Revision: April 2, 2026, 12:41 p.m.
Sen. Gray, Dist 6
April 1, 2026
2026-1316s
05/07
Amendment to HB 1491
Amend the bill by replacing all after the enacting clause with the following:
1 New Paragraph; Pooled Risk Management Programs; Exemption from RSA 5-B. Amend RSA 5-B:3 by inserting after paragraph III the following new paragraph:
IV. This chapter shall not apply to advance premium pooled risk management programs, licensed and regulated by the department of insurance under RSA 420-R.
2 New Subparagraph; Insurance; Third Party Administrators; Definitions. Amend RSA 402-H:1, I by inserting after subparagraph (m) the following new subparagraph:
(n) An advance premium pooled risk management program licensed pursuant to RSA 420-R:4.
3 Insurance; Licensure of Medical Utilization Review Entities; Licensure or Registration Required. Amend RSA 420-E:2, I to read as follows:
I. Any person, partnership or corporation, other than an insurer, nonprofit service organization, health maintenance organization, advance premium pooled risk management program, or an employee of those exempt organizations, that performs medical utilization review services on behalf of commercial insurers, nonprofit service organizations, health maintenance organizations, advance premium pooled risk management programs, third-party administrators or employers, shall apply for a license to be issued by the department and shall pay an application fee and an annual license fee. No person, partnership or corporation, other than an insurer, nonprofit service organization, health maintenance organization, or the employees of exempt organizations shall perform utilization review services or medical utilization review services unless the person, partnership, or corporation has received a license in accordance with this chapter.
4 Insurance; Portability, Availability, and Renewability of Health Coverage; Disclosure. Amend RSA 420-G:11, IV to read as follows:
IV. The data submission requirements of paragraphs II and II-a shall apply with respect to claims data for all lives covered by a fully-insured health plan in any market in the state, by any self-funded plan for state or municipal employees, including any plan maintained under RSA 5-B or RSA 420-R, to any self-funded plan maintained by the university system of the state with respect to its employees or its students, and to any self-funded student health benefit plan maintained by an institution of higher education which provides 4-year bachelor's degree programs and graduate or professional degree programs.
5 New Chapter; Advanced Premium Pooled Risk Management Program. Amend RSA by inserting after chapter 420-Q the following new chapter:
CHAPTER 420-R
ADVANCE PREMIUM POOLED RISK MANAGEMENT PROGRAMS
420-R:1 Purpose. The purpose of this chapter is to provide for the establishment of advance premium pooled risk management programs and to affirm the status of such programs established for the benefit of political subdivisions of the state. The legislature finds and determines that insurance and risk management is essential to the proper functioning of political subdivisions; that risk management can be achieved through the purchase of traditional insurance or by participation in pooled risk management programs established for the benefit of political subdivisions; that pooled risk management is an essential governmental function by providing focused public sector loss prevention programs, accrual of interest and dividend earnings which may be returned to the public benefit and establishment of costs predicated solely on the actual experience of political subdivisions within the state; that the resources of political subdivisions are presently burdened by the securing of insurance protection through standard carriers; that pooled risk management programs that meet the standards established by this chapter should not be subject to taxation by the state but shall be subject to insurance regulations as describe in this chapter; and provided further, that in the event of financial impairment or insolvency of any such program, the commissioner shall have authority to take corrective measures and initiate liquidation proceedings in accordance with RSA 402-C to protect the interests of covered persons, creditors, and the public.
420-R:2 Definitions. In this chapter:
I. “Advance premium pooled risk management program” or “program” means an association formed under the laws of this state that operates a program comprised of 2 or more political subdivisions of the state, of adequate size, that does not retain the right to impose assessments on members that are in addition to premium payments but can enter into agreements, under this chapter, to:
(a) Provide an advanced premium pooled risk management program, or obtain insurance from any insurer authorized to transact business in this state as an admitted or surplus lines carrier, or obtain insurance secured in accordance with any method provided by law, or obtain insurance by any combination of these methods;
(b) Provide for pooling of advanced premium pooled risk management program reserves, risks, claims, and losses, and of administrative services and expenses associated with them among political subdivisions; or
(c) Develop and administer a risk management program having as its purposes reducing the risk of its members; safety engineering; distributing, sharing, and pooling risks; acquiring insurance, excess loss insurance, or reinsurance; and processing, paying, and defending claims against the members of such entity or association.
