Sec. 10a-194f. Captive Insurance Demonstration Program Grant Fund.
Sec. 10a-194f. Captive Insurance Demonstration Program Grant Fund. (a)
The Connecticut Health and Educational Facilities Authority shall allocate from its
reserves an amount not to exceed one million five hundred thousand dollars in the aggregate for a period not to exceed three years to establish a Captive Insurance Demonstration
Program Grant Fund. The fund shall be used to provide grants to nonprofit hospitals
that establish a captive insurer or expand coverage offered by an existing captive insurer
in order to provide medical malpractice indemnity or insurance to physicians and surgeons who enjoy privileges at the hospitals. The fund may cover legal, actuarial, consulting and other costs associated with providing such indemnity or insurance. Any
amount in the fund that is not expended at the end of the three-year period shall revert
to the authority's reserves.
(b) Grants shall be awarded based on the size and financial resources of the hospitals.
Grants shall not exceed seven hundred fifty thousand dollars per captive insurer and
shall not be used to establish or expand more than two captive insurers. No hospital
shall be eligible for a grant under this section unless it agrees to provide the authority,
on a periodic basis as determined by the authority but not less than annually, information
on the captive insurer's performance including, but not limited to, premiums charged,
captive insurer operating costs, claims experience, the estimated savings over methods
of insurance used by the hospital prior to the creation of the captive insurer, and other
information required by the authority.
(c) Not later than February 1, 2005, and annually thereafter until February 1, 2008,
the authority shall complete a report that includes an analysis of the information submitted to the authority by hospitals that receive a grant pursuant to this section. The report
shall be made available to the public and the authority shall annually submit the report
to the General Assembly in accordance with section 11-4a.
(May Sp. Sess. P.A. 04-1, S. 22.)
History: May Sp. Sess. P.A. 04-1 effective June 8, 2004.
See Sec. 38a-91 for definition of "captive insurer".