sb 0178

CHAPTER 184

SB 178 - FINAL VERSION

AN ACT relative to guaranty funds.

SPONSORS: Sen. Prescott, Dist 23; Sen. Roberge, Dist 9; Sen. Johnson, Dist 2; Sen. Green, Dist 6

This bill clarifies the definition of a "covered claim" relative to net worth for the purposes of the New Hampshire Insurance Guaranty Association.

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

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT relative to guaranty funds.

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

184:1 New Hampshire Insurance Guaranty Association; Definition of "Covered Claim." Amend RSA 404-B:5, IV to read as follows:

IV. "Covered claim" means a net unpaid claim, in excess of $50 (after application of all deductions or commissions as provided for by any contract of insurance) including one for unearned premiums, which arises out of and is within coverage and not in excess of the applicable limits of an insurance policy to which this chapter applies issued by an insurer, if such insurer after the effective date of this chapter is declared insolvent by the superior court, and (a) the claimant or insured is a resident of this state at the time of the insured event; or (b) the property from which the claim arises is permanently located in this state. Claims may not be cumulated by assignment to avoid the application of the $50 deductible provision. "Covered claim" shall not include any amount due any reinsurer, insurer, insurance pool, or underwriting association, as subrogation recoveries or otherwise. Any such claim asserted against an insured or an insurer which has become insolvent shall have as its exclusive remedy a direct claim against the assets of the insolvent insurer filed with the liquidator as provided for in RSA 402-C in a maximum amount not to exceed the policy limits of the insured. "Covered claim" shall also not include an unpaid claim of an insured or third party liability claimant whose net worth as of December 31 of the year next preceding the date the insurer becomes an insolvent insurer exceeds $25,000,000; provided, that an insured's or third party liability claimant's net worth on such date shall be deemed to include the aggregate net worth of the insured or third party liability claimant and all of its affiliates as calculated on a consolidated basis.