HB 557 - AS INTRODUCED
2003 SESSION
01/09
HOUSE BILL 557
AN ACT banning cancellation of or rate increases in homeowner's insurance based on the number of claims and prohibiting motor vehicle insurers from using credit information for underwriting purposes.
This bill prohibits insurers from charging higher rates or canceling a homeowner's insurance policy based on the number of claims submitted by such homeowner. The bill prohibits mold-based claims under homeowner's insurance policies.
The bill also prohibits motor vehicle insurers from using credit information for underwriting purposes.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03-1034
01/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Three
AN ACT banning cancellation of or rate increases in homeowner's insurance based on the number of claims and prohibiting motor vehicle insurers from using credit information for underwriting purposes.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Motor Vehicle Insurance; Use of Credit Information Prohibited. Amend RSA 412:14-a to read as follows:
412:14-a Use of Credit Reports, Credit Histories, and Credit Scoring Models in Underwriting and Rating. The use of information contained in credit reports, credit histories, and credit scoring models [for underwriting or for rating purposes shall be based upon objective, documented, and measurable standards and shall be used in a manner which affords appropriate consumer protections, including consumer notice provisions and confidentiality protections. The insurance commissioner shall, pursuant to RSA 541-A, adopt such rules as may be necessary to regulate the use of such information in the underwriting and rating of motor vehicle insurance. Underwriting models and rate filings which rely upon information in credit reports, credit histories, or credit scoring models shall be subject to express approval by the insurance department] shall not be used for underwriting or for rating purposes for motor vehicle insurance.
2 Homeowner's Insurance Policies; Nonrenewal for Valid Claims. Amend RSA 417-B:3-a to read as follows:
417-B:3-a Nonrenewal or Cancellation for Filing a Claim. The nonrenewal or cancellation of a homeowner's insurance policy shall not be effective if such nonrenewal or cancellation is based solely on the insured having filed [a single] valid [claim] claims during any previous policy term.
3 New Section; Homeowner's Insurance; Coverage. Amend RSA 417-B by inserting after section 3-a the following new section:
417-B:3-b Homeowner's Insurance; Mold-Based Claims. No homeowner's insurance policy shall cover claims for damage caused by mold.
4 Effective Date. This act shall take effect 60 days after its passage.