SB215: relative to motor vehicle liability insurance policy minimum coverage.

SB 215-FN - AS INTRODUCED

2022 SESSION

22-3028

04/05

SENATE BILL 215-FN

AN ACT relative to motor vehicle liability insurance policy minimum coverage.

SPONSORS: Sen. Hennessey, Dist 1; Sen. Watters, Dist 4; Sen. Giuda, Dist 2; Rep. Infantine, Hills. 13

COMMITTEE: Commerce

ANALYSIS

This bill requires a motor vehicle liability insurance policy to provide certain minimum coverages once the named insured becomes the owner of the vehicle.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

22-3028

04/05

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty Two

AN ACT relative to motor vehicle liability insurance policy minimum coverage.

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

1 New Section; Motor Vehicles; Accidents and Financial Responsibility; Motor Vehicle Liability Policy. Amend RSA 264 by inserting after section 18 the following new section:

264:18-a Motor Vehicle Liability Policy; Coverage Minimums.

I. Any motor vehicle liability policy issued in the state of New Hampshire shall include coverage for a newly acquired private passenger automobile as defined in RSA 259:80.

II. Coverage for a newly acquired private passenger automobile shall include, at a minimum:

(a) The broadest coverage provided for any vehicle on the liability policy on the date the named insured, or the spouse of the named insured if a resident of the same household, becomes the owner of the newly acquired private passenger automobile.

(b) Collision coverage for a newly acquired private passenger automobile beginning the date the named insured, or the spouse of the named insured if a resident of the same household, becomes the owner of the newly acquired private passenger automobile shall include, at a minimum:

(1) Fourteen days of collision coverage, if the motor vehicle liability policy provides collision coverage for at least one vehicle on the policy.

(2) Four days of collision coverage if the motor vehicle liability policy does not provide collision coverage for any vehicle on the policy. A deductible not to exceed $500 may be included in the motor vehicle liability policy.

(c) Other than collision coverage for a newly acquired private passenger automobile beginning the date the named insured, or the spouse of the named insured if a resident of the same household, becomes the owner of the newly acquired private passenger automobile shall include at a minimum:

(1) Fourteen days of other than collision coverage, if the motor vehicle liability policy provides other than collision coverage for at least one vehicle on the policy.

(2) Four days of other than collision coverage, if the motor vehicle liability policy does not provide other than collision coverage for any vehicle on the policy. A deductible not to exceed $500 may be included in the motor vehicle liability policy.

2 Effective Date. This act shall take effect 60 days after its passage.

LBA

22-3028

12/2/21

SB 215-FN- FISCAL NOTE

AS INTRODUCED

AN ACT relative to motor vehicle liability insurance policy minimum coverage.

FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None

Estimated Increase / (Decrease)

STATE:

FY 2022

FY 2023

FY 2024

FY 2025

Appropriation

$0

$0

$0

$0

Revenue

$0

Indeterminable

Indeterminable

Indeterminable

Expenditures

$0

$0

$0

$0

Funding Source:

[ X ] General [ ] Education [ ] Highway [ ] Other

METHODOLOGY:

This bill requires a motor vehicle liability insurance policy to provide certain minimum coverages

once the named insured becomes the owner of the vehicle.

The Insurance Department indicates although many carriers already provide this extended coverage, the remaining carriers would amend their rules and possibly their rates to meet this law if enacted. The Department would review these rules and rates when filed as it does all other such changes. The Department does not expect proposed changes would not have a material effect on the work flow of the department or it's expenses. To the extent insurance rates are impacted there may be an impact on the insurance premium tax revenue collected by the state.

It is assumed that any fiscal impact would occur after FY 2022.

AGENCIES CONTACTED:

Insurance Department