18apr01...0779h

5/31/01 1379s

2001 SESSION

01-0959

01/09

HOUSE BILL 525

COMMITTEE: Commerce

AMENDED ANALYSIS

This bill makes certain technical changes to the laws relative to property and casualty insurance. The bill requires road service licensees and premium finance companies to file a surety bond with the commissioner. The bill repeals the chapter relative to an environmental risk insurance pool and repeals a limitation on multiple insurance fraud charges. The bill also allows the interception of wire or oral communications in connection with an insurance fraud investigation.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

18apr01...0779h

5/31/01 1379s

01-0959

01/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand One

Be it Enacted by the Senate and House of Representatives in General Court convened:

224:1 New Paragraph; Purposes; Miscellaneous Casualty Insurance Added. Amend RSA 401:1 by inserting after paragraph VII the following new paragraph:

VIII. Miscellaneous casualty insurance not already defined in this chapter.

224:2 Continuing Education for Adjusters. Amend RSA 402-B:5-a to read as follows:

402-B:5-a Continuing Education. Every 2 years, at least 60 days prior to the renewal date of their license, persons holding an adjusters license shall be certified by the insurance department as having completed 20 hours of continuing education instruction. Licensees with workers' compensation authority shall comply with the approved 10 credit hours of workers' compensation and 10 credit hours of multi-line requirement pursuant to RSA 281-A:63. Those licensees without workers' compensation authority may satisfy their 20 credit hour requirement exclusively with multi-line approved credits or any combination of approved workers' compensation or multi-line courses. Such continuing education instruction shall be approved by the insurance department. [Any credits earned as required by RSA 281-A:63 shall apply to the continuing education requirement of this section.] If a nonresident licensee's state of residence has mandatory continuing education requirements substantially similar to the requirements of this state, the commissioner may accept certification of the licensee's compliance in the state of residence.

224:3 Reference Added. Amend the unnumbered paragraph at Concealment, fraud of RSA 407:22 to read as follows:

Coverage under this policy shall be void for the insured who, whether before or after a loss, has intentionally concealed or misrepresented any material fact or circumstance; engaged in fraudulent conduct; or made false statements relating to this insurance.

224:4 Road Service Licensure; Bond Required. Amend RSA 407-C:2 to read as follows:

407-C:2 Issuance and Renewal.

I. If the insurance commissioner is of the opinion that an applicant is reliable and entitled to confidence, such applicant shall be granted a license to perform such road or other service in this state until July 1 thereafter, and annually thereafter on July 1, such license may be renewed so long as the commissioner shall regard such licensee as reliable and entitled to confidence. Such application shall give such information as the commissioner may require, including, but not limited to, the most recent financial statement of the applicant prepared [according to] in accordance with generally accepted accounting principles and certified by a certified public accountant.

II. Individuals, firms, associations, or corporations established in this state shall file with the commissioner proof of minimum capital and surplus in an amount equal to or greater than $250,000, or shall file with the commissioner a surety bond or equivalent acceptable to the commissioner in the amount of $250,000.

224:5 Terms of Payment; Liability Insurance. Amend RSA 412:1 to read as follows:

412:1 Terms of Payment. No corporation or other insurer shall issue or deliver any policy of insurance against loss or expense by reason of claims made upon the assured for damages on account of bodily injuries suffered by an employee of the assured, or by any other person, or on account of damage to or the destruction of property, or wrongful acts and economic damages, which shall contain any provision making, or purporting to make, the pre-payment of any judgment that may be recovered against the assured upon any claim covered by the policy a condition precedent to any right of action against the insurer upon said policy; but every such policy shall contain an agreement in clear and explicit terms binding the insurer, to the extent of the liability assumed by the policy, to pay and satisfy any such judgment, and to protect the assured against the levy of any execution issued upon the same.

