CHAPTER 57a
STATE INSURANCE AND RISK MANAGEMENT BOARD

Table of Contents

Sec. 4a-19. (Formerly Sec. 4-37a). State Insurance and Risk Management Board.
Sec. 4a-20. (Formerly Sec. 4-37b). Duties.
Sec. 4a-20a. Compensation of agents. Negotiations with an insurance company.
Sec. 4a-21. (Formerly Sec. 4-37c). Annual report.
Secs. 4a-22 to 4a-24.

      Sec. 4a-19. (Formerly Sec. 4-37a). State Insurance and Risk Management Board. There shall be a State Insurance and Risk Management Board consisting of eleven persons whom the Governor shall appoint subject to the provisions of section 4-9a. Four of such appointees shall be public members and seven shall be qualified by training and experience to carry out their duties under the provisions of sections 4a-20 and 4a-21. The Comptroller shall be an ex-officio voting member of said board and may designate another person to act in his place. Not more than six appointed members of said board shall, at any time, be members of the same political party. Said appointed members shall receive no compensation for the performance of their duties as such but shall be reimbursed for their necessary expenses. The Governor may fill any vacancy on said board for the unexpired portion of the term. The board shall meet at least once during each calendar quarter and at such other times as the chairperson deems necessary. Special meetings shall be held on the request of a majority of the board after notice in accordance with the provisions of section 1-225. A majority of the members of the board shall constitute a quorum. Any member who fails to attend three consecutive meetings or who fails to attend fifty per cent of all meetings held during any calendar year shall be deemed to have resigned from office. No member shall serve more than two full consecutive terms which commence on or after July 1, 1983. Said board shall be within the Office of the State Comptroller for administrative purposes only.

      (1963, P.A. 348, S. 1; February, 1965, P.A. 313, S. 1; 1967, P.A. 656, S. 67; P.A. 77-614, S. 84, 587, 610; P.A. 78-303, S. 3, 85, 136; P.A. 79-560, S. 2, 39; P.A. 83-570, S. 4, 17; P.A. 98-74, S. 1, 4.)

      History: 1965 act changed name of board, formerly commission; 1967 act made provision for filling vacancy on board; P.A. 77-614 deleted language concerning gubernatorial appointments to fill expired terms and providing for election of chairman and placed board within department of administrative services for administrative purposes; P.A. 78-303 changed number of members from seven to eleven to be appointed by governor and required that four be public members, effective January 1, 1979; P.A. 79-560 changed number of members permitted to be of same political party from four to six; P.A. 83-570 amended section by adding reference to Sec. 4-9a, clarifying that comptroller is a voting member of the board and may designate another person to act in his place, adding procedural and attendance requirements for board meetings and limiting members' terms; Sec. 4-37a transferred to Sec. 4a-19 in 1989; P.A. 98-74 changed name of board from "State Insurance Purchasing Board" to "State Insurance and Risk Management Board" and placed Board within the Office of the State Comptroller rather than within the Department of Administrative Services, effective July 1, 1998.

      See title 2c re termination under "Sunset Law".

      See Sec. 4-9a for definition of "public member".

      See Sec. 4-38f for definition of "administrative purposes only".

      Annotation to former section 4-37a:

      Cited. 24 CS 423.

      Annotation to present section:

      Cited. 34 CA 863, 865.

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      Sec. 4a-20. (Formerly Sec. 4-37b). Duties. The State Insurance and Risk Management Board shall determine the method by which the state shall insure itself against losses by the purchase of insurance governed by the provisions of title 38a to obtain the broadest coverage at the most reasonable cost. It shall direct the negotiations for purchase of such insurance and determine whether deductible or other risk retention provisions should be included in the insurance contract. Wherever appropriate it shall determine that the state shall act as a self-insurer and may request funds from the contingency fund to establish reserves and carry out such practices as are necessary to safeguard the self-insurance activity. Said board may develop and implement risk management and loss prevention programs related to insurance plans established pursuant to the provisions of sections 4a-19 to 4a-21, inclusive. It shall designate the agent or agents of record and shall select the companies from whom insurance coverage and surety bonds shall be purchased. Notwithstanding any other provision of the general statutes, including without limitation sections 38a-707 and 38a-825, it shall have full authority to negotiate either a commission or fee structure to compensate the agent or agents of record for services performed. It shall also have full authority to retain consulting firms and to negotiate their fee compensation for services performed. Any refund, dividend or other payment from any insurance company in connection with insurance for the state shall be returned to the Comptroller for deposit in the General Fund. The board shall establish specifications for each contract of insurance and shall request bids for each such contract through the agent of record. Each such contract shall be for a specified period of time.

