Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Commercial Fishing Insurance Cooperatives topic
No spam. Unsubscribe anytime.
Committee advances bill to clarify commercial fishing insurance cooperatives
Summary
House Bill 116, which would allow commercial vessel owners to form insurance cooperatives and pool funds for hull, liability and pollution coverage, was reported out of the House Fisheries Committee after explanation from a vessel-owners association representative.
The House Special Committee on Fisheries on March 11 reported House Bill 116 out of committee with an individual recommendation after committee members heard an overview of how commercial fishing insurance cooperatives operate.
Bob Kehoe, identified in the transcript as an association director, described a cooperative model in which "a group of vessel owners get together, agreeing to pool their money to basically ensure their vessels ... by offering hull insurance, liability insurance, and pollution insurance," and then purchase stop‑loss insurance above the pool's retained limit. Kehoe said the pooled model allows participating vessel owners to share risk, build reserves in low‑claim years and reduce long‑term insurance costs.
Testimony and context
The committee had limited public testimony on HB 116; the transcript records an initial request for testimony, a brief procedural exchange, and a single substantive explanation from Bob Kehoe. Lori Wing Hyer, identified in the transcript as director of the Division of Insurance, was present in the room for questions. James Patkotak sought to offer separate testimony not relevant to the insurance bill and was redirected to follow up with his representative.
Kehoe summarized the mechanics: participating vessel owners pool premiums to pay claims up to a group retention level, then procure stop‑loss insurance for catastrophic losses; over time the pool can build reserves and, in favorable years, return funds to members. "That's kind of a broad overview of how it works," he said.
Committee action
Representative Edgmon moved to report HB 116 out of committee "with individual recommendations and attached fiscal notes." The motion carried by unanimous consent; the committee announced, "House Bill 116 ... is reported out of the House Fisheries Committee with individual recommendations and attached fiscal notes." No roll‑call vote was recorded in the transcript.
Why it matters
Supporters said a cooperative insurance option can help small and mid‑size vessel owners manage the rising cost and availability of coverage by sharing risk and leveraging stop‑loss reinsurance. The committee did not, in the recorded transcript, adopt detailed regulatory language or changes to the Division of Insurance processes; the bill was moved forward with attached fiscal notes for further review.
Next steps
The committee signed the report and moved the bill forward with recommendations and fiscal notes for subsequent legislative consideration.