II. “Advisory board” means a committee comprised of:
(a) The secretary of state, or designee;
(b) The insurance commissioner, or designee; and
(c) The chief of the consumer protection and antitrust bureau of the department of justice, or designee.
III. “Assessable policy” means a coverage contract in which the policyholder may be required to pay additional funds beyond premium payments if the policy issuer experiences losses such that its capital is insufficient. This type of policy or pooled risk management program is exclusively regulated under RSA 5-B.
IV. “Commissioner” means the insurance commissioner.
V. “Department” means the insurance department.
VI. “Employee representative” means an employee of a member, who shall not be in a position to make participation decisions for a member.
VII. “Excess insurance” means stop loss insurance or liability coverage with a high claim threshold.
VIII. “Member” means any political subdivision that participates or may participate in a pooled risk management program under this chapter.
IX. “Member representative” means a representative of a member who is in a position to make participation decisions for a member and serving in either an elected or appointed position.
X. "Political subdivision" means any city, town, county, school district, chartered public school, village district, school administrative unit, or any district or entity created for a special purpose administered or funded by any of the above-named governmental units.
XI. “Program covered person” means a person who is covered under pooled risk management program coverage.
XII.(a) “Public representative” means a representative of the general public who shall not be:
(1) An employee of a member;
(2) In a position to make participation decisions for a member; or
(3) Connected with the management or be the holder of a material number of shares of any insurer, insurance holding company, insurance agency, or broker.
(b) Family members of employees, persons in a position to make membership decisions, and family members of persons connected with management or holders of a material number of shares of any insurer, insurance holding company, insurance agency, or broker may not serve as public representatives.
XIII. "Risk management" means the defense of claims and indemnification for losses arising out of the ownership, maintenance, and operation of real or personal property and the acts or omissions of officials, employees, and agents; the provision of loss prevention services, including, but not limited to, inspections of property and the training of personnel; and the investigation, evaluation, and settlement of claims by and against political subdivisions.
XIV. “Net contribution” means the member contribution minus the return of surplus.
XV. “Financial impairment” means a condition in which an advance premium pooled risk management program:
(a) Has failed to maintain the minimum capital or deposit requirements established under this chapter; or
(b) Has been determined by the commissioner to be unable to fulfill its contractual obligations to members or covered persons; or
(c) Has a negative surplus as reported in its most recent financial statement.
420-R:3 Advance Premium Pooled Risk Management Programs Authorized; Permissible Coverages.
I. To accomplish the purposes of this chapter, any 2 or more political subdivisions of this state, of adequate size, may, by resolution of its governing body, form an association under the laws of this state and establish and enter into agreements constituting an advance premium pooled risk management program.
II. RSA 53-A shall not apply to an advance premium pooled risk management program formed or affirmed under this chapter, nor to the participation in such a program by a political subdivision.
III. Except as otherwise provided under paragraph IV, an advance premium pooled risk management program established for the benefit of political subdivisions may provide any of the following coverages:
(a) Casualty, including general and professional liability; errors and omissions; workers' compensation and employer's liability; medical payments; or unemployment compensation as authorized under federal law.
(b) Property, including marine and inland navigation; transportation; boiler and machinery; fire; theft; or natural hazards.
(c) Vehicle, including any liability or loss arising from the ownership or operation of vehicles.
(d) Surety and fidelity.
(e) Environmental impairment.
(f) Hospital, medical, surgical, or dental benefits for employees and retirees and their dependents.
(g) Life, income maintenance, accidental death and dismemberment, vision loss or impairment, or legal benefits for employees and their dependents.
(h) Unanticipated special education cost recovery.
VI. Any advanced premium pooled risk management program that provides coverage described in subparagraphs III (a) through (e) shall not also provide coverages described in subparagraphs (f), (g), or (h).
420-R:4 Licensure Required; Conversion to Advance Premium Pooled Risk Management Program.
