SB370: relative to the insurance rating law.

CHAPTER 156

SB 370 – FINAL VERSION

03/11/04 0631s

22Apr2004… 1135h

2004 SESSION

04-3076

01/09

SENATE BILL 370

AN ACT relative to the insurance rating law.

SPONSORS: Sen. Flanders, Dist 7; Rep. Hunt, Ches 28

COMMITTEE: Insurance

ANALYSIS

This bill makes certain technical corrections in the insurance rating law.

This bill is a request of the insurance department.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03/11/04 0631s

22Apr2004… 1135h

04-3076

01/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Four

AN ACT relative to the insurance rating law.

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

156:1 Insurance Rating; Scope of Chapter. Amend RSA 412:2, II(e) to read as follows:

(e) Title insurance, except as otherwise provided in RSA 416-A:17 and RSA 416-A:17-a.

156:2 New Section; Insurance Rating; Notice Requirement. Amend RSA 412 by inserting after section 6 the following new section:

412:6-a Notice Requirement. In the event that a company or filing or advisory organization eliminates or reduces coverages, conditions, or definitions in its policies issued under this section other than at the request of a policyholder, the company shall attach to the policy a printed notice in each such policy explaining clearly what coverages, conditions, or definitions have been eliminated or reduced. If explanations of such reduced or eliminated coverages are not contained in the printed notice attached to its policies, then such coverages, conditions, or definitions shall remain in full force and effect without such reductions or eliminations. The requirements of this section shall apply only to such policies renewed or endorsed with the same company.

156:3 Insurance Rating; Policies and Forms; Large Commercial Policyholder. Amend RSA 412:7, I and II to read as follows:

I. All policies issued pursuant to the provisions of this chapter shall contain a conspicuous disclaimer printed in at least 10-point, bold-faced type that states that the policy applied for, including the rates, rating plans, resulting premiums, and the policy forms, are not subject to the rate and form requirements of this state and other provisions of the insurance law that apply to other commercial products and may contain significant differences from a policy that is subject to all provisions of the insurance law. Such notice shall set forth possible differences in policy conditions, forms, and endorsements, as compared to a policy that is subject to all of the provisions of the insurance law. The commissioner [shall] may prescribe the format and provisions of such notice. The disclosure notice shall also include a policyholder's acknowledgment statement, to be signed and dated prior to the effective date of the coverage, and shall remain on file with the insurer.

II. In procuring insurance, a large commercial policyholder shall certify [on a form approved by the commissioner] that it meets the eligibility requirements set out in RSA 412:3, XI and specify the requirements that the policyholder has met. This certification is to be completed annually and remain on file with the insurer.

156:4 Insurance Rating; Rate Filings. Amend RSA 412:16, VII(c)(1) and (2) to read as follows:

(1) All policies issued pursuant to the provisions of this section shall contain a conspicuous disclaimer printed in at least 10-point, bold-faced type that states that the policy applied for, including the rates, rating plans, resulting premiums, and the policy forms, are not subject to the rate and form requirements of this state and other provisions of the insurance law that apply to other commercial products and may contain significant differences from a policy that is subject to all provisions of the insurance law. Such notice shall set forth possible differences in policy conditions, forms, and endorsements, as compared to a policy that is subject to all of the provisions of the insurance law. The commissioner [shall] may prescribe the format and provisions of such notice. The disclosure notice will also include a policyholder's acknowledgment statement, to be signed and dated prior to the effective date of the coverage, and shall remain on file with the insurer.

(2) In procuring insurance, a large commercial policyholder shall certify [on a form approved by the commissioner] that it meets the eligibility requirements set out in RSA 412:3, XI and specify the requirements that the policyholder has met. This certification is to be completed annually and remain on file with the insurer.

156:5 Insurance Rates. Amend RSA 416-A:17 to read as follows:

416-A:17 Rates and Rating Organizations.

I. Title insurance rates and rating organizations should be regulated in the manner provided by RSA 412:13 through RSA 412:16, and RSA 412:20 through RSA 412:25, except as otherwise provided in this section.

II. Every title insurance company shall file with the commissioner its schedule of fees or premium rates, every manual of classifications, rules and plans pertaining thereto, and every modification of any of the foregoing which it proposes to use in this state. In every such filing, the company shall set forth that portion of the fee which is designated as premium as herein defined.

[III. No schedule of fees or premium rates shall take effect until the commissioner shall approve the same as adequate, reasonable, and nondiscriminatory; and no company authorized to transact business in this state shall make, write, place, or cause to be made any title insurance policy except at a rate approved by the commissioner.]

156:6 Insurance Rating; Definitions. Amend RSA 412:3, XI(b)(2) to read as follows:

(2) Aggregate property and casualty insurance premiums, excluding workers' compensation, medical malpractice, life, health, and disability insurance premiums of [$100,000] $30,000 or more.

156:7 New Section; Filing of Forms. Amend RSA 416-A by inserting after section 17 the following new section:

416-A:17-a Filing of Forms. Every insurer and advisory organization shall file policy forms, endorsements, and other contract language covered by this chapter within 30 days of the effective date of this section.

156:8 Repeal. The following are repealed:

I. RSA 412:3, I, relative to “accident.”

II. RSA 412:10, relative to notice requirement.

III. RSA 412:37, relative to advisory organizations.

156:9 Effective Date. This act shall take effect 60 days after its passage.

(Approved: May 24, 2004)

(Effective Date: July 23, 2004)