RSA 402-C:3 · Definitions

402-C:3 Definitions. – For the purposes of this chapter:

Copy link

I.

"Commissioner" means the commissioner of insurance or equivalent insurance supervisory official.

Copy link

II.

"Receiver" means receiver, liquidator, rehabilitator or conservator, as the context requires.

Copy link

III.

"Insurer" means any person who is doing, has done, purports to do or is licensed to do an insurance business and is or has been subject to the authority of, or to liquidation, rehabilitation, reorganization or conservation by, a commissioner. For purposes of this chapter, all other persons included under this section shall be deemed to be insurers.

Copy link

IV.

"Delinquency proceeding" means any proceeding commenced against an insurer for the purpose of liquidating, rehabilitating, reorganizing or conserving such insurer, and any summary proceeding under RSA 402-C:11-14.

Copy link

V.

"State" means any state of the United States and the Panama Canal Zone.

Copy link

VI.

"Foreign country" means territory not in any state.

Copy link

VII.

"Domiciliary state" means the state in which an insurer is incorporated or organized or, in the case of an alien insurer, the state in which the insurer has, at the commencement of delinquency proceedings, the largest amount of its assets held in trust and on deposit for the benefit of policyholders and creditors in the United States.

Copy link

VIII.

"Ancillary state" means any state other than a domiciliary state.

Copy link

IX.

"Reciprocal state" means any state other than this state in which in substance and effect RSA 402-C:21, I, RSA 402-C:54, I and II and RSA 402-C:55, 57, and 60 are in force, and in which provisions are in force requiring that the commissioner be the receiver of a delinquent insurer, and in which some provision exists for the avoidance of fraudulent conveyances and preferential transfers.

Copy link

X.

"General assets" means all property, real, personal or otherwise, not specifically mortgaged, pledged, deposited or otherwise encumbered for the security or benefit of specified persons or limited classes of persons, and as to specifically encumbered property the term includes all such property or its proceeds in excess of the amount necessary to discharge the sums secured thereby. Assets held in trust and on deposit for the security or benefit of all policyholders or all policyholders and creditors, in more than a single state, shall be treated as general assets.

Copy link

XI.

"Preferred claim" means any claim with respect to which the law accords priority of payment from the general assets of the insurer.

Copy link

XII.

"Special deposit claim" means any claim secured by a deposit made pursuant to law for the security or benefit of one or more limited classes of persons, but not including any claim secured by general assets.

Copy link

XIII.

"Secured claim" means any claim secured by mortgage, trust deed, pledge, deposit as security, escrow or otherwise, but not including special deposit claims or claims against general assets. The term also includes claims which have become liens upon specific assets by reason of judicial process, except where they have been invalidated.

Copy link

XIV.

"Insolvency" means:

Copy link

(a)

For an insurer organized as a town or county mutual, the inability to pay any loss within 30 days after the due date specified in the first assessment notice issued after the date of the loss, or any other uncontested debt as it becomes due.

Copy link

(b)

For any other insurer, that it is unable to pay its debts or meet its obligations as they mature or that its assets do not exceed its liabilities plus the greater of 1.) any capital and surplus required by law to be constantly maintained, or 2.) its authorized and issued capital stock. For purposes of this subparagraph, "assets" includes 1/2 of the maximum total assessment liability of the policyholders of the insurer, and "liabilities" includes reserves required by law. For policies issued on the basis of unlimited assessment liability, the maximum total liability, for purposes of determining solvency only, shall be deemed to be that amount that could be obtained if there were 100 percent collection of an assessment at the rate of 10 mills.

Copy link

XV.

"Fair consideration" is given for property or an obligation:

Copy link

(a)

When in exchange for such property or obligation, as a fair equivalent therefor, and in good faith, property is conveyed or services are rendered or obligation is incurred or an antecedent debt is satisfied; or

Copy link

(b)

When such property or obligation is received in good faith to secure a present advance or antecedent debt in amount not disproportionately small as compared to the value of the property or obligation obtained.

Copy link

XVI.

"Creditor" is a person having any claim, whether matured or unmatured, liquidated or unliquidated, secured or unsecured, absolute, fixed or contingent.

Copy link

XVII.

"Transfer" includes the sale and every other method, direct or indirect, of disposing of or of parting with property or with an interest therein or with the possession thereof or of fixing a lien upon property or upon an interest therein, absolutely or conditionally, voluntarily or involuntarily, by or without judicial proceedings. The retention of a security title to property delivered to a debtor shall be deemed a transfer suffered by the debtor.

Copy link

XVIII.

"Doing business" has the meaning designated in RSA 406-B:2.

Copy link

XIX.

"Association" means either the New Hampshire insurance guaranty association created under RSA 404-B:6 or the New Hampshire life and health insurance guaranty association created under RSA 404-D:6. Source. 1969, 272:1. 1975, 348:10, eff. Aug. 6, 1975.

Copy link