October 11, 2013 Statement by Adam Cloud, City Treasurer of Hartford

Today, I am asking the Department of Insurance to investigate Hybrid Insurance regarding their lack of payment. I will be forwarding all relevant information to them and asking other relevant departments in the City of Hartford to do the same. I will also strongly support the City's Internal Audit Department's review. It is important to note that in accordance with state law, at no time was the city uninsured, and it will remain insured based on our payment. We do not have to recoup the payment or make any additional payments to remain insured. It is the carriers responsibility to obtain any owed payment from Hybrid. My office did not approve any business relationship for the City and Hybrid. The smaller pension fund policy was recommended by an outside insurance agency that had solicited a competitive, reduced cost proposal from Hybrid. The bid was approved by the Office of the Corporation Counsel and the Pension Commission, not our office. The insurance coverage for the City and the schools was made by an independent committee which neither I, nor anyone in my staff, was a member of. It is the Finance Department that reports to the Citys COO that processes payments to city vendors. When we learned the City could be in danger of an insurance coverage lapse, I engaged the Finance Department. In consultation with the former City Finance Director Julio

Molleda, we transferred the funds. This is not an uncommon occurrence in managing the finances of a large City that is limited in financial resources. At all times, my sole intent was to protect the City and its taxpayers from any potential financial dangers that could occur if we had no insurance.