I. Any person or legal entity that is organized and functions as an advance premium pooled risk management program shall apply to the department for a license and shall pay an application fee and annual license fee of $250. No person, entity, or association shall, after July 1, 2026, operate an advance premium pooled risk management program unless such program has been reviewed for licensure by the department and has been determined to be in compliance with the provisions of this chapter, including organizational, operational, financial, and reporting requirements. License renewal applications shall be filed annually on or before September 1.
II. Pooled risk management programs that have been established and affirmed in accordance with RSA 5-B and that wish to transition to an advance premium pooled risk management program under this chapter shall apply to be licensed under this chapter. Existing contracts and any new contracts for coverage until the effective date of the license shall continue to operate under the requirements of RSA 5-B until they expire. These programs shall file a license application containing the information as set forth in paragraph III. Additionally, any pooled risk management program applying to transition from regulation under RSA 5-B to this chapter shall:
(a) Obtain a majority vote of its entire membership in favor of the transition, and the governing body of each member shall cast each vote. All members of the pooled risk management program regulated under RSA 5-B shall be provided with an opportunity to exit the pooled risk management program prior to any transition. The exit value for each member shall be calculated as the member’s proportionate share of the program’s surplus, less a reasonable reserve for run-off claims, and shall be paid within 90 days of the effective date of the member’s exit. Any disputes regarding exit value shall be resolved through binding arbitration. At least 90 days prior to any vote to transition, the pooled risk management program shall provide each member with an accounting of the surplus due to that member should they choose to leave the pooled risk management program and an estimate impact of the transition on net contributions over the 1-year, 5-year, and 10-year periods following the transition, as projected by reasonable actuarial analysis. No pooled risk management program regulated under RSA 5-B shall be permitted to transition to an advanced premium pooled risk management program under this chapter until any outstanding regulatory matters are resolved, including any appeals thereof. Additionally, any expenses related to any pooled risk management program established and affirmed under RSA 5-B seeking to transition to an advanced premium pooled risk management program under this chapter shall only be paid by those members electing to be included in the transition. Furthermore, during the transition period and for a period as determined by the commissioner following licensure under this chapter, the program shall be subject to enhanced monitoring, including financial reporting and examination, until the commissioner determines that the program has demonstrated consistent compliance and financial stability.
(b) Obtain approval from the governing body of each member of the pooled risk management program wishing to transition to the advanced premium pooled risk management program. Any member electing to leave an advanced premium pooled risk management program under this chapter shall be entitled to request and receive, pursuant to RSA 420-G:12-a, that member's specific health plan loss information.
(c) Obtain an opinion from the Internal Revenue Service as to whether the advance premium pooled risk management program established under this chapter will meet the requirements of Section 115 of the Internal Revenue Code.
III. Prior to providing coverage, a license application shall be filed with the commissioner for approval of the advance premium pooled risk management program in a form and manner as established by the commissioner. Such license application and related documents shall also be provided to the advisory board, who shall review the application and provide recommendations to the commissioner. The application materials shall include at least the following:
(a) A copy of the constitution or bylaws of the association, trust instrument, or articles of incorporation.
(b) The names and addresses of the trustees, directors, or incorporators.
(c) A copy of the bylaws or trust agreement that governs the operation of the pooled risk management program.
(d) A copy of the policy, contract, certificate, summary plan description, or other evidence of the benefits and coverages provided.
(e) A copy of the fidelity bond in an amount equal to not less than 12 percent of the funds handled annually and issued in the name of the pooled risk management program covering its trustees, directors, employees, administrator, or other individuals managing or handling the funds or assets of the pooled risk management program. In no case may such a bond be less than $1,000,000 or more than $5,000,000, except that the commissioner, after due notice to all interested parties and opportunity for hearing, and after consideration of the record, may prescribe an amount in excess of $5,000,000 subject to the 12 percent limitation.
(f) A copy of the advance premium pooled risk management program’s excess insurance agreement, if any.
(g) A business plan setting out the lines of coverage the program intends to write, the projected membership amount, a plan of capitalization, and such other plan information as the commissioner may require.
