Revision: May 29, 2024, 8:31 a.m.
HB 1259 - AS AMENDED BY THE SENATE
28Mar2024... 0762h
05/23/2024 2164s
2024 SESSION
24-2261
05/10
HOUSE BILL 1259
SPONSORS: Rep. Hunt, Ches. 14
COMMITTEE: Commerce and Consumer Affairs
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AMENDED ANALYSIS
This bill clarifies the distinction between personal and commercial lines in homeowners policies; permits the use of electronic communication for auditable basis policies; requires the insurer to state the specific reason for cancellation or refusal to renew a policy; and provides an exemption to the insurance claims adjusters statute for persons who solely handle automobile glass claims.
The bill also makes an appropriation to the department of environmental services for the funding of regional drinking water infrastructure as part of Phase 2 of the Southern New Hampshire Regional Water Project to increase water supply to multiple towns impacted by PFAS contamination and growing water demands.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
28Mar2024... 0762h
05/23/2024 2164s 24-2261
05/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Regulation of Forms and Rates for Property and Casualty Insurance; Definition of Personal Risk; Distinction Between Personal and Commercial Lines. Amend RSA 412:3, XV to read as follows:
XV. "Personal risk" means homeowners, [including dwelling insurance for owner-occupied one to 4 family buildings,] tenants, private passenger [non-fleet automobiles on a personal] automobile policy, [mobile homes] and other property and casualty insurance for personal, family or household needs. This includes any property and casualty insurance that is otherwise intended for non-commercial coverage.
2 Regulation of Forms and Rates for Property and Casualty Insurance; Auditable Basis Policies. Amend RSA 412:35, II to read as follows:
II. Audits shall be conducted by either physical inspection of an insured's records and operations, or by telephone, [or] mail, [request] electronic communication or by virtual means as requested by the insurer to the insured.
3 Cancellation, Refusal to Write, Renew; Application of Chapter. Amend RSA 417-B:1 to read as follows:
417-B:1 Application of Chapter. This chapter shall apply to policies of insurance other than automobile insurance and workers' compensation insurance on personal, family, and household risks located or residents in this state which insure any of the following contingencies:
I. Loss of or damage to real property [which is used solely for residential purposes, which is owner occupied, and which consists of not more than 4 dwelling units].
II. Loss of or damage to personal property [owned by natural persons except personal property used in the conduct of a commercial or industrial enterprise].
III. Legal liability of a [natural] person or persons for loss of, damage to, or injury to, persons or property[, but not including policies primarily insuring risks arising from the conduct of a commercial or industrial enterprise].
4 Cancellation; Refusal to Renew; Notice. Amend RSA 417-B:4, II to read as follows:
II. State the specific reason or reasons of the insurer for cancellation or refusal to renew [or be accompanied by a statement that upon written request of the named insured, mailed or delivered to the insurer not less than 10 days prior to the effective date of cancellation or refusal to renew, the insurer will specify the reason or reasons for such cancellation, or refusal to renew. The insurer shall supply such information within 5 days of receipt by it of such request].
5 New Subparagraph; Insurance Claims Adjusters; Definitions; Exemptions. Amend RSA 402-B:2, III by inserting after subparagraph (e) the following new subparagraph:
(f) A person who solely investigates, negotiates, settles, or completes a first notice of loss form for automobile glass replacement or repair claims.
6 Department of Environmental Services; Appropriation. The sum of $25,000,000 for the fiscal year ending June 30, 2025 is hereby appropriated to the department of environmental services from a combination of federal funds, the drinking water and groundwater trust fund established under RSA 485-F, the PFAS remediation loan and grant fund established under RSA 485-H, and local contributions for the purpose of funding regional drinking water infrastructure as part of Phase 2 of the Southern New Hampshire Regional Water Project to increase water supply by over 2 million gallons per day to multiple towns impacted by per- and polyfluoroalkyl substance contamination and growing water demands. The infrastructure shall include all ancillary projects needed, including but not limited to booster pumping stations, pressure reducing stations, water storage tanks, water mains, raising the water level of Lake Massabesic, and all associated design and construction permits. This sum shall be nonlapsing.
I. Section 6 of this act shall take effect July 1, 2024.
II. The remainder of this act shall take effect January 1, 2025.
24-2261
Amended 5/28/24
HB 1259- FISCAL NOTE
AS AMENDED BY THE SENATE (AMENDMENT #2024-2164s)
FISCAL IMPACT: [ X ] State [ ] County [ X ] Local [ ] None
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Estimated State Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
Revenue | $0 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | ||
Revenue Fund(s) | Local Contributions
| |||||
Expenditures | $0 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | ||
Funding Source(s) | Drinking Water & Ground Water Trust Fund, PFAS Remediation Loan and Grant Fund, Federal Funds and local contributions
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Appropriations | $0 | $25,000,000 | $0 | $0 | ||
Funding Source(s) | Drinking Water & Ground Water Trust Fund, PFAS Remediation Loan and Grant Fund, Federal Funds and local contributions
| |||||
• Does this bill provide sufficient funding to cover estimated expenditures? [X] N/A • Does this bill authorize new positions to implement this bill? [X] No | ||||||
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Estimated Political Subdivision Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
County Revenue | $0 | $0 | $0 | $0 | ||
County Expenditures | $0 | $0 | $0 | $0 | ||
Local Revenue | $0 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | ||
Local Expenditures | $0 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | ||
METHODOLOGY:
This bill clarifies the distinction between personal and commercial lines in homeowners policies;
permits the use of electronic communication for auditable basis policies; requires the insurer to state the specific reason for cancellation or refusal to renew a policy; and provides an exemption to the insurance claims adjusters statute for persons who solely handle automobile glass claims. The Insurance Department indicated this portion of the bill would have no fiscal impact on state, county, or local revenues or expenditures.
The bill also makes a nonlapsing appropriation to the Department of Environmental Services for the funding of regional drinking water infrastructure as part of Phase 2 of the Southern New Hampshire Regional Water Project to increase water supply to towns impacted by PFAS contamination and growing water demands.
The Department of Environmental Services states that it already administers water infrastructure grant and loan programs and would not require additional funds to administer the provisions of this bill. The Department indicates the primary fiscal impact would be the $25 million expenditure to construct the infrastructure necessary to increase water supply capacity to address PFAS contamination. The Department does not envision that the bill would require it to fund projects that exceed the funding in its operating budgets. The amount of State expenditures by each funding source is indeterminable at this time as the bill does not specify the amount to be funded by the PFAS Response Fund, the Drinking Water and Groundwater Trust Fund or funding programs associated with federal grants that the Department manages.
Local revenue and expenditures will increase as a portion of the appropriated funds will be provided to communities to fund of the project. In addition, the Department assumes there may be local expenditures for project reviews at the local level or for additional fire flow protection where the new water lines are extended. The specific amount of additional revenue or expenditures at the local level cannot be estimated. There would be no anticipated impact on county revenue or expenditures.
AGENCIES CONTACTED:
Departments of Insurance and Environmental Services