The non-profit captive insurance company set up to assist homeowners impacted by the ‘crumbling foundations’ issue in Connecticut is seeking board members.
In October 2017, the Connecticut state government passed SB 1502 which authorised the formation of the non-profit captive, Connecticut Foundation Solutions Indemnity Company, to distribute the remediation funds to homeowners across the state–with $100 million in state bonding over five years.
The ‘crumbling foundations’ issue was caused by concrete of a stone aggregate mined from a quarry containing pyrrhotite and has resulted in cracks forming decades after the foundation was constructed.
Commercial insurers have generally refused to cover the structural issue which has affected 5000 homes, as reported by the Connecticut Mirror.
The Connecticut state government predicts the assistance fund will be accessible through the captive in July 2018.
Per statute, the captive’s board of directors must contain a real estate agent or broker, a homeowner impacted by the issue, representatives from both the insurance and banking industries, a chief executive of a municipality or their designee and a registered investment adviser.
The board of directors must also contain executive directors of capitol and eastern region council governments or their designees.
State Representative Jeff Currey announced on 13 April that Connecticut Foundation Solutions Indemnity Company was now accepting applications.
He said: “This is the next step in getting the captive insurance company up and running so it can begin distributing remediation funds.”
“I encourage community members impacted by this issue and industry professionals to consider applying.”
The deadline for submissions, which will be reviewed by the incorporators and organising committee of the captive, is Friday 27 April.
