The Connecticut Senate has passed a new bipartisan state budget, which includes the establishment of a new captive insurance company to cover homeowners whose concrete foundations have deteriorated due to the presence of pyrrhotite.
Both Democrats and Republicans agreed to approve the $41.3 billion budget, which passed early on 26 October.
There will be five incorporators of the captive, chosen by the governor, the speaker, the minority leader of the House of Representatives, the president pro tempore and the Republican president pro tempore of the Senate.
It will also have to enter into agreements with the Connecticut Housing Finance Authority and any participating lender to develop and implement additional loan programs or financial products to assist affected owners with repairs.
The new captive will run for a term of five years, until 30 June 2022, or until its existence is terminated by law. Upon termination, all rights and properties of the captive will pass to the State of Connecticut.
In addition, Insurance Commissioner Katharine Wade has revealed that the Connecticut Insurance Department has launched a new online resource, CT Captive Solutions, to help business owners manage risks, control insurance costs and find out whether a captive is the right solution for them.
Wade explained: “Captive insurers are not just for large corporations but can play a very important role for small- and mid-size employers.”
She added: “The department has the regulatory expertise and consultative approach to help potential captive owners find a solution that may be appropriate for them.”
“The bottom line is we want Connecticut businesses to succeed and grow and the right captive structure could provide just what they need to do so.”