The General Assembly Raised Bill No. 7038 mandates the Insurance Commissioner, in collaboration with the Commissioner of Agriculture, to conduct a feasibility study on the establishment of a captive insurance company or the use of parametric insurance to provide financial assistance to farmers affected by severe weather. The bill defines "parametric contract" in accordance with existing law and requires the study to explore these insurance options specifically for farmers in the state.

The Insurance Commissioner is tasked with reporting findings and recommendations to the relevant joint standing committees of the General Assembly by February 1, 2026. This act is designed to address the financial challenges faced by farmers due to severe weather events, thereby enhancing their resilience and support systems. The bill introduces new legal language to facilitate this study while removing outdated procedural language.