Connecticut House Bill HB05244

Connecticut 2014 Regular Session

• Introduced: 2/19/14
• Refer: 2/19/14

Caption

An Act Concerning Annual Reports Filed By Third-party Administrators.

Impact

The enactment of HB 05244 will likely revise the current processes involved in the licensing and regulation of third-party administrators within the state. By linking the annual report to the license renewal process, it enhances the oversight capabilities of state regulators and ensures that they have up-to-date information about the operations of these administrators. This synchronization is expected to improve compliance monitoring and reduce the administrative burden that currently exists around separate submissions.

Summary

House Bill 05244 aims to amend the requirements for third-party administrators in the insurance sector. Specifically, the bill mandates that the annual reports that third-party administrators are required to file must be submitted as part of their license renewal applications. This change is set to streamline the process by ensuring that necessary compliance information is reviewed concurrent with license renewals rather than as separate submissions.

Contention

Though the bill appears straightforward, there may be points of contention surrounding the potential for increased workload for third-party administrators who must now ensure their reports are comprehensive and timely. Concerns exist that some administrators may struggle with the added requirements, particularly if they are already facing resource constraints. The requirement for verification of the report by senior officers could also provoke discussions around accountability practices within their organizations.