AN ACT REQUIRING A STUDY OF THE FEASIBILITY OF ESTABLISHING A CAPTIVE INSURANCE COMPANY OR USING PARAMETRIC INSURANCE TO PROVIDE FINANCIAL ASSISTANCE TO FARMERS IMPACTED BY THE EFFECTS OF SEVERE WEATHER.

HB 7038 requires the Insurance Commissioner, in collaboration with the Commissioner of Agriculture, to conduct a feasibility study on creating a captive insurance company or using parametric insurance to provide financial assistance to farmers in the state affected by severe weather. The study must evaluate both options and report findings to the legislature by February 1, 2026. This bill does not create new insurance programs but only mandates an analysis to determine if such programs could be implemented. It directly affects farmers facing weather-related losses and focuses solely on assessing potential solutions through a formal study.