Connecticut House Bill HB05011

Connecticut 2010 Regular Session

• Introduced: 2/3/10
• Refer: 2/3/10
• Report Pass: 2/23/10
• Refer: 3/5/10
• Report Pass: 3/11/10
• Refer: 3/25/10
• Report Pass: 3/30/10
• Engrossed: 4/7/10
• Report Pass: 4/8/10
• Chaptered: 4/29/10
• Enrolled: 4/30/10
• Vetoed: 5/6/10

Caption

An Act Extending The Effective Date For Certain Interlocal Risk Management Pools.

Impact

Should HB 05011 be enacted, there will be a significant impact on the operational requirements of interlocal risk management pools. The bill establishes minimum reserve requirements that these pools must maintain while also allowing flexibility for pools organized for less than ten years. These changes aim to improve financial stability and ensure that risk management entities can responsibly handle claims without the burden of additional insurance regulation, thereby enhancing the efficiency of their operations.

Summary

House Bill 05011, titled 'An Act Extending The Effective Date For Certain Interlocal Risk Management Pools,' primarily focuses on the regulatory framework surrounding interlocal risk management agencies and their operations in the state. This bill seeks to clarify that these agencies are not classified as insurance companies under state law and outlines the reserve requirements that these risk management pools must maintain. It specifically affects the operational dynamics of interlocal pools related to public liability, automobile, and property risk management, aiming to streamline their management and oversight.

Sentiment

General sentiment regarding HB 05011 appears supportive among lawmakers and stakeholders in the local government sector. Proponents argue that the bill facilitates a more straightforward regulatory landscape, which could lead to smoother operations for municipalities involved in risk management pools. However, there are underlying concerns from those who fear that easing regulations may lead to insufficient oversight, potentially putting local governments at risk during claims handling.

Contention

Notable points of contention regarding HB 05011 revolve around the balance between regulatory flexibility and the assurance of robust risk management practices. Critics worry that allowing interlocal risk management agencies to operate with less stringent insurance regulations may create vulnerabilities, especially in handling claims. Furthermore, while the bill aims to incentivize interlocal cooperation, some stakeholders believe that less oversight could lead to discrepancies in how claims are managed across different municipalities, potentially resulting in unequal treatment of claimants.