Bill Text: CT HB05308 | 2010 | General Assembly | Comm Sub
Bill Title: An Act Establishing A Nonprofit Workers' Compensation Insurance Company.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2010-04-13 - Referred by House to Committee on Finance, Revenue and Bonding [HB05308 Detail]
Download: Connecticut-2010-HB05308-Comm_Sub.html
General Assembly |
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February Session, 2010 |
*_____HB05308INS___031710____* |
AN ACT ESTABLISHING A NONPROFIT WORKERS' COMPENSATION INSURANCE COMPANY.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective July 1, 2010) (a) As used in this section:
(1) "Board" means the board of directors established under subsection (c) of this section;
(2) "Chief executive officer" means the chief executive officer of the nonprofit legal entity established under subsection (b) of this section; and
(3) "Workers' compensation insurance company" or "company" means the nonprofit legal entity established under subsection (b) of this section.
(b) (1) There is established a workers' compensation insurance company, which shall be a nonprofit legal entity, to provide and administer workers' compensation insurance to employers in this state against liabilities arising under chapter 568 of the general statutes.
(2) Such company shall be organized and operated as a domestic mutual insurance company and shall be subject to the provisions of title 38a of the general statutes, except as otherwise provided in this section.
(3) Such company shall not be deemed to be a state agency for any purpose, nor shall such company's employees be considered state employees.
(c) (1) The powers of the workers' compensation insurance company shall be vested in a board of directors consisting of seven members as follows, and the Labor Commissioner and the chief executive officer, who shall be ex-officio members:
(A) Three members appointed by the Governor;
(B) One member appointed by the speaker of the House of Representatives;
(C) One member appointed by the president pro tempore of the Senate;
(D) One member appointed by the minority leader of the House of Representatives; and
(E) One member appointed by the minority leader of the Senate.
(2) All members, except for the Labor Commissioner and the chief executive officer, shall be workers' compensation insurance policyholders or officers or employees of such policyholders. At least three of the members shall be representatives of for-profit entities.
(3) No member, other than the Labor Commissioner and the chief executive officer, shall be an elected or appointed official of the state or a municipality of the state or an employee or representative of the insurance industry.
(4) The members appointed under subdivision (1) of this subsection shall serve for terms of four years, except the members appointed under subparagraphs (B) to (E), inclusive, of said subdivision (1) shall be elected by the workers' compensation insurance company's policyholders after the initial term, pursuant to procedures established by the board. Members may be reappointed or elected to serve consecutive terms. Any vacancy occurring during the term of a member shall be filled as provided in the workers' compensation insurance company's bylaws. Members shall serve without compensation for their services but shall be reimbursed for their expenses.
(5) The board shall annually elect a chairperson and any other officers it deems necessary for the performance of its duties.
(6) The members of the board shall be appointed not later than September 1, 2010, and the board shall organize as soon as is practicable after such appointments.
(7) The board may:
(A) Sue and be sued;
(B) Have a seal and alter it at will;
(C) Make, amend and repeal bylaws, procedures and rules relating to the conduct of the business of the workers' compensation insurance company and as required by the provisions of this section;
(D) Enter into contractual agreements for the administration of the workers' compensation insurance company;
(E) Rent, lease, buy or sell real or personal property in the workers' compensation insurance company's name and construct or repair buildings necessary to provide space for the board's operations;
(F) Declare dividends to the workers' compensation insurance company policyholders when there is an excess of assets over liabilities;
(G) Establish accounts in a state or federally-chartered financial institution whose deposits are insured by the Federal Deposit Insurance Corporation. All premiums paid by policyholders and any other moneys paid to the workers' compensation insurance company shall be deposited in such accounts;
(H) Pay medical expenses, rehabilitation expenses and compensation due to claimants of policyholders;
(I) Hire staff, set and pay salaries and compensation and pay administrative and other expenses of the workers' compensation insurance company; and
(J) Perform all other functions and exercise all other powers of a domestic mutual insurance company that are necessary, appropriate or convenient to administer the accounts established pursuant to subparagraph (G) of this subdivision or to carry out the provisions of this section.
(8) (A) The board shall employ a chief executive officer of the workers' compensation insurance company not later than January 1, 2011, who shall have oversight of the daily activities of said company. The chief executive officer shall serve at the pleasure of the board.
