Around the PIA Western Alliance States – Week of March 16, 2026

California —  Commissioner Lara and Assemblymember Gipson advance nation’s first smoke damage standards bill: The focus of recovery from devastating Los Angeles smoke damage shifts now to the State Legislature as Insurance Commissioner Ricardo Lara and Assemblymember Mike Gipson introduced comprehensive reforms to fix the problem. The Smoke Damage Recovery Act (AB 1795) would create a consistent statewide framework for handling wildfire smoke damage insurance claims — considered to be the first in the nation. AB 1795 would require that homes contaminated after a wildfire are properly evaluated and restored to a safe and habitable condition – and hold insurance companies accountable when standards are not met.

California’s record-breaking wildfires — including the January 2025 Eaton and Palisades Fires — destroyed thousands of homes and left many more contaminated by smoke, soot, ash, and other toxic combustion byproducts. From January through November last year, more than 42,000 insurance claims were filed following those fires, including more than 13,000 claims involving standing homes with smoke damage.

“After devastating wildfires, families should not have to fight to prove their homes are unsafe,” said Insurance Commissioner Ricardo Lara. “Right now, the absence of statewide standards has created confusion, unfair claims handling, and uncertainty for families already coping with unimaginable losses. Consumer protection is my number one priority and we are working to establish clear rules so that homeowners are protected and survivors can safely move back into their restored homes knowing they do not face lifelong health risks.”

“After a wildfire, recovery should not depend on a homeowner’s ability to navigate complex insurance disputes while their life is already turned upside down,” said Assemblymember Mike A. Gipson (D-Carson). “More than a year after the most devastating fires Los Angeles has ever seen, there is no reason to delay. I am dedicated to swift passage of AB 1795, the Smoke Damage Recovery Act, to pave the way for a better process that insurance policyholders can rely upon.”

First-ever report calls for statewide smoke restoration standards

Commissioner Lara issued the results of the nation’s first Smoke Claims and Remediation Task Force, a nine-month effort led by the California Department of Insurance. The Task Force found wildfire survivors are falling through the gaps in smoke damage inspection, testing, and restoration rules. State and local public health experts, fire safety experts, smoke remediation specialists, industrial hygienists, consumer advocates, and representatives from the insurance industry agreed on the report’s core finding: Statewide standards are needed for wildfire survivors to be safe and insurance companies to have clear direction so claims are paid.

“People who paid for insurance protection, then had their homes contaminated by wildfire smoke and debris, deserve to have their homes restored to pre-loss condition -- not be mired in delays, costly disputes, stress and frustration,” said Amy Bach, Executive Director, United Policyholders and a member of the Task Force. “This bill will pave the way for critically needed indoor air quality and remediation standards and claim handling protocols.”

The 64-page Task Force report included wildfire survivor groups’ recommendations and a review of scientific and technical information – the first of its kind. The report also found areas of disagreements among the various experts on the task force and other stakeholders that provided presentations, pointing to the need for the Legislature to act to bring clarity through its transparent public deliberation process.

Legislation would create nation’s first health-based insurance requirements

The Smoke Damage Recovery Act is a comprehensive approach to ending decades-old disputes over smoke damage and restoration that exploded in scale immediately after the Los Angeles wildfires. California would be the first state to create standards based in public health and science, serving as a national model.

A central feature of AB 1795 is its early action provision, designed specifically to address the delays and disputes facing survivors of the Los Angeles wildfires. If a state or local health or environmental agency issues specific standards for interior smoke testing, screening levels, or restoration, survivors will be able to use those local standards immediately to support and expedite their insurance claims.

The legislation would assist wildfire survivors by:

Creating statewide protocols for inspection, sampling, and testing of smoke-related contaminants in residential homes.

Requiring insurers to follow consistent remediation standards to restore homes to pre-loss condition.

Preventing insurers from terminating Additional Living Expenses (ALE) benefits until a home is cleared as safe for habitation.

Requiring insurers to inspect smoke-damage claims within 30 days of notice.

Establishing timelines for claim payments to ensure survivors receive funds promptly.

Creating training and certification programs for professionals involved in smoke damage assessment, testing, and restoration.

AB 1795 would also direct state agencies including the California Environmental Protection Agency (CalEPA) and the Department of Insurance to develop and/or enforce science-based standards and guidance to ensure consistent evaluation and remediation of wildfire smoke damage.

Together, the Task Force recommendations and AB 1795 represent a comprehensive effort to bring greater clarity, accountability, and consumer protections to the handling of wildfire smoke damage claims in California.

AB 1795 is expected to be heard next month once referred to an Assembly policy committee.

Oregon — Wildfire Insurance Reforms Won’t Happen in 2026: Senate Bill 1540 would have required insurance companies in Oregon to reduce rates and reward homeowners for mitigation efforts on their property. It died before the Legislature adjourned.

Insurance companies pushed back and helped stop the bill’s progress. Kenton Brine, president of the Northwest Insurance Council said the bill was just too much for a 35-day session.

The bill — if passed — would have had the state developing data insurance and catastrophe modelers as tools to help set rates. Insurers would have had to incorporate that data into rate setting before the information was guaranteed to be ready.

"That puts a lot of 'hope' on the data side but imposes significant and costly mandates on insurers to respond regardless of whether the data is ready and accurate," Brine said.

Another provision in the bill would have allowed Oregon’s insurance commissioner to reject insurance company filings that include wildfire risk modeling.

Source link: Insurance Business America — https://bit.ly/3Pdtg8Q

Washington — Final Legislature Report from PIA Washington Lobbyist Christine Brewer: The 2026 session of the Washington State Legislature adjourned sine die at 8:25 p.m. Thursday, concluding a contentious final week dominated by tax and budget debates.

The session’s most notable development was passage of a new 9.9 percent tax on high-income households, following a record-setting 24-hour House floor debate. Outside of the fiscal arena, however, lawmakers produced relatively few major policy changes across most issue areas – despite beginning session with nearly 1,400 new bills filed.

The Governor has 20 calendar days, excluding Sundays, to take action on bills that reach his desk within five days of the adjournment of session. The Governor can sign a bill, veto a bill, veto just sections of a bill, or take no action in which case it becomes law without his signature.

SEE THE FINAL REPORT — https://bit.ly/4bhdZMX

Washington — Relating to service contracts and protection product guarantees: We adopted the service contracts and protection product guarantees rule (R2025-09) on March 12, 2026. The rule takes effect on April 12, 2026. The rule implements HB 1006 from the 2025 legislative session and clarifies what a motor vehicle service contract is and which contracts must be filed with the Commissioner in accordance with RCW 48.110.073.

For more information, including the adopted rule (CR-103) and the concise explanatory statement, please visit the rule's webpage.

Washington — 2026 nonrenewal and cancellation annual data call: Please be advised the Washington state’s Office of the Insurance Commissioner is moving our annual data call on residential nonrenewals and cancellations to April of this year. While previously issued in autumn of each year, the Commissioner has an increasing need to understand the reporting year data much earlier. We anticipate an April issuance of this data call going forward.

There are NO changes to this year’s worksheet and survey questions. If you have any questions, please feel free to contact datacall@oic.wa.gov.