HB 1459 - FINAL VERSION
AN ACT\trelative to commercial coverage.
SPONSORS:\tRep. Hunt, Ches. 11; Sen. Bradley, Dist 3
COMMITTEE:\tCommerce and Consumer Affairs
\tThis bill makes certain changes to the laws governing property and casualty insurance.
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Explanation:\tMatter added to current law appears in bold italics.
\t\tMatter removed from current law appears [in brackets and struckthrough.]
\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Sixteen
AN ACT\trelative to commercial coverage.
Be it Enacted by the Senate and House of Representatives in General Court convened:
\t\tXI. "Large commercial policyholder'' means an insurance contract holder that is a corporation, partnership, trust, sole proprietorship, or other business or public entity that uses an employed or retained risk manager to procure insurance and that has certified that it meets:
\t\t\t(a) At least one of the following 4 criteria:
\t\t\t\t(1) A net worth of $10,000,000 as certified by a certified public accountant or public accountant authorized to do business in this state.
\t\t\t\t(2) Net revenue or sales of $5,000,000 as certified by a certified public account or public accountant authorized to do business in this state.
\t\t\t\t(3) A total of more than 25 employees per individual company or more than 50 employees per holding company.
\t\t\t\t(4) Aggregate property and casualty insurance premiums, excluding workers' compensation, medical malpractice, life, health, and disability insurance premiums of $50,000 or more.
\t\t\t(b) "Large commercial policyholder'' also includes a nonprofit or public entity with an annual budget or assets of $25,000,000 or more that employs or retains a risk manager to procure insurance and meets the premium criteria listed in subparagraph (a)(4), and a municipality with a population of 20,000 or more that meets the premium criteria listed in subparagraph (a)(4).
\t\t\t(c) In this section, "risk manager" means a chartered property and casualty underwriter, certified insurance counselor, an associate in risk management, certified risk manager or a licensed insurance consultant.
\t\tIV. The commissioner may permit insurers to use appropriate systems of schedule rating filed by any insurer or rating bureau approved by the commissioner, subject to rules adopted under RSA 541-A, to assure the uniform and impartial application of such rating. Such ratings shall be:
\t\t\t(a) Based on an insured’s management, safety, and loss control policies and record;
\t\t\t(b) No greater than plus or minus 40 percent of the insurer’s base rates.
\t\tV. In order to further uniform administration of rate regulatory laws, the commissioner and every insurer, advisory organization and statistical agent may exchange information and experience data with insurance supervisory officials, insurers and advisory organizations in other states and may consult with them with respect to the application of rating systems and the collection of statistical data.
\t\tII. Every insurer shall file with the commissioner, except as to inland marine risks which are not written according to manual rates or rating plans, every manual, predictive models or telematics models or other models that pertain to the formulation of rates and/or premiums, minimum premium, class rate, rating schedule or rating plan and every other rating rule, and every modification of any of the foregoing which it proposes to use. Personal lines filings shall include underwriting rules used by insurers or a group of affiliated insurers to the extent necessary to determine the applicable rate and/or policy premium for an individual insured or applicant. An insurer may file its rates by either filing its final rates or by filing a multiplier and, if applicable, an expense constant adjustment to be applied to prospective loss costs that have been filed by an advisory organization on behalf of the insurer as permitted by RSA 412:23. Every such filing shall state the effective date, and shall indicate the character and extent of the coverage contemplated. Information contained in the underwriting rules that does not pertain to the formulation of rates and/or premiums shall be identified by the filer as proprietary and shall be kept confidential by the department and shall not be subject to the provisions of RSA 91-A.
\t\t\t(b) For all commercial risk policies, except policies issued to a large commercial policyholder, and except as provided in this chapter, the rates and supplementary rating information that will be used in this state shall be filed for informational purposes only within 30 days of the effective date.
\t\tVIII. In a noncompetitive market, subject to the exceptions specified in RSA 412:16, IX and X, and RSA 412:28, each filing shall be on file 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  60 days if written notice is given within such 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, the commissioner may authorize a filing that has been reviewed to become effective before the expiration of the waiting period or any extension thereof. A filing shall be deemed to meet the requirements of this chapter unless disapproved by the commissioner within the waiting period or any extension thereof. Failure of the insurer or advisory organization to provide the requested information within the waiting period or the extension thereof shall be deemed a request to withdraw the filing from further consideration. Failure of the commissioner to act within the waiting period or the extension thereof shall result in the filing being deemed to meet the requirements of this chapter. Neither the insurer nor the commissioner may waive the timeliness requirements of the provisions in this section.
Approved: May 20, 2016
Effective Date: July 19, 2016