Revision: Dec. 4, 2025, 2:59 p.m.
SB 614-FN - AS INTRODUCED
2026 SESSION
26-2226
12/09
SENATE BILL 614-FN
SPONSORS: Sen. Ricciardi, Dist 9; Sen. Watters, Dist 4; Sen. Perkins Kwoka, Dist 21; Sen. Altschiller, Dist 24; Rep. Kuttab, Rock. 17; Rep. L. Walsh, Rock. 15; Rep. Post, Hills. 42
COMMITTEE: Health and Human Services
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ANALYSIS
This bill creates pooled risk management programs relative to insurance costs for child care centers and foster family homes. The bill also directs the department of the state to ensure standards are met for the establishment of each liability pool.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
26-2226
12/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty-Six
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Chapter; Child and Foster Care Pooled Risk Management Programs. Amend RSA by inserting after chapter 5-D the following new chapter:
CHAPTER 5-E
CHILD AND FOSTER CARE POOLED RISK MANAGEMENT PROGRAMS
5-E:1 Purpose. The purpose of this chapter is to provide for the establishment of pooled risk management programs and to affirm the status of such programs established for the benefit of child care centers and foster family homes in the state. The legislature finds and determines that insurance and risk management is essential to the proper functioning of child care centers and the foster care system; that risk management can be achieved through purchase of traditional insurance or by participation in pooled risk management programs established for the benefit of child care centers and foster family homes; that the resources of child care centers and foster family homes are presently burdened by the securing of insurance protection through standard carriers; and that pooled risk management programs which meet the standards established by this chapter should not be subject to insurance regulation and taxation by the state.
5-E:2 Definitions. In this chapter:
I. "Department" means department of state.
II. "Child care center" shall have the same meaning as "child day care agency", as defined in RSA 170-E:2, IV.
III. "Foster family home" shall have the same meaning as defined in RSA 170-E:25, II(b).
IV. "Risk management" shall have the same meaning as defined in RSA 5-B:2, IV.
5-E:3 Establishment of Pools; Coverage; Membership.
I. A child care center or foster family home liability pool shall be created when 10 or more child-care facilities or foster family homes or a combination thereof agree in writing to participate in the pool. Agreements made pursuant to this paragraph may provide for pooling of self-insurance reserves, risks, claims and losses, and of administrative services and expenses associated with them among child center centers or foster family homes.
II. A child care center or foster family home liability pool may provide any or all 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.
III. A child care center or foster family home is entitled to coverage from the pool if the center:
(a) Submits a complete application;
(b) Provides other information required by the pool;
(c) Meets the underwriting standards established by the pool; and
(d) Pays the premiums required for the coverage.
5-E:4 Informational Filing Required; Authority of Secretary of State.
I. Pooled risk management programs established for the benefit of child care centers or foster family homes shall make an informational filing, as defined in RSA 5-B:2, II, and subject to the provisions of that statute.
II. Notwithstanding any other provision of law, the secretary of state shall have the same authority over the New Hampshire child care center and foster family home liability pool as provided for by RSA 5-B:4-a.
5-E:5 Standards of Organization and Operation.
I. Each pooled risk management program shall meet the following standards of organization and operation. Each program shall:
(a) Exist as a legal entity organized under New Hampshire law.
(b) Operate as initially provided by in a plan of operation agreed to by the principals, subject to the provision that the principals shall each nominate a representative to serve on the board of directors. Amendments to the plan of operation may be made by the board after appointment by the principals. Board members shall not receive compensation but may be reimbursed for mileage and other reasonable expenses.
(c) Return all earnings and surplus in excess of any amounts required for administration, claims, reserves, and purchase of excess insurance to the participating child care facilities or foster family homes.
(d) Provide for an annual audit of financial transactions by an independent certified public accountant. The audit shall be filed with the department and distributed to participants of each pooled risk management program.
(e) Be governed by written bylaws which shall detail the terms of eligibility for participation by child care facilities or foster family homes, the governance of the program and other matters necessary to the program's operation. Bylaws and any subsequent amendments shall be filed with the department.
(f) Provide for an annual actuarial evaluation of the pooled risk management program. The evaluation shall assess the adequacy of contributions required to fund any such program and the reserves necessary to be maintained to meet expenses of all incurred and incurred but not reported claims and other projected needs of the plan. The annual actuarial evaluation shall be performed by a member of the American Academy of Actuaries qualified in the coverage area being evaluated, shall be filed with the department, and shall be distributed to participants of each pooled risk management program.
(g) Provide notice to all participants of and conduct meetings for the purpose of advising of potential rate increases, the reasons for projected rate increases, and to solicit comments from members regarding the return of surplus, at least 10 days prior to rate setting for each calendar year.
II. If a pooled risk management program fails to provide for an annual audit or an annual actuarial evaluation, the department shall perform or cause to be performed the required audit or evaluation and shall be reimbursed the cost by the program.
5-E:6 Declaration of Status; Tax Exemption; Liability.
I. Any pooled risk management program meeting the standards required under this chapter is not an insurance company, reciprocal insurer, or insurer under the laws of this state, and administration of any activities of the plan shall not constitute doing an insurance business for purposes of regulation or taxation.
II. Any such 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 name.
III. Participation by a child care center or foster family home in a pooled risk management program formed and affirmed under this chapter shall not subject any such child care center or foster family home to any liability to any third party for the acts or omissions of the pooled risk management program or any other child care center or foster family home participating in the program.
5-E:7 Confidentiality of Certain Claims Information. Notwithstanding any provision of law to the contrary, any information of any pooled risk management program formed or affirmed under this chapter pertaining to claims analysis or claims management shall be privileged and confidential and not subject to disclosure to any third party.
2 Effective Date. This act shall take effect 60 days after its passage.
26-2226
Revised 12/4/25
SB 614-FN- FISCAL NOTE
AS INTRODUCED
FISCAL IMPACT:
The Secretary of State’s Office is currently unable to determine the fiscal impact or identify specific staffing needs. A fiscal note worksheet will be submitted once clarification is received from the legislature during the hearing process.
AGENCIES CONTACTED:
Department of State