PA 16-129—HB 5444

Insurance and Real Estate Committee

AN ACT CONCERNING THE EXECUTION OF SURETY BONDS BY THE CONNECTICUT HEALTH INSURANCE EXCHANGE AND THE CONNECTICUT AIRPORT AUTHORITY

SUMMARY: This act allows the Connecticut Health Insurance Exchange (Access Health CT) and the Connecticut Airport Authority (CAA) to obtain insurance covering their respective board members, executive officer or director, and employees, instead of executing a bond for them (see BACKGROUND). The insurance must be equivalent to the bond and it must 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.

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

EFFECTIVE DATE: October 1, 2016

BACKGROUND

The 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 (CGS 38a-1081(c)(8)). 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 board or chairperson to execute a blanket position bond covering each board member, the executive director, and employees (CGS 15-120dd(c)).

OLR Tracking: JKL; DC; VR; bs