HB286 (2009) Detail

Relative to life insurance form disapproval.


HB 286-FN – AS INTRODUCED

2009 SESSION

09-0730

01/04

HOUSE BILL 286-FN

AN ACT relative to life insurance form disapproval.

SPONSORS: Rep. Reardon, Merr 11

COMMITTEE: Commerce and Consumer Affairs

ANALYSIS

This bill establishes a procedure to allow the insurance commissioner to disapprove of forms for group life insurance.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

09-0730

01/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Nine

AN ACT relative to life insurance form disapproval.

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

1 New Sections; Group Life Insurance; Disapproval of Forms. Amend RSA 408 by inserting after section 16-c the following new sections:

408:16-d Disapproval of Forms.

I. The commissioner may, within 30 days after the filing of any such form, disapprove such form:

(a) If the benefits provided therein are unreasonable in relation to the premium charged;

(b) If it contains a provision or provisions which are unjust, unfair, inequitable, misleading, deceptive, or encourage misrepresentation of such policy; or

(c) If it does not comply with the requirements of law.

II. If the commissioner notifies the insurer which has filed any such form that it does not comply with the provisions of this chapter, it shall be unlawful thereafter for the insurer to issue the form or use it in connection with any policy. In the notice the commissioner shall specify the reasons for his or her disapproval and state that a hearing shall be granted within 20 days after request in writing by the insurer.

408:16-e Subsequent Disapproval. The commissioner may at any time, after a hearing of which not less than 20 days’ written notice shall have been given to the insurer, withdraw his or her approval of any such form on any of the grounds stated in this chapter. It shall be unlawful for the insurer to issue the form or use it in connection with any policy after the effective date of such withdrawal of approval. The notice of any hearing called under this section shall specify the matters to be considered at the hearing and any decision affirming disapproval or directing withdrawal of approval under this chapter shall be in writing and shall specify the reasons for the disapproval.

2 Effective Date. This act shall take effect 60 days after its passage.

LBAO

09-0730

01/07/09

HB 286-FN - FISCAL NOTE

AN ACT relative to life insurance form disapproval.

FISCAL IMPACT:

    The New Hampshire Insurance Department states this bill may increase state revenues and state, county, and local expenditures in FY 2010 and each year thereafter. This bill will have no fiscal impact on county and local revenues.

METHODOLOGY:

    The New Hampshire Insurance Department states this bill establishes a procedure to allow the insurance commissioner to disapprove of forms for group life insurance. The Department states to the extent the added review standards for group life insurance ratings require additional staff, state expenditures would increase. However, the Department assumes it can absorb review requirements with existing staff.

    The Department assumes these new review standards do not impose significant administrative burdens on filing companies. However, if the added review standards increase insurance companies’ administrative costs, insurance premiums may also increase. Increased insurance premiums may increase state revenue of the premium tax. Increased premiums may also increase county and local expenditures for employee group life insurance.

Links

HB286 at GenCourtMobile

Action Dates

Date Body Type

Bill Text Revisions

HB286 Revision: 12862 Date: Jan. 12, 2009, midnight

Docket