HB385 (2008) Detail

Relative to licensing and insurance fees.


CHAPTER 18

HB 385-FN – FINAL VERSION

27Mar2007… 0794h

02Jan2008… 2600h

2008 SESSION

07-0575

01/10

HOUSE BILL 385-FN

AN ACT relative to licensing and insurance fees.

SPONSORS: Rep. Reardon, Merr 11; Rep. McLeod, Graf 2; Rep. D. Flanders, Belk 4; Rep. Headd, Rock 3

COMMITTEE: Commerce

ANALYSIS

This bill makes a variety of changes in the insurance laws, including:

I. Changing certain insurance fees.

II. Adding certain prohibitions against ownership and incompetence of insurance companies.

III. Clarifying applicant information for insurance claims adjusters.

This bill is a request of the insurance department.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

27Mar2007… 0794h

02Jan2008… 2600h

07-0575

01/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eight

AN ACT relative to licensing and insurance fees.

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

18:1 Repeal. The following are repealed:

I. RSA 400-A:29, IX, relative to fees for producers.

II. RSA 402-J:1, III, relative to scope of the producer licensing.

III. RSA 402-J:6, I(c), relative to application for license.

18:2 Insurance Fees. Amend RSA 400-A:29, VII and VIII to read as follows:

VII. Health service corporations

(a) Corporation’s annual certificate of authority $200

(b) Annual statement $100

[(c) Producer’s license

(1) Application fee $60

(2) Original license $150

(3) Biennial renewal $150

(4) Lifetime appointment fee $25

(5) Lifetime appointment discharge fee $25

(6) Amendment to license $50]

VIII. Road and tourist services

(a) Application fee for certificate of authority $300

(b) Initial certificate $100

(c) Annual renewal $100

[(d) Producer’s license

(1) Application fee $60

(2) Original license $150

(3) Biennial renewal $150

(4) Lifetime appointment fee $25

(5) Lifetime appointment discharge fee $25

(6) Amendment to license $50]

18:3 Insurance Fees; Producers. RSA 400-A:29, X is repealed and reenacted to read as follows:

X. Producers; resident and non-resident

(a) Non-refundable application and license fee $210

(b) Biennial renewal $150

(c) Amendment to license $50

(d) Additional fee for late renewal $150

(e) Fee for late completion of continuing education $50

(f) Appointment fee $25

(g) Termination fee $25

(h) Address change fee $10

(i) Mail return fee $25

18:4 Insurance Fees; Surplus Lines. Amend RSA 400-A:29, XI to read as follows:

XI. Surplus lines;

[(a)] Company annual application for inclusion in approved list $250

[(b) Producers

(1) Application fee $60

(2) Original license $150

(3) Biennial renewal $150

(4) Amendment to license $50]

18:5 Insurance Fees; Other Licensing Documents. RSA 400-A:29, XIII-XIV are repealed and reenacted to read as follows:

XIII. Other licensing documents; producer, consultant, adjuster, public adjuster

(a) Qualification and clearance letters $10

(b) Paper licenses $10

(c) Copies (all documents) $1 per page

XIV. Variable annuity

(a) Certificates $5

(b) Company registration $100

(c) Annual renewal $100

18:6 Insurance Fees; Adjuster’s Licenses. RSA 400-A:29, XV is repealed and reenacted to read as follows:

XV. Adjuster’s licenses; resident and non-resident

(a) Non-refundable application and license fee $75

(b) Biennial renewal $75

(c) Amendment to license $50

(d) Additional fee for late renewal $75

(e) Fee for late completion of continuing education $25

(f) Address change fee $10

(g) Mail return fee $25

18:7 Insurance Fees; Public Adjusters; Insurance Consultants. RSA 400-A:29, XVIII and XIX are repealed and reenacted to read as follows:

XVIII. Public adjusters; resident and non-resident

(a) Non-refundable application and license fee $100

(b) Biennial renewal $100

(c) Additional fee for late renewal $100

(d) Fee for late completion of continuing education $25

(e) Address change fee $10

(f) Mail return fee $25

XIX. Insurance consultants; resident and non-resident

(a) Non-refundable application and license fee $210

(b) Biennial renewal $150

(c) Amendment to license $50

(d) Additional fee for late renewal $150

(e) Fee for late completion of continuing education $50

(f) Address change fee $10

(g) Mail return fee $25

18:8 New Section; Insurance Companies and Agents. Amend RSA 402 by inserting after section 11 the following new section:

402:11-a Prohibitions.

I. No insurer which is directly or indirectly owned or controlled in whole or in substantial part by any government or governmental agency shall be authorized to transact insurance in this state. Membership in a mutual insurer or subscribership in a reciprocal insurer or ownership of stock in an insurer by the alien property custodian or similar official of the United States or ownership of stock or other security which does not have voting rights with respect to the management of the insurer or supervision of an insurer by public authority shall not be deemed to be an ownership or control of the insurer for the purposes of this section.

II. The commissioner shall not grant or continue authority to transact insurance in this state as to any insurer or proposed insurer that management of which is found by the commissioner after investigation or upon reliable information to be incompetent or dishonest or untrustworthy or of unfavorable business repute or so lacking in insurance company managerial experience in operations of the kind proposed in this state as to make such operation, currently or prospectively, hazardous to or contrary to the best interests of, the insurance-buying or investing public of this state, or which the commissioner has good reason to believe is affiliated directly or indirectly through ownership, control, reinsurance transactions, or other business relations with any person or persons of unfavorable business repute or whose business operations are or have been marked, to the injury of insurers, stockholders, policyholders, creditors, or the public, by illegality, or by manipulation of assets or of accounts or of reinsurance or by bad faith.