(B) Subject to the authority of the board and the provisions of this section, said officer shall perform the duties of chief executive officer as provided in the company's bylaws or determined by resolution of the board. In addition, the chief executive officer shall:
(i) Make safety inspections of risks and furnish advisory services on safety and health measures to policyholders;
(ii) Collect and disburse moneys necessary to administer the accounts established pursuant to subparagraph (G) of subdivision (7) of this subsection and to conduct the business of the company;
(iii) Create an abstract summary of any audit or survey conducted by the company; and
(iv) Perform all other acts necessary to exercise the powers, authority or jurisdiction of the company, including, but not limited to, the establishment of premium rates. Subject to the approval of the board, the chief executive officer may delegate any duties on behalf of the company to qualified officers or employees of the company, and may contract with qualified independent contractors to perform such duties for the company.
(d) No member of the board or officer or employee of the workers' compensation insurance company shall be personally liable, jointly or severally, for any debt or obligation created or incurred by said company.
(e) (1) The workers' compensation insurance company shall be deemed to have met the minimum surplus requirement set forth in section 38a-72 of the general statutes when the sum specified under section 2 of this act has been transferred to the Labor Department.
(2) The workers' compensation insurance company may insure an employer against workers' compensation liabilities arising under chapter 568 of the general statutes, including excess and residual risk workers' compensation insurance.
(3) Employers may apply for coverage to the workers' compensation insurance company through an insurance producer licensed in this state according to the procedures or rules established by the board pursuant to subsection (c) of this section. The board shall establish a schedule of commissions paid to insurance producers for voluntary and residual risk workers' compensation insurance policies written or sold by such producers.
(4) The board may deny an application for workers' compensation insurance coverage, refuse to renew coverage or cancel coverage, as appropriate, for any of the following:
(A) Nonpayment of any premium for current or prior policies issued by the workers' compensation insurance company to a policyholder or to another entity the board deems to be a successor in interest of such policyholder;
(B) Failure or refusal by an applicant or policyholder to fully and accurately disclose to the company information concerning such applicant's or policyholder's ownership, change of ownership, operations or payroll, including allocation of payroll among state and federal compensation programs, classification of payroll or any other information determined to be necessary by the board to determine appropriate rates; or
(C) Failure or refusal by an applicant or policyholder to comply with the board's safety requirements or to permit premises inspections to the satisfaction of the board.
(5) Any determination by the board with respect to the denial, nonrenewal or cancellation of a workers' compensation insurance policy under this subsection, except for cancellation for nonpayment of premium, may be appealed to the Insurance Commissioner, in writing, not later than thirty days after notice by the board to the applicant or policyholder of such action. If said commissioner determines that the board has unreasonably denied, failed to renew or cancelled any insurance policy for a residual risk, the board shall in good faith reconsider issuing, renewing or reinstating such insurance policy. If the board has not issued, renewed or reinstated such insurance policy within thirty days after the commissioner's determination, the applicant or policyholder may appeal the denial, failure to renew or cancellation by the board to the superior court for the judicial district of Hartford.
(f) Not later than January 1, 2012, and annually thereafter until the board has completed all repayments required under section 2 of this act, the board shall submit a report, in accordance with the provisions of section 11-4a of the general statutes, to the Governor and the joint standing committee of the General Assembly having cognizance of matters relating to workers' compensation, on the business transacted by the workers' compensation insurance company in the prior calendar year. Such report shall include, but not be limited to, a statement of the assets and liabilities of the company and a summary of the repayments made to date pursuant to section 2 of this act.
Sec. 2. (NEW) (Effective July 1, 2010) (a) Notwithstanding the provisions of chapter 66 of the general statutes, the Treasurer shall transfer to the Labor Department, for the fiscal year ending June 30, 2011, the sum of five million dollars from the State Employees Retirement Fund, for the workers' compensation insurance company established under section 1 of this act.
(b) Such sum shall not be transferred until the Treasurer and the State Employees' Bargaining Agent Coalition have provided written consent to the clerks of both houses of the General Assembly to such transfer.
(c) The board established under subsection (c) of section 1 of this act shall repay to the Treasurer the sum transferred pursuant to this section plus interest at a rate determined by the Treasurer, over a period not to exceed five years from the date the board receives such sum. The Treasurer shall deposit any repayment amounts received pursuant to this subsection in the State Employees Retirement Fund.
This act shall take effect as follows and shall amend the following sections: | ||
Section 1 |
July 1, 2010 |
New section |
Sec. 2 |
July 1, 2010 |
New section |
Statement of Legislative Commissioners:
In section 1(e)(5), before "to the superior court", "program" was changed to "board" for internal consistency.
INS |
Joint Favorable Subst. |