Senator Doris Turner

SPRINGFIELD – To ensure farmers have insurance in the event of a natural disaster or other costly incident, State Senator Doris Turner supported a new law that will strengthen regulations for farm mutual insurance companies.

“As chair of the Senate Agriculture Committee, I’m committed to protecting all Illinois farmers,” said Turner (D-Springfield). “Farmers are the driving force of our state, putting food on our tables and boosting the local economies. We have to ensure they have adequate coverage.”

Farm mutual insurance companies offer a type of mutual insurance to farmers or rural property owners. Prior to this new law, the Illinois Department of Insurance required unlimited catastrophic aggregate reinsurance coverage. Currently, only one company will be offering contracts that meet the DOI’s requirements, and as a result, many farm mutual insurance companies will struggle to find reinsurance coverage.

Senate Bill 765 requires farm mutual insurance companies to have and maintain adequate — rather than unlimited — catastrophic reinsurance, which is defined as the amount required for a 500-year catastrophic event. The Turner-backed law ensures broader access to reinsurance products, preventing more than 51,000 policy holders from becoming uninsured at the end of the year.

“I will always be an advocate and voice for our farmers,” said Turner. “This is a crucial step needed to ensure our farmers’ property is protected.”

Senate Bill 765 was signed into law Friday and took effect immediately.