2002 SESSION

02-3107

01/09

SENATE BILL 365

COMMITTEE: Insurance

ANALYSIS

This bill clarifies the expenses which may be claimed by an insurer during an examination by the insurance department. This bill also increases the amount required for a claim for unearned premiums in policy-related claims against an insurer's estate after liquidation.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

02-3107

01/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Two

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

1 Examination Expenses. Amend RSA 400-A:37, VII to read as follows:

VII. EXAMINATION EXPENSE. The insurer or other person examined pursuant to this section shall bear the expense of the examination. Such expense shall be limited to a reasonable per diem allowance for compensation and expenses as determined by the commissioner; provided, that the expenses incurred by such insurer or other person examined shall be proportionately related to the magnitude of the examination. As to the per diem expense allowance and compensation allowance involved in any such examination, the commissioner may give due consideration to scales and limitations recommended by the National Association of Insurance Commissioners and outlined in the examination manual sponsored by that association. Provided, however, that if upon examination of any person specified in RSA 400-A:37, II(a) the commissioner shall determine that such person is not in violation of the provisions of Title XXXVII or applicable regulations, the expense of the examination shall be borne by the department.

2 Rehabilitation and Liquidation; Amount Increased. Amend RSA 402-C:44, II to read as follows:

II. Policy Related Claims. All claims by policyholders, including claims for unearned premiums in excess of [$50] $75, beneficiaries, and insureds arising from and within the coverage of and not in excess of the applicable limits of insurance policies and insurance contracts issued by the company, and liability claims against insureds which claims are within the coverage of and not in excess of the applicable limits of insurance policies and insurance contracts issued by the company and claims of the New Hampshire Insurance Guaranty Association, the New Hampshire Life and Health Insurance Guaranty Association and any similar organization in another state. All claims under life insurance and annuity policies, whether for death proceeds, annuity proceeds or investment values, shall be treated as loss claims. That portion of any loss for which indemnification is provided by other benefits or advantages recovered or recoverable by the claimant shall not be included in this class, other than benefits or advantages recovered or recoverable in discharge of familial obligations of support or by way of succession at death or as proceeds of life insurance, or as gratuities. No payment made by an employer to an employee shall be treated as a gratuity.

3 Effective Date. This act shall take effect 60 days after its passage.