SB418 (2020) Detail

Relative to workers' compensation auditable policies.


SB 418  - AS INTRODUCED

 

 

2020 SESSION

20-2906

01/06

 

SENATE BILL 418

 

AN ACT relative to workers' compensation auditable policies.

 

SPONSORS: Sen. Cavanaugh, Dist 16; Rep. Bartlett, Merr. 19

 

COMMITTEE: Commerce

 

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ANALYSIS

 

This bill clarifies the penalty for the failure of an insured to cooperate with the auditing requirements of workers' compensation policies.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20-2906

01/06

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty

 

AN ACT relative to workers' compensation auditable policies.

 

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

 

1  Forms and Rate Regulation Applicable to Workers' Compensation; Auditable Basis Policies.  Amend RSA 412:35, IV to read as follows:

IV.(a) In cases where there is a bona fide dispute, the insurer shall notify the insured in writing that there is a bona fide dispute and this notice shall toll the 120-day time period until the dispute is resolved.  Upon resolution of the dispute, the insurer shall proceed to complete the audit within the time remaining in the 120-day time period.  A bona fide dispute includes the insured's failure to cooperate with the audit, provided the insurer has notified the insured of:

[(a)] (1) The acts or omissions that constitute the insured's failure to cooperate; and

[(b)] (2)  The consequences of the insured's failure to cooperate, including delay in the completion of the audit.

(b)  The consequence of the insured's failure to cooperate with this paragraph within 30 days of the notice shall be the assessment of a penalty equaling 3 times the estimated premium and setting the estimated premium as the final premium.  Upon receipt of the penalty and final premium, the insured shall have an additional 10 days to request that the penalty be waived and to have the final premium be recalculated based upon actual exposure by completing the audit that is required by paragraph III.  No timely request by an insured for a waiver and recalculation shall be denied by the insurer.  The request shall be granted upon completion of the audit.

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

Links

SB418 at GenCourtMobile
SB418 Discussion

Action Dates

Date Body Type
March 10, 2020 Senate Hearing
March 11, 2020 Senate Hearing

Bill Text Revisions

SB418 Revision: 7625 Date: Dec. 19, 2019, 9:49 a.m.

Docket

Date Status
Jan. 8, 2020 To Be Introduced 01/08/2020 and Referred to Commerce; SJ 1
March 10, 2020 Hearing: 03/10/2020, Room 100, SH, 02:15 pm; SC 10
March 11, 2020 Hearing: 03/11/2020, Room 100, SH, 09:00 am; SC 10
June 16, 2020 Vacated from Committee and Laid on Table, MA, VV; 06/16/2020 SJ 8
June 16, 2020 No Pending Motion; 06/16/2020 SJ 8