State’s Captive Insurance Program Update

HARTFORD – The state legislature established a not-for-profit captive insurance company, or captive insurer, to help homeowners repair or replace crumbling concrete foundations with the lowest possible amount of borrowed funds. On Monday, it was announced that the captive insurance company will receive a $20 million installment allowing it to begin the process of providing financial assistance to affected homeowners. Many House Republican legislators, representing the towns experiencing the greatest volume of faulty concrete foundations, hailed the allocation of this funding.

Rep. Kurt Vail (R-Stafford) stated, “This money will help the captive insurance company do what it was tasked to complete. That is to provide financial assistance to affected homeowners and attempt to get them the greatest financial help possible. Additionally, it will help fund the procurement of eligible contractors to repair or replace crumbling foundations.”

“It’s great to see that captive insurance finally got a second installment of $20 million,” said Rep. Tom Delnicki (R-South Windsor). “This will give victims with applications in process some relief, knowing that their claims will be satisfied.”

“This allocation was unanimously approved by the Bond Commission in April as part of the state’s commitment to fund the captive insurance company,” said Rep. Davis (R-Ellington). “The funds released by the Department of Housing ensures more applications can be accepted and more foundations will get replaced.”

Rep. Ackert (R-Coventry) commented, “Just a few days ago we celebrated the first crumbling foundation replacement completed using this program. The continued commitment by the state to fund the captive insurance company insures that the work will continue to address this crisis. These funds mean that more struggling families with will get their homes repaired and will be able to move forward.”

Rep. Hall (R-Enfield) noted, “These funds ensure the captive insurance company can continue authorizing work to replace crumbing foundations. Dozens of homes across the region are finally undergoing repairs thanks to this program.”

The captive insurance company is scheduled to sunset by June 30, 2022.

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