House Bill No. 1631 mandates that fire insurance policies for rural fire departments include specific coverage provisions. It requires that residential or dwelling policies provide coverage for fire department responses at a minimum of two percent (2%) of the property value, with a response fee of $1,000 for the first hour and $250 for each additional quarter hour. Additionally, costs for replacing Class A firefighting foam used during incidents can be added to the response fee. The bill also stipulates that the Insurance Commissioner will review these rates annually, with potential increases based on the Consumer Price Index or another appropriate index.

Furthermore, the bill establishes that liability coverage for rural fire departments must include responses to motor vehicle accidents, with a fee structure of $540 for the first hour and $135 for each additional quarter hour. If powered rescue equipment is utilized, the total fee will increase by 25%, and additional charges for absorbent materials may also apply. Similar to the fire response fees, these rates will be reviewed annually by the Insurance Commissioner. The act is set to take effect on November 1, 2025.