OLR Bill Analysis

HB 5444 (as amended by House "A")*

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) and the Connecticut Airport Authority (CAA) to obtain insurance covering board members, the executive officer or director, and employees, instead of executing a bond for them, as required by existing law. The insurance must be equivalent to the bond and be conditioned on the faithful performance of duties, issued by an insurer authorized to transact business in Connecticut, and paid for by the exchange or authority as appropriate.

Existing law requires (1) each Access Health CT 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 executive officer, and exchange employees. The law similarly requires (1) each CAA board member to execute a $50,000 surety bond and the executive director to execute a $100,000 surety bond or (2) the authority's chairperson or board to execute a blanket position bond covering each board member, the executive director, and authority employees.

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

*House Amendment “A” adds the Connecticut Airport Authority provisions and makes technical changes.

EFFECTIVE DATE: October 1, 2016

COMMITTEE ACTION

Insurance and Real Estate Committee

Joint Favorable

Yea

18

Nay

0

(03/08/2016)