TITLE XXXVII
INSURANCE

Chapter 402
INSURANCE COMPANIES AND AGENTS

Mutual Companies

Section 402:1

    402:1 Members' Liability. – Members of mutual insurance companies shall not be individually liable to pay any debts of their respective companies, beyond their liability to assessments for losses occurring therein, nor to such assessments beyond the amount of their deposit notes.

Source. 1847, 501:1. CS 154:2. GS 158:1. GL 173:1. PS 168:1. PL 273:1. RL 323:1.

Section 402:2

    402:2 Contingent Liability. –
Any mutual fire or casualty insurance company organized under the laws of this state, which charges a full cash premium, may limit the liability of policyholders to assessment by a stipulation in the policy, which shall have the same effect as a deposit note signed by the insured; but such contingent liability of a member shall not be less than an amount equal to and in addition to the cash premium written in his policy. Any such mutual fire insurance company, from and after May 20, 1941, and any such mutual casualty insurance company, from and after January 1, 1943, may issue nonassessable policies in this state upon compliance with the following requirements:
I. It shall have and at all times maintain a surplus to policyholders as determined from its latest annual statement on file, which together with 30 percent of its unearned premium reserve is at least equal to the minimum capital required for the organization of a domestic stock insurance company to do the same kind or kinds of insurance. Provided that this additional requirement shall not apply to those mutual fire or casualty companies organized under the laws of this state which are lawfully authorized to issue nonassessable policies in this state and are in fact issuing such nonassessable policies in this state on May 1, 1969. Provided further that this additional requirement of surplus to policyholders may be reduced by the commissioner to a sum not less than the amount of the deposit required under paragraph II as to any domestic mutual fire or casualty company in existence on May 1, 1969, whenever the commissioner finds that such mutual company will, under the circumstances, be safe, reliable and entitled to confidence.
II. Mutual companies formed to do business under RSA 401:1, I and II, shall maintain a deposit with the insurance commissioner of $300,000 and mutual companies formed to do business under RSA 401:1, IV, V, VI or VII shall maintain a deposit with the insurance commissioner of $500,000 in cash or in securities which are legal investments for savings banks and in such other investments as may be approved by the insurance commissioner.
III. A mutual fire or casualty insurance company shall issue nonassessable policies only so long as it maintains these financial requirements and if it fails to maintain these requirements it shall not thereafter issue nonassessable policies in this state for one year from the time when its surplus, unearned premium reserve and deposit again meet the financial requirements of this section.
IV. Every policy issued by any such company shall clearly state whether or not the holder of such policy is subject to liability for assessment. Any policy issued by any such company which subjects the policyholder to liability for assessment shall contain a clear statement of the liability of the policyholder for the payment of his proportionate share of any deficiency or impairment as provided by law within the limit established by the policy, and shall further state that any assessment shall be for the exclusive benefit of holders of policies which provide for such contingent liability; and the holders of such policies shall not be liable to assessment in an amount greater in proportion to the total deficiency than the ratio that the deficiency attributable to the assessable business bears to the total deficiency.

Source. 1887, 35:1. PS 168:2. 1917, 30:1. PL 273:2. 1929, 104:1. 1941, 122:1. RL 323:2. RSA 402:2. 1969, 283:3. 1981, 431:1, eff. Aug. 22, 1981.

Section 402:3

    402:3 Assessment. – No person insured in such company, or in any class thereof, in which the amount insured is less than $50,000, shall be assessed any greater sum than he would be if that amount were insured; but the officers of the company shall be individually liable for the indebtedness of the company not provided for by such assessments.

Source. 1858, 2082:2. GS 158:5. GL 173:5. PS 168:3. PL 273:3. RL 323:3.

Section 402:4

    402:4 Assessments on Closing Business. – No more than 30 percent above its actual indebtedness shall be assessed by any such company to close its affairs; and the officers and agents thereof shall not receive more than 20 percent of the money collected for their services in closing its business.

Source. 1858, 2082:4. GS 158:6. GL 173:6. PS 168:4. PL 273:4. RL 323:4.

Section 402:5

    402:5 Territory. – A mutual fire insurance company, organized under the laws of the state, may limit its operations within certain prescribed boundaries; and in such case it shall be barred from insuring property situated outside those boundaries.

Source. 1850, 999:1. CS 154:1. GS 158:2. GL 173:2. PS 168:6. PL 273:5. RL 323:5.

Section 402:6

    402:6 Duties of Treasurer. – The treasurer of every such company shall enter in books provided for the purpose a correct account of all assessments made, of all sums by him received and paid out for the company, and of all evidences of debt and other assets belonging to the company coming into his possession. He shall balance his accounts yearly, prior to the annual meeting, and shall report to the company, at that time, its financial standing as shown by the books. Any treasurer who neglects to comply with either of the provisions of this section shall be fined $25.

Source. 1858, 2082:5. GS 158:3. GL 173:3. PS 168:7. PL 273:6. RL 323:6.

Section 402:7

    402:7 Terminating Risks. – Any such company may terminate its policies by publishing a notice of the time when they will terminate, and by giving or mailing a like notice to each party insured, 30 days at least before the time fixed for such termination, and by tendering to the insured under each policy a ratable proportion of the premium.

Source. 1858, 2082:3. GS 158:4. GL 173:4. PS 168:8. 1917, 30:3. PL 273:7. RL 323:7.

Section 402:8

    402:8 Dividends. – From time to time the directors of a mutual insurance company may, by vote, fix and determine the percentage of dividend or expiration return of premium to be paid on expiring policies, and may classify its risks as to dividends and assessments; but policies insuring risks in this state in the same classification shall have an equal rate of dividend and assessment.

Source. 1855, 1662:2. GS 158:8. GL 173:8. PS 168:10. 1917, 30:5. PL 273:8. RL 323:8.

Section 402:9

    402:9 Dividend Notice to Policyholders. – Every mutual and participating stock, fire, marine, fidelity, and casualty insurance company shall send a written dividend notice through its resident agent to all policyholders who have not renewed and who have not received their dividend as shown by the records of the company. Such notice shall be sent within 60 days of the expiration of the policy, and such notice should include receipt to be executed by the insured and shall state the amount of the dividend payable. The company shall cause payment of such dividend to be made within 10 days after receiving the dividend receipt properly executed and no policyholder shall be discriminated against because of the period of time for which insurance has been carried.

Source. 1939, 104:1. RL 323:9.

Licenses to Local Companies

Section 402:10

    402:10 Requirement. – No insurance company organized under the laws of this state shall do insurance business unless it has obtained a license from the insurance commissioner authorizing it to do so.

Source. 1903, 18:1. PL 273:9. RL 323:10.

Section 402:11

    402:11 Information. – Before a license is granted to the company it shall file with the commissioner a certified copy of its charter and bylaws, a certificate giving the amount of capital paid in in cash, and a full statement, under oath of its president and secretary, showing its financial standing and condition in accordance with blanks furnished by the commissioner, and such other information in relation to its condition as may be required by the commissioner.

Source. 1903, 18:2. PL 273:10. RL 323:11.

Section 402:11-a

    402:11-a Prohibitions. –
I. 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. Membership in a mutual insurer or subscribership in a reciprocal insurer or ownership of stock in an insurer by the alien property custodian or similar official of the United States or ownership of stock or other security which does not have voting rights with respect to the management of the insurer or supervision of an insurer by public authority shall not be deemed to be an ownership or control of the insurer for the purposes of this section.
II. The commissioner shall not grant or continue authority to transact insurance in this state as to any insurer or proposed insurer that management of which is found by the commissioner after investigation or upon reliable information to be incompetent or dishonest or untrustworthy or of unfavorable business repute or so lacking in insurance company managerial experience in operations of the kind proposed in this state as to make such operation, currently or prospectively, hazardous to or contrary to the best interests of, the insurance-buying or investing public of this state, or which the commissioner has good reason to believe is affiliated directly or indirectly through ownership, control, reinsurance transactions, or other business relations with any person or persons of unfavorable business repute or whose business operations are or have been marked, to the injury of insurers, stockholders, policyholders, creditors, or the public, by illegality, or by manipulation of assets or of accounts or of reinsurance or by bad faith.

Source. 2008, 18:8, eff. July 11, 2008.

Section 402:12

    402:12 Licenses. –
I. On compliance with the foregoing conditions and if the company is found upon examination made by or under the direction of the commissioner to (a) have complied with the laws of the state applicable to it; (b) have been consistent with the NAIC's Uniform Certificate of Authority Application process and standards; and (c) have complied with any other terms or documentation the commissioner may require, a license to transact the kind of business specified in the license shall be issued until June 14 thereafter. Annually thereafter, on June 14, such license may be renewed so long as the company shall comply with the requirements of the law and the commissioner shall regard it as safe, reliable, and entitled to confidence, so long as its application is consistent with the standards set forth by state law and NAIC guidelines and so long as the company continues to conduct a meaningful insurance business, as determined by the commissioner, within New Hampshire.
II. Every insurance company shall conduct its business in the legal name of the insurer as it appears on the insurer's application filed with the NAIC for a company code number. If an insurer is part of a group of affiliated insurers, the group name may appear in addition to the name of the individual insuring company, but the group name shall not be used in lieu of the legal name of the individual company.
(a) All insurance policies and contracts, and any endorsements or amendments separately issued and intended to be attached to such policies or contracts, shall identify the legal name, as set forth in paragraph II, of the insurer that is directly assuming the obligations under the policy or contract. Inclusion of the legal name of the insurer in a policy jacket, declaration, or other similar cover page issued with the policy, contract, or endorsement shall be deemed to be in compliance with this requirement.
(b) Identification of the insuring company on any advertisement or promotional materials shall be governed by the laws or rules related to advertisements, misrepresentations in sale of insurance, and misrepresentation in insurance transactions.

Source. 1903, 18:2. 1917, 78:1. PL 273:11. 1939, 22:1. RL 323:12. RSA 402:12. 1973, 74:2. 1975, 229:1. 1977, 232:1. 1983, 371:2. 2009, 215:1, eff. Jan. 1, 2010. 2021, 207:2, Pt. VI, Sec. 1, eff. Oct. 9, 2021.

