Connecticut Seal

General Assembly

Amendment

 

January Session, 2011

LCO No. 8457

   
 

*HB0630808457SRO*

Offered by:

 

SEN. KELLY, 21st Dist.

 

To: Subst. House Bill No. 6308

File No. 868

Cal. No. 592

After line 115, insert the following:

"(i) (1) Beginning on February 1, 2012, and annually thereafter, the Comptroller shall issue a statement of financial condition, audited by an independent certified accountant, that shall include, but not be limited to, actuarially appropriate reserves for (A) known claims and any associated expenses, (B) claims incurred but not reported and any associated expenses, (C) unearned premiums, and (D) bad debts, which shall be shown as liabilities.

(2) (A) Such audited statement of financial condition shall also include an actuarial opinion regarding reserves for (i) known claims and any associated expenses, and (ii) claims incurred but not reported and any associated expenses.

(B) Such actuarial opinion shall be prepared by an independent person with a designation of Fellow of the Casualty Actuarial Society or a member of the American Academy of Actuaries with experience in preparing such opinions, and shall include (i) a statement whether, in the opinion of such preparer, a partnership plan is sufficiently funded according to actuarial standards, and (ii) a recommendation whether any increase in premiums is necessary to maintain or to reach sufficient funding according to actuarial standards, and the percentage amount of any increase recommended.

(3) If such preparer recommends that a premium increase of five per cent or more is necessary to maintain or to reach sufficient funding according to actuarial standards, the Comptroller shall stop accepting applications for coverage under any partnership plans and shall not renew coverage under such plans. The Comptroller shall provide written notification to each employer of the Comptroller's decision to nonrenew coverage under a partnership plan.

(4) The Comptroller shall submit the audited financial report and actuarial opinion to the General Assembly not later than February 10, 2012, and annually thereafter. "