WeVote
Log In

Bill

Bill

S 1022

Strengthening Communities of Recovery Act

119th Congress Introduced by John Cornyn

Bill S 1022 allows limited equity cooperatives to form specialized insurance captives, enhancing coverage options and financial stability while capping their number in counties.

Introduced in Senate
0
WeVote Research Nonpartisan
Bill Summary · S 1022

Summary of Bill S 1022

Title

Limited Equity Cooperative Insurance Captive Authorization and County Cap Act

Bill Information

  • Bill Number: S 1022
  • Status: Referred to Insurance
  • Introduced On: January 08, 2025
  • Classification: Bill

Purpose and Intent

The primary purpose of Bill S 1022 is to establish a framework for the creation and regulation of limited equity cooperative insurance captives. This legislation aims to provide a structured approach for cooperative housing organizations to manage their insurance needs more effectively, thereby enhancing financial stability and risk management within these communities.

Key Provisions

  • Authorization of Captives: The bill authorizes the formation of limited equity cooperative insurance captives, which are specialized insurance entities designed to provide coverage for cooperative housing organizations.
  • Regulatory Framework: It outlines the regulatory requirements for the establishment and operation of these insurance captives, ensuring compliance with state insurance laws.
  • County Cap: The bill introduces a cap on the number of limited equity cooperative insurance captives that can be established within a county, aimed at preventing market saturation and ensuring a balanced insurance landscape.
  • Eligibility Criteria: It specifies the eligibility criteria for cooperatives wishing to form an insurance captive, including financial stability and governance requirements.

Impact

  • Who is Affected:
    • Cooperative Housing Organizations: These entities will benefit from tailored insurance solutions that can reduce costs and improve coverage options.
    • Insurance Industry: The introduction of limited equity cooperative insurance captives may lead to increased competition within the insurance market, potentially impacting traditional insurance providers.
    • Local Governments: The county cap provision may affect local regulatory bodies and their oversight of insurance practices within their jurisdictions.

Procedural Aspects

  • Current Status: As of January 08, 2025, the bill has been referred to the Insurance Committee for further consideration.
  • Related Legislation: This bill is related to S 9632 from the prior session, which may provide context or background on the legislative intent and discussions surrounding cooperative insurance.

Conclusion

Bill S 1022 represents a significant step towards modernizing insurance options for limited equity cooperatives, aiming to enhance their financial resilience and operational efficiency. As it progresses through the legislative process, stakeholders in the cooperative housing sector and the insurance industry will be closely monitoring its developments.

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

Sign in to ask a question.