Revision: Jan. 27, 2011, midnight
HB 419-FN – AS INTRODUCED
2011 SESSION
01/09
HOUSE BILL 419-FN
AN ACT relative to language in insurance certificates.
SPONSORS: Rep. Infantine, Hills 13
COMMITTEE: Commerce and Consumer Affairs
This bill establishes the model law relative to content and form of certificates of insurance.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
11-0747
01/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT relative to language in insurance certificates.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Chapter; Certificates of Insurance. Amend RSA by inserting after chapter 400-B the following new chapter:
CHAPTER 400-C
400-C:1 Definitions. In this chapter:
I. “Certificate” or “certificate of insurance” means any document or instrument, no matter how titled or described, which is prepared or issued by an insurer or insurance producer as evidence of property or casualty insurance coverage. “Certificate” or “certificate of insurance” shall not include a policy of insurance or insurance binder.
II. “Certificate holder” means any person, other than a policyholder, who requests, obtains, or possesses a certificate of insurance.
III. “Commissioner” means the insurance commissioner.
IV. “Insurance producer” means an insurance producer licensed under RSA 402-J.
V. “Insurer” means an entity that offers or provides a policy, contract, or certificate of insurance coverage in this state and subject to regulation by the insurance department and any other person engaged in the business of making insurance or surety contracts, including self-insurers.
VI. “Person” means any individual, partnership, corporation, association, or other legal entity, including any government or governmental subdivision or agency.
VII. “Policyholder” means a person who has contracted with a property or casualty insurer for insurance coverage.
400-C:2 Certificates of Insurance.
I. No person shall prepare, issue, or request the issuance of a certificate of insurance unless the form has been filed with and approved by the commissioner. No person may alter or modify an approved certificate of insurance form.
II. The commissioner shall disapprove a form filed under this section, or withdraw approval of a form, if the form:
(a) Is unjust, unfair, misleading, or deceptive, or violates public policy.
(b) Fails to comply with the requirements of paragraph III.
(c) Violates any law, including any rule adopted by the commissioner.
III. Each certificate of insurance shall contain the following or similar statement: “This certificate of insurance is issued as a matter of information only and confers no rights upon the certificate holder. This certificate does not amend, extend, or alter the coverage, terms, exclusions, and conditions afforded by the policies referenced herein.”
IV. Standard certificate of insurance forms promulgated by the Association for Cooperative Operations Research and Development (ACORD) or the Insurance Services Office, Inc. are deemed approved by the commissioner and are not required to be filed if the forms otherwise comply with the requirements of this section.
V. No person shall demand or require the issuance of a certificate of insurance from an insurer, insurance producer, or policyholder that contains any false or misleading information concerning the policy of insurance to which the certificate makes reference.
VI. No person shall knowingly prepare or issue a certificate of insurance that contains any false or misleading information or that purports to affirmatively or negatively alter, amend, or extend the coverage provided by the policy of insurance to which the certificate makes reference.
VII. No person shall prepare, issue, demand, or require, either in addition to or in lieu of a certificate of insurance, an opinion letter or other document or correspondence that is inconsistent with this section; provided, that an insurer or insurance producer may prepare or issue an addendum to a certificate that clarifies and explains the coverages provided by a policy of insurance and otherwise complies with the requirements of this section.
VIII. The provisions of this section shall apply to all certificate holders, policyholders, insurers, insurance producers, and certificate of insurance forms issued as evidence of insurance coverages on property, operations, or risks located in this state, regardless of where the certificate holder, policyholder, insurer, or insurance producer is located.
IX. A certificate of insurance is not a policy of insurance and does not affirmatively or negatively amend, extend, or alter the coverage afforded by the policy to which the certificate of insurance makes reference. A certificate of insurance shall not confer to a certificate holder new or additional rights beyond what the referenced policy of insurance expressly provides.
X. No certificate of insurance shall contain references to contracts, including construction or service contracts, other than the referenced contract of insurance. Notwithstanding any requirement, term, or condition of any contract or other document with respect to which a certificate of insurance may be issued or may pertain, the insurance afforded by the referenced policy of insurance is subject to all the terms, exclusions, and conditions of the policy itself.
XI. A certificate holder shall only have a legal right to notice of cancellation, nonrenewal, or any material change, or any similar notice concerning a policy of insurance if the person is named within the policy or any endorsement as an additional insured and the policy or endorsement requires notice to be provided. The terms and conditions of the notice, including the required timing of the notice, are governed by the policy of insurance and cannot be altered by a certificate of insurance.
XII. An insurance producer may charge a reasonable service fee for issuing a certificate to a policyholder or certificate holder.
XIII. Any certificate of insurance or any other document or correspondence prepared, issued, demanded, or required in violation of this section shall be null and void and of no force and effect.
400-C:3 Rulemaking. The commissioner shall adopt rules, pursuant to RSA 541-A, relative to:
I. Format of insurance certificates.
II. Application procedures as necessary under this chapter.
III. Any other matter necessary to administer this chapter.
400-C:4 Penalty.
I. Any person who violates this chapter may be fined up to $2,500 per violation.
II. The commissioner shall examine and investigate the activities of any person that the commissioner reasonably believes has been or is engaged in any act or practice prohibited by this chapter. The commissioner shall have the power to enforce the provisions of this chapter and impose any authorized penalty or remedy against any person who violates this chapter.
2 Effective Date. This act shall take effect January 1, 2012.
LBAO
11-0747
01/19/11
HB 419-FN - FISCAL NOTE
AN ACT relative to language in insurance certificates.
FISCAL IMPACT:
Due to time constraints, the Office of Legislative Budget Assistant is unable to provide a fiscal note for this bill at this time. When completed, the fiscal note will be forwarded to the House Clerk's Office.