18:9 Insurance Claims Adjusters. Amend RSA 402-B:3 to read as follows:

402-B:3 Applications. Applications for licenses as an insurance claims adjuster shall be made in writing to the commissioner of insurance on forms prescribed by him or her stating the age, [sex,] domicile, line or lines of insurance for which the applicant desires a license, and the place of business of the individual applicant. The commissioner shall require the applicant to set forth personal and professional background information in [his] the application [such additional information as to his background and trustworthiness as is reasonably required to inform] as the commissioner [of his character. The commissioner shall further require that the applicant submit 3 character affidavits signed by persons other than relatives who have known the applicant for not less than 2 years. Said affidavits shall state the opinion of the signer thereof as to the applicant’s character and trustworthiness] may reasonably require to determine suitability for issuance of a license.

18:10 Public Adjusters; Definition Added. Amend RSA 402-D:2, I to read as follows:

I. “Commissioner” means the insurance commissioner.

I-a. “Home state” means the District of Columbia and any state or territory of the United States in which a licensee maintains his or her principal place of residence or principal place of business and is licensed to act as a public adjuster.

18:11 Producer Licensing. Amend RSA 402-J:7, VI to read as follows:

VI. Licensees shall inform the commissioner by any means acceptable to the commissioner of a change of address within 30 days of the change. [Failure to timely inform the commissioner of a change in address shall result in an additional] Change of address shall be accompanied by the fee required pursuant to RSA 400-A:29.

18:12 Nonresident Producer Licensing. Amend RSA 402-J:8, II to read as follows:

II. A nonresident producer who moves from one state to another state or a resident producer who moves from this state to another state shall file a change of address and provide certification from the new resident state within 30 days of the change of legal residence. No [fee or] license application or license fee is required.

18:13 New Section; Foreign Insurers. Amend RSA 405 by inserting after section 11 the following new section:

405:11-a Prohibitions.

I. No foreign insurer which is directly or indirectly owned or controlled in whole or in substantial part by any government or governmental agency shall be authorized to transact insurance in this state. Membership in a mutual insurer or subscribership in a reciprocal insurer or ownership of stock in an insurer by the alien property custodian or similar official of the United States or ownership of stock or other security which does not have voting rights with respect to the management of the insurer or supervision of an insurer by public authority shall not be deemed to be an ownership or control of the insurer for the purposes of this section.

II. The commissioner shall not grant or continue authority to transact insurance in this state as to any insurer or proposed insurer that management of which is found by the commissioner after investigation or upon reliable information to be incompetent or dishonest or untrustworthy or of unfavorable business repute or so lacking in insurance company managerial experience in operations of the kind proposed in this state as to make such operation, currently or prospectively, hazardous to or contrary to the best interests of, the insurance-buying or investing public of this state, or which the commissioner has good reason to believe is affiliated directly or indirectly through ownership, control, reinsurance transactions, or other business relations with any person or persons of unfavorable business repute or whose business operations are or have been marked, to the injury of insurers, stockholders, policyholders, creditors, or the public, by illegality, or by manipulation of assets or of accounts or of reinsurance or by bad faith.

18:14 Foreign Insurers; Consultants. Amend the section heading and paragraph I of RSA 405:44-a to read as follows:

405:44-a Consultants; Producer License Required.

I. No person, corporation, partnership or association shall, for a fee received or to be received, offer to examine, or examine or aid in examining, any policy of insurance or any annuity or pure endowment contract for the purpose of giving, or give or offer to give, any advice, counsel, recommendation or information in respect to the terms, conditions, benefits, coverage or premium of any such policy or contract, or in respect to the expediency or advisability of altering, changing, exchanging, converting, replacing, surrendering, continuing, renewing or rejecting any such policy or contract, or of accepting or procuring any such policy or contract from any company, or, in or on advertisements, cards, signs, circulars or letterheads, or elsewhere, or in any other way or manner by which public announcements are made, use the title “insurance consultant,” “insurance adviser,” “insurance specialist,” “insurance counselor,” “insurance analyst,” “policyholders’ advisor,” “policyholders’ counselor,” or any other similar title, or any title, word or combination of words indicating that he or she gives, or is engaged in the business of giving, advice, counsel, recommendation or information to holders of policies of insurance or annuity or pure endowment contracts, unless he or she holds a license as an insurance producer under the provisions of RSA 402-J to act in the capacity of insurance consultant and conforming to the provisions of this section.

18:15 Foreign Insurers; Consultants. Amend the section heading and paragraph I of RSA 405:44-b to read as follows:

405:44-b Consultants; Application for License; Standards; Fee; Revocation; Suspension; Hearing.

I. The commissioner may, upon receipt of a fee pursuant to RSA 400-A:29, issue to any person who has attained the age of 18 or to any corporation, partnership or association a producer’s license to act as an insurance consultant. The applicant for the license shall apply for such license pursuant to the provisions of RSA 402-J.

18:16 Effective Date. This act shall take effect 60 days after its passage.

Approved: May 12, 2008

Effective Date: July 11, 2008