HJR2: prohibiting the implementation of the insurance department rules regarding the New Hampshire Medical Malpractice Joint Underwriting Association.

HJR 2 – AS INTRODUCED

2011 SESSION

11-0513

01/10

HOUSE JOINT RESOLUTION 2

A RESOLUTION prohibiting the implementation of the insurance department rules regarding the New Hampshire Medical Malpractice Joint Underwriting Association.

SPONSORS: Rep. B. Patten, Carr 4; Rep. Pilotte, Hills 16; Rep. Millham, Belk 5; Rep. Kidder, Merr 1; Rep. Chandler, Carr 1; Rep. Taylor, Graf 2; Rep. Sad, Ches 2; Sen. Bragdon, Dist 11; Sen. Carson, Dist 14

COMMITTEE: Commerce and Consumer Affairs

ANALYSIS

This house joint resolution prohibits the implementation of the insurance department rules regarding the New Hampshire Medical Malpractice Joint Underwriting Association.

11-0513

01/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eleven

A RESOLUTION prohibiting the implementation of the insurance department rules regarding the New Hampshire Medical Malpractice Joint Underwriting Association.

Whereas, the New Hampshire Medical Malpractice Joint Underwriting Association (NHMMJUA) is a residual market mechanism created under the authority contained in RSA 404-C that provides medical malpractice insurance coverage to health care providers in the state; and

Whereas, the insurance commissioner has proposed changes to the NHMMJUA plan of operation, final proposal 2010-67, that would provide the commissioner with certain authority over the activities of the NHMMJUA; and

Whereas, on September 24, 2010, the joint legislative committee on administrative rules (committee) voted to enter a preliminary objection to the final proposal 2010-67; and

Whereas, on November 4, 2010, the department provided its response to the committee’s preliminary objection and amended proposed rules; and

Whereas, the response proposes rules that would have the insurance commissioner operate, maintain, direct, supervise, approve, and/or oversee the activities of the NHMMJUA; and

Whereas, on November 18, 2010 a final objection and joint resolution were entered; and

Whereas, RSA 404-C under which the NHMMJUA was created provides that the commissioner may establish plans but does not expressly provide authority for the commissioner to operate, maintain, direct, supervise, approve, and/or oversee activities; and

Whereas, RSA 402:11-a, I states, in relevant part: “No insurer which is directly or indirectly owned or controlled in whole or in substantial part by any government or governmental agency shall be authorized to transact insurance in this state”; and

Whereas, RSA 400-A:12, states in relevant part: “The commissioner, deputies, assistants, actuaries, examiners, or employees of the insurance department shall not be connected with the management or be holder of material number of shares of any insurer, insurance holding company, insurance agency or broker.”; and

Whereas, the statutes referenced above appear to limit the permissible activities of the commissioner to operate and control residual market mechanism under RSA 404-C; now, therefore, be it

Resolved by the Senate and House of Representatives in General Court convened:

That the general court of the state of New Hampshire hereby prohibits the insurance department from adopting proposed rules Ins 1700 as contained in final proposal 2010-67; and

That the general court shall clarify by legislation the permissible role of the state under RSA 404-C, 402:11-a, and 400-A:12 concerning the operations of NHMMJUA, and direct by legislation how the vested and constitutionally protected rights of NHMMJUA policyholders to NHMMJUA surplus funds shall be honored.