HB 1192 – FINAL VERSION
HOUSE BILL 1192
This bill makes certain changes in the insurance laws relative to property and casualty insurance.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [
in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Six
AN ACT relative to property and casualty insurance.
Be it Enacted by the Senate and House of Representatives in General Court convened:
196:1 Insurance Department; Fees. Amend RSA 400-A:29, II and III to read as follows:
II. Charter documents (other than those filed or
transmitted with application for certificate of authority)
(a) For filing or transmitting articles of amendment,
domestic companies, $10
(b) For filing or transmitting a copy of amendment to
the articles of incorporation of a foreign or alien company, $10.
If the amendment is filed or transmitted more than 60 days
after the same has become effective in the home state, the
corporation shall pay to the commissioner a penalty of $25.
III. Filing or transmitting of annual statement $100
196:2 Insurance; Annual Financial Statement. Amend RSA 400-A:36, I and II to read as follows:
I. Every insurance company doing business in this state shall, on or before March 1 each year, make and file or transmit to the commissioner a statement under oath of its president and secretary, in accordance with the National Association of Insurance Commissioners Annual Statement Blank following the National Association of Insurance Commissioners Annual Statement Instructions and those accounting procedures and practices prescribed by the National Association of Insurance Commissioners Accounting Practices and Procedure Manual, showing the amount of its capital stock, assets, liabilities, outstanding risks, premium notes, receipts, expenditures, losses, assessments, salaries and emoluments, and any other information calculated to fully disclose the condition and method of management of the company for the year ending the preceding December 31, which statement shall include the whole amount of premiums written during the preceding year for insurance on property, or risks located or persons resident in this state.
II. The commissioner may extend the time for filing or transmitting such statement for cause shown for a period of not more than 60 days. Life insurance companies shall not be required to file or transmit that part of their annual statement known as the gain and loss exhibit until the succeeding May 1. An insurer intentionally failing to file or transmit its annual statement as required by paragraph I shall forfeit to the department $25 for each day of delinquency. The commissioner may refuse to continue, or may suspend or revoke, the certificate of authority of any insurer intentionally failing to file or transmit its annual statement when due. The insurer shall pay the fee for filing or transmitting its annual statement as prescribed by RSA 400-A:29 at the time of filing or transmitting or with the premium tax return, but no later than March 15th.
196:3 Insurance; Filing Requirements. Amend RSA 400-A:36-a, I to read as follows:
I. Each domestic, foreign, and alien insurer who transacts insurance in this state shall annually on or before March 1 of each year, file with or transmit to the National Association of Insurance Commissioners a copy and diskette of its annual statement convention blank, along with such additional filings as prescribed by the commissioner for the preceding year, and a copy and diskette of all subsequent quarterly statements. The information filed with or transmitted to the National Association of Insurance Commissioners shall be in the same format and scope as that required by the commissioner and following those accounting procedures and practices prescribed by the National Association of Insurance Commissioners Accounting Practices and Procedure Manual, and shall include the signed jurat page and, if required by any state in which the insurer transacts business, the actuarial certification. Any amendments and addenda to the annual statement filing subsequently filed with or transmitted to the commissioner shall also be filed with or transmitted to the National Association of Insurance Commissioners.
196:4 Insurance Companies; Purposes. RSA 401:1, VIII is repealed and reenacted to read as follows:
VIII. Other casualty risks. Insurance against any other casualty risk not otherwise specified under paragraph V, which may lawfully be the subject of insurance, if such insurance is not disapproved by the commissioner as being contrary to law or public policy.
196:5 Fire Insurance Contract. Amend RSA 407:22 by inserting after the countersignature date-agent signing line, the following new sentence:
If any conditions of this form are construed to be more liberal than any other policy conditions relating to the perils of fire, lightning or removal, the conditions of this form shall apply.
196:6 Regulation of Forms and Rates for Property and Casualty Insurance; Notice Requirement. Amend RSA 412:6-a to read as follows:
412:6-a Notice Requirement. In the event that a company or filing or advisory organization eliminates or reduces coverages, conditions, or definitions in its policies issued under this section other than at the request of a policyholder, the company shall attach to the policy a printed notice in each such policy explaining clearly what coverages, conditions, or definitions have been eliminated or reduced. If explanations of such reduced or eliminated coverages are not contained in the printed notice attached to its policies, then such coverages, conditions, or definitions shall remain in full force and effect without such reductions or eliminations. The requirements of this section shall apply [
only] to such policies renewed or endorsed with the same company, or a group of companies affiliated by ownership or contractual relationship encompassing joint operations or processes as filed and approved by the commissioner.
