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 at the city or town level, reflecting the reduced wildfire risk associated with areas recognized as Firewise USA sites. Additionally, the bill defines "wildfire risk model" and outlines its use for classifying individual structures and estimating potential losses based on wildfire risk.

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 be grounds for nonrenewal of insurance. The bill also updates the timeframe for which information from consumer reports can be used in declinations or terminations of coverage, specifying that such information must be collected or produced within the past sixty days. Overall, 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