04/10/03 1075s

29may03... 1532h

06/24/03.....2134cofc

2003 SESSION

03-1130

01/09

SENATE BILL 42

AN ACT relative to the insurance rebating laws.

COMMITTEE: Insurance

AMENDED ANALYSIS

This bill clarifies the insurance rebating laws.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

04/10/03 1075s

29may03...1532h

06/24/03.....2134cofc

03-1130

01/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

AN ACT relative to the insurance rebating laws.

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

244:1 Insurance; Rebating; Exceptions. RSA 402:41 is repealed and reenacted to read as follows:

402:41 Exceptions.

I. RSA 402:39, RSA 402:40, and RSA 417:4, IX shall not prohibit:

(a) An insurance company from paying to another insurance company or to any person who is a duly authorized producer, or an insurance company or such a person from receiving a commission in respect to any policy under which the entity or he or she is insured.

(b) An insurance company issuing non-participating life insurance from paying bonuses to policyholders or otherwise abating their premiums in whole or in part out of surplus accumulated from non-participating insurance.

(c) An insurance company transacting industrial insurance on the weekly payment plan from returning to policyholders, who have made premium payments for a period of at least one year directly to the company of its home or district offices, a percentage of the premium which the company would have paid for weekly collection of such premiums.

(d) Value added service, activity, or product offered or provided without a fee, or at a reduced fee, that is related to the coverage provided by an insurance contract, if the provision of such value added service, activity, or product does not violate any other applicable statute or rule, and is:

(1) Clearly identified and included within the insurance policy, annuity contract, or brokerage agreement; or

(2) Directly related to the firm's servicing of the insurance policy, annuity contract, or brokerage agreement, or offered or undertaken to provide risk control for the benefit of the client.

II. For the purposes of subparagraph I(d), "value added service, activity, or product" may include the following:

(a) Risk assessments.

(b) Risk control tools.

(c) Claims assistance.

(d) Legislative updates.

(e) Administration consulting.

244:2 Effective Date. This act shall take effect 60 days after its passage.

(Approved: July 14, 2003)

(Effective Date: September 12, 2003)