196:7 Regulation of Forms and Rates for Property and Casualty Insurance; Reference Change. Amend RSA 412:14, I to read as follows:
I. In determining whether or not a competitive market exists pursuant to RSA [
412:15] 412:13, the commissioner shall monitor the degree of competition in this state. In doing so, the commissioner shall utilize existing relevant information, analytical systems and other sources; cause or participate in the development of new relevant information, analytical systems and other sources; or rely on some combination thereof. Such activities may be conducted internally within the insurance department, in cooperation with other state insurance departments, through outside contractors or in any other appropriate manner.
196:8 Insurance; Rate Standards. Amend RSA 412:15, I(c)(1) to read as follows:
(1) The rate is unreasonably low for the insurance provided and the continued use of the rate endangers the solvency of the [
insured] insurer using it; or unless
196:9 New Paragraphs; Title Insurance Code; Prohibitions. Amend RSA 416-A:8 by inserting after paragraph II the following new paragraphs:
III. Give or receive or attempt to give or receive remuneration in any form pursuant to any agreement or understanding, oral or otherwise, for the referral of title insurance business.
IV. Give or receive or attempt to give or receive any portion or percentage of any charge made or received in connection with the business of title insurance if such charge is not for services actually rendered. For purposes of this chapter, “services actually rendered” shall include, but not be limited to, a reasonable examination of a title, including instruments of record, and a determination of insurability of such title in accordance with sound underwriting practices. “Services actually rendered” shall not include the mere referral of title insurance business.
196:10 New Section; Compensation. Amend RSA 416-A by inserting after section 8 the following new section:
416-A:8-a Compensation by Title Insurance Company. Nothing in this chapter, or in any other provision of law governing the insurance industry, shall be construed to prohibit:
I. Compensation by a title insurance company of an attorney who is licensed to practice for services actually rendered in connection with a real estate transaction, regardless of whether such attorney represents a client in such real estate transaction.
II. Payment to any person of a bona fide salary or compensation for payment of goods and facilities actually furnished or for services actually rendered.
196:11 Unfair Insurance Trade Practices; Unfair Discrimination. Amend RSA 417:4, VIII(e) to read as follows:
(e) Refusing to insure risks solely because of age (except in the case of life, accident or health insurance), place or area or residence, race, color, creed, national origin, ancestry, marital status, lawful occupation including the military service (except in the case of life, accident or health insurance), of anyone who is or seeks to become insured or solely because another insurer has refused to write a policy, or has cancelled or has refused to renew an existing policy in which that person was the name insured or, except in the instance of excess coverages, solely because the insured does not insure collateral [
business] primary, personal types of insurance with the insurer. The exemption in this subparagraph shall not permit a mortgage life insurance policy or certificate to cease, cancel or terminate solely on the basis of the mortgagor’s age, until the mortgagor has reached the age of 80.
196:12 Refusal to Issue, Cancellation and Refusal to Renew Automobile Insurance; Notice. Amend RSA 417-A:5, V to read as follows:
V. In case of an automobile policy [
either], in the notice [ or in an accompanying statement] advise the insured of [ possible] eligibility for insurance through the automobile [ assigned risk plan] reinsurance facility.
196:13 Cancellation, Refusal to Write, Refusal to Renew Certain Property and Liability Insurance; Application. Amend the introductory paragraph of RSA 417-B:1 to read as follows:
This chapter shall apply to policies of insurance other than automobile insurance [
and], workers’ compensation insurance, and excess insurance on risks located or residents in this state which insure any of the following contingencies:
196:14 Insurance; Electronic Transmittal Added. Amend RSA 400-B:2, III to read as follows:
III. “Complaint” means [
a] any written or electronically transmitted communication primarily expressing a grievance.
196:15 Insurance; Complaint Records. Amend RSA 400-B:7 to read as follows:
400-B:7 Complaint Records. The complaint records required to be maintained under RSA 417 shall include a complaint log or register, or grievance log or register for health insurers, in addition to the actual written complaints. The complaint log or register shall show clearly the total number of complaints for the current year plus the immediately preceding 5 years, the classification of each complaint by line of insurance and by complainant, the nature of each complaint, the insurer's disposition of each complaint, the time it took to process each complaint, and the complaint number assigned by the department, if applicable. If the insurer maintains the file in a computer format, the reference in the complaint log or register for locating the documentation shall be an identifier such as the policy number or other code. The codes shall be provided to the examiners at the time of an examination.
196:16 Insurance; Technical Correction. Amend RSA 417-B:3, II to read as follows:
II. Conviction of the named [
insurer] insured of a crime having as one of its necessary elements an act increasing any hazard insured against.
196:17 Effective Date. This act shall take effect 60 days after its passage.
Approved: May 31, 2006
Effective: July 30, 2006