HB179 (2007) Detail

Prohibiting surrender penalties on life insurance policies.


HB 179 – AS INTRODUCED

2007 SESSION

07-0123

01/03

HOUSE BILL 179

AN ACT prohibiting surrender penalties on life insurance policies.

SPONSORS: Rep. Martin, Carr 5; Rep. Headd, Rock 3; Rep. Pelkey, Ches 7; Rep. Kopka, HillsĀ 26

COMMITTEE: Commerce

ANALYSIS

This bill prohibits surrender or cancellation fees on life insurance policies which may be assessed if the insured wishes to terminate the policy.

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

07-0123

01/03

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seven

AN ACT prohibiting surrender penalties on life insurance policies.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Paragraph; Unfair Insurance Trade Practices. Amend RSA 417:4 by inserting after paragraph XXII the following new paragraph:

XXIII. SURRENDER OR CANCELLATION FEES FOR TERMINATION OF LIFE INSURANCE POLICY. Notwithstanding any provision of law to the contrary, assessing surrender fees, close out fees, cancellation fees, or assessing a charge by another name when an insured terminates a life insurance policy or surrenders the policy to the issuer, or assessing monthly or other periodic fees, other than premium fees, on such policies.

2 Applicability. Nothing in section one of this act shall be construed to affect contracts in effect on the effective date of this act.

3 Effective Date. This act shall take effect January 1, 2008.