224:6 Workers' Compensation Rates; Evaluation. Amend RSA 412:8, II to read as follows:

II. The commissioner [shall] may evaluate systems of "administered pricing" versus "competitive rating" and the costs and benefits of applying such systems to regulating the classification of risks and premium rates for workers' compensation insurance in New Hampshire [every 3 years]. The commissioner [shall] may provide an evaluation to the workers' compensation advisory council established by RSA 281-A:62.

224:7 Premium Finance Companies; Bond Required. Amend RSA 415-B:2, II to read as follows:

II. The annual license fee shall be $200. Licenses may be renewed from year to year as of July 1 of each year upon payment of the license fee to the commissioner. Additionally, a premium finance company established in this state shall file with the commissioner proof of minimum capital and surplus in an amount equal to or greater than $250,000, or shall file with the commissioner a surety bond or equivalent acceptable to the commissioner in the amount of $250,000.

224:8 Health Maintenance Organizations; Reports to Commissioner. Amend RSA 420-B:9, I to read as follows:

I. Every organization subject to this chapter annually, [within 120 days of the close of its fiscal year] on March 1, shall file a report with the commissioner and with the commissioner of health and human services, said report verified by an appropriate official of the organization, showing its financial condition on the last day of the preceding fiscal year.

224:9 Delta Dental Plan; Financial Report. Amend RSA 420-F:9, I to read as follows:

I. Delta shall file with the commissioner, [within 120 days of the close of this fiscal year] on March 1, a report verified by an appropriate official of Delta, showing its financial condition on the last day of the preceding fiscal year.

224:10 Authorization for Interception of Telecommunications or Oral Communications. Amend RSA 570-A:7 to read as follows:

570-A:7 Authorization for Interception of Telecommunications or Oral Communications. The attorney general, deputy attorney general, or a county attorney, upon the written approval of the attorney general or deputy attorney general, may apply to a judge of competent jurisdiction for an order authorizing or approving the interception of telecommunications or oral communications, and such judge may grant, in conformity with RSA 570-A:9, an order authorizing or approving the interception of telecommunications or oral communications by investigative or law enforcement officers having responsibility for the investigation of the offenses as to which the application is made, when such interception may provide, or has provided, evidence of the commission of organized crime, as defined in RSA 570-A:1, XI, or evidence of the commission of the offenses of homicide, kidnapping, gambling, theft as defined in RSA 637, corrupt practices as defined in RSA 640, child pornography under RSA 649-A, computer pornography and child exploitation under RSA 649-B, criminal conduct in violation of the securities law, as defined in RSA 421-B:3, 421-B:4, 421-B:5, 421-B:19, and 421-B:24, criminal conduct in violation of the security takeover disclosure laws, as defined in RSA 421-A:3, 421-A:7, 421-A:8, 421-A:11, and 421-A:13, robbery as defined in RSA 636:1, arson as defined in RSA 634:1, hindering apprehension or prosecution as defined in RSA 642:3, tampering with witnesses and informants as defined in RSA 641:5, aggravated felonious sexual assault as defined in RSA 632-A:2, felonious sexual assault as defined in RSA 632-A:3, escape as defined in RSA 642:6, bail jumping as defined in RSA 642:8, insurance fraud as defined in RSA 638:20, dealing in narcotic drugs, marijuana, or other dangerous drugs, hazardous waste violations under RSA 147-A:4, I, or any conspiracy to commit any of the foregoing offenses.

224:11 Reference to Special Fund Deleted. Amend the introductory paragraph of RSA 402-B:8 to read as follows:

The commissioner of insurance shall collect the following fees[, which shall be paid into a special fund, hereby created,] for use by the commissioner in administrating this title:

224:12 Repeal. The following are repealed:

I. RSA 404-E, relative to an environmental risk insurance pool.

224:13 Effective Date.

I. Sections 8 and 9 of this act shall take effect January 1, 2002.

(Approved: July 11, 2001)

(Effective Date: I. Sections 8 and 9 shall take effect January 1, 2002.