Bill Text - SB429 (2018)

(New Title) establishing a consumer services program within the insurance department.


Revision: Dec. 20, 2017, 12:06 p.m.

SB 429-FN - AS INTRODUCED

 

 

2018 SESSION

18-2898

03/01

 

SENATE BILL 429-FN

 

AN ACT extending the authority of the department of justice to trade or commerce involving insurance.

 

SPONSORS: Sen. French, Dist 7

 

COMMITTEE: Commerce

 

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ANALYSIS

 

This bill eliminates the exemption from the consumer protection act for trade and commerce subject to the jurisdiction of the insurance commissioner and insurance regulators of other states.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

18-2898

03/01

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Eighteen

 

AN ACT extending the authority of the department of justice to trade or commerce involving insurance.

 

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

 

1  Consumer Protection; Exempt Transactions.  Amend RSA 358-A:3, I to read as follows:

I.  Trade or commerce that is subject to the jurisdiction of the bank commissioner, the director of securities regulation, [the insurance commissioner,] the public utilities commission, the financial institutions [and insurance regulators] of other states, or federal banking or securities regulators who possess the authority to regulate unfair or deceptive trade practices.  This paragraph includes trade or commerce under the jurisdiction of, and regulated by, the bank commissioner pursuant to RSA 361-A, relative to retail installment sales of motor vehicles.

2  Private Actions.  Amend RSA 358-A:10, II to read as follows:

II.  Upon commencement of any action brought under this section, the clerk of the court shall mail a copy of the complaint or other initial pleadings to the attorney general and, upon entry of any judgment or decree in the action, shall mail a copy of such judgment or decree to the attorney general.  Upon commencement of any action brought under this section against an insurance provider, the clerk of the court shall immediately notify the New Hampshire insurance commissioner and provide the commissioner with a copy of the complaint.

3  Class Actions.  Amend RSA 358:10-a, IX to read as follows:

IX.  Upon commencement of any action brought under this section, the clerk of the court shall mail a copy of the complaint or other initial pleading to the attorney general and, upon entry of any judgment or decree in the action, shall mail a copy of such judgment or decree to the attorney general.  Upon commencement of any action brought under this section against an insurance provider, the clerk of the court shall immediately notify the New Hampshire insurance commissioner and provide the commissioner with a copy of the complaint.

4  Effective Date.  This act shall take effect January 1, 2019.

 

LBAO

18-2898

12/7/17

 

SB 429-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT extending the authority of the department of justice to trade or commerce involving insurance.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2019

FY 2020

FY 2021

FY 2022

   Appropriation

$0

$0

$0

$0

   Revenue

$0

$0

$0

$0

   Expenditures

Indeterminable

Indeterminable

Indeterminable

Indeterminable

Funding Source:

  [ X ] General            [    ] Education            [    ] Highway           [    ] Other

 

 

 

 

 

METHODOLOGY:

This bill would remove the New Hampshire Insurance Department and insurance regulators from other states from the exemption clause in the Consumer Protection Act giving the Department of Justice concurrent jurisdiction with insurance regulators to bring enforcement actions alleging unfair or deceptive trade practices.  The Department of Justice assumes it would work cooperatively with insurance regulators in the investigation and prosecution of such cases.  The Department assumes passage of the bill would require additional legal and investigative resources.  The Department cannot estimate the increased work demand so the fiscal impact is indeterminable.

 

The Insurance Department states the proposed legislation does not eliminate the provisions of RSA 417:1 through 22 or change the Insurance Commissioner’ role in the investigation and enforcement of the Unfair Insurance Trade Practices Act.  The Department assumes there would be no change to existing staff or responsibilities, but the bill would provide for an additional consumer protection function within the Attorney General’s Office.   The Department assumes any fiscal impact resulting from this bill would be at the Department of Justice in the form of additional staff and training costs, but those costs are indeterminable.

 

AGENCIES CONTACTED:

Department of Justice and Insurance Department