HB1356 (2008) Detail

Prohibiting the use of certain information to underwrite motor vehicle insurance coverage.


HB 1356-FN – AS INTRODUCED

2008 SESSION

08-2050

01/05

HOUSE BILL 1356-FN

AN ACT prohibiting the use of certain information to underwrite motor vehicle insurance coverage.

SPONSORS: Rep. Hatch, Coos 3; Rep. Ryan, Merr 2; Rep. Marsh, Rock 17; Rep. D. Eaton, ChesĀ 2

COMMITTEE: Commerce

ANALYSIS

This bill prohibits insurers from requesting certain information to underwrite motor vehicle insurance coverage.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

08-2050

01/05

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eight

AN ACT prohibiting the use of certain information to underwrite motor vehicle insurance coverage.

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

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

XXIII. SOCIAL SECURITY NUMBERS; EDUCATION LEVEL; OCCUPATION. Requesting social security numbers, educational level, or occupation and using such information to rate or underwrite motor vehicle insurance.

2 Effective Date. This act shall take effect January 1, 2009.

LBAO

08-2050

11/16/07

HB 1356-FN - FISCAL NOTE

AN ACT prohibiting the use of certain information to underwrite motor vehicle insurance coverage.

FISCAL IMPACT:

      The Insurance Department states this bill may increase state general fund revenue by an indeterminable amount in FY 2009 and each year thereafter. There will be no fiscal impact on county and local revenue or state, county, and local expenditures.

METHODOLOGY:

    The Insurance Department indicates this bill prohibits the requesting of social security numbers, educational level, and occupation information to underwrite motor vehicle insurance coverage. The Department states due to the few insurers that use educational level and occupation information to underwrite motor vehicle insurance, the market would not be materially impacted. The Department states prohibiting insurers to request social security numbers will result in additional expenses to obtain information used in underwriting policies and insurers would not be able to as accurately match expected loss with premiums charged resulting in higher risk loads being included in pricing algorithms. The Department states premiums may increase as a result of not allowing insurers to request social security numbers. Any increases in premiums will increase premium tax revenues.