(h) A signed statement by an independent actuary, who is a member of the American Academy of Actuaries qualified in the coverage area being evaluated, showing that the arrangement will be operated in accordance with sound actuarial principles, including a certification that:
(1) The proposed rates are adequate to cover expected losses and experiences with a reasonable margin for adverse experience;
(2) The proposed capitalization plan is sufficient to maintain risk-based capital above the authorized control level under stress scenarios; and
(3) The program has adequate reinsurance or excess insurance protection.
(i) Such additional information as the commissioner may require.
IV. The commissioner shall not approve the application unless the commissioner determines that the program is designed to provide sufficient revenues, reserves, and surplus to pay current and future liabilities, as determined in accordance with sound actuarial principles and risk-based capital standards as set out in RSA 404-F.
V. A license renewal application with such form and content as shall be established by the commissioner and the license renewal fee shall be filed with the commissioner by September 1 of each year.
VI. No person, other than a pooled risk management program, shall sell, solicit, or negotiate pooled risk management program coverage in this state for any line of coverage permitted under this chapter unless the person is licensed for that line of coverage in accordance with RSA 402-J.
420-R:5 Applicable Regulatory Standards.
I. Any advance premium pooled risk management program meeting the standards established under this chapter is not an insurance company, reciprocal insurer, or insurer under the laws of this state, and the administration of any activities of the plan shall not constitute doing an insurance business for purposes of regulation or taxation. Advance premium pooled risk management programs shall not be subject to the premium tax under RSA 400-A:32 and shall not be subject to assessment with respect to the administration fund under RSA 400-A:39.
II. Advance premium pooled risk management programs shall be governed by this chapter and shall be otherwise exempt from this title, except for the provisions of: RSA 400-A:16, relative to investigations; RSA 400-A:17 through 24, relative to hearings and appeals; RSA 400-A:37, relative to examinations; RSA 401-B, relative to insurance holding companies; RSA 402:28, relative to the regulation of investments of insurance companies other than life insurance companies; RSA 402-C, relative to receivership; RSA 402-J, relative to producer licensing; RSA 402-M, relative to administrative supervision; RSA 404-F, relative to risk-based capital for insurers; RSA 420-G:11, II, II-a, and IV, relative to the submission of claims data to the department; RSA 401-B:3, 4, and 5, relative to insurance holding companies; and RSA 411-A, relative to the regulation of investments of life insurance companies.
III. RSA 5-B shall not apply to advance premium pooled risk management programs.
420-R:6 Requirements of Organization and Operation.
I. To meet charter requirements for licensure and to maintain an advance premium pooled risk management program, a program shall be:
(a) A nonprofit;
(b) Member-owned;
(c) Established as a legal entity organized under New Hampshire law; and
(d) Governed by written bylaws, which shall detail the terms of eligibility for participation by political subdivisions, the governance of the program, and other matters necessary to the program’s operation.
II. The board of directors, who shall manage the business and affairs of the program, shall be comprised of:
(a) For programs offering employee health and welfare benefits under RSA 420-R:43, III (f) and (g), 6 member representatives, 6 employee representatives, and up to 3 public representatives; and
(b) For all other programs, 12 member representatives and 3 public representatives.
III. Any bylaw developed by the board of directors shall require approval of 2/3 of the directors. Bylaws and any subsequent amendments shall be filed with the commissioner.
IV. Directors shall not receive compensation but may be reimbursed for mileage and other reasonable expenses. Directors shall comply with the provisions of RSA 15-A. Directors shall have a fiduciary responsibility to act in the best interest of the advance premium pooled risk management program, which shall include a duty of care to ensure prudent investment and use of assets, a duty of loyalty to act to further the purposes and mission of the program, and a duty of obedience to comply with organizational bylaws and applicable law.
V. Any coverages issued by the program shall be on an advance premium basis, and the bylaws shall not allow assessable coverages. Assessable pooled risk management programs are exclusively regulated under RSA 5-B.
420-R:7 Approval of Rates.
I. Each advance premium pooled risk management program shall file with the insurance commissioner a full schedule of the rates to be paid by participating members and shall obtain the commissioner’s approval prior to implementing any rate changes. The schedule of rates and related documents shall also be shared with the advisory board, who may make recommendations to the commissioner. The commissioner may refuse such approval if he or she finds the rates are excessive, inadequate, or unfairly discriminatory. Contribution rates charged in any given year for each member may not be lower than the amounts indicated by reasonable actuarial analysis.
