OLR Bill Analysis

HB 5444

AN ACT CONCERNING THE EXECUTION OF SURETY BONDS BY THE CONNECTICUT HEALTH INSURANCE EXCHANGE.

SUMMARY:

This bill allows the Connecticut Health Insurance Exchange (Access Health CT) to obtain an equivalent insurance product covering board members, the chief executive officer, and exchange employees in lieu of existing bond requirements. Existing law requires (1) each board member to execute a $50,000 surety bond or (2) the exchange chairperson to execute a blanket position bond covering each board member, the chief executive officer, and exchange employees.

The bill requires the equivalent insurance product to be conditioned on the faithful performance of duties, issued by an insurer authorized to transact business in Connecticut, and paid for by the exchange. The law requires each bond to be similarly conditioned, written by a surety company authorized to transact business here, and paid for by the exchange.

The bill eliminates a requirement that bonds be approved by the attorney general and filed with the secretary of the state.

EFFECTIVE DATE: October 1, 2016

COMMITTEE ACTION

Insurance and Real Estate Committee

Joint Favorable

Yea

18

Nay

0

(03/08/2016)