HB1282: (New Title) authorizing the commissioner of insurance and the commissioner of banking to order the payment of restitution to individuals harmed by unfair or deceptive practices of licensees.

CHAPTER 210

HB 1282 – FINAL VERSION

17Mar2004… 0700h

04/29/04 1279s

25May2004… 1609CofC

2004 SESSION

03-2214

01/09

HOUSE BILL 1282

AN ACT authorizing the commissioner of insurance and the commissioner of banking to order the payment of restitution to individuals harmed by unfair or deceptive practices of licensees.

SPONSORS: Rep. Hunt, Ches 28

COMMITTEE: Commerce

AMENDED ANALYSIS

This bill authorizes the commissioner of insurance and the commissioner of banking to order the payment of restitution to individuals harmed by unfair or deceptive practices of licensees

This bill also changes an effective date of a section of SB 371 of the 2004 legislative session.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

17Mar2004… 0700h

04/29/04 1279s

25May2004… 1609CofC

03-2214

01/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Four

AN ACT authorizing the commissioner of insurance and the commissioner of banking to order the payment of restitution to individuals harmed by unfair or deceptive practices of licensees.

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

210:1 New Section; Consumer Complaint Administrator. Amend RSA 383 by inserting after section 10-e the following new section:

383:10-f Consumer Complaint Administrator. The commissioner shall annually designate one person from within the banking department who shall administer and coordinate the commissioner’s response to consumer complaints concerning conduct in trade or commerce licensed under Title XXXVI or RSA 361-A, or conduct which is alleged to be an unfair or deceptive practice under the provisions of RSA 383:10-d.

210:2 Consumer Complaints and Restitution. RSA 383:10-d is repealed and reenacted to read as follows:

383:10-d Consumer Complaints and Restitution. The commissioner shall have exclusive authority and jurisdiction to investigate conduct that is or may be an unfair or deceptive act or practice under RSA 358-A and exempt under RSA 358-A:3, I or that may violate any of the provisions of Titles XXXV and XXXVI and administrative rules adopted thereunder. The commissioner may hold hearings relative to such conduct and may order restitution for a person or persons adversely affected by such conduct. The commissioner may request the assistance and services of the consumer protection and antitrust bureau of the department of justice. In the instance of conduct involving an alleged criminal offense, the commissioner shall refer to the department of justice all aspects relevant to the criminal investigation and prosecution of such matter.

210:3 Insurance; Orders and Penalty. Amend RSA 417:10 to read as follows:

417:10 Orders and Penalty.

I. If after hearing or at the expiration of the period set forth in a show cause order issued pursuant to this chapter, any person is found to have violated RSA 417:3, the commissioner may suspend, revoke, or refuse to renew the license of that person. The commissioner, in the commissioner's discretion, in addition to or in lieu of such suspension, revocation, or refusal to renew, may impose upon that person an administrative penalty of not more than $2,500 for each method of competition, act, or practice found to be in violation of RSA 417:3. The commissioner shall collect the amount so imposed and may bring an action in the name of the state to enforce collection.

II. In lieu of the monetary penalties provided for under paragraph I, the commissioner, after hearing, may order relief for actual economic losses to restore, in whole or in part, any individual consumer, as opposed to a group or class of consumers, in interest to the position that the consumer formerly occupied either by the return of that which the consumer formerly had or by receipt of its equivalent in money. Unless the parties agree, an order of relief under this paragraph shall not exceed $2,500 for each method of competition, act, or practice found to be in violation of RSA 417:3 and where a pattern of conduct or practice has been established. Relief may be ordered under this paragraph only when the consumer in interest has agreed that such relief shall constitute a waiver of any action for the same cause that might otherwise be filed before an administrative agency or any court. Relief ordered under this paragraph shall not apply to disputes regarding claims or losses.

210:4 Contingency. If SB 371 of the 2004 legislative session becomes law, then section 3 of SB 371 shall take effect June 30, 2004.

210:5 Effective Date.

I. Section 4 of this act shall take effect upon its passage.

II. The remainder of this act shall take effect 60 days after its passage.

(Approved: June 11, 2004)

(Effective Date: I. Section 4 shall take effect June 11, 2004.

II. Remainder shall take effect August 10, 2004.)