HB 1176 Summary

• Increases minimum property value requirements for county mutual insurance company formation from $100,000 to $400,000 for multi-county companies and from $25,000 to $100,000 for single-county companies.

• Raises minimum surplus requirement for county mutual insurance companies from $50,000 to $200,000.

• Expands geographic territory allowed for certain insurance types to all state counties, including seasonal dwelling coverage, tornado, windstorm, cyclone, hail, and livestock protection when primary residence is insured in an authorized county.

• Simplifies reinsurance contract procedures by removing detailed loss-sharing formulas and requiring only commissioner approval for reinsurance agreements between county mutual insurance companies.

• Repeals nine sections of code related to county mutual insurance company operations and removes requirement for county mutual insurance companies to be excluded from certain insurance guaranty fund provisions.