HB690 (2008) Detail

(4th New Title) authorizing the commissioner of the department of employment security to adjust the discount rate and relative to auditable basis policies.


CHAPTER 275

HB 690 – FINAL VERSION

23Jan2008… 2507h

05/15/08 1907s

05/15/08 1921s

05/15/08 1934s

2008 SESSION

07-0376

08/10

HOUSE BILL 690

AN ACT authorizing the commissioner of the department of employment security to adjust the discount rate and relative to auditable basis policies.

SPONSORS: Rep. Jane Kelley, Rock 15

COMMITTEE: Labor, Industrial and Rehabilitative Services

AMENDED ANALYSIS

This bill defines “discount rate” and authorizes the commissioner of the department of employment security to adjust the discount rate.

This bill also makes a technical correction to HB 1244 of the 2008 legislative session by inserting inadvertently omitted text.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

23Jan2008… 2507h

05/15/08 1907s

05/15/08 1921s

05/15/08 1934s

07-0376

08/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eight

AN ACT authorizing the commissioner of the department of employment security to adjust the discount rate and relative to auditable basis policies.

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

275:1 Unemployment Compensation; Minimum Rate; Version Effective July 1, 2008. Amend RSA 282-A:82 to read as follows:

282-A:82 Minimum Rate.

I. The commissioner shall compute the [amount to be subtracted from every employer’s contribution rate] discount rate for the 4 calendar quarters during a calendar year by determining the available balance in the unemployment compensation fund on September 30 of the preceding calendar year. [The amount to be subtracted from every employer’s contribution rate] Except as provided in paragraph II of this section, the discount rate for the 4 calendar quarters during a calendar year shall be as follows:

(a) Whenever the unemployment compensation fund equals or exceeds $225,000,000 on September 30 of the preceding calendar year, the [amount to be subtracted] discount rate shall be .5 percent.

(b) Whenever the unemployment compensation fund equals or exceeds $250,000,000 on September 30 of the preceding calendar year, the [amount to be subtracted] discount rate shall be one percent.

(c) Whenever the unemployment compensation fund equals or exceeds $275,000,000 on September 30 of the preceding calendar year, the [amount to be subtracted] discount rate shall be 1.5 percent.

II. If the unemployment compensation trust fund balance is $200,000,000 or more on September 30 of the preceding calendar year, and if the commissioner of the department of employment security determines that the health of the New Hampshire business environment and the security of existing jobs would be threatened by decreasing the discount rate from every employer’s contribution rate in accordance with RSA 282-A:82, then the commissioner may adjust the discount rate ½ percent more than otherwise applicable.

III. For the purposes of this section, “discount rate” means the amount to be subtracted from every employer’s contribution rate.

[II.] IV. The minimum contribution rate under this section shall be not less than .10 percent.

275:2 Unemployment Compensation; Minimum Rate; Version Effective July 1, 2009. RSA 282-A:82 is repealed and reenacted to read as follows:

282-A:82 Minimum Rate.

I. The commissioner shall compute the amount to be subtracted from every employer's contribution rate for the 4 calendar quarters during a calendar year by determining the available balance in the unemployment compensation fund on September 30 of the preceding calendar year. The amount to be subtracted from every employer's contribution rate for the 4 calendar quarters during a calendar year shall be as follows:

(a) Whenever the unemployment compensation fund equals or exceeds $225,000,000 on September 30 of the preceding calendar year, the amount to be subtracted shall be .5 percent.

(b) Whenever the unemployment compensation fund equals or exceeds $250,000,000 on September 30 of the preceding calendar year, the amount to be subtracted shall be one percent.

(c) Whenever the unemployment compensation fund equals or exceeds $275,000,000 on September 30 of the preceding calendar year, the amount to be subtracted shall be 1.5 percent.

II. The minimum contribution rate under this section shall be not less than .10 percent.

275:3 Insurance Premium Refunds. Amend RSA 402:81 to read as follows:

402:81 Insurance Premium Refunds.

I. Whenever an insurer owes a refund on an insurance premium paid, that insurer shall pay the refund within 30 days of the date when the refund becomes due.

(a) When an insurance policy is cancelled by a named insured, a refund shall be due from the company or its appointed producer [receiving] upon receipt of:

(1) The original policy to be cancelled; or

(2) A signed lost policy release; or

(3) A cancellation request from the insured which has been submitted in accordance with provisions of the policy or statute.

(b) When an insurance policy is cancelled by an insurer, a refund shall become due upon the date of cancellation as stated in the notice of cancellation.

(c) [No refund shall be required if the return premium is $1 or less.

(d)] For auditable policies[, gross unearned premium shall be returned within 30 days from the date of the completed audit.]:

(1) Audits shall be conducted promptly, no more than 120 days after the expiration or cancellation of the policy, provided that there is no bona fide dispute; and

(2) If there is no bona fide dispute, the refund of gross unearned premium shall become due on the date of the completed audit.

(3) In cases where the amount of refund is in bona fide dispute, the refund shall not become due until the dispute is resolved and the audit is completed. The insurer shall notify the insured in writing that there is a bona fide dispute and this notice shall toll the 120-day time period until the dispute is resolved. Upon resolution of the dispute, the insurer shall proceed to complete the audit within the time remaining in the 120-day time period.

(4) A bona fide dispute includes the insured's failure to cooperate with the audit, provided the insurer has notified the insured of:

(A) The acts or omissions that constitute the insured's failure to cooperate; and

(B) The consequences of the insured's failure to cooperate, including delay in the completion of the audit and payment of any refund due.

[(e)] (d) This paragraph shall not apply to retrospectively rated policies.

(e) No refund shall be required if the return premium is $1 or less.

II. Whenever the premium refunds described in paragraph I are refunded to an authorized third party, such as an insurance producer or a party with cancellation power of attorney from the insured, the authorized third party shall credit the premium refund for the account of the named insured. In the event that crediting of return premiums to the account of the named insured results in a surplus over the amount owed the authorized third party by the named insured, the surplus shall be paid to the named insured within 10 days of receipt of the return premium, being credited to the third party, provided that no such refund shall be required if it amounts to less than $1.

III. For any refund that is not paid to the named insured within the specified period set forth in paragraph I, the party to whom the premium is owed shall be entitled to interest beginning on the first day after the expiration of the period, at the legal rate. Any interest developed because of late refunding shall ultimately benefit only the named insured. [In cases where the amount of refund is in bona fide dispute, the refund shall not become due until the dispute is resolved. In cases where the final premium amount is subject to audit, the refund shall become due upon audit. In any event, return of the unearned premium shall be made within 90 days from the date of expiration or cancellation of the policy.] This paragraph shall not apply to retrospectively rated policies.

275:4 Contingency. If HB 1244 of the 2008 legislative session becomes law, then section 2 of HB 1244 shall not take effect and section 3 of this act shall take effect on the effective date of HB 1244. If HB 1244 does not become law, section 3 of this act shall not take effect.

275:5 Effective Date.

I. Section 1 of this act shall take effect July 1, 2008.

II. Section 2 of this act shall take effect July 1, 2009.

III. Section 3 of this act shall take effect as provided in section 4 of this act.

IV. The remainder of this act shall take effect upon its passage.

Approved; June 27, 2008

Effective Date: I. Section 1 shall take effect July 1, 2008.

II. Section 2 shall take effect July 1, 2009.

III. Section 3 shall take effect as provided in section 4.

IV. Remainder shall take effect June 27, 2008.

Links

HB690 at GenCourtMobile

Action Dates

Date Body Type

Bill Text Revisions

HB690 Revision: 11973 Date: Jan. 1, 2008, midnight

Docket