The proposed bill, if enacted, would amend the Arizona Standard Fire Policy by introducing new requirements for wildfire risk modeling. Specifically, it mandates that the policy must utilize wildfire risk modeling for municipalities with populations under 150,000. Insurers would be required to implement a rating plan that considers the mitigation designation of the municipality, with rates reflecting the reduced wildfire risk associated with areas recognized as Firewise USA sites. Additionally, the bill defines "wildfire risk model" and outlines its use in classifying individual structures and estimating potential losses.

The bill also makes several significant changes to existing provisions. It clarifies that a notice of cancellation cannot be based on a substantial change in risk unless there is a minimum substantiated potential loss of $2,000,000. Furthermore, it stipulates that conditions not present on the premises cannot justify nonrenewal of a policy. The bill also updates the timeframe for using consumer reports in insurance decisions, specifying that no declination or termination of coverage can be based on information from a consumer report that is older than 60 days. These updates aim to enhance the accuracy and fairness of fire insurance policies in relation to wildfire risks.

Statutes affected:
Introduced Version: 20-1503, 20-1652
House Engrossed Version: 20-1503, 20-1652