2026 Regular Session SB 1540

• At the request of: (at the request of Senate Interim Committee on Natural Resources and Wildfire)
• Bill Title: Relating to property insurance; prescribing an effective date.

Catchline/Summary

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 to provide the Director of the Department of Consumer and Business Services a description of each model, along with related information, and an explanation of how the insurer uses the model in underwriting decisions. Specifies elements that an insurer must include in 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 mitigation 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 incentive the insurer provides.

Takes effect on the 91st day following adjournment sine die.

• Fiscal Impact: May Have Fiscal Impact, But No Statement Yet Issued
• Revenue Impact: May Have Revenue Impact, But No Statement Yet Issued
• Current Location: In Senate Committee
• Current Committee: Senate Committee On Natural Resources and Wildfire