HB 1086 Summary

• Authorizes the commissioner to provide coverage for indirect losses incurred due to perils insured by the fund, subject to underwriting guidelines adopted by the commissioner.

• Requires state agencies and institutions to obtain replacement cost appraisals from the fund once every six years on all insured buildings, fixtures, and permanent contents, with annual adjustments in non-appraisal years.

• Expands the commissioner's authority to insure against direct physical losses beyond the standard fire insurance policy perils, and allows personal property to be insured on a blanket basis.

• Maintains the reserve balance threshold at $12 million, with assessment caps not exceeding 60% of insurance services office rates unless the reserve falls below $3 million.

• Specifies that repairs or replacements of destroyed buildings must be performed by independent contractors rather than commissioner employees or staff.

• Becomes effective July 1, 2021, and is declared an emergency measure.