Section 402:13

    402:13 Stock Companies. – No such license shall be issued to a stock company unless in addition to its paid-up capital it shall have a surplus over all liabilities, consisting of money or other lawful assets, to an amount not less than 25 percent of its capital stock.

Source. 1917, 78:2. PL 273:12. RL 323:13.

Section 402:14

    402:14 Mutual Companies. – No such license shall be issued to a mutual insurance company which charges a full cash premium, unless it has applications for insurance aggregating not less than $500,000 in not less than 200 separate risks, upon which it shall have received in cash at least one premium for a term not less than one year, amounting in the aggregate to at least $10,000; provided, that this requirement shall not apply to a mutual insurance company having a fully paid up guaranty capital of not less than $500,000, nor to mutual life insurance companies, nor to mutual employers' liability insurance companies.

Source. 1917, 78:2. PL 272:13. RL 323:14. RSA 402:14. 1969, 283:4, eff. June 25, 1969.

Section 402:14-a

    402:14-a New License Required for Changed Conditions. – The commissioner shall require a company licensed under this chapter to apply for a new license in accordance with this chapter, if, after notifying the company and after holding a hearing if requested, the commissioner finds that the company has undergone a substantial change in finances or managerial control since its last application for a license. The current license shall expire upon approval of the new application of the company or 30 days after the decision of the commissioner that a substantial change has occurred, whichever is sooner.

Source. 1975, 313:1, eff. Aug. 6, 1975.

Licenses to Agents

Section 402:15

    402:15 Eligibility as Agent. – An insurance producer license to act as an agent shall be issued to any eligible person or business entity pursuant to the provisions of RSA 402-J.

Source. 1933, 124:2. RL 323:16. RSA 402:15. 1969, 366:1. 2000, 315:9, eff. Jan. 1, 2001.

Section 402:15-a

    402:15-a Transactions Through Credit Card Facilities. –
I. No person may knowingly solicit or negotiate any insurance, seek or accept applications for insurance, issue or deliver any policy to or for any insurer or relative to a subject of insurance resident, located or to be performed in this state, through the arrangement or facilities of a credit card facility or organization, for the purpose of insuring credit card holders or prospective credit card holders. Credit card holders as used in this section means any person who may pay the charge for purchases or other transactions through the credit card facility or organization, and whose credit with such facility or organization is evidenced by a credit card, identifying such person as being one whose charges the credit card facility or organization will pay, and who is identified as such upon the credit card either by name, account number, symbol, insignia, or any other method or device of identification.
I-a. Any premiums returned as a result of cancellation on any policy paid with a credit card, or financed through a credit card facility or organization, shall be paid directly to the credit card holder. The commissioner may issue rules for the proper administration of this paragraph pursuant to RSA 400-A:15.
II. Whenever any person does or performs in this state any of the acts set forth in the preceding paragraph I for or on behalf of any insurer therein referred to, such insurer shall be held to be doing business in this state and shall be subject to the same taxes, state, county and municipal, as insurers that have been legally qualified and admitted to do business in this state by agents or otherwise are subject, the same to be assessed and collected against such insurers; and such persons so doing or performing any of such acts shall be personally liable for all such taxes.
III. The provisions of this section shall not apply to group or individual policies of accident insurance written by insurance companies duly authorized to do business in this state. However, any individual policies of accident insurance must be placed through agents who are residents of this state and who are licensed to transact business in this state.

Source. 1965, 288:1. 1973, 257:1. 1979, 448:2. 1981, 502:6. 1986, 194:1, eff. Aug. 2, 1986.

Section 402:15-b

    402:15-b Direct Billing Restricted. – No insurer authorized and licensed to issue policies of insurance other than life and accident and health insurance and to transact business in this state shall demand or make mandatory upon any agent so licensed in this state, any system of direct billing to the insured by the insurer unless such system shall be approved, accepted and endorsed by any such agent in writing, on a form prescribed by the commissioner. No insurer authorized and licensed to issue policies of insurance other than life and accident and health insurance and to transact business in this state shall cancel an agent's book of business with such insurer in its entirety or in part following an agent's decision not to accept a direct billing proposal advanced by the said insurer wherein such cancellation can be attributed to the agent's decision not to accept a system of direct billing to the insured.

Source. 1975, 498:1, eff. June 24, 1975.

Section 402:15-c

    402:15-c Termination of Insurance Agency Contracts. –
I. Any insurance company authorized to transact fire or casualty business in this state shall, upon termination of an agent's appointment by said company, permit the renewal of all contracts of insurance written by such agent for a period of one year from the date of such termination, as determined by the individual underwriting requirements of said company; provided, however, that if any contract does not meet such underwriting requirements, the company shall give the agent 60 days' notice of its intention not to renew said contract.
II. No insurance agency contract entered into in this state by a licensed insurer with an insurance agent licensed under this chapter shall be terminated by the licensed insurer unless the licensed insurer upon terminating such contract shall give not less than 90 days' written notice in advance to the other party unless the contract shall be terminated by the licensed insurer for failure of the licensed insurance agent, after receiving a written demand, to pay over monies due to such insurer, provided during said 90-day period after any such notice, the licensed insurance agent shall not write or bind any new business on behalf of the licensed insurer without the specific written approval by such insurer of such business. This paragraph shall not apply to any contract with an agent for the sale of life insurance.
III. Any insurance company renewing contracts of insurance in accordance with this section shall pay commissions for such renewals to the terminated agent in the same amount as had been paid to him on similar policies during the 12 months immediately preceding the notice of termination.
IV. This section shall not apply to business owned by the insurer and not the agent; provided, that the insurer offers to continue such policies through another of its agents.

Source. 1975, 498:1. 2004, 29:1, eff. June 22, 2004.

Section 402:16

    402:16 Repealed by 2000, 315:26, I, eff. Jan. 1, 2001. –

Section 402:16-a

    402:16-a Repealed by 2015, 62:2, eff. Aug. 31, 2015. –

Section 402:16-b

    402:16-b Insurance Referrals. – Notwithstanding other provisions of this title, a person who has not complied with all applicable state insurance licensing and appointment laws and regulations may refer a party to a person who has complied with all applicable state insurance licensing and appointment laws and regulations, if the person making such referral is compensated for such referral in an amount that does not exceed the nominal amount of $25 and such amount is not based on or related to the party's purchase of insurance.

Source. 2000, 313:1, eff. Aug. 20, 2000. 2022, 42:3, eff. July 2, 2022.

Section 402:17

    402:17 Repealed by 2000, 315:26, II, eff. Jan. 1, 2001. –

Section 402:18

    402:18 Repealed by 2000, 315:26, III, eff. Jan. 1, 2001. –

Section 402:18-a

    402:18-a Repealed by 2000, 315:26, IV, eff. Jan. 1, 2001. –

Section 402:19

    402:19 Repealed by 2000, 315:26, V, eff. Jan. 1, 2001. –

Section 402:20

    402:20 Repealed by 2000, 315:26, VI, eff. Jan. 1, 2001. –

Section 402:21

    402:21 Repealed by 2000, 315:26, VII, eff. Jan. 1, 2001. –

Section 402:22

    402:22 Repealed by 2000, 315:26, VIII, eff. Jan. 1, 2001. –

Section 402:23

    402:23 Repealed by 2000, 315:26, IX, eff. Jan. 1, 2001. –

Section 402:24

    402:24 Repealed by 1971, 244:19, II, eff. Aug. 17, 1971. –

Section 402:25

    402:25 Repealed by 2000, 315:26, X, eff. Jan. 1, 2001. –

Section 402:26

    402:26 Repealed by 2000, 315:26, XI, eff. Jan. 1, 2001. –

Investments and Reserves

Section 402:27

    402:27 Scope of Subdivision. –
I. This subdivision applies to insurance companies organized under the laws of this state, other than life insurance companies. The percentage limitations contained in RSA 402:28 and RSA 402:29 shall not be effective until January 1, 1993. Any such domestic company may invest its funds in investments as provided in this subdivision and not otherwise. Notwithstanding the provisions of this subdivision, the insurance commissioner may, after notice and hearing, order a domestic company to limit or withdraw from certain investments, or discontinue certain investment practices, to the extent that the commissioner finds that such investments or investment practices endanger the solvency of such company.
II. No investment, loan, or investment practice, shall be made or engaged in by any domestic company, unless the same has been authorized or ratified by the board of directors, or by a committee of the board of directors charged with the duty of supervising investments and loans.
III. No such domestic company shall subscribe to, or participate in, any underwriting of the purchase or sale of securities or property or enter into any agreement to withhold from sale any of its property, but the disposition of its property shall be at all times within the control of the board of directors. Any agreement or contract providing for the lawful disposition of property wherein such disposition may be determined at the option of a third person at some specified future price or condition or specified time or upon demand shall be construed to be within the control of the board of directors.
IV. Nothing contained in paragraph III shall prevent the board of directors of any such company from depositing any of its securities with a committee appointed for the purpose of protecting the interest of security holders or with authorities of any state or country where it is necessary to do so in order to secure permission to transact its appropriate business. Nothing contained in this subdivision shall prevent the board of directors of such company from depositing securities as collateral for the securing of any bond or obligation required for the business of the company.
V. All investments and deposits of the funds of a domestic company shall be made in its corporate name except that, subject to the approval of the commissioner, securities may be kept under a custodial or similar agreement with a bank or banking and trust company or registered investment advisor and issued in the name of a nominee of such bank or banking and trust company or registered investment advisor.

Source. 1917, 30:4. PL 273:22. RL 323:27. RSA 402:27. 1957, 43:1. 1991, 372:1, eff. Jan. 1, 1992.

