REGULATION OF FORMS AND RATES FOR PROPERTY AND CASUALTY INSURANCE
Rate Regulation-Disapprovals, General Provisions
412:19 Disapproval of Filings.
I. For filings made in a noncompetitive market and residual market filings, if within the waiting period or any extension thereof as provided in RSA 412:16, VIII, the commissioner finds that a filing does not meet the requirements of this chapter, written notice of disapproval shall be sent to the insurer or advisory organization which made the filing, specifying therein in what respects the filing fails to meet the requirements of this chapter and stating that such filing shall not become effective. If the commissioner disapproves a filing, the insurer or advisory organization may request a hearing on the disapproval within 30 days and the commissioner shall schedule that hearing within 30 days of the receipt of the request. The insurer or advisory organization bears the burden of proving compliance with the standards established by this chapter.
II. If at any time after a rate has been approved and for filings made in a competitive market, the commissioner finds that the rate no longer meets the requirements of this chapter, the commissioner may order the discontinuance of use of the rate. The order of discontinuance may be issued after a hearing with at least 10 days' prior notice to all insurers affected by the order. The order must be in writing and state the grounds for the order. It shall also state when, within a reasonable time thereafter, the filing will be deemed no longer effective. The order shall not affect any contract or policy made or issued prior to the expiration of the period set forth in the order. However, a policyholder shall have the privilege to cancel the policy containing the disapproved rate without penalty. The commissioner's order may include a provision for a premium adjustment for contracts or policies made or issued after the effective date of the order.
III. Any insured aggrieved with respect to any filing which is in effect may make written application to the commissioner for a hearing thereon. The application shall specify the grounds to be relied upon by the applicant. If the commissioner shall find that the application is made in good faith, that the applicant would be so aggrieved if his or her grounds are established, and that such grounds otherwise justify holding such a hearing, a hearing shall be held within 30 days after receipt of such application upon not less than 10 days' written notice to the applicant and to every insurer and advisory organization which made such filing.
IV. If, after such hearing, the commissioner finds that the filing does not meet the requirements of this chapter, an order shall be issued specifying in what respects such filing fails to meet the requirements of this chapter, and stating when, within a reasonable period thereafter, such filing shall no longer be deemed to be in effect. Copies of the order shall be sent to the applicant and to every such insurer and advisory organization. The order shall not affect any contract or policy made or issued prior to the expiration of the period set forth in the order.
V. Whenever an insurer has no legally effective rates as a result of the commissioner's disapproval of rates or other act, the commissioner shall on request of the insurer specify interim rates for the insurer that are high enough to protect the interests of all parties and may order that a specified portion of the premiums be placed in an escrow account approved by the commissioner. When the new rates become legally effective, the commissioner shall order the escrowed funds or any overcharge in the interim rates be distributed appropriately.
Source. 2003, 150:1, eff. Jan. 1, 2004.