CHAPTER 178
HB 238 – FINAL VERSION
24Mar2009… 0653h
2009 SESSION
01/09
HOUSE BILL 238
AN ACT relative to market conduct and enforcement.
SPONSORS: Rep. Reardon, Merr 11
COMMITTEE: Commerce and Consumer Affairs
This bill adds a time frame for insurers to provide the commissioner of insurance with documents and information relevant to an investigation. This bill also clarifies record retention issues for foreign insurance companies.
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
24Mar2009… 0653h
09-0734
01/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nine
AN ACT relative to market conduct and enforcement.
Be it Enacted by the Senate and House of Representatives in General Court convened:
178:1 Insurance Department; Investigations. Amend RSA 400-A:16, II to read as follows:
II. Any individual or entity who transacts insurance in this state or is otherwise subject to the authority of the commissioner shall, upon request of the commissioner, provide the commissioner with all documents and information relevant to any investigation under this section within 10 working days, or shall request within the 10 working-day period, for good cause shown, additional time to respond.
178:2 Market Conduct Record Retention. Amend RSA 400-B:2, IV to read as follows:
IV. “Declination” or “declined underwriting file” means all written or electronic records concerning coverage for which an application has been [completed and] submitted to the insurer or its producer but the insurer has made a determination not to issue a policy or not to add additional coverage when requested.
178:3 Records Required for Market Conduct Purposes. Amend RSA 400-B:3, I to read as follows:
I. An insurer or related entity licensed to do business in this state shall maintain its books, records, and documents in a manner so that the commissioner can readily ascertain during an examination the insurer’s compliance with state insurance laws and rules and with the standards outlined in the NAIC Market [Conduct Examiners] Regulation Handbook, including, but not limited to, company operations and management, policyholder service, marketing, producer licensing, underwriting, rating, complaint/grievance handling, and claims practices.
178:4 Foreign Insurance Companies; Insuring Through Producers. Amend RSA 405:17-b to read as follows:
405:17-b Insuring Through Producers.
I. Foreign insurance or surety companies, although authorized to transact business within this state, shall only make, write, place, or cause to be made, written, or placed, policies or contracts of insurance or suretyship which are to be effective within this state through producers who are licensed and properly appointed to transact business in this state pursuant to RSA 402-J.
II. Foreign insurance or surety companies shall maintain books, records, and documents sufficient to demonstrate compliance with the provisions of paragraph I as provided in RSA 400-B.
178:5 Unfair Insurance Practices; Action Against Supplier. Amend RSA 417:19, II to read as follows:
II. For the sole purpose of providing the consumer with the procedural rights set forth under RSA 541 and RSA 541-A, failure of the commissioner to take action under RSA 417:6 or RSA 417:12 within 120 days from the date of the receipt of a complaint from an alleged injured person shall constitute a finding that the alleged act or practice is not in violation of this chapter. This finding may be appealed in accordance with RSA 541. If upon appeal the decision of the commissioner is not upheld, the petitioner may proceed under RSA 417:19, I. Nothing contained in this section shall be construed to limit the commissioner’s authority to pursue any legal or regulatory action pursuant to this chapter or any provision in title XXXVII.
178:6 Effective Date. This act shall take effect 60 days after its passage.
Approved: July 13, 2009
Effective Date: September 11, 2009