CHAPTER 215
HB 680 – FINAL VERSION
24Mar2009… 0845h
06/03/09 1868s
24Jun2009… 2270eba
2009 SESSION
01/09
HOUSE BILL 680
AN ACT making technical changes in the insurance laws.
COMMITTEE: Commerce and Consumer Affairs
This bill makes certain technical changes in the insurance laws.
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.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… 0845h
06/03/09 1868s
24Jun2009… 2270eba
09-0735
01/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nine
AN ACT making technical changes in the insurance laws.
Be it Enacted by the Senate and House of Representatives in General Court convened:
215:1 Insurance; Insurance Companies. Amend RSA 402:12 to read as follows:
402:12 Licenses.
I. On compliance with the foregoing conditions and if the company is found upon examination made by or under the direction of the commissioner to have complied with the laws of the state applicable to it, a license to transact the kind of business specified in the license shall be issued until June 14 thereafter. Annually thereafter, on June 14, such license may be renewed so long as the company shall comply with the requirements of the law and the commissioner shall regard it as safe, reliable, and entitled to confidence, and so long as the company continues to conduct a meaningful insurance business, as determined by the commissioner, within New Hampshire.
II. Every insurance company shall conduct its business in the legal name of the insurer as it appears on the insurer’s application filed with the NAIC for a company code number. If an insurer is part of a group of affiliated insurers, the group name may appear in addition to the name of the individual insuring company, but the group name shall not be used in lieu of the legal name of the individual company.
(a) All insurance policies and contracts, and any endorsements or amendments separately issued and intended to be attached to such policies or contracts, shall identify the legal name, as set forth in paragraph II, of the insurer that is directly assuming the obligations under the policy or contract. Inclusion of the legal name of the insurer in a policy jacket, declaration, or other similar cover page issued with the policy, contract, or endorsement shall be deemed to be in compliance with this requirement.
(b) Identification of the insuring company on any advertisement or promotional materials shall be governed by the laws or rules related to advertisements, misrepresentations in sale of insurance, and misrepresentation in insurance transactions.
215:2 Foreign Insurance Companies. Amend RSA 405:12 to read as follows:
405:12 Licenses.
I. If the foregoing provisions are complied with and the commissioner is satisfied that the company has the requisite capital and assets and is a safe, reliable company, entitled to confidence, he shall grant a license to it to do insurance business by authorized agents within the state, subject to the laws of the state, until June 14 thereafter. Annually thereafter, on June 14, such license may be renewed so long as the company shall comply with the requirements of the law and the commissioner shall regard it as safe, reliable and entitled to confidence, and so long as the company continues to conduct a meaningful insurance business, as determined by the commissioner, within New Hampshire.
II. Every insurance company shall conduct its business in the legal name of the insurer as it appears on the insurer’s application filed with the NAIC for a company code number. If an insurer is part of a group of affiliated insurers, the group name may appear in addition to the name of the individual insuring company, but the group name shall not be used in lieu of the legal name of the individual company.
(a) All insurance policies and contracts, and any endorsements or amendments separately issued and intended to be attached to such policies or contracts, shall identify the legal name, as set forth in paragraph II, of the insurer that is directly assuming the obligations under the policy or contract. Inclusion of the legal name of the insurer in a policy jacket, declaration, or other similar cover page issued with the policy, contract, or endorsement shall be deemed to be in compliance with this requirement.
(b) Identification of the insuring company on any advertisement or promotional materials shall be governed by the laws or rules related to the advertisements, misrepresentations in sale of insurance, and misrepresentation in insurance transactions.
