Bill Text - HB338 (2019)

Relative to rebates under the law governing unfair insurance practices.

Revision: Feb. 28, 2019, 3:05 p.m.



27Feb2019... 0076h







AN ACT relative to rebates under the law governing unfair insurance practices.


SPONSORS: Rep. Bartlett, Merr. 19


COMMITTEE: Commerce and Consumer Affairs






This bill moves the exceptions to rebating from RSA 402 to the law regulating unfair insurance practices for purposes of clarity.


This bill is a request of the insurance department.


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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

27Feb2019... 0076h 19-0639





In the Year of Our Lord Two Thousand Nineteen


AN ACT relative to rebates under the law governing unfair insurance practices.


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


1  Unfair Insurance Trade Practices; Rebating.  Amend RSA 417:4, IX(b)(8) to read as follows:

(8)  Reduction of premium rate for policies of large amounts, but not exceeding savings in issuance and administration expenses reasonably attributable to such policies as compared with policies of similar plan issued in smaller amounts[.];

(9)  An insurance company paying to another insurance company or to any person who is a duly authorized producer, or an insurance company or such a person from receiving a commission in respect to any policy under which the entity or he or she is insured;

(10)  An insurance company issuing non-participating life insurance from paying bonuses to policyholders or otherwise abating their premiums in whole or in part out of surplus accumulated from non-participating insurance;

(11)  Value added service, activity, or product offered or provided without a fee, or at a reduced fee, if the provision of such value added service, activity, or product does not violate any other applicable statute or rule, and is:

(A)  Available to all insureds on an objective and fair basis; and

(B)  Directly related to the firm's servicing of the insurance policy, annuity contract, or brokerage agreement, or offered or undertaken to provide risk control for the benefit of the client;

(12)  For the purposes of subparagraph (12), "value added service, activity, or product" may include the following:

(A)  Risk assessments or mitigation.

(B)  Risk control tools.

(C)  Claims assistance.

(D)  Legislative updates.

(E)  Administration consulting;

(13)  The giving of a promotional item or items to a consumer in connection with marketing of contracts of insurance provided the item or items have a fair market value of $100 or less per consumer, per year;

(14)  Contests, sweepstakes, raffles, or drawings, conducted in connection with the marketing or promotion of insurance products, if:

(A)  There is no participation cost to entrants; and

(B)  The contest, sweepstake, raffle, or drawing is open to consumers who are not policyholders and the consumer is not required to purchase a policy in order to be eligible to enter the contest, sweepstake, raffle, or drawing or receive a prize;

(15)  The rebate of all or part of a producer's commission on the sale of commercial insurance as defined in RSA 412 provided the insurer expressly provides for such rebate in rate filings approved by the commissioner and the reduction of the commission is not disclosed to the insured either directly or indirectly.

2  Repeal.  The subdivision heading preceding RSA 402:39 and RSA 402:39 through 402:41, relative to rebating, are repealed.

3  Effective Date.  This act shall take effect 60 days after its passage.