      (1963, P.A. 348, S. 2; February, 1965, P.A. 313, S. 2; P.A. 77-563, S. 2, 5; P.A. 83-570, S. 5, 17; P.A. 84-346, S. 3, 4; P.A. 90-243, S. 173; P.A. 93-163, S. 1; P.A. 98-74, S. 2, 4.)

      History: 1965 act changed "board" to "commission"; P.A. 77-563 included surety bonds under provisions of section; P.A. 83-570 amended section to require board to establish specifications for insurance contracts and request bids through the agent of record for each contract which shall be for a specified period of time; P.A. 84-346 changed the reference to chapter 682 to chapter 682a, correcting an outdated reference; Sec. 4-37b transferred to Sec. 4a-20 in 1989; P.A. 90-243 made technical changes for statutory consistency; P.A. 93-163 replaced provision relating to the board as authority to negotiate all elements of insurance and surety bond premiums and agent's commissions with provision authorizing agents' compensation on a commission or a structured fee basis and also empowering board to retain and negotiate fees with any consulting firm it employs; P.A. 98-74 substituted "The State Insurance and Risk Management Board" for "Said board", inserted "or other risk retention" re provisions the board determines should be included in insurance contract, and authorized the board to develop and implement risk management and loss prevention programs, effective July 1, 1998.

      Annotation to former section 4-37b:

      Cited. 26 CS 423.

      Annotation to present section:

      Cited. 34 CA 863, 865.

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      Sec. 4a-20a. Compensation of agents. Negotiations with an insurance company. Notwithstanding the provisions of section 4a-20, the State Insurance and Risk Management Board may negotiate directly with an insurance company to avoid any commission or fee associated with the compensation of an agent or agents of record for any services performed.

      (P.A. 93-163, S. 3; P.A. 98-74, S. 3, 4.)

      History: P.A. 98-74 replaced "State Insurance Purchasing Board" with "State Insurance and Risk Management Board", effective July 1, 1998.

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      Sec. 4a-21. (Formerly Sec. 4-37c). Annual report. Said board shall, on or before September first, annually, make a report to the Governor of its activities during the year ending the preceding June thirtieth. Such report shall include (1) an evaluation of the state insurance program in terms of adequacy and reasonableness of cost, (2) a complete statement of the costs of said program enumerating lines of coverage, (3) an evaluation of the effectiveness of each portion of the program involving deductibles or partial self-insurance, (4) a statement of the agent or agents of record, or consultants, if any, (5) an evaluation of the agent or agents of record, or consultants, if any, (6) a breakdown of the actual commissions or fees paid and (7) such other matters as the board determines to be appropriate and necessary. Each such report shall become a public record.

      (1963, P.A. 348, S. 3; February, 1965, P.A. 313, S. 3; P.A. 83-570, S. 6, 17; P.A. 93-163, S. 2.)

      History: 1965 act changed "board" to "commission"; P.A. 83-570 replaced alphabetic Subdiv. indicators with numeric indicators and required that evaluation of agent of record be included in annual report; Sec. 4-37c transferred to Sec. 4a-21 in 1989; P.A. 93-163 amended the section to require reporting re consultants to substitute breakdown of the actual fees or commissions paid for breakdown of commissions paid as "percentage of the total premium and in terms of dollars of commissions".

      Annotation to former section 4-37c:

      Cited. 26 CS 423.

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      Secs. 4a-22 to 4a-24. Reserved for future use.

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