The General Assembly Raised Bill No. 7038 mandates a feasibility study to explore the establishment of a captive insurance company or the use of parametric insurance to financially assist farmers affected by severe weather. The Insurance Commissioner, in collaboration with the Commissioner of Agriculture, is tasked with conducting this study. The term "parametric contract" is defined as per section 38a-91bb of the general statutes, ensuring clarity in the type of insurance coverage being considered.

The bill requires the Insurance Commissioner to report findings and recommendations to the relevant joint standing committees of the General Assembly by February 1, 2026. This report will focus on the potential for creating a captive insurance company or utilizing parametric contracts to support farmers facing severe weather challenges. The act is set to take effect upon passage and introduces new legal language to current law, specifically establishing a new section dedicated to this initiative.