2
designation from the insurance institute for business and home safety 3
or by a similar mitigation program that includes a verification and 4
certification process; and 5
(d) "Wildfire risk model" means a tool, instrumentality, means, 6
or product, including a map-based tool, a computer-based tool, or a 7
simulation, that is used by an insurer in whole or in part, to 8
measure or assess the wildfire risk associated with a residential 9
property or community for purposes of rating, classifying, or pricing 10
based on wildfire risk or estimating risks or losses corresponding to 11
the wildfire risk classifications. 12
(6) The commissioner may adopt rules as necessary to implement 13
this section. 14
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