Joyce-Backed Law to Protect Farmers, Farm Mutual Insurance Companies (Springfield, IL) — State Senator Patrick Joyce supported a new law signed Friday that will strengthen regulations for farm mutual insurance companies.
“Our farm mutual insurance companies need to have access to reinsurance in order to keep them up and running effectively,” said Joyce (D-Essex). “This new law takes policyholders into consideration because they could also be at risk if catastrophe strikes.”
Prior to this new law, the Illinois Department of Insurance required unlimited catastrophic aggregate reinsurance coverage. Currently, only one company offers contracts that meet the DOI’s requirements, and as a result, many farm mutual insurance companies struggle to find reinsurance coverage.
Farm mutual insurance companies will now be required to have and maintain adequate catastrophic reinsurance rather than unlimited catastrophic reinsurance. This change ensures farm mutual insurance companies and their policyholders can continue to be protected from financial losses in the event of a natural disaster or other costly incident.
“This legislation strikes the right balance between protecting policyholders and ensuring the financial health of farm mutual companies,” said Joyce.
Senate Bill 765 was signed Friday and takes effect immediately.
Joyce-Backed Law to Protect Farmers, Farm Mutual Insurance Companies