The proposed legislation, Substitute Bill No. 1322, mandates the Insurance Commissioner to conduct two studies aimed at improving insurance practices for nonprofit organizations and homeowners. The first study will assess the feasibility of allowing nonprofit entities to pool their liability insurance policies, including general and automobile liability insurance, and explore the establishment of a captive insurance company to manage the risks associated with such pooling. The Insurance Commissioner is required to report the findings of this study to the relevant legislative committee by February 1, 2026.

The second study focuses on homeowners insurance practices that compel policyholders to make repairs or modifications to their properties as a condition for obtaining or maintaining insurance coverage. This study will evaluate the frequency and nature of these practices, their financial impact on policyholders, and the reasonableness of the required modifications, while also considering similar practices in other states. The findings from this study must also be reported to the legislative committee by the same deadline of February 1, 2026. The bill introduces new sections to current law without any deletions.