CHAPTER 212
HB 1366 – FINAL VERSION
19May2010… 2103eba
2010 SESSION
01/10
HOUSE BILL 1366
AN ACT making certain technical corrections in the insurance laws.
COMMITTEE: Commerce and Consumer Affairs
This bill makes certain technical corrections in the insurance laws.
This bill is a request of the insurance department.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
19May2010… 2103eba
10-2410
01/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Ten
AN ACT making certain technical corrections in the insurance laws.
Be it Enacted by the Senate and House of Representatives in General Court convened:
212:1 Insurance Department; Workers’ Compensation Analyst. Amend RSA 400-A:6, VI to read as follows:
VI. There shall be a workers’ compensation analyst who shall be appointed by the commissioner of insurance [who shall:
(a) Review rate requests and filings;
(b) Assist in the study of competitive pricing required under RSA 412:28, II;
(c) Review and regulate the qualifications of insurers in cooperation with the department of labor;
(d) Provide research assistance to the workers’ compensation advisory council;
(e) Review the performance of insurers with regard to underwriting philosophies, claims processing procedures and safety services;
(f) Monitor insurers’ compliance with requirements for filing required forms, and review debit and credit schedule rate filings under RSA 412:28, I;
(g) Review medical and indemnity deductible rate filings, required under RSA 412:31].
212:2 Insurance Department; Fees. Amend the introductory paragraph of RSA 400-A:29, XIV to read as follows:
XIV. Variable life and annuity
212:3 Insurance Companies and Agents; Premium Refunds. Amend RSA 402:81, III to read as follows:
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] a rate determined by the state treasurer pursuant to RSA 336:1, II. Any interest developed because of late refunding shall ultimately benefit only the named insured. This paragraph shall not apply to retrospectively rated policies.
212:4 Insurance Companies and Agents; Claim Forms. Amend RSA 402:82, III-V to read as follows:
III. Paragraph II shall not apply to a request for a binder providing temporary coverage, provided the binder is effective for a period of no more than 30 days. The insurer shall comply with the provisions of paragraph II before the issuance of the insurance policy.
IV. The lack of the information required by paragraphs I and II shall not constitute a defense against prosecution under RSA 638:20 or any other criminal statute.
[IV.] V. “Electronic signature” shall have the same definition as under RSA 294-E:2.
[V.] VI. “Written signature” means an original signature or a duplicate copy made by photocopying, facsimile, or other means similar and does not include stamped signatures.
212:5 Insurance Claims Adjusters; Continuing Education. Amend RSA 402-B:5-a to read as follows:
402-B:5-a Continuing Education. Every 2 years, at least 60 days prior to the renewal date of their license, persons holding an adjusters license shall be certified by the insurance department as having completed 20 hours of continuing education instruction. Licensees with workers’ compensation authority shall comply with the approved 10 credit hours of workers’ compensation and 10 credit hours of multi-line requirement pursuant to RSA 281-A:63. Those licensees without workers’ compensation authority may satisfy their 20 credit hour requirement exclusively with multi-line approved credits or any combination of approved workers’ compensation or multi-line courses. Such continuing education instruction shall be approved by the insurance department. If a nonresident [licensee’s] licensee has complied with the continuing education requirements of his or her state of residence [has mandatory continuing education requirements substantially similar to] or designated home state, he or she will not be required to comply with the requirements of this state[, the commissioner may accept certification of the licensee’s compliance in the state of residence].
212:6 Insurers Rehabilitation and Liquidation; Report to Court. Amend RSA 402-C:35, I(b) and (c) to read as follows:
(b) The insurer’s probable total liabilities; [and]
(c) The probable aggregate amount of the assessment necessary to pay all claims of creditors and expenses in full, including expenses of administration and costs of collecting the assessment; and
(d) A recommendation as to whether an assessment should be made and in what amount.
212:7 Insurers Rehabilitation and Liquidation; Report to Court. Amend RSA 402-C:35, II(a) to read as follows:
(a) Upon the basis of the report provided in paragraph I, including any supplements and amendments thereto, the court may [levy ex parte] approve, solely on application by the liquidator, one or more assessments against all members of the insurer who are subject to assessment. The order approving the assessment shall provide instructions regarding notice of the assessment, deadlines for payment, and other instructions to the liquidator regarding collection of the assessment.
212:8 Insurers Rehabilitation and Liquidation; Report to Court. Amend RSA 402-C:35, III and IV to read as follows:
III. ORDER TO SHOW CAUSE. After levy of assessment under paragraph II, the liquidator shall petition the court for [the court shall issue] an order directing each member who has not paid the assessment pursuant to the order to show cause why the liquidator shall not have a judgment therefor. If a member of the insurer also appears to be indebted to the insurer apart from the assessment, the court, upon application of the liquidator, may also direct the member to show cause why he should not pay the other indebtedness. Liability for such indebtedness shall be determined in the same manner and at the same time as the liability to pay the assessment.