Section 402:28

    402:28 Types of Investments. –
I. Except for those investments which are authorized by RSA 401-B:2, which investments shall be governed exclusively by those sections respectively, every domestic insurance company, other than a life insurance company, shall invest and keep invested all its funds in investments enumerated below, except such cash as may be required in the transaction of its business. Such investments shall include:
(a) Government Obligations. Bonds, notes, or obligations issued, assumed, guaranteed, or insured by the United States, or by any state, territory, or possession thereof, the District of Columbia or by any county, city, town, village, municipality, or district therein or by any political subdivision or public instrumentality of one or more of the foregoing.
(b) Government Agencies. Bonds, notes, obligations, or stock issued, assumed, guaranteed, or insured by the following agencies of the United States or in which such government is a participant, whether or not such obligations are guaranteed by such government:
(1) Farm loan bank.
(2) Commodity credit corporation.
(3) Federal intermediate credit banks.
(4) Federal land banks.
(5) Central bank for cooperatives.
(6) Federal home loan banks and stock of such banks.
(7) Federal national mortgage association and stock of such association.
(8) Government national mortgage association.
(9) Federal home loan mortgage corporation.
(10) International bank for reconstruction and development.
(11) Inter-American development bank.
(12) Asian development bank.
(13) African development bank.
(14) Any other similar agency of, or in which there is participation by, the government of the United States, and the instruments are of similar financial quality.
(c) Business Obligations and Equity Interests. Stock, warrants, rights or other securities, bonds, notes or obligations issued, assumed, guaranteed, insured, or accepted by any solvent corporation, joint-stock association, trust, partnership, joint venture, or other entity or combination of entities incorporated or existing under the laws of the United States or of any state, district, or territory thereof, and any interest in any of the foregoing. An insurer shall not short sell equity investments unless the insurer covers the short sale by owning the equity investment or an unrestricted right to the equity instrument exercisable within 6 months of the short sale.
(d) Limited Partnerships. A domestic company may become a limited partner in a limited partnership on the following conditions:
(1) The partnership shall be organized under the limited partnership laws of the state of the partnership formation.
(2) The company's interest in any one limited partnership shall be subject to the general 5 percent diversification requirement in RSA 402:29-d, I(a).
(3) All investments in limited partnerships shall be subject, as applicable, to the limitations on equity interests in RSA 402:29-d, I(b) and the limitations on interests in mortgage loans and real estate in RSA 402:29-d, IV-VII.
(e) Bank Obligations. Interest-bearing deposits, banks' and bankers' acceptances, including bills of exchange, or certificates of deposit in banks, bank and trust companies, savings banks, savings associations, savings and loan associations or national banking associations, incorporated or existing under the laws of the United States or any state, district, or territory thereof, including branches of any of the foregoing, or foreign banking institutions or branches of such institutions located in the United States or any state, district, or territory thereof.
(f) Revenue Obligations. Obligations or participations in obligations which are not issued, assumed, guaranteed, or accepted by any person described under subparagraph I(c), but are:
(1) Adequately secured by an assignment or right to receive rent or other payment or revenues payable or guaranteed by any one or more persons or entities; or adequately secured by a mortgage, interest in a mortgage pool, or mortgage participation, or lien or security interest in real or personal property or any interest therein.
(2) The obligations or participations in such obligations of any person or entity whose principal assets are any one of the foregoing obligations or participations secured in accordance with subparagraph (f)(1).
(g) Mortgage Backed Securities. Mortgage backed securities include, but are not limited to: mortgage pass-through securities; mortgage backed bonds; collateralized mortgage obligations; and real estate mortgage investments conduits, adequately secured by a pool of mortgages and served by a governmental unit or instrumentality of the United States or any entity incorporated under the laws of the United States or of any state thereof.
(h) Mortgage Loans.
(1) Subject to the limitations of RSA 402:29-d, I(a), an insurer may acquire, either directly, indirectly through limited partnership interests, joint ventures, stock of an investment subsidiary, or membership interests in a limited liability company, trust certificates, or other similar instruments, obligations secured by mortgages on real estate situated within a domestic jurisdiction, but a mortgage loan which is secured by other than a first lien shall not be acquired unless the insurer is the holder of the first lien. The obligations held by the insurer and any obligations with an equal lien priority, shall not, at the time of acquisition of the obligation, exceed:
(A) Ninety percent of the fair market value of the real estate, if the mortgage loan is secured by a purchase money mortgage or like security received by the insurer upon disposition of the real estate;
(B) Eighty percent of the fair market value of the real estate, if the mortgage loan requires immediate scheduled payment in periodic installments of principal and interest, has an amortization period of 30 years or less and periodic payments made no less frequently than annually. Each periodic payment shall be sufficient to assure that at all times the outstanding principal balance of the mortgage loan shall not be greater than the outstanding principal balance that would be outstanding under a mortgage loan with the same original principal balance, with the same interest rate and requiring equal payments of principal and interest with the same frequency over the same amortization period. Mortgage loans permitted under this subparagraph are permitted notwithstanding the fact that they provide for a payment of the principal balance prior to the end of the period of amortization of the loan. For residential mortgage loans, the 80 percent limitation may be increased to 97 percent if acceptable private mortgage insurance has been obtained; or
(C) Seventy-five percent of the fair market value of the real estate for mortgage loans that do not meet the requirements of subparagraphs (1) and (2).
(2) For the purposes of subparagraph (1), the amount of an obligation required to be included in the calculation of the loan-to-value ratio may be reduced to the extent the obligation is insured by the Federal Housing Administration or guaranteed by the Administrator of Veterans Affairs, or their successors.
(3) A mortgage loan that is held by an insurer as an admitted asset on December 31, 2016 and is restructured in a manner that meets the requirements of a restructured mortgage loan in accordance with the NAIC Accounting Practices and Procedures Manual or successor publication shall continue to qualify as a mortgage loan under this subparagraph.
(4) Subject to the limitations of RSA 402:29-d, I(a), credit lease transactions that do not qualify as rated securities under subparagraph (n) with the following characteristics shall be exempt from the provisions of subparagraph (1).
(A) The loan amortizes over the initial fixed lease term at least in an amount sufficient so that the loan balance at the end of the lease term does not exceed the original appraised value of the real estate;
(B) The lease payments cover or exceed the total debt service over the life of the loan;
(C) A tenant or its affiliated entity whose rated credit instruments have a SVO 1 or 2 designation from the Securities Valuation Office of the National Association of Insurance Commissioners or a comparable rating from a nationally recognized statistical rating organization recognized by the Securities Valuation Office has a full faith and credit obligation to make the lease payments;
(D) The insurer holds or is the beneficial holder of the first lien mortgage on the real estate;
(E) The expenses of the real estate are passed through to the tenant, excluding exterior, structural, parking, and heating, ventilation, and air conditioning replacement expenses, unless annual escrow contributions, from cash flows derived from the lease payments, cover the expense shortfall; and
(F) There is a perfected assignment of the rents due pursuant to the lease to, or for the benefit of, the insurer.
(i) Income Producing Real Estate.
(1) An insurer may acquire, manage, and dispose of real estate situated in a domestic jurisdiction either directly or indirectly through limited partnership interests, joint ventures, stock of an investment subsidiary or membership interests in a limited liability company, trust certificates, or other similar instruments. The real estate shall be income producing or intended for improvement or development for investment purposes under an existing program in which case the real estate shall be deemed to be income producing.
(2) The real estate may be subject to mortgages, liens, or other encumbrances, the amount of which shall, to the extent that the obligations secured by the mortgages, liens, or encumbrances are without recourse to the insurer, be deducted from the amount of the investment of the insurer in the real estate for purposes of determining compliance with RSA 402:29-d, IV and V.
(j) Real Estate for the Accommodation of Business. An insurer may acquire, manage, and dispose of real estate for the convenient accommodation of the insurer, which may include its affiliates, business operations, including home office, branch office and field office operations.
(1) Real estate acquired under this subparagraph may include excess space for rent to others, if the excess space, valued at its fair market value, would otherwise be a permitted investment under subparagraph (i) of this section and is so qualified by the insurer;
(2) The real estate acquired under this subparagraph may be subject to one or more mortgages, liens, or other encumbrances, the amount of which shall, to the extent that the obligations secured by the mortgages, liens, or encumbrances are without recourse to the insurer, be deducted from the amount of the investment of the insurer in the real estate for purposes of determining compliance with RSA 402:29-d, V; and
(3) For purposes of this subparagraph, business operations shall not include that portion of real estate used for the direct provision of health care services by an insurer whose insurance premiums and required statutory reserves for accident and health insurance constitute at least 95 percent of total premium considerations or total statutory required reserves, respectively. An insurer may acquire real estate used for these purposes under RSA 402:28, I(h) and subject to the limitations set out in RSA 402:29-d, V.
(k) Collateral Loans. Direct obligations for the payment of money adequately secured by the pledge of any property which would be authorized as an investment under this subdivision.
(l) Derivative transactions. An insurer may use derivative instruments to engage in hedging transactions, income generation transactions, and replication transactions on the following conditions:
(1) An insurer may enter into hedging transactions if, measured at the time of acquisition after giving effect to such transactions, all of the following apply:
(A) The aggregate statement value of options, caps, floors, and warrants not attached to another financial instrument purchased and used in hedging transactions does not exceed 7-1/2 percent of its admitted assets.
(B) The aggregate statement value of options, caps, and floors written in hedging transactions does not exceed 3 percent of its admitted assets.
(C) The aggregate potential exposure of collars, swaps, forwards, and futures used in hedging transactions does not exceed 6-1/2 percent of its admitted assets.
(D) Transactions entered into to hedge the currency risk of investments denominated in a currency other than United States dollars shall not be included in the limits under this subparagraph. An insurer may purchase, sell, or enter into one or more derivative transactions to offset, in whole or in part, any derivative instrument or derivative transaction previously purchased, sold, or entered into, without regard to the quantitative limitations of this paragraph, provided that such derivative instrument or derivative transaction is an exact offset, in whole or in part, to the original derivative instrument or derivative transaction being offset.
(2) An insurer may enter into the following types of income generation transactions if, at the time of acquisition after giving effect to the transactions the aggregate statement value of the fixed income assets that are subject to call or that generate the cash flows for payments under the caps or floors, plus the face value of fixed income securities underlying a derivative instrument subject to call, plus the amount of the purchase obligations under the puts, does not exceed 10 percent of its admitted assets:
(A) Sales of covered call options on noncallable fixed income securities, callable fixed income securities if the option expires by its terms before the end of the noncallable period or derivative instruments based on fixed income securities.
(B) Sales of covered call options on equity securities, if the insurer holds in its portfolio or can immediately acquire through the exercise of options, warrants, or conversion rights already owned the equity securities subject to call during the complete term of the call option sold.
(C) Sales of covered puts on investments that the insurer is permitted to acquire under this section, if the insurer has escrowed, or entered into a custodian agreement segregating, cash or cash equivalents with a market value equal to the amount of its purchase obligations under the put during the complete term of the put option sold.
