Connecticut House Bill HB06143

Connecticut 2025 Regular Session

• Introduced: 1/22/25
• Refer: 1/22/25

Caption

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.

Impact

If enacted, HB 6143 could lead to significant changes in how agricultural risks are managed in the state. The establishment of a captive insurance company could provide a tailored financial safety net for farmers, which is particularly important given the increasing frequency and severity of weather-related disruptions. By focusing on the specific needs of the agricultural community, the bill emphasizes a proactive approach to risk management, potentially leading to enhanced economic stability for farmers.

Summary

House Bill 6143 is a proposal that aims to address the challenges faced by farmers in Connecticut who are adversely impacted by severe weather. The bill mandates a feasibility study conducted by the Insurance Department, in collaboration with the Commissioner of Agriculture. This study will explore the establishment of a captive insurance company designed to provide financial assistance to these farmers. The findings from the study are to be reported to the relevant legislative committee by February 1, 2026.

Contention

While the bill is primarily focused on aiding farmers through financial means, it may face scrutiny regarding the governance and operational management of a captive insurance company. Questions may arise about regulatory oversight, funding mechanisms, and the criteria for qualifying for assistance. Stakeholders may express concerns over whether such an initiative would effectively address the root causes of agricultural distress or merely serve as a temporary fix. Additionally, the implications on existing insurance markets and the potential fiscal impact on state resources may be debated.