HB623: relative to licensing requirements in the insurance and financial services industries.

CHAPTER 206

HB 623-FN – FINAL VERSION

09Mar2005… 0370h

15Jun2005… 1748eba

2005 SESSION

05-0350

08/04

HOUSE BILL 623-FN

AN ACT relative to licensing requirements in the insurance and financial services industries.

SPONSORS: Rep. Hunt, Ches 7; Rep. O'Neil, Rock 15

COMMITTEE: Commerce

ANALYSIS

This bill increases the criminal penalties for practicing insurance and financial services without a license.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

09Mar2005… 0370h

15Jun2005… 1748eba

05-0350

08/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Five

AN ACT relative to licensing requirements in the insurance and financial services industries.

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

206:1 New Section; Penalty for Unlicensed Practice. Amend RSA 310-B by inserting after section 3 the following new section:

310-B:3-a For Unlicensed Practice. Any person who shall practice or attempt to practice as a licensed or certified real estate appraiser in this state without a license shall be guilty of a class A misdemeanor if a natural person, or guilty of a felony if any other person.

206:2 Real Estate Brokers; Penalties. Amend RSA 331-A:34 to read as follows:

331-A:34 Penalty. Any person acting as a real estate broker or real estate salesperson, without a license or violating any of the provisions of this chapter, shall be guilty of a class A misdemeanor if a natural person, or guilty of a felony if any other person.

206:3 Public Adjusters; Penalties. Amend RSA 402-D:10 to read as follows:

402-D:10 Penalty. Any person who shall act within this state as a public adjuster without being licensed as herein provided[, or] shall be guilty of a class A misdemeanor if a natural person, or guilty of a felony if any other person. Any licensee who in the course of his or her work as a public adjuster shall misrepresent his or her identity or the identity of his or her principal or employer, or who shall wrongfully divulge information coming to him or her in his or her capacity as a public adjuster may be subjected to an administrative fine not to exceed $2,500.

206:4 New Paragraph; Managing General Agent; Penalties. Amend RSA 402-E:6 by inserting after paragraph I the following new paragraph:

I-a. Any person who shall practice or attempt to practice as an MGA in this state without a license shall be guilty of a class A misdemeanor if a natural person, or guilty of a felony if any other person.

206:5 New Paragraph; Reinsurance Intermediary; Penalties. Amend RSA 402-F:10 by inserting after paragraph I the following new paragraph:

I-a. Any person who shall practice or attempt to practice as a reinsurance intermediary in this state without a license shall be guilty of a class A misdemeanor if a natural person, or guilty of a felony if any other person.

206:6 Insurance Producer; Penalties Added. Amend RSA 402-J:3 to read as follows:

402-J:3 License Required.

I. A person shall not sell, solicit, or negotiate insurance in this state for any class or classes of insurance unless the person is licensed for that line of authority in accordance with this chapter.

II. Any person who shall practice or attempt to practice as an insurance producer in this state without a license shall be guilty of a class A misdemeanor if a natural person, or guilty of a felony if any other person.

206:7 Life Insurance Agent; Penalties. Amend RSA 408:8 to read as follows:

408:8 Penalties. Any person who shall assume to act as an agent of a life insurance company, without license therefor as provided by law[, or] shall be guilty of a class A misdemeanor if a natural person, or guilty of a felony if any other person. Any person who shall unlawfully act in any manner in the negotiation of insurance with a foreign life insurance company not admitted to do business in this state, or who as principal or agent shall violate any provision of the laws of the state in regard to the negotiation or effecting of contracts of life insurance, when no other penalty is provided, shall be fined not more than $500.

206:8 Health Service Agent; Increased Penalty. Amend RSA 420-A:7, VI to read as follows:

VI. If a person acts or aids in any manner in the negotiation of health insurance contracts, or solicits or receives any risk or application for such service, without a license from the insurance commissioner, or if the license granted to such person or to the health service corporation for which the person acts as agent has been revoked, such person shall be guilty of a [violation] class A misdemeanor if a natural person, or guilty of a felony if any other person; but any contract issued on an application thus procured shall bind the health service corporation if otherwise valid. This paragraph shall not apply to any office employee of the health service corporation, or to any persons rendering their services without compensation.

206:9 Delta Dental Agent; Penalty Increased. Amend RSA 420-F:3, VI to read as follows:

VI. If a person acts or aids in any manner in the negotiation of Delta contracts, or solicits or receives any application for such contracts, without a license from the commissioner, or if the license granted to him or her or Delta for whom he or she acts as agent has been revoked, he or she shall be guilty of a [violation] class A misdemeanor if a natural person, or guilty of a felony if any other person; but any contract issued on an application thus procured shall bind Delta if otherwise valid. This paragraph shall not apply to any clerical employee of Delta, or to any persons rendering their services without compensation.

206:10 Securities Brokers and Dealers; Penalties Increased. Amend RSA 421-B:24, II to read as follows:

II. Any person who willfully violates RSA 421-B:6, 421-B:11 or 421-B:20 shall be guilty of a class A misdemeanor if a natural person, and guilty of a felony if any other person. Each of the acts specified shall constitute a separate offense and a prosecution or conviction for any one of such offenses shall not bar prosecution or conviction for any other offense. For any subsequent offense, any person shall be guilty of a class B felony.

206:11 Section Reference Added. Amend RSA 402-J:1, II to read as follows:

II. This chapter applies to all persons required to be a licensed producer pursuant to the provisions of RSA 402:15; RSA 405:15; RSA 405:24; RSA 405:44-a; RSA 405:44-b; RSA 406-C:3; RSA 407-C:3; RSA 408:42; RSA 416-A:15; RSA [418:5-a] 418:31; RSA 420-A:7; RSA 420-B:18; RSA 420-F:3; and New Hampshire code of administrative rules Ins 2501.03.

206:12 Effective Date. This act shall take effect January 1, 2006.

(Approved: July 1, 2005)

(Effective Date: January 1, 2006)