II. For purposes of this section, "reasonable actuarial analysis" shall mean:
(a) A complete actuarial report prepared by a qualified actuary in accordance with the Actuarial Standards of Practice promulgated by the Actuarial Standards Board of the American Academy of Actuaries;
(b) Use of at least 5 years of credible historical experience data specific to the program or comparable pooled risk management programs;
(c) Explicit documentation of all material assumptions, including but not limited to, claim frequency, claim severity, trend factors, and investment income; and
(d) A certification by the qualified actuary that the rates are not excessive, inadequate, or unfairly discriminatory.
III. Contribution rate relativities shall be updated as frequently as necessary to reflect the program’s loss experience, but in no event less frequently than every 3 years. The commissioner may require more frequent updates if the program’s loss experience varies materially from projected losses.
IV. If the commissioner finds that a proposed rate increase is significant, the program shall provide direct written notice to all affected members and covered persons at least 30 days prior to the effective date of such increase.
V. At least 10 days prior to filing rates with the commissioner, each advance premium pooled risk management program shall provide notice to all members and conduct 2 public hearings for the purpose of advising of potential rate changes, the reasons for projected rate changes, and soliciting comments from members and program-covered persons regarding the relative advantages and disadvantages of pursuing goals of rate stabilization, strengthening capitalization, or returning surplus.
420-R:8 Financial Reporting.
I. Each advance premium pooled risk management program shall file with the commissioner on March 1 a report verified by an appropriate official of the program, which shall include:
(a) The program’s financial statements, including its balance sheet and statement of income and expenditures for the preceding year, certified by an independent certified public accountant; and
(b) Such other financial information relating to the program’s performance as the commissioner may require.
II. The commissioner may prescribe a uniform reporting format for the preparation of the audited financial statements and may also prescribe a uniform accounting system to be used by advance premium pooled risk management programs.
III. Each advance premium pooled risk management program shall, in accordance with RSA 404-F, file with the commissioner on March 1 a report verified by an appropriate official of the program, showing its RBC levels as of the end of the calendar year just ended, in a form and containing such information as is required by the RBC instructions. The commissioner shall provide written guidance on how to apply the RBC instructions to advance premium pooled risk management programs.
420-R:9 Minimum Capital.
I. Each advance premium pooled risk management program shall maintain capital above the RBC levels required for insurers under RSA 404-F.
II. The commissioner shall establish by rule, under RSA 541-A, specific capital levels that shall trigger regulatory action, which shall include at a minimum:
(a) A requirement to submit a corrective action plan;
(b) Restrictions on issuing new coverages; and
(c) Conservatorship or receivership action.
III. Programs shall notify the commissioner within 5 business days of any material deterioration in RBC levels.
IV. To protect the interest of participating members, creditors, and the public in the event that an advance premium pooled risk management program is financially impaired, the commissioner shall apply the corrective measures and take such other actions as deemed appropriate under RSA 402-C, RSA 402-M, and RSA 404-F in the same manner as may be taken against insurers under those provisions. The commissioner shall inform the advisory board of the financial impairment, and the advisory board may make recommendations to the commissioner.
420-R:10 Member Equity Guaranty Funds Authorized. With prior approval from the commissioner, a program shall establish and maintain a member equity guaranty fund as provided in paragraph I. In addition to the required fund under paragraph I, a program may voluntarily implement additional guarantee measures as provided in paragraphs II and III to protect from financial impairment. In addition, the commissioner may require any additional guaranty measures beyond those required in paragraph I if a program’s RBC is above company action level but less than the product of its authorized control level RBC and 3.0 with a negative trend.
I. Each advance premium pooled risk management program shall establish and maintain a member equity guarantee fund out of surplus in any amount not to exceed 1/2 its net surplus by appropriation from its net assets and maintain it in a separate account. Such member equity guaranty fund shall be available to meet the obligations of the program, but not to pay dividends or to be otherwise distributed except to meet the obligations of the program when all other assets of the program shall become exhausted.
