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HB 5437

AN ACT RELATING TO CRIMINAL OFFENSES -- JAILS AND PRISONS

2025 Regular Session Introduced by Julie Casimiro and 9 co-sponsors

Requires a state feasibility study on creating nonprofit insurance pools to expand affordable coverage and stabilize costs for nonprofit organizations.

04/01/2025 Committee recommended measure be held for further study
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Bill Summary · HB 5437

Summary — HB 5437

Title: An Act Requiring a Feasibility Study of Insurance Pooling for Nonprofit Entities
Introduced: March 14, 2025 | Status: Enacted (filed without Governor's signature; effective immediately 2025-06-20)
Subject areas: Insurance Department, liability insurance, nonprofit organizations, studies

Purpose / Intent

HB 5437 directs the state to study whether creating one or more insurance pools (risk-sharing arrangements) for nonprofit organizations is feasible and beneficial. The goal is to determine if pooling can expand access to affordable insurance (commonly liability/property/workers’ compensation or similar coverages), stabilize costs, and reduce uninsured risk among nonprofit entities.

Key provisions (as reflected by bill title and metadata)

  • Requires the state's Insurance Department (or designated state entity) to conduct a feasibility study on insurance pooling specifically for nonprofit organizations.
  • Directs analysis of legal, regulatory, financial, and operational factors relevant to establishing a nonprofit insurance pool.
  • Calls for development of findings and recommendations regarding whether and how such a pool should be created, structured, funded, and governed.

Note: The full bill text was not provided. The document metadata does not state exact statutory citations, study deadlines, report recipients, or prescribed study elements — the items above reflect the bill’s stated purpose and typical study requirements.

Typical study components likely included

(These are the standard elements usually required in similar feasibility studies; confirm against the enacted text for specifics.)
- Scope: which nonprofit types (size, mission, geographic) would be eligible
- Coverage: types of insurance to be pooled (general liability, directors & officers, property, workers’ compensation)
- Financial analysis: actuarial modeling, premium-setting, capitalization needs, start-up costs, ongoing administrative costs
- Risk management: loss history, retention levels, reinsurance needs
- Governance and legal issues: statutory authority, regulatory compliance, taxation, consumer protection
- Market analysis: impact on private insurers and competition, potential vendor/administrator models
- Implementation options and recommended next steps, including estimated timelines and budget impacts

Who would be affected

  • Nonprofit organizations seeking affordable, stable insurance options
  • Private insurers and brokers operating in the nonprofit market
  • State Insurance Department (tasked with the study and possible oversight)
  • Potential joint-pool administrators, reinsurers, and service providers

Potential impacts

  • If feasible and implemented, a pool could increase coverage availability, lower premiums for some nonprofits, and reduce volatility in insurance costs.
  • Could shift some market share from private insurers; depending on design, might require state oversight or start-up funding.
  • The study’s recommendations will guide any future legislation or administrative action to create a pool.

Procedural timeline / current status

  • Committee referral and public hearings occurred in April–May 2025.
  • Passed both legislative chambers (House passage 2025-05-07; Senate passage 2025-05-28).
  • Enrolled and transmitted to the Governor end of May 2025; filed without signature and made effective immediately on June 20, 2025.
  • Next steps: implementation depends on the enacted bill’s required timelines and report recipients; stakeholders should review the final bill text for specific deadlines and required report content.

Compiled from official sources — confirm details with the bill’s official record.

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