HB343 (2017) Detail

(New Title) relative to disapproval of forms and authorizing the insurance commissioner to retain certain independent specialists.


CHAPTER 218

HB 343 - FINAL VERSION

 

05/31/2017   1992s

2017 SESSION

17-0727

01/05

 

HOUSE BILL 343

 

AN ACT relative to disapproval of forms and authorizing the insurance commissioner to retain certain independent specialists.

 

SPONSORS: Rep. Hunt, Ches. 11; Rep. Luneau, Merr. 10; Rep. Butler, Carr. 7; Sen. Feltes, Dist 15

 

COMMITTEE: Commerce and Consumer Affairs

 

-----------------------------------------------------------------

 

AMENDED ANALYSIS

 

This bill declares that before a life insurance policy or annuity is sold to the public, the form must be approved by the insurance commissioner.  This bill also authorizes the insurance commissioner to retain independent specialists to assist in certain duties of the insurance department.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

05/31/2017   1992s 17-0727

01/05

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Seventeen

 

AN ACT relative to disapproval of forms and authorizing the insurance commissioner to retain certain independent specialists.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

218:1  Life Insurance; Disapproval of Forms; Individual Policies.  Amend RSA 408:2-c to read as follows:

408:2-c  Disapproval of Forms; Individual Policies.

I.  No policy shall be issued or delivered to any person in this state until a copy of the form thereof has been submitted to the commissioner for review under state law and such reasonable rules and regulations as the commissioner shall make concerning the provisions in such contracts and their submission for approval.

II.  The commissioner may, within 30 days after the filing of any such form, disapprove such form:

(a)  If it contains a provision which is unjust, unfair, inequitable, misleading, deceptive, or encourages misrepresentation of such policy; or

(b)  If it does not comply with the requirements of Title XXXVII.

[II.] III.  If the commissioner notifies the insurer which has filed any such form that it does not comply with the provisions of this chapter, it shall be unlawful thereafter for the insurer to issue the form or use it in connection with any policy.  In the notice, the commissioner shall specify the reasons for [his or her] disapproval and state that a hearing shall be granted within 20 days after request in writing by the insurer.

218:2  Life Insurance; Disapproval of Forms; Group Policies.  Amend RSA 408:16-d to read as follows:

408:16-d  Disapproval of Forms.

I.  No policy shall be issued or delivered to any person in this state until a copy of the form thereof has been submitted to the commissioner for review under state law and such reasonable rules and regulations as the commissioner shall make concerning the provisions in such contracts and their submission for approval.

II.  The commissioner may, within 30 days after the filing of any such form, disapprove such form:

(a)  If it contains a provision or provisions which are unjust, unfair, inequitable, misleading, deceptive, or encourage misrepresentation of such policy; or

(b)  If it does not comply with the requirements of title XXXVII.

[II.] III.  If the commissioner notifies the insurer which has filed any such form that it does not comply with the provisions of this chapter, it shall be unlawful thereafter for the insurer to issue the form or use it in connection with any policy.  In the notice the commissioner shall specify the reasons for [his or her] disapproval and state that a hearing shall be granted within 20 days after request in writing by the insurer.

218:3  New Paragraph; Insurance Department; Staffing.  Amend RSA 400-A:10 by inserting after paragraph II the following new paragraph:

III.  If necessary to ensure the timely review of rates and forms submitted for approval under Title XXXVII, the commissioner may retain, without appropriation under RSA 9 and without qualifying as a department expenditure under RSA 4:15, independent actuaries or other professionals or specialists as reviewers, the cost of which shall be borne by the regulated entity whose rates or forms are the subject of the review.  The entity shall pay the retained professional or specialists directly for their costs.  The commissioner shall conduct oversight of such independent reviewers in a manner that is consistent with standards for the use of independent reviewers established by the National Association of Insurance Commissioners in its Financial Condition Examiners Handbook and Market Regulation Handbook and shall ensure that costs are reasonable for the work performed.  The amount paid by the company under this paragraph in any fiscal year shall be applied as a nontransferable credit against the company’s administrative fee under RSA 400-A:39 in the subsequent fiscal year and shall carry forward in future fiscal years as applicable.

218:4  New Paragraph; Insurance Department; Financial Disclosure Statement.  Amend RSA 400-A:36 by inserting after paragraph IX the following new paragraph:

X.  The commissioner may retain, without appropriation under RSA 9 and without qualifying as a department expenditure under RSA 4:15, attorneys, independent actuaries, independent certified public accountants, or other professionals or specialists to review financial statements, the cost of which shall be borne by the company which is the subject of the financial analysis.  The company shall pay the retained professional or specialists directly for their costs.  The commissioner shall conduct oversight of such independent reviewers in a manner that is consistent with standards for the use of independent reviewers established by the National Association of Insurance Commissioners in its Financial Condition Examiners Handbook and Market Regulation Handbook and shall ensure that costs are reasonable for the work performed.  The amount paid by the company under this paragraph in any fiscal year shall be applied as a nontransferable credit against the company’s administrative fee under RSA 400-A:39 in the subsequent fiscal year and shall carry forward in future fiscal years as applicable.  