II. Any advance premium pooled risk management program may create not more than one member equity guaranty fund by borrowing a sum of money not exceeding $1,000,000 by the issue of certificates of indebtedness upon such terms as the members shall determine, provided that such certificates shall not be divided into classes in any way and that the holders of such certificates shall not be entitled to vote in the direction of the affairs of the program and shall not receive a greater return on their investment than 10 percent per annum. The commissioner, upon notice to the program and after hearing its objections, if any, may require any member equity guaranty fund established under this section to be retired when he or she shall find it is no longer needed for protection of covered persons, creditors, or the general public.
III. Any advance premium pooled risk management program that has created a member equity guaranty fund under either paragraph I or II may, with the approval of the insurance commissioner, reduce or retire such fund in whole or in part, but it may not be otherwise distributed except to pay the obligations of the program or refunded to members. Any member equity guaranty fund held by the advance premium pooled risk management program on behalf of a member shall be returned to that member within 3 months of the date of termination of the member’s involvement in that pooled risk management program.
420-R:11 Deposit. Each advance premium pooled risk management program shall maintain a deposit with the commissioner, which shall be used in the event that the program’s resources are exhausted in a given fiscal period, and which may not be reflected on the balance sheet of the program. If the program obtains excess insurance that limits the retained annual aggregate claim cost to no more than 105 percent of the amount anticipated in the calculation of contribution rates, the deposit shall be, at a minimum, the product of a program’s authorized control level and 1.0. If the program does not obtain the required level of excess insurance, the deposit shall be, at a minimum, the product of the program’s authorized control level and 2.0. The commissioner may require an increase in the deposit based on the program’s financial condition, risk exposure, loss experience, or any material change in the program’s risk profile. Failure to maintain the required deposit for a period exceeding 30 days shall constitute grounds for immediate suspension of licensure, provided that the commissioner may grant a one-time cure period of up to 30 days upon a showing of good cause.
420-R:12 Return of Capital.
I. If, on the last day of the calendar year, a program’s RBC, as measured under the provisions of RSA 404-F, is more than the product of its authorized control level and 6.0, then the board of directors shall vote, by April 1 of the succeeding year, on the question of whether to make a return of excess surplus to members through the declaration of a dividend, return of capital, or return of premium.
II. Regardless of its RBC level, any dividend, return of capital, or return of premium proposed by the board of a program shall be reviewed and approved prior to distribution by the commissioner under such terms of RSA 401-B:5, II, as are applicable to advance premium pooled risk management programs as determined by the commissioner.
420-R:13 Examination.
I. The commissioner shall make an examination of each advance premium pooled risk management program under the terms of RSA 400-A:37 as often as he or she deems necessary, but not less frequently than once in every 5 years. All examinations shall be conducted at the expense of the program.
II. Each program shall submit its books and records relating to its operations to such examinations and in every way facilitate them. For the purpose of examinations, the commissioner may issue subpoenas, administer oaths to, and examine the officers and agents of the program.
420-R:14 Investments. The assets of any advance premium pooled risk management program shall be invested in those securities and investments permitted for insurers in this state under RSA 402:28 and RSA 411-A as applicable.
420-R:15 Acquisition of Control or Merger.
I. An advance premium pooled risk management program may acquire control of or merge with any other advance premium pooled risk management program licensed in this state by complying with the provisions of this section and with such terms of RSA 401-B:3 as are applicable to advance premium pooled risk management programs as determined by the commissioner. It shall file with the commissioner:
(a) A certified copy of the written contract containing in full the terms and conditions of the consolidation or merger;
(b) A sworn statement by the president and secretary or corresponding officers of each program showing the financial condition thereof on a date fixed by the commissioner but not earlier than December 31, next preceding the date of the contract;
(c) A certificate of such officers, duly verified by their respective oaths, that the consolidation or merger has been approved by a 2/3 vote of the board of each program, such vote being conducted at a regular or special meeting of each board, or, if the program's laws so permit, by mail;
(d) Evidence that at least 60 days prior to the action of the board of each program, the text of the contract has been furnished to all members of each program either by mail or by publication in full in an official publication of each program; and
(e) Any information that a domestic insurer is required to file with the commissioner under RSA 401-B:3, I through V, that the commissioner deems to be applicable to advance premium pooled risk management programs.