IV. NOTICE. The liquidator shall give notice of the order to show cause by publication if so directed by the court and by first class mail to each member liable thereunder mailed at least 20 days before the return day of the order to show cause to his last known address as it appears on the records of the insurer. Failure of the member or subscriber to receive the notice of the assessment or of the order, within the time specified therein or at all, shall be no defense in any proceeding to collect the assessment.
212:9 New Paragraph; Insurers Rehabilitation and Liquidation; Assessment. Amend RSA 402-C:35 by inserting after paragraph VI the following new paragraph:
VII. ASSESSMENT.
(a) Any assessment of a subscriber or member of an insurer made by the liquidator pursuant to the order of the court fixing the aggregate amount of the assessment against all members or subscribers and approving the classification and formula made by the liquidator under this section shall be prima facie correct.
(b) Any claim filed by an assessee who fails to pay an assessment, after the conclusion of any legal action by the assessee objecting to the assessment, shall be deemed a late filed claim under RSA 402-C:37.
212:10 Risk Retention Act; Purchasing Groups. Amend RSA 405-A:6, VI-VIII to read as follows:
VI. Require that a certain percentage of a purchasing group must obtain insurance on a group basis; or
VII. Otherwise discriminate against a purchasing group or any of its members[; or
VIII. Require that any insurance policy issued to a purchasing group or any of its members be countersigned by an insurance agent or broker residing in this state].
212:11 Automobile Insurance; Cancellation, Refusal to Renew, Notice. RSA 417-A:5, II is repealed and reenacted to read as follows:
II. State the date on which such cancellation or refusal to renew shall become effective. The effective date shall not be less than 45 days after the date the notice is mailed or delivered to the named insured provided however, the effective date may be 10 days from the date of mailing or delivery when:
(a) The policy is being cancelled or not renewed for nonpayment of premium; or
(b) The policy is not a renewal policy and the cancellation notice is mailed or delivered within 60 days of the policy’s effective date and the insurer otherwise complies with all laws and rules related to cancellation of automobile insurance.
212:12 Property and Liability Insurance; Cancellation, Refusal to Renew, Notice. RSA 417-B:4, I is repealed and reenacted to read as follows:
I. State the date on which such cancellation or refusal to renew shall become effective. The effective date shall not be less than 45 days after the date the notice is mailed or delivered to the named insured provided however, the effective date may be 10 days from the date of mailing or delivery when:
(a) The policy is being cancelled or not renewed for nonpayment of premium; or
(b) The policy is not a renewal policy and the cancellation notice is mailed or delivered within 90 days of the policy’s effective date.
212:13 Health Coverage; HealthFirst. Amend RSA 420-G:4-b, III to read as follows:
III. The commissioner shall adopt rules, pursuant to RSA 541-A, relative to the requirements for the standard wellness plan. Before adopting rules, the commissioner shall convene a standing advisory committee to include representatives of small employers, business groups and associations of small employers, consumers who obtain their coverage through the small employer market, one representative, appointed by the speaker of the house of representatives and one member of the senate, appointed by the president of the senate. The advisory committee shall, at least once every 3 years, make recommendations to the insurance commissioner on the requirements for the standard wellness plan. The standard wellness plan requirements shall be established so that small employer health insurance carriers would be reasonably expected to set the plan’s health coverage plan rate, as defined in RSA 420-G:4, I(c), at or below the target rate of 10 percent of the prior year’s median statewide wage as reported by the United States Department of Labor. In order to assist the advisory committee in making its recommendations, the commissioner shall engage an actuarial expert at the expense of the small employer carriers that are subject to RSA 420-G:4-b, II to confirm that the proposed standard wellness plan requirements are reasonable in relation to the target health plan coverage rate. The plan shall include benefit structure, cost sharing requirements, and provider payment initiatives consistent with the incentive required in RSA 420-G:[46] 4-b, IV. The committee shall recommend an out-of-pocket maximum for the standard wellness plan. Throughout the process of developing its recommendations, the advisory committee shall consult with interested health carriers, health insurance producers, health care providers, the actuarial expert retained by the commissioner, and, as necessary and appropriate, other available experts.
212:14 Repeal. RSA 405-A:5, relative to countersignatures not required, is repealed.
212:15 Contingency. If HB 1488-FN of the 2010 legislative session becomes law, then section 13 of this act shall not take effect. If HB 1488-FN does not become law, then section 13 of this act shall take effect January 1, 2011.
212:16 Effective Date.
I. Sections 1-12 and section 14 of this act shall take effect January 1, 2011.
II. Section 13 of this act shall take effect as provided in section 15 of this act.
III. The remainder of this act shall take effect upon its passage.
Approved: June 28, 2010
Effective Date: I. Sections 1-12 and 14 shall take effect January 1, 2011.
II. Section 13 shall take effect as provided in section 15.
III. Remainder shall take effect June 28, 2010