Sangamon Sun

Legislation was recently signed into law by the Governor, bringing significant improvements to farm insurance coverage for farmers. The new law, known as SB0765, focuses on adjusting the minimum amount of coverage that farm mutual insurance companies are required to provide.

One of the key changes introduced by SB0765 is the requirement for insurance companies to maintain adequate catastrophic reinsurance, as opposed to the previous practice of unlimited catastrophic reinsurance. This adjustment ensures that farm mutual insurance companies have appropriate coverage in the case of unforeseen and significant events.

Furthermore, the legislation mandates that farm mutual insurance companies maintain aggregate reinsurance coverage at a level that is no less than what is required for a 250-year event. This provision aims to enhance the financial security of farmers and protect them against major losses.

To ensure transparency and awareness among policyholders, farm mutual insurance companies are now obligated to provide notice of these changes in a form that has been approved by the Director of Insurance. This requirement ensures that farmers are well-informed about the adjustments to their insurance coverage and can make informed decisions regarding their policies.

The significance of this legislation was highlighted during the recent Farm Progress Show, where industry experts gathered to discuss the latest advancements in agricultural practices. During the event, Representative Rosenthal attended and expressed his support for the new law, emphasizing the benefits it will bring to farmers.

In a statement regarding the legislation, Representative Rosenthal stated, "This new law is a crucial step in improving farm insurance coverage and enhancing the financial security of our hardworking farmers. By adjusting the minimum coverage requirements, we are ensuring that farmers have the necessary protection against unforeseen events and can continue to thrive in their operations."

The signing of SB0765 into law marks a positive development for the agricultural community, as it enhances the insurance coverage available to farmers. With these improvements, farmers can have greater peace of mind, knowing that their livelihoods are protected in the face of potential risks.

Overall, the new law represents a commitment to supporting farmers and ensuring their long-term success. By addressing gaps in farm insurance coverage, the legislation provides a solid foundation for farmers to continue their important work of feeding the nation and contributing to the economy.

To learn more, click on this link: https://reprosenthal.com/2023/11/20/sb0765-signed-into-law-and-improves-farm-insurance-coverage/