SB 1540
Requires an insurer that uses a catastrophe model or wildfire risk model or scoring method to provide the Director of the Department of Consumer and Business Services a description of each model or scoring method, along with related information, and an explanation of how the insurer uses the model or scoring method in underwriting decisions.
Jurisdiction
Oregon
Session
2026 Regular Session
At the request of
(at the request of Senate Interim Committee on Natural Resources and Wildfire)
Committee
Rules
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Sign in to take actionPublic sentiment
Support
85%
Oppose
15%
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Bill overview
This bill requires insurance companies that use catastrophe or wildfire risk models to provide the Department of Consumer and Business Services with detailed information about those models, including how they’re used in underwriting decisions. It also mandates that insurers notify policyholders about premium discounts or adjustments based on mitigation actions taken by the policyholder or occurring in the community. Furthermore, it establishes a process for appealing risk classifications and incentivizes insurers to incorporate community and property-specific mitigation efforts into their risk assessments.
Sponsors
Official sponsors from legislative records.
Primary sponsor
Senate Interim Committee on Natural Resources and Wildfire
Arguments in favor
Reasons to support this legislation.
Supporters of the legislation believe that increasing transparency in wildfire risk models and property-level mitigation actions is crucial for homeowners to make informed decisions about reducing risk, while also addressing the financial burden associated with mitigation measures. They support Senate Bill 1540, which aims to promote consistency and fairness in insurance rates related to wildfire risk, recognizing standard fire mitigation efforts, and providing incentives for property-level mitigation actions. By requiring insurers to offer premium discounts or adjustments for completing such actions and disclosing their wildfire risk models in plain language, this legislation seeks to encourage homeowners to invest in making their homes safer and reduce the disconnect between scientific risk modeling and homeowner agency, ultimately promoting transparency, fairness, and shared responsibility in the insurance system.
Source: Testimony Summaries
Arguments opposed
Reasons to oppose this legislation.
Here is the synthesized paragraph representing the Oppose position: Opponents of the bill argue that it misrepresents the causes of wildfires, instead blaming climate change, while ignoring the role of forest management practices, limited firefighter access in roadless areas, and less aggressive firefighting tactics as contributing factors. They also express concerns about increased costs for Oregonians, particularly in the natural resource industries, which could lead to higher prices at the pump and retail prices passed on to consumers. Furthermore, critics contend that this policy change constitutes a regressive tax that disproportionately affects low-income households.
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