SB 5928 — Concerning wildfire risk models and score disclosure.

ENGROSSEDZ-0513.2 SUBSTITUTE SENATE BILL 5928 State of Washington 69th Legislature 2026 Regular Session By Senate Business, Trade & Economic Development (originally sponsored by Senators Warnick, Short, Hasegawa, Holy, Nobles, Riccelli, Shewmake, and Stanford;

by request of Insurance Commissioner)Commissioner READPrefiled FIRST12/22/25. TIME 01/22/26.

Read first time 01/12/26.

Referred to Committee on Business, Trade & Economic Development.

(1) An insurer 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, shall provide the insured,applicant upon nonrenewal or cancellation due to wildfire risk or when the insuredinsured, premiums are adversely impacted by the wildfire risk score, and if applicable the relevant insurance producer, the following information to enhance transparency:

(c) The name of the person or entity that created the wildfire risk score for the property;

p.(d) The date on which the wildfire risk score was created for the property;

1and ESSBp. 5928 (d) The date on which the wildfire risk score was created for the property;

and1 SB 5928 (e) The key factors that adversely contributed to the wildfire risk score of the property and,and for factors within the control of the consumer, the steps that the consumer can take to improve it.

For(2) factorsAn outsideinsurer theshall controlprovide ofto a property owner in writing and in plain language the consumer,information alisted listin subsection (1) of thethis factorssection mayno belater providedthan without15 days after a decline or acceptance of property coverage the stepsconsumer toapplied improve.for.

(2)(3) WhenAn the insured premiums are adversely impacted by the wildfire risk score, an insurer shall provide tothe anproperty insuredowner in writing and in plain language the information listed in subsection (1) of this section inwithin the renewalrenewal, noticenonrenewal, toor thecancellation insured.notice.

(3) An insurer shall provide the insured in writing and in plain language the information listed in subsection (1) of this section within the nonrenewal or cancellation notice.

(4) An insurer shall provide a revised wildfire risk score or wildfire risk classification,classification once per policy period, no later than 2030 businesscalendar days after receipt of the policyholder's requestor withapplicant's documentation that since the last evaluation the policyholder:policyholder or applicant:

(a) Has completed a property-specific mitigation action to reduce the risk of lossloss; as identified by the insurer in section 2(3) of this act;

or (b) Provides evidence of a community-level mitigation action in sufficient proximity to the property to reduce the risk of lossloss. as identified by the insurer in section 2(3) of this act.

(5)(a) A policyholder ofor residentialapplicant personalfor linesa policy of property insurance whose wildfire risk model score, wildfire risk classification assigned to the property, or applicable mitigation discount is inaccurate, and provides evidence of the property- specific or community-level mitigation action may appeal the score directly to the insurerinsurer. once per policy period.

The insurer shall notify the policyholder or applicant in writing of the right to appeal the wildfire risk score or other wildfire risk classification or applicable mitigation discount when the score, classification, or discount is provided to the policyholder or applicant as required by subsections (2) and (3) of this section.

p.(b) If the policyholder or applicant appeals the wildfire risk score or other wildfire risk classification or applicable wildfire discount, the insurer shall acknowledge receipt of the appeal in writing within 10 calendar days after receipt of the appeal.

2The ESSB 5928 (b) If the policyholder appeals the wildfire risk score or other wildfire risk classification or applicable wildfire discount, the insurer shall acknowledgerespond receiptto of the appeal in writing with a reconsideration and decision within 1030 businesscalendar days after receiptreceiving of the appeal.

TheIf insureran shallappeal respondis todenied, the appealinsurer inshall, writingupon withrequest aby reconsideration and decision within 20 business days after receiving the appeal.p.

If2 anSB appeal5928 is denied, the insurer shall, upon request by the commissioner, forward a copy of the appeal and the insurer's response, to the commissioner.

