Bill Analyses and Ratings
Bill Information: H0618 – Fire Insurance Transparency and Disclosure Act
Bill Summary
House Bill 618 creates new Section 41-2402 in Idaho Code, establishing comprehensive transparency requirements for fire insurers operating in Idaho. The bill mandates that insurers submit complete rate filings to the Department of Insurance at least 60 days before implementation, including full disclosure of any wildfire risk models, catastrophe models, or risk scoring methods used to determine premiums. When insurers use such models, they must provide actuarial justifications for all rating factors, explain mitigation discounts offered, and detail how models influence underwriting decisions.
The legislation requires insurers to publish information on their public websites about available premium discounts for property-specific and community-level wildfire mitigation actions, including the specific actions that qualify and the discount amounts. Insurers must provide annual written notices to policyholders explaining their wildfire risk scores in plain language, identifying which property features influenced the score, showing where the score falls within the insurer’s range of possible scores, and explaining how mitigation actions could improve the score. The bill establishes specific timelines for providing risk scores: within 15 days of application submission, with renewal offers, with nonrenewal notices, and within 30 days of completing mitigation actions.
The Department of Insurance gains authority to collect annual data from fire insurers regarding Idaho-specific exposures, premiums, and claims, with non-aggregated data exempt from public records disclosure as proprietary information. The department must publish anonymized, aggregated data and consumer education materials on its website by January 1, 2027. The bill grants the department rulemaking authority subject to legislative approval and includes an emergency clause making it effective July 1, 2026.
Overall Assessment
This bill imposes substantial new regulatory requirements on fire insurers, mandating detailed rate filing disclosures, public website transparency, annual policyholder notifications, and government data collection. While these requirements aim to provide consumers with better information about wildfire risk scoring and mitigation opportunities, they create significant compliance burdens for insurers through mandatory filings, website maintenance, individualized notices, and data reporting. The economic impact stems from increased administrative costs and regulatory oversight that insurers will likely pass on to policyholders through higher premiums or reduced market participation.
Rating Breakdown
ARTICLE I. RESPONSIBILITY IN GOVERNMENT (0)
The bill creates new regulatory oversight through the Department of Insurance's data collection authority (Section 41-2402(5)) and rulemaking power (Section 41-2402(7)), but does not address fiscal responsibility, taxation, congressional reform, or legislative processes. The transparency requirements involve government administration of insurance regulation rather than the core governmental responsibility issues enumerated in this metric.
ARTICLE II. CITIZEN INVOLVEMENT IN GOVERNMENT (0)
This bill regulates insurance company disclosures and filing requirements with the Department of Insurance. It does not address citizen participation in government, election processes, primary systems, or civic engagement mechanisms.
ARTICLE III. EDUCATION (0)
The bill addresses fire insurance transparency and wildfire risk disclosure requirements. It contains no provisions related to schools, curriculum, parental rights in education, teacher policies, or educational funding.
ARTICLE IV. AGRICULTURE (0)
While fire insurance may cover agricultural properties, this bill establishes general insurance transparency requirements without specifically addressing agricultural education, trade, water rights for farming, or ranching operations. The provisions apply uniformly to all property insurance regardless of agricultural use.
ARTICLE V. WATER (0)
The bill regulates fire insurance disclosures and wildfire risk assessments. It does not address water rights, inter-basin transfers, prior appropriation doctrine, reservoir management, or water policy.
ARTICLE VI. NATURAL RESOURCES AND ENVIRONMENT (0)
Although the bill addresses wildfire risk models and mitigation actions (Sections 41-2402(1)-(4)), it regulates insurance company transparency and consumer disclosures rather than environmental policy, land management, or natural resource use. The focus is on insurance market practices, not environmental stewardship or land use decisions.
ARTICLE VII. ENERGY (0)
This bill concerns fire insurance rate filings and wildfire risk disclosures. It does not address energy independence, energy production, electrical rates, hydroelectric power, or energy resource development.
ARTICLE VIII. IDAHO NATIONAL LABORATORIES (0)
The bill establishes transparency requirements for fire insurers. It contains no provisions related to Idaho National Laboratory, nuclear research, technology transfer, or alternative energy development.
ARTICLE IX. PRIVATE PROPERTY RIGHTS (0)
The bill requires insurers to disclose how they assess wildfire risk for properties but does not restrict property development, impose takings, or limit property owners' rights to use their land. The requirements apply to insurance companies' disclosure practices, not property ownership or development rights.
ARTICLE X. STATE AND FEDERAL LANDS (0)
This bill regulates fire insurance company practices and disclosures. It does not address federal land management, state administration of federal lands, or land ownership issues.
ARTICLE XI. WILDLIFE MANAGEMENT (0)
The bill establishes insurance transparency requirements related to wildfire risk. It does not address fish and game management, hunting, fishing, recreational access, or predator control.
ARTICLE XII. ECONOMY (-1)
The bill imposes substantial new regulatory requirements on fire insurers, including mandatory rate filings 60 days before use with complete model documentation (Section 41-2402(1)), public website maintenance (Section 41-2402(2)), annual written notices to all policyholders (Section 41-2402(3)), and annual data reporting to the state (Section 41-2402(5)). These compliance burdens increase administrative costs and regulatory oversight in the insurance market, creating barriers that may reduce competition and increase premiums for consumers.
ARTICLE XIII. HEALTH AND WELFARE (0)
This bill regulates property and fire insurance transparency. It does not address healthcare delivery, medical insurance, socialized medicine, or health-related decision-making.
ARTICLE XIV. AMERICAN FAMILY (0)
The bill establishes fire insurance disclosure requirements. It does not address family values, parental authority, marriage, abortion, or children's welfare.
ARTICLE XV. OLDER AMERICANS (0)
This bill regulates fire insurance company practices uniformly across all policyholders. It contains no provisions specifically addressing older Americans, their ability to provide for themselves, or policies affecting seniors.
ARTICLE XVI. LAW AND ORDER WITH JUSTICE (0)
The bill addresses insurance regulation and consumer disclosure requirements. It does not address gun rights, criminal penalties, drug policy, incarceration, juvenile justice, or immigration enforcement.
ARTICLE XVII. NATIONAL DEFENSE – SECURING THE BORDER (0)
This bill regulates fire insurance transparency requirements. It does not address military strength, veterans' affairs, missile defense, National Guard operations, border security, or terrorism.
ARTICLE XVIII. ELECTION OF JUDGES AND IDAHO SUPREME COURT JUSTICES (0)
The bill establishes insurance regulatory requirements administered by the Department of Insurance. It does not address judicial elections, constitutional interpretation, textualism, or originalism.
ARTICLE XIX. RELIGIOUS LIBERTY (0)
This bill regulates fire insurance company disclosures and rate filings. It does not address religious freedom, free exercise of religion, or the Religious Freedom Restoration Act.