215:3 Fire Insurance Contract. Amend the second paragraph after the Counter Signature Date in RSA 407:22 to read as follows:
In consideration of the provisions and stipulations herein or added hereto and of the premium above specified, this Company, for the term of years specified above from inception date shown above at [Noon] 12:01 AM (Midnight, Standard Time) to expiration date shown above at [Noon] 12:01 AM (Midnight, Standard Time) at location of property involved, to an amount not exceeding the amount(s) above specified, does insure the insured named above and legal representatives, to the extent of the actual cash value of the property at the time of loss, but not exceeding the amount which it would cost to repair or replace the property with material of like kind and quality within a reasonable time after such loss, without allowance for any increased cost of repair or reconstruction by reason of any ordinance or law regulating construction or repair, and without compensation for loss resulting from interruption of business or manufacture, nor in any event for more than the interest of the insured, against all direct loss by fire, lightning and by removal from premises endangered by the perils insured against in this policy, except as hereinafter provided, to the property described herein while located or contained as described in this policy, or pro rata for 5 days at each proper place to which any of the property shall necessarily be removed for preservation from the perils insured against in this policy, but not elsewhere. Assignment of this policy shall not be valid except with the written consent of this Company.
215:4 Casualty Insurance; Forms and Rates. Amend RSA 412:5, I to read as follows:
I. Every insurer and advisory organization shall file policy forms, endorsements, and other contract language covered by this chapter and RSA 264, for a waiting period of 30 days before it becomes effective, which period may be extended by the commissioner for an additional period not to exceed 30 days if written notice or electronic notice is given within the initial 30-day waiting period to the insurer or advisory organization which made the filing that additional time is needed for the consideration of the filing. Upon written application by the insurer or advisory organization, the commissioner may authorize a filing which has been reviewed to become effective before the expiration of the waiting period or extension thereof. The commissioner may disapprove such form if it contains a provision that does not comply with the requirements of law, is not in the public interest, is contrary to public policy, is inequitable, misleading, deceptive, or encourages misrepresentation of such policy. An approved filing and any supporting information that is not exempt from disclosure by law or rule shall be open to public inspection on or after the effective date of the filing. A filing shall be deemed to meet the requirements of this chapter unless disapproved by the commissioner within the waiting period or extension thereof. Every policy issued by an insurer on an unapproved form shall constitute a separate violation under RSA 412:40.
215:5 New Paragraph; Motor Vehicle Insurance; Forms Regulation. Amend RSA 412:8 by inserting after paragraph II the following new paragraph:
III. When an automobile insurance policy contains coverage for physical damage by reason of collision, any deductible amount of such coverage shall not apply if the damage is caused by an uninsured motor vehicle, including a motor vehicle which is uninsured within the definition of RSA 259:117, and the operator of the uninsured vehicle has been positively identified and is solely at fault.
215:6 Consumer Guaranty Contracts; Exemptions. Amend RSA 415-C:2, I to read as follows:
I. Manufacturer's service contracts on the manufacturer's products need only comply with RSA 415-C:5, 415-C:6, 415-C:7, 415-C:9 [and], 415-C:10, and RSA 415-C:10-a.
215:7 Unfair Insurance Practices; Changes in Coverage. Amend RSA 412:6-a to read as follows:
412:6-a [Notice Requirement] Changes in Coverage.
I. In the event that a company or filing or advisory organization eliminates or reduces coverages, conditions, or definitions in its policies issued under this section other than at the request of a policyholder, the company shall attach to the policy a printed notice in each such policy explaining clearly what coverages, conditions, or definitions have been eliminated or reduced. If explanations of such reduced or eliminated coverages are not contained in the printed notice attached to its policies, then such coverages, conditions, or definitions shall remain in full force and effect without such reductions or eliminations.
II . Except as provided in paragraph III, no insurance policy renewal shall add any stand-alone, premium bearing coverage unless such coverage is added at the request of the policyholder or is due to a requirement imposed by law.
III. If the policyholder has not requested that new premium bearing coverage be added to a policy upon renewal, but such coverage is added because the company is replacing coverage or a policy that the company no longer offers, the company shall provide a printed notice explaining clearly what coverage has been added and how to obtain information concerning premium impact.
IV. The requirements of this section shall apply to such policies renewed or endorsed with the same company, or a group of companies affiliated by ownership or contractual relationship encompassing joint operations or processes as filed and approved by the commissioner.
