The General Assembly Raised Bill No. 1322 aims to provide legal protections and facilitate insurance practices for nonprofit human services providers. It stipulates that these providers, when contracted with the state, will not be liable for injuries caused by the negligent acts or omissions of state officials or third parties during the execution of their contractual obligations. Additionally, the bill mandates the Insurance Commissioner to study the feasibility of allowing nonprofit entities to pool their liability insurance policies and to explore the establishment of a captive insurance company for this purpose.

Furthermore, the bill amends existing law to exempt nonprofit organizations from certain automobile insurance and bond requirements, provided they demonstrate sufficient financial responsibility. It also requires the Insurance Commissioner to investigate homeowners insurance practices that compel policyholders to make repairs or modifications to their properties as a condition for coverage. The findings from these studies are to be reported to the General Assembly by February 1, 2026. The bill is set to take effect on October 1, 2025, for certain provisions, while others will be effective upon passage.