HB 6307 Summary

• Establishes licensing requirements for third-party administrators (TPAs) who underwrite, collect premiums, or settle claims for life, annuity, or health coverage in Connecticut, effective October 1, 2011.

• Requires TPAs to obtain written agreements with insurers specifying activities, responsibilities, accounting procedures, and termination provisions; maintain fiduciary accounts for premiums collected; and maintain records for five years.

• Mandates TPAs hold surety bonds for governmental and church self-insured plans in amounts of at least $100,000 or 10% of aggregate coverage handled, and file annual audited financial statements showing positive net worth.

• Authorizes the Insurance Commissioner to examine TPAs, suspend or revoke licenses for unsound financial condition, regulatory violations, or failure to pay judgments, and establish confidentiality protections for examination materials.

• Establishes fees for TPA licensure ($500 initial, $350 renewal) and annual report filings ($100) under Connecticut General Statutes section 38a-11.