Incorporators of captive insurer Connecticut Foundation Solutions Indemnity Company (CFSIC) have selected consulting firm Michael Maglaras & Company to act as superintendent for the captive that will distribute remediation funds to assist homeowners with crumbling concrete foundations.
According to the Connecticut Coalition Against Crumbling Basements, homes in northeastern Connecticut face crumbling basement walls due to pyrrhotite.
The coalition added that pyrrhotite exposed to oxygen and water reacts and causes swelling and cracking, leading to its deterioration. The damage is said to be irreversible, with no known repairs.
Over 35,000 homes in the north, east, and central parts of Connecticut are facing this potentially devastating issue due to the presence of a naturally occurring iron sulfide originating from a quarry in Willington, CT.
It estimates the cost to replace a foundation in Connecticut ranges from $150,00-$250,000 per home.
The superintendent will be overseen by the captive’s board of directors. Incorporators are in the process of selecting board members, and applications for prospective board members finished on Friday, April 27.
The superintendent will work with the board to create and file a business plan for the formation of CFSIC with the Connecticut Insurance Department.
The State Bond Commission approved $350,000 in February to provide the initial capital required under state law to license CFSIC. CFSIC has no employees, and the superintendent will be responsible for contracting any required services.
Michael Maglaras & Company is based in Ashford, Connecticut, and is headed by principal Michael Maglaras. The firm has more than 30 years of experience in captive insurance company implementation, underwriting, and advisory services.
“We are pleased to have been selected by the Incorporators of Connecticut Foundation Solutions Indemnity Company to launch this new captive insurance company and to assist its Board of Directors in bringing needed relief to hard-hit homeowners in the northeast corner of Connecticut,” said Maglaras. “We have much work ahead of us - and it’s hard work - but I would sum it up in one phrase: Help is on the way.”
Michael Maglaras & Company, Captive insurance, Property, Connecticut, North America