With the group policy "Interactive logon: Smart card removal behavior" set to "Disconnect if a remote Terminal Services session" a session will disconnect the first time a smart card is removed.

If the session is subsequently connected to, and the smart card is removed, the session will remain connected.

This issue does not appear on a terminal services RDP session. Under RDP the session will disconnect multiple times using the Smart Card Removal policy.

Apply the PSE400R02W2K3052.msp hotfix from http://support.citrix.com/article/CTX112080

After disconnecting and then reconnecting to a session using a smart card, the session is no longer disconnected after subsequent removals of the smart card from the reader. This happens even if the local security policy Smart card removal behavior is set to Lock Workstation or Disconnect if a terminal service session.

[From PSE400R02W2K3052][#144661]