Revision: Feb. 3, 2022, 1:34 p.m.
SB 206 - AS AMENDED BY THE SENATE
02/03/2022 0062s
2022 SESSION
22-2927
11/04
SENATE BILL 206
AN ACT relative to consumer guaranty contracts.
SPONSORS: Sen. French, Dist 7; Sen. Gannon, Dist 23; Sen. Carson, Dist 14; Sen. Avard, Dist 12; Sen. Soucy, Dist 18; Sen. Reagan, Dist 17; Sen. Cavanaugh, Dist 16; Rep. Hunt, Ches. 11; Rep. Potucek, Rock. 6
COMMITTEE: Commerce
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ANALYSIS
This bill excludes prepaid legal services contracts from the definition of "consumer guaranty contract" and prohibits certain consumer guaranty contract acts and terms.
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
02/03/2022 0062s 22-2927
11/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Two
AN ACT relative to consumer guaranty contracts.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Consumer Guaranty Contracts; Definitions; Consumer Guaranty Contract. Amend RSA 415-C:1, III(c)(6)-(7) to read as follows:
(6) Warranties, service contracts, and maintenance agreements sold or offered for sale to persons other than consumers. [This provision does not apply to prepaid legal contracts, which may be offered to any governmental corporation, unit, agency, or department, or to any employer or association of employers, a labor union or other similar employee organization, including the trustees of a fund established by such labor union or employee organization. The term "employee" and " employees" shall have the same meaning as are given to such terms for the purpose of writing group life insurance in this state.]
(7) Debt cancellation or debt suspension contracts between a creditor and a borrower for the cancellation or suspension of the debt.
(8) Prepaid legal contracts.
2 New Subparagraph; Consumer Guaranty Contracts; Prohibited Acts. Amend RSA 415-C:7, I by inserting after subparagraph (h) the following new subparagraph:
(i) Fail to refund unearned contract fees with respect to any cancellation of a consumer guaranty contract with a duration of 12 months or more. Contract fees for contracts with a duration of 12 months or more are earned pro-rata over the length of the contract. Obligors shall not charge a cancellation administrative fee of more than 10 percent of the contract price or $75, whichever is less, for a contract of any duration. All cancellation administrative fees must be disclosed in the contract, regardless of the contract’s duration.
3 Repeal. The following are repealed:
I. RSA 415-C:1, II(b)(2), relative to the definition of consumer guaranty contracts as it relates to prepaid legal services contracts.
II. RSA 415-C:1, XI, relative to the definition of prepaid legal services contract.
4 Effective Date. This act shall take effect 60 days after its passage.