(D) Sales of covered caps or floors, if the insurer holds in its portfolio the investments generating the cash flow to make the required payments under the caps or floors during the complete term that the cap or floor is outstanding.
(3) An insurer may enter into replication transactions if both of the following apply:
(A) The insurer would otherwise be authorized to invest its funds under this section in the asset being replicated.
(B) The asset being replicated is subject to all the provisions of this section relating to the making of investments by the insurer in that type of asset as if the transaction constituted a direct investment by the insurer in the replicated asset.
(4) The commissioner may approve of additional transactions involving the use of derivative instruments in excess of the limits of this paragraph or for other risk management purposes, except that replication transactions under this subparagraph shall be permitted only for risk management purposes.
(m) Each derivative instrument shall be one of the following:
(1) Traded on or entered into with a qualified exchange.
(2) Entered into with or guaranteed by a business entity.
(3) Issued or written with the issuer of the underlying interest on which the derivative instrument is based.
(4) Traded on or entered into with a qualified foreign exchange.
(n) For the purposes of subparagraphs I(l) and (m), unless the context otherwise requires:
(1) "Business entity" includes a sole proprietorship, corporation, limited liability company, association, bank, partnership, joint stock company, joint venture, mutual fund, trust, joint tenancy, or other similar form of business organization, whether organized for-profit or not-for-profit.
(2) "Cap" means an agreement obligating the seller to make payments to the buyer, with each payment based on the amount by which a reference price or level or the performance or value of one or more underlying interests exceeds a predetermined number, sometimes called the strike rate or strike price.
(3) "Collar" means an agreement, or series of agreements to receive payments as the buyer of an option, cap, or floor and to make payments as the seller of a different option, cap, or floor.
(4) "Derivative instrument" means an agreement, option, or instrument, or a series or combination that:
(A) Either requires a party to make or take delivery of, or assume or relinquish, a specified amount of one or more underlying interests, or to make a cash settlement in lieu thereof, or has a price, performance, value, or cash flow based primarily on the actual or expected price, level, performance, value, or cash flow of one or more underlying interests.
(B) Includes options, warrants used in a hedging transaction and not attached to another financial instrument, caps, floors, collars, swaps, forwards, futures, and any other agreements, options, or instruments substantially similar thereto or any series or combination thereof and any agreements, options, or instruments permitted under rules adopted to carry out the provisions of subparagraphs I(l) and (m).
(C) Does not include an investment authorized by RSA 402:28, I(a) through (k), RSA 402:28, I(o) through (p), RSA 402:28, I(r) through (s), or RSA 402:28, II through IV.
(5) "Derivative transaction" means a transaction involving the use of one or more derivative instruments.
(6) "Floor" means an agreement obligating the seller to make payments to the buyer in which each payment is based on the amount by which a predetermined number exceeds a reference price, level, performance, or value of one or more underlying interests.
(7) "Forward" means an agreement, other than a future, to make or take delivery of, or effect a cash settlement based on the actual or expected price, level, performance, or value of, one or more underlying interests, but shall not mean or include spot transactions effected within customary settlement periods, when-issued purchases, or other similar cash market transactions.
(8) "Future" means an agreement, traded on a qualified exchange or qualified foreign exchange, to make or take delivery of, or effect a cash settlement based on the actual or expected price, level, performance, or value of, one or more underlying interests.
(9) "Hedging transaction" means a derivative transaction that is entered into and maintained to reduce either:
(A) The risk of a change in the value, yield, price, cash flow, or quantity of assets or liabilities that the insurer has acquired or incurred or anticipates acquiring or incurring either directly or indirectly through an investment in an underlying entity.
(B) The currency exchange rate risk or the degree of exposure as to assets or liabilities that an insurer has acquired or incurred or anticipates acquiring or incurring either directly or indirectly through an investment in an underlying entity.
(10) "Income generation transaction" means a derivative transaction involving the writing of covered call options, covered put options, covered caps, or covered floors that is intended to generate income or enhance return.
(11) "Option" means an agreement giving the buyer the right to buy or receive, referred to as a "call option", to sell or deliver, referred to as a "put option", to enter into, extend, or terminate, or to effect a cash settlement based on the actual or expected price, spread, level, performance, or value of one or more underlying interests.
(12) "Qualified exchange" means:
(A) A securities exchange registered as a national securities exchange, or a securities market regulated under the Securities Exchange Act of 1934, as amended.
(B) A board of trade, commodities exchange, or clearing organization designated as a contract market or derivatives clearing organization by the Commodity Futures Trading Commission or any successor thereof.
(C) Private offerings, resales, and trading through automated linkages.
(D) A designated offshore securities market as defined in securities exchange commission regulations, 17 C.F.R. part 230, as amended.
(E) A qualified foreign exchange.
(13) "Qualified foreign exchange" means a foreign exchange, board of trade, or contract market located outside the United States or its territories or possessions if one of the following applies:
(A) The exchange, board of trade, or contract market has received regulatory comparability relief under Commodity Futures Trading Commission rule 30.10, as set forth in 17 C.F.R. part 30, appendix C.
(B) The exchange, board of trade, or contract market is, or its members are, subject to the jurisdiction of a foreign futures authority that has received regulatory comparability relief under Commodity Futures Trading Commission rule 30.10, as set forth in 17 C.F.R. part 30, appendix C as to futures transactions in the jurisdiction where the exchange, board of trade, or contract market is located.
(C) Foreign stock index futures contracts are listed on the exchange, board of trade, or contract market and the contracts are the subject of no-action relief issued by the Commodity Futures Trading Commission office of general counsel if the exchange, board of trade, or contract market that qualifies as a qualified foreign exchange under this subdivision is a qualified foreign exchange only as to foreign stock index futures contracts that are the subject of no-action relief.
(14) "Replication transaction":
(A) Means a derivative transaction that is intended to replicate the performance of one or more assets that an insurer is authorized to acquire under this section.
(B) Does not include a derivative transaction that is entered into as a hedging transaction.
(15) "Spot transaction" means a transaction that settles via an actual delivery of the underlying asset within the standard settlement period for such asset.
(16) "Swap" means an agreement to exchange or to net payments at one or more times based on the actual or expected price, level, performance, or value of one or more underlying interests.
(17) "Underlying interest" means the assets, liabilities, other interests or a combination thereof underlying a derivative instrument, including any securities, currencies, rates, indices, commodities, or derivative instruments.
(18) "Warrant" means an instrument that gives the holder the right to purchase an underlying financial instrument at a given price and time or at a series of prices and times outlined in the warrant agreement. Warrants may be issued alone or in connection with the sale of other securities, including as part of a merger or recapitalization agreement or to facilitate divestiture of the securities of another business entity.
(o) Securities Lending. The investment practice of lending securities and entering into repurchase agreements and reverse repurchase agreements is authorized on the following conditions:
(1) "Lending of securities" means an investment other than a repurchase agreement, whereby an agreement is entered into which transfers ownership rights and possession of securities to the borrower of such securities with the agreement providing for a return of ownership rights and possession of the securities to the lender at a specified date or upon demand.
(2) "Repurchase agreement" means a bilateral agreement whereby a company purchases securities with a related agreement that the seller will purchase or repurchase at a specified price the equivalent or similar securities within a specified period of time or on demand.
(3) "Reverse repurchase agreement" means a bilateral agreement whereby a company:
(A) Sells securities with a related agreement to purchase or repurchase at a specified price the equivalent or similar securities within a specified period of time or upon demand; or
(B) Borrows funds and transfers securities to the lender with a related agreement that equivalent or similar securities shall be returned to the company upon repayment of the loan within a specified period of time or on demand.
(4) Lending of securities, repurchase agreements, and reverse repurchase agreements are authorized on the following conditions:
(A) The agreement for each transaction or the master agreement for a series of transactions shall be reduced to writing.
(B) Securities acquired by a company owned subject to reacquisition pursuant to an outstanding repurchase agreement may not be sold pursuant to a reverse repurchase agreement nor lent pursuant to a lending of securities agreement. Consideration, or collateral, received from a reverse repurchase agreement or lending of securities agreement may be used to acquire securities which are equivalent or similar to the securities transferred pursuant to such repurchase agreement or lending of securities agreement; however, such acquired securities may not be sold pursuant to a reverse repurchase agreement nor lent pursuant to a lending of securities agreement.
(C) A company is limited to no more than 10 percent of its admitted assets being subject to lending of securities, repurchase agreements or reverse repurchase agreements transactions outstanding with any one entity under this paragraph.
(D) A company may engage in lending its securities or repurchase or reverse repurchase agreements not to exceed 40 percent of its admitted assets, provided, however, that such transactions are collateralized 102 percent of the market value of loaned securities at the close of every business day in which such agreement remains open.
(p) Rated Securities. Obligations which are rated by a securities rating agency, which agency is acceptable to the commissioner, and which securities are rated so as to be in one of the highest 4 generic lettered rating classifications, or awarded a "yes" rating by the Securities Valuation Office of the National Association of Insurance Commissioners.
(q) Basket Provision. Any investment of any kind not otherwise authorized by this subdivision up to an amount not exceeding in the aggregate 10 percent of such company's admitted assets.
(r) Mutual Funds. Equity interest in an open-ended investment company registered with the United States Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. section 80a-1 et seq.) as amended, provided that substantially all the investments of such mutual funds are traded on a nationally recognized stock exchange or on the NASDAQ system.
(s) With approval of the commissioner, funds loaned to the New Hampshire Insurance Guaranty Association pursuant to RSA 404-H:8, II(b).
II. (a)
Foreign Securities; Insurance Policy Related. A domestic company which is lawfully doing business in any foreign country may also invest its funds in:
(1) Bonds, notes, or obligations of such foreign country, or of a political subdivision, governmental corporation or agency, of such foreign country.
(2) Stocks, warrants, rights or other securities, bonds, notes, or obligations of any business entity formed or located in such foreign country, which are of the same kinds, classes and grades as those eligible for investments under this subdivision.
(b) The aggregate carrying value of all investments under this paragraph shall not exceed 150 percent of the liabilities arising from the outstanding policies of insurance issued or delivered in such foreign country.
III.
United States Dollar Denominated Foreign Investments. A domestic company may invest in stocks, warrants, rights or other securities, bonds, notes, or obligations, of foreign entities which are denominated in United States dollars, which are of the same kind, class and grade of United States investments which are authorized under any other provision of this subdivision. Any investment authorized under this paragraph shall be aggregated with United States investments of the same category in determining compliance with percentage limitations, if any, contained in other provisions of this subdivision.
IV.
Foreign Investments Denominated in Foreign Currency. A domestic company may invest in stocks, warrants, rights or other securities, bonds, notes, or obligations, of foreign entities which are denominated in a foreign currency, which are of the same kind, class and grade of United States investments which are authorized under any other provision of this subdivision. The aggregate carrying value of all investments under this paragraph shall be 10 percent of such company's admitted assets.

Source. 1917, 30:4. PL 273:23. RL 323:28. RSA 402:28. 1975, 232:1. 1977, 334:1. 1991, 372:2. 1997, 221:4. 2004, 197:3. 2016, 254:1, eff. Aug. 9, 2016. 2021, 119:2, Pt. II, Sec. 1, eff. July 9, 2021.

Section 402:29

    402:29 Loans to Transferred Employees. – A company may lend funds, on a secured basis, to an employee to defray, in whole or in part, the expenses of such employee who has been transferred. The maximum amount of any such loan to an employee shall be $250,000. This section also shall not prohibit the taking of a secured mortgage by a company on real property serving as the residence of any of its officers, employees, or directors. Such mortgage shall not exceed 85 percent of the appraised value of such realty as determined by an independent appraiser or the market value, whichever is the lesser amount. One of the terms of such mortgage shall provide that the outstanding balance of the mortgage becomes immediately due and payable to the company upon termination of the employment, or officer or director relationship, between the company and the mortgagor, or upon termination of said person's ownership of said real property.

Source. 1911, 87:1. 1913, 88:1. PL 273:24. RL 323:29. RSA 402:29. 1978, 11:2. 1991, 372:3, eff. Jan. 1, 1992.

Section 402:29-a

    402:29-a Lawful Distributions. –
I. Nothing in this subdivision shall prohibit the acquisition by a domestic company of other or additional securities or property if received as a dividend or as a lawful distribution of assets, or upon a debt or judgment, or under a lawful and bona fide agreement of bulk reinsurance, merger, or consolidation, or if acquired by it through the exercise of warrants, options, or similar rights to acquire securities received by it in accordance with this subdivision.
II. Nothing in this subdivision shall prevent any company from entering into an agreement for the purpose of protecting the interests of the company in securities lawfully held by it, or for the purpose of reorganization of a corporation which issued securities so held, and from depositing such securities with a committee or depositaries appointed under such agreement, nor from accepting stock, bonds, or other securities or other property which may be distributed pursuant to any such agreement, or to any plan of reorganization or arrangement.
III. No provision of this subdivision shall prevent any company from acquiring or holding any property acquired in satisfaction of any debt previously contracted, or that shall be obtained by sale or foreclosure of any security held by it. Any security or property so acquired which is not otherwise an eligible investment under this subdivision shall be disposed of within 5 years from date of acquisition, unless within such period the security or property has attained to the standard of eligibility, except that any security or personal property acquired under any agreement of bulk reinsurance, merger, or consolidation may be retained for a longer period if so provided in the plan for such reinsurance, merger, or consolidation. The commissioner may grant from time to time reasonable extensions of the period within which an insurer shall dispose of any such property or security.

Source. 1991, 372:4, eff. Jan. 1, 1992.

Section 402:29-b

    402:29-b Prohibited Acts. – No director or other officer of a company, and no member of a committee having any authority in the investment or disposition of its funds, shall accept, or be the beneficiary of, either directly or indirectly, any fee, brokerage, commission, gift or other consideration for or on account of any loan, deposit, purchase, sale, payment or exchange made by or in behalf of such company, or be pecuniarily interested in any such purchase, sale or loan, either as borrower, principal, agent or beneficiary, except that, if a policyholder, he shall be entitled to all the benefits accruing under the terms of his contract. This section shall not prohibit the purchase by an insurance company of real property serving as the residence of any of its officers, employees, or directors, when such purchase is made in connection with the relocation by the insurer of the place of employment of such officer, employee, or director and at no more than the fair market value of such property as determined by an independent appraisal. No such real property having a purchase price in excess of $500,000 may be so acquired except with the approval of the insurance commissioner.

Source. 1991, 372:4, eff. Jan. 1, 1992.

Section 402:29-c

    402:29-c Purchasing Its Own Stock. –
No company shall invest its funds in, or loan them on its own stock without the prior approval of the insurance commissioner. This section shall not prohibit a company from investing its funds in the stock or obligations of its parent company provided that:
I. Such stock shall be valued according to the Securities Valuation Manual of the National Association of Insurance Commissioners.
II. No company shall hold, at any one time, more than 10 percent of its policyholder surplus, in such stock or obligations.
III. Such stock, in order to qualify under this section, shall be traded on a nationally recognized stock exchange or on the NASDAQ system.

Source. 1991, 372:4, eff. Jan. 1, 1992.

Section 402:29-d

    402:29-d Quantitative Limitations. –
I. Except for investments in subsidiaries, an insurer shall not acquire:
(a) Directly or indirectly through an investment subsidiary, an investment under this chapter if, as a result of and after giving effect to the investment, the insurer would hold more than 5 percent of its admitted assets in investments of all kinds issued, assumed, accepted, insured, or guaranteed by a single person; provided, that this subparagraph shall not apply to general obligations of, or obligations guaranteed by, the United States, its agencies or government-sponsored enterprises, or obligations of any state, or of Canada or any province thereof; or
(b) Equity interests in business entities if, as a result of and after giving effect to the investment, the aggregate amount of investments then held by the insurer under this section would exceed the greater of 25 percent of its admitted assets or 100 percent of its surplus as regards policyholders. An insurer shall not acquire, under this paragraph, any investments that the insurer may acquire under RSA 402:28, I(g), (h), or (i), and any investments made under RSA 402:28, I(g), (h), or (i) shall be subject to the limitations established in paragraphs IV-VI.
II. The 5 percent limitation established in subparagraph I(a) shall not apply to the aggregate amounts insured by a single financial guaranty insurer with the highest generic rating issued by a nationally recognized statistical rating organization. In addition, asset-backed securities shall not be subject to the limitations of subparagraph I(a), except that an insurer shall not acquire an asset-backed security if, as a result of and after giving effect to the investment, the aggregate amount of asset-backed securities secured by or evidencing an interest in a single asset or single pool of assets held by a trust or other business entity, then held by the insurer would exceed 5 percent of its admitted assets.
III.Equity interests, as used in subparagraph I(b), shall mean common stock, general, preferred or limited partnership interest, trust certificate, investment in an investment company other than a money market mutual fund, investment in a common trust fund of a bank regulated by a federal or state agency, warrant, or other similar right to acquire an equity interest, member interests in limited liability companies, or any other similar interest.
IV. An insurer shall not acquire an investment in obligations secured by mortgages on real estate under RSA 402:28, I(g) if, as a result of and after giving effect to the investment, the aggregate amount of all investments then held by the insurer under RSA 402:28, I(g) would exceed:
(a) One percent of its admitted assets in mortgage loans covering any one secured location;
(b) One quarter of one percent of its admitted assets in construction loans covering any one secured location; or
(c) One percent of its admitted assets in construction loans in the aggregate.
V. An insurer shall not acquire an investment in income producing real estate under RSA 402:28, I(i) if, as a result of and after giving effect to the investment and any outstanding guarantees made by the insurer in connection with the investment, the aggregate amount of investments then held by the insurer under RSA 402:28, I(i) plus the guarantees then outstanding would exceed:
(a) One percent of its admitted assets in one parcel or group of contiguous parcels of real estate, except that this limitation shall not apply to that portion of real estate for the direct provision of health care services by an insurer whose insurance premiums and required statutory reserves for accident and health insurance constitute at least 95 percent of total premium considerations or total statutory required reserves, respectively, such as hospitals, medical clinics, medical professional buildings, or other health facilities used for the purpose of providing health services; or
(b) The lesser of 10 percent of its admitted assets or 40 percent of its surplus as regards policyholders in the aggregate, except for an insurer whose insurance premiums and required statutory reserves for accident and health insurance constitute at least 95 percent of total premium considerations or total statutory required reserves, respectively, this limitation shall be increased to 15 percent of its admitted assets in the aggregate.
VI. An insurer shall not acquire an investment in obligations secured by mortgages on real estate under RSA 402:28, I(g) or in income producing real estate under RSA 402:28, I(i) if, as a result of and after giving effect to the investment and any guarantees it has made in connection with the investment, the aggregate amount of all investments then held by the insurer under RSA 402:28, I(g) and RSA 402:28, I(i) plus the guarantees then outstanding would exceed 25 percent of its admitted assets.
VII. The limitations of paragraph I(a) shall not apply to an insurer's acquisition of real estate for the accommodation of business under RSA 402:28, I(j). An insurer shall not acquire real estate under RSA 402:28, I(j) if, as a result of and after giving effect to the acquisition, the aggregate amount of real estate then held by the insurer under RSA 402:28, I(j) would exceed 10 percent of its admitted assets. With the permission of the commissioner, additional amounts of real estate may be acquired under RSA 402:28, I(j).
VIII. Each investment or asset held by an insurer on January 1, 1994, which was eligible as an admitted asset at the time it was acquired, committed for, or engaged in, and any refinancing, modification, or extension thereof, shall be deemed to be eligible as an admitted asset under this chapter but shall be included as part of the limitation described above.
IX. Investments exceeding the limitation established by this section shall not be permitted under any other provision of this chapter including, but not limited to, RSA 402:28, I (q) and shall not be considered admitted assets of the insurer.
X. An insurer may invest in mutual funds in excess of the limits set forth in this section, provided the insurer shall not invest:
(a) More than 10 percent of its admitted assets in equity interests of a single mutual fund; or
(b) More than the greater of 25 percent of its admitted assets or 100 percent of its capital and surplus in equity interests held either directly by the insurer or indirectly through interests in mutual funds.
XI. An insurer shall not acquire under this section any investments that the insurer may acquire under RSA 402:29-a.

Source. 1993, 254:5. 1997, 221:5. 2016, 254:2, eff. Aug. 9, 2016. 2018, 67:1, eff. July 24, 2018. 2020, 37:47, eff. Sept. 27, 2020.

Section 402:30

    402:30 Valuation of Securities. –
Investments shall be valued as follows:
I. Securities held in accordance with the provisions of this subdivision shall be valued in accordance with the published valuation standards of the Securities Valuation Office of the National Association of Insurance Commissioners.
II. Securities as to which the National Association of Insurance Commissioners has not published valuation standards in its Valuation of Securities Manual, or its successor publication, shall be valued as follows:
(a) As obligations having a fixed term and rate shall, if not in default as to principal or interest, be valued as follows: if purchased at par, at the par value; if purchased at or below par, on the basis of the purchase price adjusted so as to bring the value to par at maturity and so as to yield in the meantime the effective rate of interest at which the purchase was made.
(b) Common, preferred, except sinking fund preferred stock valued under subparagraph (c), or guaranteed stocks, shall be valued at their market value or at the option of the company, they may be valued at purchase price if purchase price is less than market value.
(c) Sinking fund preferred stocks which are subject to mandatory redemption shall be valued at cost.
(d) Any investment that is not valued by standards published by the National Association of Insurance Commissioners may be submitted by the company to the Securities Valuation Office for valuation, which valuation shall govern.
(e) No other investment shall be valued at more than its purchase price. Purchase price for real property includes capitalized permanent improvements, less depreciation spread evenly over the life of the property or, at the option of the company, less depreciation computed on any basis permitted under the United States Internal Revenue Code of 1986, as amended and regulations thereunder. Such investments that have been affected by permanent declines in value shall be valued at not more than their market value.
(f) Any investment, including real property, not purchased by a company, but acquired in satisfaction of a debt or otherwise shall be valued in accordance with the applicable procedures for that type of investment contained in this section. For purposes of applying the valuation procedures, the purchase price shall be deemed to be the market value at the time the investment is acquired or in the case of any investment acquired in satisfaction of debt, the amount of the debt, including interest, taxes and expenses, whichever amount is less.
(g) The eligibility of an investment shall be determined as of the date of its making or acquisition or the date of commitment in the case of commitment to invest.

Source. 1887, 47:1. PS 168:5. 1917, 30:2. PL 273:25. RL 323:30. RSA 402:30. 1991, 372:5. 1992, 288:13, 14, eff. Jan. 1, 1993.

Section 402:30-a

    402:30-a Rulemaking. –
The commissioner may adopt rules, under RSA 541-A, which are reasonable and necessary for the implementation and administration of this chapter relative to:
I. Financial solvency standards, for investments under RSA 402:28.
II. Valuation standards, for investments under RSA 402:28.
III. Reporting requirements, for investments under RSA 402:28.
IV. Valuation of eligible investments not covered under RSA 402:30.
V. [Repealed.]

Source. 1963, 69:1. 1978, 11:3. 1991, 372:6. 2002, 207:28. 2012, 171:26, XVIII, eff. Aug. 10, 2012.

Dissolution of Companies

Section 402:30-b

    402:30-b Misconduct. – If an insurance company organized under the laws of this state shall be guilty of gross waste, misconduct or negligence in the management of its affairs, its charter or authority to do business shall be liable to forfeiture as provided in this subdivision.

Source. 1975, 311:1, eff. Aug. 6, 1975.

Section 402:30-c

    402:30-c Petition. – Whenever the commissioner is of the opinion that any such cause for revocation exists he shall file a petition against the company in the superior court of the county in which it has its principal place of business, praying for a decree of forfeiture and for a settlement of its affairs, which shall be entered and prosecuted according to the course of equity proceedings.

Source. 1975, 311:1, eff. Aug. 6, 1975.

Section 402:30-d

    402:30-d Prosecution. – The attorney general shall act for the commissioner in making and prosecuting the petition. The incidental expenses of the prosecution shall be paid by the state.

Source. 1975, 311:1, eff. Aug. 6, 1975.

Section 402:30-e

    402:30-e Orders. – If the court is satisfied that there has been gross waste, misconduct or negligence in the management of its affairs, it shall decree a forfeiture of the company's charter or authority to do business, and shall make all other orders required for closing up and settling its affairs; otherwise the petition shall be dismissed and the defendant's taxable costs shall be paid by the state.

Source. 1975, 311:1, eff. Aug. 6, 1975.

Section 402:31 to 402:35

    402:31 to 402:35 Repealed by 1969, 272:2, eff. June 23, 1969. –

Examinations and Reports

Section 402:36 to 402:38

    402:36 to 402:38 Repealed by 1971, 244:19, III, eff. Aug. 17, 1971. –

Rebating

Section 402:39 to 402:41

    402:39 to 402:41 Repealed by 2019, 127:2, eff. Aug. 24, 2019. –

Section 402:42

    402:42 Penalty. – Whoever violates any provision of this subdivision shall be fined not more than $2,500 or shall have any license suspended or revoked or shall both be fined and have any license suspended or revoked.

Source. 1907, 111:2. PL 273:36. RL 323:41. RSA 402:42. 1973, 529:99. 1983, 473:5, eff. Sept. 3, 1983.

Political Contributions

Section 402:43 to 402:45

    402:43 to 402:45 Repealed by 2009, 96:1, I, eff. June 12, 2009. –

Misrepresentations; "Twisting"

Section 402:46

    402:46 Terms of Policies. – No insurance company, association, or society or officer, director, agent, broker, or solicitor thereof, shall issue, circulate, or use, or cause or permit to be issued, circulated, or used, any statement, estimate, illustration, or circular misrepresenting the terms of any policy issued or to be issued by such company, or the benefits or privileges promised, or the future dividends payable, under any such policy.

Source. 1913, 127:2. PL 273:40. RL 323:45.

Section 402:47

    402:47 Inducing Lapses. – No insurance company, association or society, officer, director, agent, solicitor or broker, nor any person, firm, association, or corporation, shall make any misrepresentation, oral, written, or otherwise, or any misleading estimate of the dividends or share of surplus to be received thereon or any incomplete comparison of policies, to any person insured in any company for the purpose of inducing or tending to induce such person to take out a policy of insurance, or for the purpose of inducing, or tending to induce, a policyholder in any company to lapse, forfeit, or surrender his insurance therein and to take out a policy of insurance in another like company.

Source. 1913, 127:2. PL 273:41. 1929, 47:1. RL 323:46.

Section 402:48

    402:48 Penalty. – Whoever violates any provision of this subdivision shall be fined not more than $2,500 or shall have any license suspended or revoked or shall both be fined and have any license suspended or revoked.

Source. 1913, 127:4. PL 273:42. RL 323:47. RSA 402:48. 1973, 528:275. 1983, 473:6, eff. Sept. 3, 1983.

Section 402:49

    402:49 Revocation of Licenses. – The commissioner may, after notice and hearing, revoke or suspend a license theretofore issued to any company, association or society, agent or broker for a period not exceeding 3 years, for any such knowing or wilful violation.

Source. 1913, 127:4. PL 273:43. RL 323:48.

Other Penalties

Section 402:50

    402:50 General Penalty. – Whoever violates any provision of this subdivision shall be fined not more than $2,500 or shall have any license suspended or revoked or shall both be fined and have any license suspended or revoked.

Source. 1870, 1:13. GL 171:10. PS 168:18. PL 273:44. RL 323:49. RSA 402:50. 1973, 529:100. 1983, 473:7, eff. Sept. 3, 1983.

Section 402:51

    402:51 Embezzlement; Fraud. – If any officer of an insurance company organized under the laws of this state shall embezzle, abstract or wilfully misapply any of the money, funds or other securities of the company, or shall represent as the property of the company any money, funds or other securities which belong to others, or shall make any false entry in any book, report or statement of the company with intent in either case to injure or defraud it, or to deceive any of its officers or the commissioner or any other person or persons appointed to examine its affairs, he shall be guilty of a class A felony.

Source. 1895, 106:1. PL 273:45. RL 323:50. RSA 402:51. 1973, 528:276, eff. Oct. 31, 1973 at 11:59 p.m.

Section 402:52

    402:52 Illegal Fees, etc. – If any officer or employee of any such insurance company shall directly or indirectly receive any fee, present or benefit whatever from any borrower or applicant for a loan from such company as an inducement to making the loan, or from any one negotiating securities to the company (except the usual compensation for drawing mortgages and other papers pertaining to the loan), or for negotiating loans in his own behalf as an official of the company, shall be guilty of a class A felony.

Source. 1895, 106:2. PL 273:46. RL 323:51. RSA 402:52. 1973, 528:277, eff. Oct. 31, 1973 at 11:59 p.m.

Section 402:53

    402:53 Conversion by Agent. – Any money, substitute for money or thing of value whatever, received by any agent, solicitor or broker, as premium or return premium, on or under any policy of insurance or application therefor, shall be received by him in his fiduciary capacity, and any agent, solicitor or broker who embezzles or fraudulently converts or appropriates to his own use, or, with intent to embezzle, takes, secretes or otherwise disposes of, or fraudulently withholds, appropriates, lends, invests or otherwise uses or applies any such premium or return premium received by him, contrary to the instructions or without the consent of the company, association or society, for or on account of which the same was received by him, shall be deemed guilty of embezzlement, and shall be punished accordingly, irrespective of whether or not he has, or claims to have, any commission or other interest in such receipts.

Source. 1913, 176:1. 1917, 4:1. PL 273:47. RL 323:52.

Unauthorized Insurance

Section 402:54

    402:54 Revocation of Authority. – Whenever the insurance commissioner of the state shall determine after a hearing, 10 days' notice of which shall be given stating the time, place and purpose of such hearing, that any insurer organized under the laws of this state, whether on the stock, mutual, reciprocal, fraternal or other plan, or that any of the representatives of such insurer wilfully shall have transacted or attempted to transact or solicited business in any manner or accepted risks in any jurisdiction in which such insurer is not licensed in accordance with the laws of such jurisdiction, and which jurisdiction has adopted an act similar hereto, it shall be his duty to revoke the certificate of authority of any such offending insurer; provided, however, that the foregoing provisions shall not apply to a domestic insurer when the major portion of such risks originated in a jurisdiction wherein such insurer was licensed to transact such class or classes of business and when such origin was by other means than by circularization or by advertising locally in any such jurisdiction wherein such insurer is not licensed.

Source. 1943, 105:1, par. 55, eff. April 7, 1943.

Section 402:55

    402:55 Definitions. – The term "transacting business," as used in this subdivision, shall be defined to include in addition to its usual interpretation, advertising locally in any foreign jurisdiction in which an insurer is not licensed or circularizing in any such jurisdiction without regard for the source of such circularization whenever such advertising locally or such circularization is for the purpose of solicitation of insurance business. The word "jurisdiction" as used in this subdivision shall be defined to include any state of the United States, the District of Columbia or any province of the Dominion of Canada.

Source. 1943, 105:1, par. 56, eff. April 7, 1943.

Company Fees and Taxes

Section 402:56

    402:56 Fees. – Every insurance company making application for an original license to transact insurance business in this state, shall pay to the commissioner a fee as established by RSA 400-A:29 for the examination, investigation and processing of the application. Such fee shall be retained by the commissioner even though the application may be withdrawn, denied or otherwise acted upon. Any reapplication for such a license shall be subject to the same fee. Every such company shall annually thereafter pay a fee as established by RSA 400-A:29 for the renewal of such license, payable on or before April 1 of each year. Such renewal fee shall include all charges in connection thereof except fee for agents' licenses and the renewal thereof. All fees collected by the commissioner shall be turned over to the state treasurer for deposit in the general fund as unrestricted revenue.

Source. 1870, 1:3, 4, 5, 7. GL 174:2, 3. 1889, 86:1, 2, 4. PS 169:13. 1907, 116:1. PL 275:58. 1933, 32:2. 1941, 78:1, 3. RL 325:63. 1945, 71:4, par. 57. RSA 402:56. 1963, 310:1. 1983, 473:8. 1997, 221:1, eff. July 1, 1997.

Section 402:56-a

    402:56-a Repealed by 1997, 221:6, eff. July 1, 1997. –

Section 402:57

    402:57 Repealed by 1970, 37:4, I, eff. May 4, 1970. –

Section 402:57-a, 402:57-b

    402:57-a, 402:57-b Repealed by 1971, 244:19, VI, eff. Aug. 17, 1971. –

Section 402:58

    402:58 When Effective [Omitted.] –

Section 402:59

    402:59 Repealed by 1983, 473:16, I, eff. Sept. 3, 1983. –

Section 402:60

    402:60 Repealed by 1983, 473:16, II, eff. Sept. 3, 1983. –

Section 402:61

    402:61 Repealed by 1970, 37:4, II, eff. May 4, 1970. –

Section 402:62

    402:62 When Effective. – [Repealed 1983, 473:16, III, eff. Sept. 3, 1983.]

Section 402:63

    402:63 Exemption. – The provisions of RSA 402:24 and RSA 402:56 and 57 shall not apply to mutual insurance companies that operate on an assessment plan and require as a condition for granting insurance the signing of a premium deposit note by the insured, which note is given for the purpose of establishing a limit of liability to assessment, while their total receipts from policyholders is less than $10,000 per year.

Source. 1945, 71:4, par. 59, eff. March 22, 1945.

Section 402:64

    402:64 Repealed by 1983, 473:16, IV, eff. Sept. 3, 1983. –

Section 402:65

    402:65 Repealed by 1983, 473:16, V, eff. Sept. 3, 1983. –

Firemen's Aid

Section 402:66

    402:66 Relief Fund. – Six thousand dollars of the amount received as the taxes imposed by RSA 400-A shall annually be set apart by the state treasurer, and kept distinct from all other funds, and shall be known as the firemen's relief fund.

Source. 1899, 64:2. 1915, 152:1. 1917, 195:1. PL 275:62. RL 325:67. 1945, 71:4, par. 62. RSA 402:66. 1971, 244:3. 1973, 232:1, eff. Aug. 18, 1973.

Section 402:67

    402:67 Expenditure. – Such fund, in the month of May after its receipt, shall be paid over, upon the order of the governor, to the treasurer of the New Hampshire State Firemen's Association, as trustee, and shall be devoted to, and paid out for, the relief of any fireman injured or disabled in the discharge of his duty as fireman, who is a member in good standing in any regularly organized town or city fire company in this state belonging to said association and who is himself a member of said association, and for the relief of the dependent parent, surviving spouse or children of such fireman whose death was occasioned by injuries received in the line of his duty as a fireman; said sum of $6,000 to be in full for any appropriation for any one year.

Source. 1899, 64:2. 1915, 195. PL 275:63. RL 325:68. 1945, 71:4, par. 63. RSA 402:67. 1992, 103:1, eff. June 28, 1992.

Section 402:68

    402:68 Additional Relief. – In addition to said firemen's relief fund, in the event of the depletion of the treasury of the New Hampshire State Firemen's Association below the amount necessary to meet its obligations, the state treasurer shall, having received a certified statement of such condition from the treasurer of said association, upon the order of the governor, pay to the treasurer of said association as trustee a sum not to exceed $2,000 annually.

Source. 1899, 64:3. 1903, 128:1. PL 275:64. RL 325:69. 1945, 71:4, par. 64, eff. March 22, 1945.

Section 402:69

    402:69 Exemption. – The money due a fireman, or in case of his death his parents, widow or children, by reason of any rule or bylaw of said association, shall be exempt from attachment or trustee process.

Source. 1899, 64:3. PL 275:65. RL 325:70. 1945, 71:4, par. 65, eff. March 22, 1945.

Section 402:70

    402:70 Regulations; Reports. – The New Hampshire State Firemen's Association shall make and observe just and equitable rules, bylaws and regulations for the proper apportionment and disbursement of such fund, subject to the approval of the governor and council. It shall, through its president and treasurer, make a full and detailed report of its disposal of such fund and file the same with the secretary of state in the month of May annually.

Source. 1899, 64:4. PL 275:66. RL 325:71. 1945, 71:4, par. 66, eff. March 22, 1945.

Section 402:71

    402:71 Definitions. – The word "fireman" as used in the subdivision shall be construed to include any woman member of such fire company and of such association, and the word "widow" as used therein shall be construed to include the widower of any such woman member.

Source. 1945, 71:4, par. 67, eff. March 22, 1945.

Miscellaneous Provisions

Section 402:72

    402:72 Repealed by 1971, 244:19, IV, eff. Aug. 17, 1971. –

Section 402:73

    402:73 Deposits in Trust. – In all cases in which the laws of any other state of the United States require that the insurance companies incorporated by the laws of other states shall deposit with some officer of the state in which such insurance company is incorporated stocks or other securities in trust or for the benefit of policyholders of such companies, as a condition for doing business in such other states, the insurance commissioner shall receive from any insurance company incorporated under the laws of this state stocks or other securities, in such amount as may be required by the laws of such other state or states, on deposit in trust for the benefit of the policyholders of such company.

Source. 1911, 131:1. 1917, 21:1. PL 273:49. RL 323:54.

Section 402:74

    402:74 Controlled Insurance; Prohibited Interest. –
I. It is the policy of this state that an insurance agent or an insurance company should not be licensed to act or do business primarily for the purpose of placing insurance on his or its own property or on property which is owned or controlled in any manner by employees or close relatives of the agent or of the company or owners of the company, and it is the purpose of this section to further that policy.
II. If any applicant for a license from the commissioner of insurance to act as an insurance agent or to do insurance business in the state receives in any calendar year more than 10 percent of his or its total commissions or premiums from insurance that the agent or company writes in that year, from any insurance involving in any way the property or any interest in property of the persons, associations, or corporations listed in paragraph III of this section, the agent or company is deemed to be licensed primarily for the purpose of insuring his or its own property or of insuring property which is owned or controlled to some extent by employees or close relatives of the agent or of the company or owners of the company, and the commissioner shall not issue him or it a license unless the agent or company shows to the satisfaction of the commissioner that he or it is not so licensed.
III. If the property insured by an applicant is owned by any of the persons listed in this paragraph, the commissioner shall not issue a license to the applicant unless the applicant shows to the satisfaction of the commissioner that the applicant is not licensed contrary to the policy of the state as set forth in paragraph I of this section.
(a) an applicant;
(b) any member of any firm or association if an applicant is also a member or owner;
(c) an owner of any interest in an association or partnership which is an applicant and the spouse of such an owner;
(d) the stockholders of a corporation which is an applicant and their spouses;
(e) any corporation owning an interest in a corporation which is an applicant;
(f) any firm or association, its members or owners and their spouses who individually or collectively own more than 50 percent of the capital stock of a corporation which is an applicant;
(g) any corporation if any firm or association, its members or owners or their spouses own more than 50 percent of the capital stock of a corporation which is an applicant;
(h) any corporation if an applicant or the applicants, individually or collectively, own more than 50 percent of its capital stock;
(i) any affiliate or subsidiary of any corporation mentioned in this paragraph;
(j) an employee or an employer of an applicant;
(k) any person for whom an applicant is or acts as trustee;
(l) any company if the property insured is manufactured, sold or financed by the company, unless the insurance protects the insured against a physical damage to an automobile manufactured, sold, or financed by the company to the insured;
(m) the employees of a corporation which owns the controlling interest in an applicant, if over 10 percent of the commissions or premiums received by the applicant come from the employees of the corporation.
IV. The provisions of this section do not apply to an agent licensed as of the effective date of this section.

