The Washington state Senate has passed Senate Bill 6079, establishing a wildfire-risk mitigation grant program designed to curb nonrenewals and policy cancellations tied to wildfire exposure.
According to a Senate report, funded projects must satisfy standards set by the Insurance Institute for Home and Business Safety, including its Wildfire Prepared Home designation.
Insurance Commissioner Patty Kuderer said the program relies on science-based mitigation benchmarks intended to reduce losses and stabilize underwriting results.
She described the initiative as a pilot, structured to test cost, performance, and rollout before lawmakers consider broader appropriations.
SB 6079 creates the Strength Washington Homes Program and establishes a dedicated account in the state treasury. It also bars insurers from treating wildfire risk as a disqualifying underwriting factor when a property meets IBHS Wildfire Prepared standards.
That restriction has drawn industry resistance. The American Property Casualty Insurance Association argues even hardened homes face residual wildfire exposure driven by geography, climate, and regional fire behavior.
According to Beinsure analysts, carriers insist underwriting must reflect the total risk profile of a location, not building features alone.
Trade groups have also challenged the funding structure. The bill would draw support from the Office of the Insurance Commissioner budget, which relies on premium taxes and carrier surcharges.
APCIA maintains the OIC budget covers regulatory oversight, not broader public policy initiatives.
In parallel, the Senate passed Senate Bill 6031, which defines insurance fraud as a standalone Class B felony.
The OIC said the measure codifies fraud to include billing for services not rendered, impersonation during insurance transactions, and theft of premiums or premium finance proceeds.
The bill broadens the definition of fraud to cover consumers and beneficiaries, making them eligible for criminal restitution.
Kuderer said the change redirects the Criminal Investigations Unit toward complex schemes that exploit loopholes and distribute losses in smaller increments to avoid prosecution.
SB 6031 also expands mandatory reporting of suspected fraud to regulators overseeing health care and financial services professionals, along with law enforcement and public safety agencies.
The Northwest Insurance Council said the proposal strengthens investigative authority without duplicating existing consumer protection mandates.
The Coalition Against Insurance Fraud said the bill improves information-sharing and supports hiring financial and digital specialists.
These measures follow Senate approval of separate legislation requiring insurers to disclose when they use wildfire risk scores, explain scoring methodologies, and provide policyholders with steps to improve those scores.
