NEW HAMPSHIRE INSURANCE GUARANTY ASSOCIATION ACT OF 2004
404-H:16 Recognition of Assessments in Rates.
I. The rates and premiums charged for insurance policies to which this chapter applies may include amounts sufficient to recoup a sum equal to the amounts paid to the association by the member insurer less any amounts returned to the member insurer by the association. Such rates may not be deemed excessive because they contain an amount reasonably calculated to recoup assessments paid by the member insurer. Alternatively, the member insurer may recoup assessments by collecting a surcharge on premiums charged for insurance policies to which this chapter applies instead of recouping the assessments through its rates and premiums.
II. The amount of any surcharge may be separately stated on either a billing or policy declaration sent to an insured.
III. Member insurers who collect surcharges in excess of assessments owed for an insolvent insurer shall remit the excess to the association as an additional assessment within 30 days after the association has determined the amount of the excess recoupment and given notice to the member of that amount. The excess shall be applied to reduce future assessment charges in the appropriate accounts.
IV. A member insurer may omit collection of the surcharge from its insureds when the expense of collecting the surcharge would exceed the amount of the surcharge. However, nothing in this section shall relieve the member insurer of its obligation to remit the amount of surcharge otherwise collectible.
V. Amounts recouped through surcharge shall be considered premiums for all purposes, including the computation of gross premium tax.
Source. 2004, 197:1, eff. Aug. 6, 2004.