SB46: relative to group life insurance.

CHAPTER 243

SB 46 – FINAL VERSION

20May2009… 1391h

06/24/09 2155CofC

2009 SESSION

09-0910

01/04

SENATE BILL 46

AN ACT relative to group life insurance.

SPONSORS: Sen. D'Allesandro, Dist 20; Rep. Reardon, Merr 11

COMMITTEE: Commerce, Labor and Consumer Protection

ANALYSIS

This bill clarifies the definition of group life insurance.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20May2009… 1391h

06/24/09 2155CofC

09-0910

01/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Nine

AN ACT relative to group life insurance.

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

243:1 Group Life Insurance; Definition. Amend RSA 408:15, I(b)-(d) to read as follows:

(b) The premium for the policy shall be paid by the policyholder, either from the employer’s funds [or funds contributed by him], or from funds contributed by the insured employees, or from both. A policy on which no part of the premium is to be derived from funds contributed by the insured employees[,] must insure all eligible employees, or all except any as to whom evidence of individual insurability is not satisfactory to the insurer.

(c) [The policy must cover at least 10 employees at date of issue.

(d)] The amounts of insurance under the policy must be based upon some plan precluding individual selection either by the employees or by the employer or trustees.

243:2 Group Life Insurance; Definitions. Amend the section heading and the introductory paragraph of RSA 408:15 to read as follows:

408:15 [Definition] Group Life Insurance; Definitions. No policy or certificate of group life insurance shall be issued or delivered in this state unless [it] the policy is issued to a group that conforms to one of the following descriptions:

243:3 Group Life Insurance. Amend RSA 408:15, VIII to read as follows:

VIII.(a) A policy or certificate issued to a resident of this state under a group life insurance policy may be issued to a group other than one described in paragraphs I through VII provided the commissioner finds that:

(1) The issuance or delivery of the policy or certificate is not contrary to the best interest of the public.

(2) The issuance or delivery of the policy or certificate would result in economies of acquisition or administration.

(3) The benefits are reasonable in relation to the premiums charged.

(4) The premium for the policy shall be paid either from the policyholder's funds or from funds contributed by the covered persons, or from both, and shall insure all eligible covered persons, or all except any as to whom evidence of individual insurability is not satisfactory to the insurer.

(b) Any filing made in relation to a discretionary group life insurance policy or certificate that was approved by the department prior to July 1, 2009 shall be deemed to meet the requirements of this paragraph, unless the commissioner acts at any time to revoke such approval after a hearing pursuant to RSA 400-A:17.

IX. Notwithstanding the above, any such policy of group life insurance issued pursuant to paragraphs I-VII may be extended to provide group life insurance for an employee, or other member of the group, his or her spouse, child or children, or other dependents.

243:4 Effective Date. This act shall take effect July 1, 2009.

Approved: July 16, 2009

Effective Date: July 1, 2009