The General Assembly Raised Bill No. 7038 proposes a study to assess the feasibility of establishing a captive insurance company or utilizing parametric insurance to offer financial assistance to farmers affected by severe weather. The bill mandates that the Insurance Commissioner, in collaboration with the Commissioner of Agriculture, conduct this feasibility study. It defines "parametric contract" in accordance with existing statutes and requires the Insurance Commissioner to report findings and recommendations to the relevant joint standing committees of the General Assembly by February 1, 2026.

This legislation introduces new provisions aimed at enhancing support for farmers facing severe weather challenges, without deleting any existing legal language. The act is set to take effect upon passage and establishes a new section within the law to facilitate this initiative.