SB 436 Summary

• Requires domestic insurers and insurance groups to file confidential Corporate Governance Annual Disclosures (CGAD) with the Insurance Commissioner by June 1, 2017 and annually thereafter, detailing board structure, senior management policies, risk oversight, and compensation programs.

• Establishes confidentiality protections for CGAD filings, designating them as proprietary trade secrets not subject to public disclosure, subpoena, or discovery, while allowing the Commissioner to share information with other regulators and NAIC under written agreements.

• Imposes civil penalties of $175 per day for failure to timely file a CGAD without just cause, with Commissioner discretion to reduce penalties for financial hardship.

• Mandates governance standards for risk retention groups chartered in Connecticut, including requirements for independent board directors (majority), audit committees, material contract limitations (5-year maximum), codes of conduct, and disclosure of governance policies.

• Updates regulatory requirements for risk retention groups doing business in the state regarding plan of operations submissions, financial reporting, examination procedures, and notice requirements to applicants and policyholders.