215:8 Automobile Insurance; Cancellation, Refusal to Renew. Amend the introductory paragraph of RSA 417-A:5 to read as follows:
No cancellation or refusal to renew by an insurer of a policy of automobile insurance shall be effective unless the insurer [shall deliver or mail] physically (not electronically) delivers or mails, to the named insured at the address shown in the policy a written notice of the cancellation or refusal to renew. Such notice shall:
215:9 Automobile Insurance; Cancellation, Refusal to Renew. Amend RSA 417-A:5, III and IV to read as follows:
III. State the specific reason or reasons of the insurer for cancellation or refusal to renew [or be accompanied by a statement that upon written request of the named insured, mailed or delivered to the insurer not less than 10 days prior to the effective date of cancellation or refusal to renew, the insurer will specify the reason or reasons for such cancellation, or refusal to renew. The insurer shall supply such information within 5 days of receipt by it of such request].
IV. Advise the insured [of] that the [insured's] insured has the right to request [in writing, within 10 days of the receipt of the notice of cancellation or intention not to renew, or of the receipt of the reason or reasons for the cancellation or refusal to renew if they were not stated in the notice of cancellation or of intention not to renew,] that the insurance commissioner review the [action of the insurer.] insurer’s decision to cancel or not renew the policy. This notice shall advise the insured that in order to request the commissioner’s review of the cancellation or nonrenewal, the insured must send a written request to the commissioner within 10 days of receiving the insurer’s notice of cancellation or nonrenewal. The insurer shall also provide in the notice, the phone number and mailing address of the New Hampshire insurance department.
215:10 Property and Liability Insurance; Cancellation; Refusal to Renew. Amend the introductory paragraph of RSA 417-B:4 to read as follows:
No cancellation or refusal to renew by an insurer of a policy of insurance insuring against any of the contingencies set forth in RSA 417-B:1 shall be effective unless the insurer [shall deliver or mail] physically (not electronically) delivers or mails, to the named insured at the address shown in the policy a written notice of the cancellation or refusal to renew. Such notice shall:
215:11 Commercial Insurance; Cancellation; Refusal to Renew. Amend the introductory paragraph of RSA 417-C:1, I to read as follows:
I. A notice of cancellation of a policy, to which RSA 417-C:2 applies, [unless that policy is otherwise controlled by RSA 417-A or 417-B,] shall be effective only if it is based on one or more of the following reasons:
215:12 Commercial Insurance; Cancellation; Refusal to Renew. Amend RSA 417-C:2, I to read as follows:
I. No notice of cancellation [of a fire, inland marine, multi-peril, casualty, or liability policy, unless otherwise provided and controlled by RSA 417-A or 417-B,] shall be effective unless mailed or physically (not electronically) delivered by the insurer to the named insureds at least 60 days prior to the effective date of cancellation; provided, however, that where cancellation is for nonpayment of premium or substantial increase in hazard, at least 10 days' notice of cancellation shall be given. In all instances, the reason or reasons for cancellation shall accompany or be included in the notice of cancellation. An insurer shall not be held liable in any claim or suit for damages arising solely from the insurer's compliance with the requirement that the reason for cancellation be specified.
215:13 Commercial Insurance; Cancellation; Refusal to Renew. Amend RSA 417-C:6 to read as follows:
417-C:6 Scope of Chapter. This chapter shall only apply to policies of insurance providing fire, inland marine, multi-peril, casualty and liability policies, and shall not apply to workers’ compensation policies regulated under RSA 281-A or any policies provided and controlled by RSA 417-A or RSA 417-B.
215:14 Repeal. RSA 417-A:11, relative to conditions under which collision coverage deductible shall not apply, is repealed.
215:15 Effective Date.
I. Sections 1, 2, and 3 of this act shall take effect January 1, 2010.
II. Section 6 of this act shall take effect upon its passage.
III. The remainder of this act shall take effect 60 days after its passage.
Approved: July 15, 2009
Effective Date: I. Sections 1,2 and 3 shall take effect January 1, 2010.
II. Section 6 shall take effect July 15, 2009.
III. Remainder shall take effect September 13, 2009.