Captive consulting firm Michael Maglaras and Company have been selected to act as the superintendent for the Connecticut Foundation Solutions Indemnity Company (CFSIC).
CFSIC is the non-profit captive set up to distribute remediation funds to assist homeowners impacted by the ‘crumbling foundations’ issue.
Michael Maglaras and Company will take on the assignment on 28 April, with the initial contract a one year term.
The Ashford-based firm has more than 30 years experience in captive insurance implementation, underwriting, and advisory services.
In the role, the firm will be overseen by the captive’s board of directors, which is currently in the process of being selected.
CFSIC has no employees and therefore the superintendent will be responsible for contracting any required services.
Commercial insurance companies have generally refused to cover the ‘crumbling foundations’ issue, which 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.
In February, the State Bond Commission approved $350,000 to provide the initial capital to license CFSIC.
The Connecticut state government predicts the assistance fund will be accessible through the captive in July 2018, with $100 million available in state bonding over five years.
Michael Maglaras, principal of Michael Maglaras and Company, said: “We are pleased to have been selected by the Incorporators of Connecticut Foundation Solutions Indemnity Company to launch this new captive insurance company and to assist its Board of Directors in bringing needed relief to hard-hit homeowners in the northeast corner of Connecticut.”
“We have much work ahead of us–and it’s hard work–but I would sum it up in one phrase: Help is on the way.”