218:5  Insurance Department; Administration Fund.  Amend RSA 400-A:39, VI(f) to read as follows:

(f)  For each such insurer, the commissioner shall multiply the percent ascertained for it under subparagraph (e) by the sum of the amount indicated by paragraph V plus all credits applied pursuant to RSA 400-A:10, III, RSA 400-A:36, X, or RSA 401-C:7, II.  The amount resulting, less any credits for which the insurer is eligible under RSA 400-A:10, III, RSA 400-A:36, X, or RSA 401-C:7, II, shall be the administrative fee for such insurer, provided that the minimum administrative fee payable by any such insurer shall be $100.

218:6  Insurance Department; Insurance Holding Companies.  Amend RSA 401-B:9 to read as follows:

401-B:9  Rules and Orders.  The commissioner may, upon notice and opportunity for all interested persons to be heard, issue such rules and orders as shall be necessary to carry out the provisions of this chapter.  To assist in the review of any transaction, or to otherwise determine compliance with this chapter, the commissioner may retain, without appropriation under RSA 9 and without qualifying as a department expenditure under RSA 4:15, attorneys, appraisers, independent actuaries, independent certified public accountants, or other professionals and specialists, the cost of which shall be borne by the company subject to such review.  The company shall pay the retained professional or specialists directly for their costs.  The commissioner shall conduct oversight of such independent reviewers in a manner that is consistent with standards for the use of independent reviewers established by the National Association of Insurance Commissioners in its Financial Condition Examiners Handbook  and Market Regulation Handbook and shall ensure that costs are reasonable for the work performed.

218:7  Insurance Department; Contents of ORSA Summary Report.  Amend RSA 401-C:7, II to read as follows:

II.  The review of the ORSA summary report, and any additional requests for information, shall be made using similar procedures currently used in the analysis and examination of multi-state or global insurers and insurance groups. To assist in the review of ORSA summary reports, the commissioner may retain, without appropriation under RSA 9 and without qualifying as a department expenditure under RSA 4:15, attorneys, appraisers, independent actuaries, independent certified public accountants, or other professionals and specialists, the cost of which shall be borne by the company subject to such review.  The company shall pay the retained professional or specialists directly for their costs.  The commissioner shall conduct oversight of such independent reviewers in a manner that is consistent with standards for the use of independent reviewers established by the National Association of Insurance Commissioners in its Financial Condition Examiners Handbook and Market Regulation Handbook and shall ensure that costs are reasonable for the work performed.  The amount paid by the company under this paragraph in any fiscal year shall be applied as a nontransferable credit against the company’s administrative fee under RSA 400-A:39 in the subsequent fiscal year and shall carry forward in future fiscal years as applicable.

 

218:8  Effective Date.  This act shall take effect upon its passage.

 

Approved: July 10, 2017

Effective Date: July 10, 2017

Links

HB343 at GenCourtMobile

Action Dates

Date Body Type
Jan. 19, 2017 House Hearing
Feb. 14, 2017 House Exec Session
March 8, 2017 House Floor Vote
April 18, 2017 Senate Hearing
May 31, 2017 Senate Floor Vote

Bill Text Revisions

HB343 Revision: 1139 Date: July 11, 2017, 3:03 p.m.
HB343 Revision: 1140 Date: June 8, 2017, 10:34 a.m.
HB343 Revision: 1141 Date: June 2, 2017, 10:44 a.m.
HB343 Revision: 1142 Date: Jan. 30, 2017, 10:06 a.m.

Docket

Date Status
Jan. 5, 2017 Introduced 01/05/2017 and referred to Commerce and Consumer Affairs HJ 3 P. 9
Jan. 19, 2017 Public Hearing: 01/19/2017 11:30 AM LOB 302
Jan. 24, 2017 Subcommittee Work Session: 01/24/2017 09:00 AM LOB 302
Feb. 14, 2017 Subcommittee Work Session: 02/14/2017 09:00 AM LOB 302
Feb. 14, 2017 Executive Session: 02/14/2017 01:30 PM LOB 302
March 8, 2017 Committee Report: Ought to Pass for 03/08/2017 (Vote 20-0; CC) HC 14 P. 6
March 8, 2017 Ought to Pass: MA VV 03/08/2017 HJ 9 P. 12
March 9, 2017 Introduced 03/09/2017 and Referred to Commerce; SJ 9
April 18, 2017 Hearing: 04/18/2017, Room 100, SH, 01:15 pm; SC 18
May 31, 2017 Committee Report: Ought to Pass with Amendment # 2017-1992s, 05/31/2017; SC 25
May 31, 2017 Committee Amendment # 2017-1992s, AA, VV; 05/31/2017; SJ 18
May 31, 2017 Ought to Pass with Amendment 2017-1992s, MA, VV; OT3rdg; 05/31/2017; SJ 18
June 8, 2017 House Concurs with Senate Amendment 1992s (Rep. Hunt): MA VV 06/08/2017 HJ 18 P. 3
June 22, 2017 Enrolled (In recess 06/22/2017); SJ 20
June 22, 2017 Enrolled 06/22/2017 HJ 19 P. 23
July 10, 2017 Signed by Governor Sununu 07/10/2017; Chapter 218; Eff. 7/10/2017