OR SB1540

Insurers using catastrophe models or wildfire risk models must submit these models to the Director of the Department of Consumer and Business Services for approval, including descriptions, rate impacts, actuarial justifications, and explanations of how models affect underwriting decisions.

Insurers must incorporate community-level mitigation actions (such as forest treatment, fuel reduction, utility wildfire prevention) and property-specific mitigation actions (such as defensible space, structure hardening) into their risk models, or provide premium discounts/incentives for policyholders who complete such actions.

Insurers must post on their websites and provide to applicants/policyholders information about available premium discounts for mitigation actions, the appeals process for risk classifications, and written notice of their property's risk score along with actions that could improve it.

Applicants and policyholders may appeal their risk classification or dispute discount amounts, with insurers required to acknowledge appeals within 10 calendar days and respond with a decision within 30 calendar days.

Applies to fire, casualty, property, and homeowner insurance policies issued or renewed on or after January 1, 2027, with the act taking effect 91 days after the 2026 legislative session adjourns.