| 29 | 43 | | |
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| 30 | 44 | | (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: |
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| 31 | 45 | | |
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| 32 | 46 | | (A) Three members appointed by the Governor; |
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| 33 | 47 | | |
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| 34 | 48 | | (B) One member appointed by the speaker of the House of Representatives; |
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| 35 | 49 | | |
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| 36 | 50 | | (C) One member appointed by the president pro tempore of the Senate; |
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| 37 | 51 | | |
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| 38 | 52 | | (D) One member appointed by the minority leader of the House of Representatives; and |
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| 39 | 53 | | |
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| 40 | 54 | | (E) One member appointed by the minority leader of the Senate. |
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| 41 | 55 | | |
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| 42 | 56 | | (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. |
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| 43 | 57 | | |
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| 44 | 58 | | (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. |
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| 45 | 59 | | |
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| 46 | 60 | | (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. |
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| 47 | 61 | | |
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| 48 | 62 | | (5) The board shall annually elect a chairperson and any other officers it deems necessary for the performance of its duties. |
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| 49 | 63 | | |
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| 50 | 64 | | (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. |
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| 51 | 65 | | |
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| 52 | 66 | | (7) The board may: |
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| 53 | 67 | | |
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| 54 | 68 | | (A) Sue and be sued; |
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| 55 | 69 | | |
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| 56 | 70 | | (B) Have a seal and alter it at will; |
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| 57 | 71 | | |
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| 58 | 72 | | (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; |
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| 59 | 73 | | |
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| 60 | 74 | | (D) Enter into contractual agreements for the administration of the workers' compensation insurance company; |
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| 61 | 75 | | |
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| 102 | | - | (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. |
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| 114 | + | (4) 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 not later than thirty days after the commissioner's determination, the applicant or policyholder may appeal the denial, failure to renew or cancellation by the program to the superior court for the judicial district of Hartford. |
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| 110 | | - | (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. |
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| 122 | + | (4) Notwithstanding any other provision of the general statutes, the board and any policyholder may mutually consent to modify the rates for such policyholder's workers' compensation insurance policy, provided the board files notice of the modification with the Insurance Commissioner. |
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| 123 | + | |
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| 124 | + | (5) If the Insurance Commissioner finds a rate or filing of the workers' compensation insurance company is unjust, unreasonable, excessive, inadequate or unfairly discriminatory, said commissioner shall hold a hearing upon not less than ten days' written notice to the workers' compensation insurance company of the time and place of the hearing. The commissioner shall (A) specify the matters to be considered at the hearing, and (B) issue an order (i) specifying in what respects said commissioner finds the rate or filing unjust, unreasonable, excessive, inadequate or unfairly discriminatory, and (ii) stating a date after which such rate or filing shall no longer be used or shall be deemed no longer effective, provided such order shall not apply to a policy delivered or issued for delivery prior to the expiration date specified in such order. |
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| 125 | + | |
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| 126 | + | (6) Notwithstanding any other provision of the general statutes, the board may establish and apply rules for premium surcharges for an applicant or policyholder who presents a higher than normal risk within a class. Such rules shall provide for premium surcharges of up to three times the applicable premium rate, as the board deems appropriate, to further the purposes of this section. Such surcharges may be payable upon assessment, over the policy year or upon renewal, at the option of the board. Any premium surcharge assessed by the board may be appealed to the Insurance Commissioner not later than twenty days after notice by the board to the applicant or policyholder of the imposition of the surcharge. Said commissioner may modify or rescind such surcharge if the commissioner determines that the surcharge is unjust, unreasonable, inadequate, excessive or unfairly discriminatory. |
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| 127 | + | |
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| 128 | + | (g) (1) On and after the effective date of this section and through December 31, 2013, the Insurance Commissioner shall assess and collect a workers' compensation capital assessment of three per cent of the gross premiums charged by each insurance company licensed to write workers' compensation insurance in the state on any workers' compensation insurance policy for policyholders in the state that is in force as of or written after the effective date of this section. The Insurance Commissioner may adjust the rate of the assessment to ensure the solvency of the workers' compensation insurance company and adequate surplus requirements. |
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| 129 | + | |
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| 130 | + | (2) Such assessments shall be payable quarterly and shall be due not later than fifteen days after the end of each calendar quarter or, at the discretion of the Insurance Commissioner, may be payable on an annual basis on or before July first of each year. The commissioner may proceed to collect such assessment in the manner provided by law. The Insurance Commissioner shall pay the assessments collected to the board established under subsection (c) of this section. |
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| 131 | + | |
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| 132 | + | (3) If an insurance company that was licensed to write workers' compensation insurance in the state on the effective date of this section discontinues the issuance of workers' compensation insurance policies in the state prior to December 31, 2013, such insurance company shall be and remain obligated to pay the capital assessment surcharge assessed through December 31, 2013, calculated on the basis of the average voluntary and residual risk gross premiums received by such company or the average voluntary and residual risk gross losses paid by such company, in the thirty-six months prior to such company's discontinuance of such insurance policies. |
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| 133 | + | |
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| 134 | + | (4) The board shall pay an annual fee through December 31, 2013, to the Insurance Commissioner in the amount of two-tenths of one per cent of the earned premiums of the workers' compensation insurance company for the prior calendar year, to carry out the provisions of this subsection. The Insurance Commissioner shall deposit such fee in the Insurance Fund, established under section 38a-52a of the general statutes. |
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| 135 | + | |
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| 136 | + | (h) (1) Notwithstanding section 38a-72 of the general statutes, the workers' compensation insurance company shall maintain a ratio of premiums on policies written to surplus requirements of not more than three to one, or any greater or lesser ratio deemed by the Insurance Commissioner to be appropriate, pursuant to regulations adopted in accordance with chapter 54 of the general statutes. In determining a greater or lesser ratio, said commissioner may consider the net present value of future capital assessment amounts as current surplus. |
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| 137 | + | |
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| 138 | + | (2) The workers' compensation insurance company shall submit to the Insurance Department quarterly and annual statements in a format and scope prescribed by the Insurance Commissioner. |
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| 139 | + | |
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| 140 | + | (3) In the event of the liquidation of the workers' compensation insurance company pursuant to chapter 704c of the general statutes, the company's policyholders shall have no distributive claims in their capacities as owners of the company, to the company's estate. Upon the satisfaction of classes 1 to 9, inclusive, under section 38a-944 of the general statutes, the Insurance Commissioner, as receiver, shall distribute the residual of the company's estate, if any, to the Insurance Fund. Nothing in this subsection shall be construed to affect the validity or priority of any claims arising from and within the coverage of any workers' compensation insurance policies issued by the company. |
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| 141 | + | |
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| 142 | + | (i) Not later than January 1, 2012, and annually thereafter, 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 labor and workers' compensation, on the business transacted by the workers' compensation insurance company in the prior calendar year, including, but not limited to, a statement of the assets and liabilities of the company. |
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| 143 | + | |
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| 144 | + | Sec. 2. (Effective July 1, 2010) The sum of five million dollars is appropriated to the Labor Department, from the General Fund, for the fiscal year ending June 30, 2011, for the workers' compensation insurance company established under section 1 of this act. |
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| 145 | + | |
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| 146 | + | Sec. 3. (Effective July 1, 2010) The sum of ____ dollars is appropriated to the Labor Department, from the General Fund, for the fiscal year ending June 30, 2012, for the workers' compensation insurance company established under section 1 of this act. |
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