(a) "Adversely"Insurer" impacted" means chargingauthorized ainsurers higherin insurancethis premiumstate; for insurance than would have been offered if the wildfire risk score had been more favorable, whether the charge is by:

(i)and Application(b) "Wildfire risk score" means a numerical value, rating, or categorization derived from a statistical tool, modeling system, algorithm, or other process that is used for the purpose of predicting the future wildfire related insurance loss exposure of a ratingproperty rule;to measure or assess wildfire risk for a residential property for the purposes of property evaluation in either underwriting, or rating, or both.

or (ii) Assignment to a rating tier that does not have the lowest available rates;

(b) "Insurer" means authorized insurers in this state;

and (c) "Wildfire risk score" means a numerical value, rating, or categorization derived from a statistical tool, modeling system, algorithm, or other process that is used for the purpose of predicting the future wildfire related insurance loss exposure of a property to measure or assess wildfire risk for residential personal lines property for the purposes of property evaluation in either underwriting, or rating, or both.

(1)(a) An insurer providing residential personal lines property insurance coverage that uses any wildfire risk model or a catastrophe model or scoring method to assign risk shall provide the wildfire risk model, catastrophe model, or scoring method used to assign risk, including a description of the model, the impact of the model on rates, and an actuarial justification for all rating factors, including mitigation discounts offered, and an explanation of the use of the model in underwriting decisions, to the commissioner as part of the insurer's complete rate filing.

Such(b) explanationTo the extent data is limitedavailable toand wildfireas riskestablished onlyby andrule, an insurer isshall notsubmit required to submitthe underwritingcommissioner, guidelinesas part of their rate filings, information on how and whether the models used for either underwriting, or manualsrating account, or both, for statewide and local mitigation activities, such as partforest oftreatment, theinvestments explanation.in wildfire fighting and mitigation equipment, and utility wildfire mitigation activities.

p.(c) Wildfire risk models must not be used to determine personal insurance rates, premiums, or eligibility for coverage unless the scoring models are filed with the commissioner.

3 ESSB 5928 (b) To the extent data is available and as established by rule, an insurer shall submit to the commissioner, as part of their rate filings, information on how and whether the models used for either underwriting, or rating, or both, account for statewide and local mitigation activities, such as forest treatment, investments in wildfire fighting and mitigation equipment, and utility wildfire mitigation activities.

(c) Wildfire risk models must not be used to calculate premiums or rate differentials, or eligibility for coverage unless the scoring models are filed with the commissioner.

Information filed underp. this subsection may be made public by the commissioner for the sole purpose of enforcement actions taken by the commissioner.

(2)3 AnSB insurer5928 providingunder residentialthis personalsubsection linesmay propertybe insurancemade coveragepublic thatby uses a wildfire risk model, a catastrophe model, or a combination of models shall ensure the followingcommissioner factorsfor are either incorporated in the wildfiresole riskpurpose model, catastrophe model, or combination of modelsenforcement oractions aretaken otherwiseby demonstrably included in the insurer'scommissioner. underwriting and pricing when actuarially supported:

(2) An insurer that uses a wildfire risk model, a catastrophe model, or a combination of models shall 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 insurer's underwriting and pricing:

(3) AnIf an insurer providingdoes residentialnot personalincorporate linesproperty-specific propertyand insurancecommunity-level coveragemitigation shallactions postinto on its publicmodels, websitethe readilyinsurer accessiblemust informationprovide ondiscounts theto premiumpolicyholders discounts,who incentives,can ordemonstrate otherthat premiumproperty- adjustmentsspecific thatmitigation mayactions behave availablebeen toundertaken policyholderson whothe undertakeproperty property-specificor community-level mitigation actions orhave providebeen evidenceundertaken ofin community-levelsufficient mitigationproximity actionsto and the processproperty forto appealingreduce athe wildfire risk score.of loss.

(4) An insurer shall post on its public website readily accessible information on the premium discounts, incentives, or other premium adjustments that are 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.

p.(a) 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;

4and ESSB(b) 5928The (a)amount Property-specificof mitigation actions for the policyholder to undertake and community-level mitigation actions that could result in a discount, incentive, or other premium adjustment;adjustment associated with each action.

and(5) (b)For Thethe potentialpurposes amount of thethis discount,section: incentive, or other premium adjustment that may be available.

(4) For the purposes of this section: