CHAPTER 404-H NEW HAMPSHIRE INSURANCE GUARANTY ASSOCIATION ACT OF 2004
Section 404-H:5
404-H:5 Definitions. –
In this chapter:
I. "Account" means any one of the 3 accounts created by RSA 404-H:6.
II. "Affiliate" means a person who directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with another person.
III. "Affiliate of the insolvent insurer" means a person who directly, or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with an insolvent insurer on December 31 of the year preceding the date the insurer becomes an insolvent insurer.
IV. "Association" means the New Hampshire Insurance Guaranty Association created under RSA 404-H:6.
V. "Authority" means the business finance authority established in RSA 162-A.
VI. "Claimant" means any insured making a claim or any person instituting a liability claim, including a workers' compensation claim, provided that no person who is an affiliate of the insolvent insurer at the time the policy was issued or at the time of the insured event may be a claimant.
VII. "Commissioner" means the commissioner of insurance of this state.
VIII. "Control" means the possession, direct or indirect, or the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is a result of an official position with or corporate office held by the person. Control shall be presumed to exist if a person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing, 10 percent or more of the voting securities of any other person. This presumption may be rebutted by a showing that control does not exist in fact.
IX. (a) "Covered claim" means an unpaid claim, including one for unearned premiums submitted by a claimant, which arises out of and is within the coverage and is subject to the applicable limits of an insurance policy to which this chapter applies issued by an insurer, if such insurer after the effective date of this chapter becomes an insolvent insurer, and:
(1) The claimant or insured is a resident of this state at the time of the insured event; provided that for entities other than an individual, the residence of a claimant or insured is the state in which its principal place of business is located at the time of the insured event; or
(2) The claim is a first party claim for damage to property with a permanent location in this state.
(b) "Covered claim" includes obligations that arose through the issuance of an insurance policy by a member insurer, which are later allocated, transferred, assumed by, or otherwise made the sole responsibility of a member or non-member insurer if:
(1) There are no remaining obligations of the original member insurer after the transfer; and
(2) The insurer that assumed the member's coverage obligations becomes insolvent and goes into liquidation proceedings.
(c) "Covered claim" shall not include:
(1) Any amount awarded as punitive or exemplary damages;
(2) Any amount sought as a return of premium under any retrospective rating plan;
(3) Any claim by or for the benefit of any reinsurer, insurer, insurance pool, or underwriting association, as subrogation recoveries, reinsurance recoveries, contribution, indemnification or otherwise. No claim for any amount by or for the benefit of any reinsurer, insurer, insurance pool, or underwriting association may be asserted against a person insured under a policy issued by an insolvent insurer other than to the extent such claim exceeds the limitations on the association's obligations set forth in RSA 404-H:8, I(a)(1)(B) of this chapter; or
(4) Any claim arising out of an insurance policy issued by a non-member insurer and later allocated, transferred, assumed by, or otherwise made the sole responsibility of a member insurer.
X. "Insolvent insurer" means an insurer licensed to transact insurance in this state, either at the time the policy was issued or when the insured event occurred, and against whom a final order of liquidation has been entered after the effective date of this chapter with a finding of insolvency by a court of competent jurisdiction in the insurer's state of domicile.
XI. "Member insurer" means any person who:
(a) Writes any kind of insurance to which this chapter applies under RSA 404-H:3, including the exchange of reciprocal or inter-insurance contracts; and
(b) Is licensed to transact insurance in this state, except 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 insurer, 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.
XII. "Net direct written premiums" means direct gross premiums written in this state on insurance policies to which this chapter applies, less return premiums thereon and dividends paid or credited to policyholders on such direct business. "Net direct written premiums" does not include premiums on contracts between insurers or reinsurers.
XIII. "Person" means any individual or legal entity, including governmental entities.
Source. 2004, 197:1, eff. Aug. 6, 2004. 2022, 211:1, eff. Aug. 16, 2022.