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Bill

S 5327

Relates to the requirement for policyholders to provide 30 days notice to withdraw from the state insurance fund

2025 Regular Session Introduced by Jamaal Bailey and 3 co-sponsors

Requires 30 days’ written notice before withdrawing from the state insurance fund to improve planning, solvency, and orderly transitions for policyholders and the fund.

REFERRED TO LABOR
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WeVote Research Nonpartisan
Bill Summary · S 5327

Summary of Bill S 5327

Overview

Bill S 5327 would require policyholders to provide 30 days’ notice before withdrawing from the state insurance fund. Introduced on February 20, 2025, the measure is currently referred to the Labor Committee. The primary sponsor is Jamaal Bailey, with several cosponsors including Shelley Mayer, Mario Mattera, and Patrick M. Gallivan. Related bills from prior sessions include S 5250, S 428, S 3516, S 4694, and S 2834.

Purpose and Intent

  • Establish a formal advance-notice requirement to withdraw from the state insurance fund.
  • Enable the fund and relevant state agencies to manage transitions, assess financial and operational impacts, and maintain continuity of coverage and overall solvency.

Key Provisions (as stated)

  • Any policyholder seeking to withdraw from the state insurance fund would be required to provide at least 30 days’ written notice.
  • The notice presumably would identify the intended withdrawal date and relevant withdrawal details (the bill’s text would specify the exact filing method and content).
  • The measure would set procedures for how notices are submitted and processed by the state fund or its administrator, with implementation governed by existing law and fund regulations.
  • The bill would align withdrawal timing with administrative and financial planning processes to minimize disruption to policyholders and the fund.

Note: Specific operational details (e.g., where notices are filed, how settlements of assets/liabilities are handled, or penalties for noncompliance) would be defined in the bill’s text and accompanying regulations. The summary reflects the core 30-day notice requirement and its immediate administrative implications.

Who Would Be Affected

  • Policyholders currently insured through or participating in the state insurance fund who consider withdrawing.
  • Employers and other entities that rely on the fund for coverage.
  • The State Insurance Fund (or its administrator) responsible for processing withdrawals and managing transition logistics.
  • State labor and regulatory agencies involved in overseeing the fund.

Procedural and Timeline Aspects

  • Status: Referred to the Labor Committee.
  • Introduced: February 20, 2025.
  • Legislative actions show the bill was referred to Labor on February 20, 2025 (duplicate entry in the record).

Potential Impacts and Considerations

  • Administrative: Creates a formal lead time to plan withdrawals, potentially improving solvency management and transition planning for the fund.
  • Financial: Could affect premium pricing, funding stability, and reserve planning depending on withdrawal patterns.
  • Practical: May increase predictability for the fund but could constrain quick exits for policyholders needing rapid changes.

Related Legislation

  • S 5250, S 428, S 3516, S 4694, S 2834 (prior-session bills related to state insurance fund withdrawal or related governance)

This summary provides a high-level understanding based on the bill’s stated purpose and provisions. For a complete view, the full text and fiscal notes would be necessary once available.

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

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