Connecticut 2024 Regular Session

Connecticut House Bill HB05253

Introduced
2/22/24  
Introduced
2/22/24  

Caption

An Act Requiring A Feasibility Study Of Insurance Pooling For Nonprofit Entities.

Impact

If enacted, the findings of this feasibility study could lead to significant changes in how insurance is structured for nonprofits in the state. By potentially allowing these organizations to pool their risk, the bill could promote better financial stability within the nonprofit sector, which is vital for the delivery of services and support to communities. The study, which must be reported back to the legislature by January 1, 2025, could set a precedent for collective insurance approaches that may result in lower premiums and broadened coverage for nonprofit organizations.

Summary

House Bill 05253 aims to direct the Insurance Commissioner to study the feasibility of pooling liability insurance policies among nonprofit entities. This includes both general liability and automobile liability insurance. The intent behind this bill is to explore collaborative insurance solutions that may provide cost savings and improved coverage options for nonprofit organizations, which often face higher insurance costs due to their operational risks and funding limitations.

Contention

One notable aspect of HB 05253 is its potential for introducing a captive insurance company model for nonprofit entities. This has led to discussions regarding the viability and regulatory implications of such a setup. Supporters of the bill argue that it would create innovative insurance solutions tailored specifically for the needs of the nonprofit sector. However, there may be concerns from regulatory bodies about the implications of establishing captive insurers, including issues of oversight and the management of pooled funds. Critics might also express concerns about the equitable access to benefits among smaller nonprofit organizations compared to larger entities.

Companion Bills

No companion bills found.

Previously Filed As

CT HB05437

An Act Requiring A Feasibility Study Of Insurance Pooling For Nonprofit Entities.

CT SB01322

An Act Requiring Studies Of Insurance Pooling For Nonprofit Organizations And Certain Practices By Homeowners Insurance Companies.

CT HB05357

An Act Requiring The Insurance Commissioner To Study The Feasibility And Likely Effects Of Mandating Coverage For Certain Benefits Under Medicare Supplement Insurance Policies And Certificates.

CT HB05465

An Act Requiring The Insurance Commissioner To Conduct A Study Of Usage-based Automobile Liability Insurance Programs For New Drivers In This State.

CT HB07038

An Act Requiring A Study Of The Feasibility Of Establishing A Captive Insurance Company Or Using Parametric Insurance To Provide Financial Assistance To Farmers Impacted By The Effects Of Severe Weather.

CT HB05255

An Act Requiring A Study Of The Feasibility Of Establishing A Captive Insurance Company To Provide Financial Assistance To Farmers Impacted By The Effects Of Severe Weather.

CT SB00358

An Act Requiring A Study Of The Feasibility Of Establishing A Virtual School.

CT SB00334

An Act Requiring The Insurance Commissioner To Study Methods Of Enhancing Data Privacy For Business Associates And Covered Entities Under The Health Insurance Portability And Accountability Act.

CT HB06553

An Act Requiring A Service Improvements Feasibility Study Of The Danbury Rail Line.

CT SB00319

An Act Requiring The Insurance Commissioner To Study Reimbursement Parity For Podiatrists.

Similar Bills

No similar bills found.