THE REPORT PRESENTS FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS WITH REGARD TO THE NATURE OF ARSON IN MINNESOTA, ARSON PREVENTION, ARSON DETECTION, CRIMINAL INVESTIGATION OF ARSON, PROSECUTION OF ARSON, INSURING PROPERTY, AND REIMBURSING LOSSES. INADEQUACIES IN THE SYSTEM FOR REPORTING FIRES AND ARSON ARE NOTED. TO PROVIDE ACCURATE AND DETAILED INFORMATION ON ARSON, IT IS RECOMMENDED THAT INDIVIDUALS BE REQUIRED TO REPORT FIRES TO FIRE DEPARTMENTS BEFORE RECEIVING INSURANCE CLAIMS, THAT FIRE DEPARTMENTS REPORT ALL ARSON INCIDENTS TO LOCAL LAW ENFORCEMENT AGENCIES FOR REPORTING TO THE STATE, THAT THE STATE'S BUREAU OF CRIMINAL APPREHENSION DEVELOP A MECHANISM FOR IDENTIFYING AND RECORDING MOTIVES FOR ARSON INCIDENTS, AND THAT A SAMPLING METHOD BE DEVELOPED FOR GATHERING INDEPTH INFORMATION ON THE ARSON PROBLEM IN METROPOLITAN AREAS. THE REPORT ALSO FINDS THAT RESOURCES TO REDUCE ARSON HAVE NOT BEEN PUT TO OPTIMUM USE. DETECTION OF ARSON HAS BEEN LIMITED BY THE NONINVOLVEMENT OF FIREFIGHTERS IN THE DETERMINATION OF THE CAUSE OF THE FIRE. RESPONSIBILITY FOR INVESTIGATING ARSON IS NOT CLEARLY ALLOCATED. STEPS FOR REDUCING THE LIKELIHOOD THAT ARSON WILL GO UNPROSECUTED ARE SUGGESTED. WAYS IN WHICH INSURANCE PRACTICES CREATE INCENTIVES TO COMMIT ARSON ARE POINTED OUT, AND SUGGESTIONS FOR CUTTING BACK ON EXPLOITATION OF THE INSURANCE SYSTEM BY ARSONISTS ARE OFFERED. SUPPORTING DATA ARE INCLUDED. (LKM)