Senate Bill 2740: Pooling Risk for Insurance

Bill Tracker

Senate Bill 2740

Allows counties, municipalities, school districts, and other political subdivisions to pool risk for the purpose of purchasing property insurance.

Full Bill Text

Committee

Insurance

Author

J. Walter Michel

Session

2024 Session

Signed by Governor

Latest Action

The Governor signed SB 2740 into law on April 15.

Explanation of the Bill

Senate Bill 2740 would allow the governing board of any county, municipality, school district, or community college district to collaborate with the governing board of another political subdivision to pool their risks for the purpose of purchasing various types of property insurance or establishing a self-insurance fund for property. Note that self-insurance is when an entity sets aside funds to cover potential losses, rather than purchasing a traditional insurance plan. 

Under this bill, the governing boards of the governmental entities would be authorized to use funds “from any available source” to obtain property insurance. For entities using self-insurance programs, such programs would be contracted to a third party and must be approved by the Commissioner of Insurance.

DateDetails
4/15/24The Governor signed SB 2740 into law on April 15.