II. If the commissioner finds that the contract is in conformity with the provisions of this section, that the financial statements are correct, that the standards set out in RSA 401-B:3, VI(a) are met, and that the acquisition or merger is just and equitable to the members of each program, the commissioner shall approve the contract and issue a certificate to such effect. Upon such approval, the contract shall be in full force and effect. If the contract is not approved, it shall be inoperative, and the fact of submission and its contents shall not be disclosed by the commissioner.
III. Upon a merger becoming effective as provided under this section, all the rights, franchises, and interests of the merged programs in and to every species of property, real, personal, or mixed, and things in action thereunto belonging shall be vested in the program resulting from or remaining after the merger without any other instrument, except that conveyances of real property may be evidenced by proper deeds, and the title to any real estate or interest therein, vested under the laws of this state in any of the programs merged, shall not revert or be in any way impaired by reason of the merger, but shall vest absolutely in the program resulting from or remaining after such merger.
420-R:16 Commissioner’s Additional Enforcement Authority.
I. In addition to the solvency enforcement measures authorized in 420-R:9, II, when the commissioner, upon investigation, finds that: an advance premium pooled risk management program has failed to comply with any provision of this chapter; or is not fulfilling its contracts in good faith; or is conducting business fraudulently or in a manner hazardous to its covered persons, members, creditors, the public, or the business; or is acting outside its authority; or is operating as an advance premium pooled risk management program without a license, then the commissioner shall provide detailed written notice to the program of the deficiency and require that such deficiency be corrected.
II. After such notice, the program shall have a 30-day period in which to comply with the commissioner's request for correction or the submission of a corrective action plan. If the program fails to comply, the commissioner shall notify the program of such findings of noncompliance and require the program to show cause, on a date named, why: its license should not be suspended, revoked, or limited to servicing existing business only; or it should not be subject to a cease and desist order; or it should not be fined in an amount up to $2,500 per violation; or it should not be ordered to make restitution or refund to an aggrieved person.
III. Upon hearing, the commissioner shall issue such prohibitionary and mandatory orders as are reasonably necessary to secure compliance with the terms of this chapter and are within his or her enforcement powers as specified in this section.
420-R:17 Appeals. All orders and decisions of the commissioner concerning matters within his or her jurisdiction under this chapter shall be subject to hearing and appeal as provided in RSA 400-A:17 through 24 and RSA 541. RSA 541:18 shall apply to orders and decisions of the commissioner affecting the rates of the program.
420-R:18 Rulemaking Authority. The commissioner may adopt rules in accordance with RSA 541-A, which are reasonable and necessary to administer and enforce the provisions of this chapter.
420-R:19 Powers; Liability. Any program operating under this chapter, whether or not a body corporate, may sue or be sued; make contracts; hold and dispose of real property; and borrow money, contract debts, and pledge assets in its capacity to serve its members.
420-R:20 Liquidation.
I. If a program is placed in liquidation, the commissioner shall be the liquidator and shall administer the liquidation in accordance with RSA 402-C. The assets of the program shall be distributed in accordance with the priority classes established under RSA 402-C:44.
II. Notwithstanding any other provision of law, claims of members for return of contributions shall be subordinated to all other claims under RSA 402-C:44 and shall be paid only after all other claims have been satisfied in full.
III. The commissioner may, with court approval, transfer all or part of the program’s liabilities to another advanced premium pooled risk management program, provided that the transferee has adequate capital and has agreed to assume such liabilities.
6 Effective Date. This act shall take effect July 1, 2027.
2026-1316s
AMENDED ANALYSIS
This bill:
I. Defines "advance premium pooled risk management programs" as a type of non-assessable risk pool regulated and licensed by the department of insurance.
II. Establishes licensing, capitalization, and rate-setting requirements, provides enforcement authority to the insurance department, and establishes an advisory board to provide additional regulatory oversight.
III. Requires such programs to establish a member equity guarantee reserve fund and to maintain certain minimum deposits.