Connecticut House Bill HB05437

Connecticut 2025 Regular Session

• Introduced: 1/17/25
• Refer: 1/17/25

Caption

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

Impact

If enacted, the findings of the feasibility study would provide valuable insights into how nonprofit organizations can collaborate to secure more efficient insurance arrangements. The bill may lead to legislative changes based on the study's recommendations, potentially amending Title 38a of the general statutes. Such changes could facilitate new insurance models specifically tailored for the needs of nonprofits, which could alleviate some of the financial burdens they face in securing necessary protection.

Summary

House Bill 05437 is proposed legislation that requires the Insurance Commissioner to conduct a feasibility study regarding the pooling of liability insurance policies among nonprofit entities. This bill aims to explore whether allowing nonprofits to combine their liability insurance could result in cost savings and enhanced coverage options for these organizations, which often operate on tight budgets and may struggle to afford comprehensive insurance plans. By assessing this potential pooling of resources, the bill seeks to empower nonprofits with better risk management strategies.

Contention

While the bill appears to have benefits, there may be discussions around its implementation and the implications of pooling insurance among nonprofits. Critics could argue about the complexity of administering such a pooling arrangement, including concerns over equitable contributions and claims management. Supporters, on the other hand, may highlight the potential for increased bargaining power with insurers and the general advantages of resource sharing in the nonprofit sector.