SB 288-FN – AS INTRODUCED
2014 SESSION
01/04
SENATE BILL 288-FN
AN ACT relative to auditing insurance policies under workers’ compensation.
SPONSORS: Sen. D'Allesandro, Dist 20
This bill requires insured persons under workers’ compensation policies to make available all records for payroll verification for the required audits by the insurer.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
14-2741
01/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Fourteen
AN ACT relative to auditing insurance policies under workers’ compensation.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Auditable Basis Policies. Amend RSA 412:35 by inserting after paragraph V the following new paragraph:
VI. Insureds shall make available all records necessary for the payroll verification audit and permit the auditor to make a physical inspection of the insured’s operation. If an insured fails to provide reasonable access to all records necessary for a payroll verification audit including a physical inspection of the insured’s operation, the insured shall pay an additional premium to the carrier or self-insurer of 3 times the most recent estimated annual premium.
2 Unfair Insurance Practices. Amend RSA 417:4, XII to read as follows:
XII. Collecting Proper Premium. Knowingly collecting as premium or charge for insurance any sum in excess of or less than the premium or charge applicable to such insurance and as specified in the policy, in accordance with the applicable classifications and rates as filed with and approved by the commissioner, except a premium finance charge, consultant’s fee, policy fee, and/or service fee as allowed by law or regulation; or, in cases where classifications, premiums, or rates are not required by this title to be so filed and approved, such premiums and charges shall not be in excess of or less than those specified in the policy and as fixed by the insurer. This provision shall not be deemed to prohibit the charging and collecting, by surplus line brokers of the amount of applicable state and federal taxes in addition to the premium required by the insurer. Nor shall it be deemed to prohibit the charging and collecting, by an insurer, of amounts actually to be expended for medical examination of an applicant for insurance or for reinstatement of an insurance policy. Nor shall it be deemed to prohibit the charging or collecting by an insurance agent or broker of a reasonable service charge or fee as may be determined by regulation. Nor shall it be deemed to prohibit the charging and collecting of additional premiums under RSA 412:35, VI.
3 Effective Date. This act shall take effect January 1, 2015.
LBAO
14-2741
11/19/13
SB 288-FN - FISCAL NOTE
AN ACT relative to auditing insurance policies under workers’ compensation.
FISCAL IMPACT:
The Insurance Department states this bill, as introduced, may have an indeterminable fiscal impact on state revenue in FY 2015 and each year thereafter. There is no fiscal impact on state expenditures, or county and local revenue or expenditures.
METHODOLOGY:
The Insurance Department states this bill requires insured persons under workers’ compensation policies to make available all records for payroll verification for the required audits by the insurer. Additionally, the bill allows for adjustments to premiums collected under RSA 412:35, VI. The Department states audits can result in additional premiums or return premiums; therefore this bill may have an indeterminable fiscal impact on state revenue.