Montana enacts bill requiring transparency on wildfire risk
The Montana Legislature has approved a new measure requiring insurance companies operating in the state to disclose detailed wildfire risk score information when used to underwrite or rate residential property.
House Bill 533, passed by the 69th Legislature and now enrolled, mandates that admitted insurers provide specific information to homeowners, applicants, or their insurance producers upon request. The statute is aimed at increasing transparency around how wildfire risk assessments are factored into decisions on property insurance coverage.
Under the new law, insurers must share five key pieces of information: the current wildfire risk score assigned to the property, the full range of possible scores under the model used, the name of the individual or organization that generated the score, the date on which the score was produced, and the major factors that negatively influenced the property’s risk score.
Insurers are required to provide the information in writing within 30 days of receiving a formal request.
The law defines a “wildfire risk score” as any numerical value, rating, or categorization derived from statistical modeling or similar processes used to evaluate the potential for wildfire-related insurance losses. The regulation applies exclusively to admitted insurers and excludes nonadmitted companies.
The new disclosure requirement will be codified under Title 33, Chapter 16, of the Montana Code Annotated, which governs insurance practices in the state.
The measure was introduced by Representative C. Schomer and certified by both the House and Senate. Proponents of the law argue that it provides consumers with critical insight into the factors influencing their insurance eligibility and pricing, particularly in fire-prone areas.
The move places Montana among a growing number of states scrutinizing the use of risk modeling in insurance decisions, especially as wildfires continue to threaten residential communities across the western United States.