SB418 (2020) Compare Changes


Unchanged Version

Text to be removed highlighted in red.

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

IV. 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) The acts or omissions that constitute the insured's failure to cooperate; and

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

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

Changed Version

Text to be added highlighted in green.

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:

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

(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.