Bill Details - SB17 (2019)

SB 17  - AS INTRODUCED

 

 

2019 SESSION

19-0967

01/04

 

SENATE BILL 17

 

AN ACT relative to financial regulation technicals under insurance law.

 

SPONSORS: Sen. French, Dist 7

 

COMMITTEE: Commerce

 

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

 

ANALYSIS

 

This bill makes certain technical changes in insurance law relative to financial regulation.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19-0967

01/04

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT relative to financial regulation technicals under insurance law.

 

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

 

1  Insurance Department; Annual Financial Statement.  Amend RSA 400-A:36, I to read as follows:

I.  Every insurance company doing business in this state shall, on or before March 1 each year, make and file or transmit to the commissioner a statement under oath of its president and secretary, in accordance with the National Association of Insurance Commissioners Annual Statement Blank following the National Association of Insurance Commissioners Annual Statement Instructions and those accounting procedures and practices prescribed by the National Association of Insurance Commissioners Accounting Practices and Procedure Manual or allowed as a permitted accounting practice as provided in the manual, showing the amount of its capital stock, assets, liabilities, outstanding risks, premium notes, receipts, expenditures, losses, assessments, salaries and emoluments, and any other information calculated to fully disclose the condition and method of management of the company for the year ending the preceding December 31, which statement shall include the whole amount of premiums written during the preceding year for insurance on property, or risks located or persons resident in this state.

2  Insurance Department; Filing Requirements.  Amend RSA 400-A:36-a, I to read as follows:

I.  Each domestic, foreign, and alien insurer who transacts insurance in this state shall annually on or before March 1 of each year, file with [or transmit to] the National Association of Insurance Commissioners a portable document format (pdf) copy [and diskette] of its annual statement convention blank, along with such additional filings as prescribed by the commissioner for the preceding year, and a pdf copy [and diskette] of all subsequent quarterly statements.  The information filed with or transmitted to the National Association of Insurance Commissioners shall be in the same format and scope as that required by the commissioner and following those accounting procedures and practices prescribed by the National Association of Insurance Commissioners Accounting Practices and Procedure Manual, and shall include the signed jurat page and, if required by any state in which the insurer transacts business, the actuarial certification.  Any amendments and addenda to the annual statement filing subsequently filed with or transmitted to the commissioner shall also be filed with or transmitted to the National Association of Insurance Commissioners.

3  Insurance Holding Companies; Standards and Management of an Insurer Within a Holding Company System.  Amend RSA 401-B:5, I(b) to read as follows:

(b)  The following transactions involving a domestic insurer and any person in its holding company system, including amendments or modifications of affiliate agreements previously filed pursuant to this section, which are subject to any materiality standards contained in RSA 401-B:5, I[-VII](b)(1)-(7), may not be entered into unless the insurer has notified the commissioner in writing of its intention to enter into the transaction at least 30 days prior thereto, or such shorter period as the commissioner may permit, and the commissioner has not disapproved it within such period.  The notice for amendments or modifications shall include the reasons for the change and the financial impact on the domestic insurer.  Informal notice shall be reported, within 30 days after a termination of a previously filed agreement, to the commissioner for determination of the type of filing required, if any.

4  Risk-Based Capital for Insurers; Company Level Event.  Amend RSA 404-F:3, I(a)(3) to read as follows:

(3)  If a property and casualty insurer or health organization, the insurer has total adjusted capital which is greater than or equal to its company action level RBC but less than the product of its authorized control level RBC and 3.0 and triggers the trend test determined in accordance with the trend test calculation included in the property and casualty RBC instructions;

5  Risk-Based Capital; Mandatory Control Level Event.  Amend RSA 404-F:6, II(a) to read as follows:

(a)  With respect to a life and/or health insurer or health organization, the commissioner shall take such actions as are necessary to place the insurer under regulatory control under RSA 402-C.  In that event, the mandatory control level event shall be deemed sufficient grounds for the commissioner to take action under RSA 402-C, and the commissioner shall have the rights, powers, and duties with respect to the insurer as are set forth in RSA 402-C.  If the commissioner takes actions pursuant to an adjusted RBC report, the insurer shall be entitled to the protections of RSA 402-C:11-14 pertaining to summary proceedings.  Notwithstanding any of the foregoing, the commissioner may forego action for up to 90 days after the mandatory control level event if the commissioner finds there is a reasonable expectation that the mandatory control level event may be eliminated within the 90-day period.

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

Docket

Date Status
Jan. 3, 2019 Introduced 01/03/2019 and Referred to Commerce; SJ 4
Jan. 3, 2019 Introduced 01/03/2019 and Referred to Commerce; SJ 4
Jan. 22, 2019 Hearing: 01/22/2019, Room 100, SH, 02:15 pm; SC 7
Jan. 31, 2019 Committee Report: Ought to Pass, 01/31/2019; SC 8
Jan. 31, 2019 Ought to Pass: MA, VV; OT3rdg; 01/31/2019; SJ 4
March 20, 2019 Introduced 03/20/2019 and referred to Commerce and Consumer Affairs HJ 11 P. 68
April 16, 2019 Public Hearing: 04/16/2019 10:00 am LOB 302
April 17, 2019 Full Committee Work Session: 04/17/2019 10:00 am LOB 302
May 7, 2019 Full Committee Work Session: 05/07/2019 01:00 pm LOB 302
May 21, 2019 Executive Session: 05/21/2019 11:00 am LOB 302

Action Dates

Date Body Type
Jan. 22, 2019 Senate Hearing
Jan. 31, 2019 Senate Floor Vote
April 16, 2019 House Hearing
May 21, 2019 House Exec Session

Bill Text Revisions

SB17 Revision: 4709 Date: Jan. 14, 2019, 9:59 a.m.
SB17 Revision: 4736 Date: Jan. 14, 2019, 2:29 p.m.