Source. 1967, 373:1, eff. Sept. 1, 1967.

Section 402:75

    402:75 Repealed by 1983, 473:16, VI, eff. Sept. 3, 1983. –

Section 402:76

    402:76 Modification. – Any existing contract between an insurance agent and insurance company may be modified only by mutual consent.

Source. 1977, 566:2, eff. July 16, 1977.

Section 402:77

    402:77 Retention of Unpaid Premium. – Any insurance company, broker or agent may retain an amount equal to any unpaid premium due on the policy under which a claim is being presented, in connection with claims by and settled with an insured; provided, however, that the unpaid premium remains unpaid 60 days after the effective date of such policy or the date of the original billing for the unpaid premium, whichever occurs later. Such unpaid premium shall not be retained as against any loss payee or mortgagee named in said policy up to the amount of the unpaid balance owed to such loss payee or mortgagee on the date the loss occurred which gave rise to said claim. This section shall not be applicable to a health insurance policy.

Source. 1981, 217:1, eff. Aug. 10, 1981.

Section 402:78

    402:78 Request for Information. –
I. Any law enforcement investigator may request an insurance company to release any information in its possession relative to the disappearance, theft or loss of any motor vehicle, or other personal property. The insurance company shall release the information and cooperate with any official authorized to request such information pursuant to this section. The information may include but not be limited to:
(a) Any relevant insurance policy;
(b) Policy premium payments records;
(c) History of previous claims made by the insured for the theft, loss or disappearance of any motor vehicle or other personal property;
(d) Any other material relating to the investigation of the theft, loss or disappearance.
II. If an insurance company has reason to suspect that a theft, loss or disappearance of a motor vehicle or other personal property in the amount of $500 or more was caused by other than accidental means, the company shall notify the local or state law enforcement authorities and furnish them, either through a recognized bureau or organization of companies or through the secretary or other officer of the insurance company, with all relevant material acquired during its investigation of the theft, loss or disappearance of a motor vehicle or other personal property. The insurance company shall cooperate with and take such reasonable action as may be requested of it by any law enforcement agency, and permit any person so ordered by a court to inspect any of its records pertaining to the policy and the loss.
III. In the absence of fraud or malice, no public official or insurance company or person who furnishes information on behalf of the insurance company shall be liable for damages in a civil action or subject to criminal prosecution for any oral or written statement made or any other action taken that is necessary to supply information required pursuant to this section.
IV. The recipient of any information furnished pursuant to this section shall hold the information in confidence, and shall only release it to a law enforcement authority or agency or to the insurance department, until such time as its release is required pursuant to a criminal or civil proceeding.
V. An insurer or other person licensed by the insurance department who fails to comply with this section may be subject to administrative action to be taken by the insurance commissioner. The penalty imposed by the commissioner may include a fine not exceeding $2,500 in the discretion of the insurance commissioner, or suspension or revocation of such insurer's license, or both.

Source. 1981, 502:4, eff. Aug. 28, 1981.

Section 402:79

    402:79 Custody; Reimbursement for Medical Expenses. – Whenever the state or any of its subdivisions, or any agency of the state or of any of its subdivisions, is required to pay under the provisions of RSA 623:1, I for the medical care of any person in its custody pursuant to a valid arrest or detention, such governmental unit shall be entitled to obtain reimbursement for such payments from any insurer to the extent that such insurer would be liable to pay for such medical care pursuant to any health, medical, group health or medical, liability, or other insurance policy.

Source. 1987, 250:1, eff. July 17, 1987.

Section 402:80

    402:80 Cancellation or Termination of Policies. –
No cancellation or termination of an insurance policy of any type for nonpayment of a premium shall be effective if:
I. Payment of the premium is actually received by the insurance company or by the insurance company's agent, before the date and time of the cancellation or termination of the policy as stated in the notice of cancellation or termination; or
II. Payment of the premium is sent to the insurance company, or the insurance company's agent, by certified mail before the date and time of cancellation or termination of the policy as stated in the notice of cancellation or termination.

Source. 1988, 115:1. 2012, 100:1, eff. July 28, 2012.

Section 402:81

    402:81 Insurance Premium Refunds. –
I. Whenever an insurer owes a refund on an insurance premium paid, that insurer shall pay the refund within 30 days of the date when the refund becomes due.
(a) When an insurance policy is cancelled by a named insured, a refund shall be due from the company or its appointed producer upon receipt of:
(1) The original policy to be cancelled; or
(2) A signed lost policy release; or
(3) A cancellation request from the insured which has been submitted in accordance with provisions of the policy or statute.
(b) When an insurance policy is cancelled by an insurer, a refund shall become due upon the date of cancellation as stated in the notice of cancellation.
(c) For auditable policies:
(1) Audits shall be completed promptly, no more than 120 days after the expiration or cancellation of the policy, provided that there is no bona fide dispute; and
(2) If there is no bona fide dispute, the refund of gross unearned premium shall become due on the date of the completed audit or 120 days after the expiration or cancellation of the policy, whichever occurs first.
(3) Any insurer that violates this subparagraph shall be subject to the penalty provisions of RSA 402:50.
(4) In cases where the amount of refund is in bona fide dispute, the refund shall not become due until the dispute is resolved and the audit is completed. The insurer shall notify the insured in writing that there is a bona fide dispute and this notice shall toll the 120-day time period until the dispute is resolved. Upon resolution of the dispute, the insurer shall proceed to complete the audit within the time remaining in the 120-day time period.
(5) A bona fide dispute includes the insured's failure to cooperate with the audit, provided the insurer has notified the insured of:
(A) The acts or omissions that constitute the insured's failure to cooperate; and
(B) The consequences of the insured's failure to cooperate, including delay in the completion of the audit and payment of any refund due.
(d) This paragraph shall not apply to retrospectively rated policies.
(e) No refund shall be required if the return premium is $1 or less.
II. Whenever the premium refunds described in paragraph I are refunded to an authorized third party, such as an insurance producer or a party with cancellation power of attorney from the insured, the authorized third party shall credit the premium refund for the account of the named insured. In the event that crediting of return premiums to the account of the named insured results in a surplus over the amount owed the authorized third party by the named insured, the surplus shall be paid to the named insured within 10 days of receipt of the return premium, being credited to the third party, provided that no such refund shall be required if it amounts to less than $1.
III. For any refund that is not paid to the named insured within the specified period set forth in paragraph I, the party to whom the premium is owed shall be entitled to interest beginning on the first day after the expiration of the period, at a rate determined by the state treasurer pursuant to RSA 336:1, II. Any interest developed because of late refunding shall ultimately benefit only the named insured. This paragraph shall not apply to retrospectively rated policies.

Source. 1988, 221:1. 1989, 173:1. 1993, 210:1, 2. 2005, 248:3. 2008, 275:3. 2010, 212:3. 2014, 31:3, eff. July 26, 2014.

Section 402:82

    402:82 Claim Forms and Applications. –
I. All insurance claim forms shall contain the following statement : "Any person who, with a purpose to injure, defraud, or deceive any insurance company, files a statement of claim containing any false, incomplete, or misleading information is subject to prosecution and punishment for insurance fraud, as provided in RSA 638:20."
II. No insurance company or producer shall accept an application for workers' compensation or life, accident and health insurance unless the application includes:
(a) A written or electronic signature of the producer, unless the transaction does not involve a producer; and
(b) A written or electronic signature of the applicant. In the case of group life, accident, or health insurance, the certificate holder insured under the group health policy is not the applicant.
III. Paragraph II shall not apply to a request for a binder providing temporary coverage, provided the binder is effective for a period of no more than 30 days. The insurer shall comply with the provisions of paragraph II before the issuance of the insurance policy.
IV. The lack of the information required by paragraphs I and II shall not constitute a defense against prosecution under RSA 638:20 or any other criminal statute.
V. "Electronic signature" shall have the same definition as under RSA 294-E:2.
VI. "Written signature" means an original signature or a duplicate copy made by photocopying, facsimile, or other means similar and does not include stamped signatures.

Source. 1991, 248:2. 2008, 378:3. 2010, 212:4. 2011, 189:1. 2014, 196:1, eff. July 11, 2014. 2022, 42:4, eff. July 2, 2022.

Section 402:83

    402:83 Applicability of Federal Law. – No provisions of this title relating to investments shall be preempted by the provisions of the federal Secondary Mortgage Market Enhancement Act of 1984 (15 U.S.C. ยง 77r-1). The provisions of this title specifically pertaining to, or otherwise affecting, investments of the type specified in the federal Secondary Mortgage Market Enhancement Act of 1984 shall remain in full force and effect notwithstanding the provisions of the Secondary Mortgage Market Enhancement Act of 1984.

Source. 1991, 372:7, eff. July 2, 1991.

Section 402:84

    402:84 Discontinuance of Lines of Business; Notice Required. – Any licensed insurance company authorized to transact fire or casualty business in this state shall provide 120 days' notice to its appointed agents of record in New Hampshire of the insurance company's decision to cease writing an entire line of business. Any nonrenewal notices to affected policyholders shall be issued in accordance with applicable law, provided that the effective date of any such nonrenewals shall be at least 120 days after notice to the agents of record under this section.

Source. 2018, 31:1, eff. Jan. 1, 2019.