CHAPTER 166
SB 394-FN - FINAL VERSION
20april00.....4114h
2000 SESSION
01/09
SENATE BILL 394-FN
This bill:
(1) Makes a technical correction to the law regulating foreign insurance companies.
(2) Clarifies the procedure pertaining to books, records, and other documents when an insurance company is undergoing examination.
(3) Changes the appeal procedure for persons aggrieved under RSA 401-B.
(4) Creates an exemption from certain provisions of RSA 541-A for certain insurance regulations.
(5) Adjusts the salary of the health care statistician.
This bill was requested by 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
20april00.....4114h
00-2309
01/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand
AN ACT making miscellaneous changes in the insurance laws.
Be it Enacted by the Senate and House of Representatives in General Court convened:
166:1 Reference Correction. Amend RSA 405:48, III to read as follows:
III. Clean, irrevocable, unconditional letters of credit, issued or confirmed by a qualified United States financial institution, as defined in RSA 405:45, VI, no later than December 31, in the year for which filing is being made, and in the possession of the ceding company on or before the filing date of its annual statement. Letters of credit meeting applicable standards of issuer acceptability as of the dates of their issuance or confirmation shall, notwithstanding the issuing or confirming institution's subsequent failure to meet applicable standards of issuer acceptability, continue to be acceptable as security until their expiration, extension, renewal, modification or amendment, whichever first occurs.
166:2 Documents During Examination. Amend RSA 400-A:37, III(b) to read as follows:
(b)(1) Every company or person from whom information is sought, its officers, directors and agents must provide to the examiners timely, convenient and free access at all reasonable hours at its offices to all books, records, accounts, papers, documents and any or all computer or other recordings relating to the property, assets, business and affairs of the company being examined. The officers, directors, employees and agents of the company or person must facilitate the examination and aid in the examination so far as it is in their power to do so. The refusal of any company, by its officers, directors, employees or agents, to submit to examination or to comply with any reasonable written request of the examiners shall be grounds for suspension or refusal of, or nonrenewal of any license or authority held by the company to engage in an insurance or other business subject to the commissioner's jurisdiction.
(2) Neither the commissioner nor any examiner shall remove any record, account, document, file, or other property of the person being examined from the office or place of such person except with the written consent of such person in advance of such removal or pursuant to an order of court duly obtained. This subparagraph shall not be deemed to affect the making and removal of copies or abstracts of any such record, account, document, or file.
166:3 Appeal Procedure; Insurance Holding Companies. RSA 401-B:14 is repealed and reenacted to read as follows:
401-B:14 Appeal. Any person aggrieved by any act, determination, rule, regulation, or order of any other action of the commissioner pursuant to this chapter may appeal in accordance with RSA 541.
166:4 Deleting Specific Dates and Certain Information. Amend RSA 420-I:4 to read as follows:
420-I:4 Reports to Insurance Commissioner. [On or before March 1 and September 1 of each year,] Each managed care insurer shall file a report in form and containing such information as the insurance commissioner prescribes when requested by the commissioner. Such report shall include the name of the managed care insurer, its affiliates, a description of each exclusive arrangement to which it is a party and, as applicable, the date on which exclusive arrangement has been or will be terminated.
166:5 New Paragraph; Rulemaking. Amend RSA 541-A:21 by inserting after paragraph V the following new paragraph:
VI. Rules adopted under title XXXVII, relative to insurance regulation, shall be exempt from the uniform system of numbering and drafting rules required by RSA 541-A:8. These rules shall be in compliance with RSA 541-A:7 if the wording is consistent with the language of the corresponding National Association of Insurance Commissioners regulations.
166:6 Section Heading Amended. The section heading of RSA 417-C:1 is repealed and reenacted to read as follows:
417-C:1 Grounds for Cancellation.
166:7 Notice of Cancellation. Amend RSA 417-C:2, I to read as follows:
I. No notice of cancellation of a fire, [casualty,] marine, [or] multi-peril, casualty, or liability policy, unless otherwise provided and controlled by RSA 417-A or 417-B, shall be effective unless mailed or delivered by the insurer to the named insured at least 60 days prior to the effective date of cancellation; provided, however, that where cancellation is for nonpayment of premium or substantial increase in hazard, at least 10 days' notice of cancellation shall be given. In all instances, the reason or reasons for cancellation shall accompany or be included in the notice of cancellation. An insurer shall not be held liable in any claim or suit for damages arising solely from the insurer's compliance with the requirement that the reason for cancellation be specified. This section shall not apply to workers' compensation policies.
166:8 Salary Adjustment; Health Care Statistician. Amend RSA 94:1-a, I by:
I. Deleting in group M the following: health care statistician.
II. Inserting in group K the following: health care statistician.
166:9 Effective Date. This act shall take effect 60 days after its passage.
(Approved: May 23, 2000)
(Effective Date: July 22, 2000)
LBAO
00-2309
12/15/99
SB 394-FN - FISCAL NOTE
AN ACT making miscellaneous changes in the insurance laws.
FISCAL IMPACT:
The Department of Administrative Services has determined this bill will decrease state restricted revenue and expenditures by $11,865 in FY 2001 and by $11,966 each year thereafter. There will be no fiscal impact on county and local revenue or expenditures.
METHODOLOGY:
The Department of Administrative Services has assumed the change from salary group M, ($59,454) max to salary group K, max ($50,320) for the vacant Health Care Statistician position will become effective July 1, 2000. The reduction includes reduced benefits calculated at 31% and an adjustment to correspond with the salary increase effective October 1, 2000.
The Insurance Department is a self-funded agency, therefor, the above impact will be on restricted revenue and expenditures.