REGULATION OF FORMS AND RATES FOR PROPERTY AND CASUALTY INSURANCE
Additional Provisions Applicable to Advisory Organizations and Statistical Agents; Joint Underwriting, Joint Reinsurance Pool; Assigned Risk and Residual Market Activities
412:26 Joint Underwriting; Joint Reinsurance Pool; Assigned Risk and Residual Market Activities.
I. Notwithstanding RSA 412:21, II and III, insurers participating in joint underwriting, joint reinsurance pools, assigned risk or residual market mechanisms may in connection with such activity act in cooperation with each other in the making of rates, rating systems, policy forms, underwriting rules, surveys, inspections and investigations, the furnishing of loss and expense statistics or other information, or carrying on research. Agreements may be made among insurers with respect to the equitable apportionment among them of insurance that may be afforded applicants who are in good faith entitled to, but who are unable to procure such insurance through ordinary methods.
II. Every joint underwriting association, joint reinsurance pool, assigned risk or residual market shall file with the commissioner for approval every statistical plan, all prospective loss costs, provisions for special assessments and all supplementary rating information and every change or amendment or modification of any of the foregoing proposed for use in this state. Such filings shall not take effect until the commissioner shall approve the same as just and reasonable and adequate for the risks to which they respectively apply and shall otherwise be subject to the provisions of RSA 412:16 and RSA 412:19 and other provisions of this chapter relating to filings made by insurers.
III. Except to the extent modified by this section, insurers, joint underwriting, joint reinsurance pool, and residual market mechanism activities are subject to the other provisions of this chapter.
IV. If, after hearing, the commissioner finds that any activity or practice of an insurer participating in joint underwriting or a pool is unfair, is unreasonable, will tend to lessen competition in any market or is otherwise inconsistent with the provisions or purposes of this chapter, the commissioner may issue a written order and require the discontinuance of such activity or practice.
V. Every pool shall file with the commissioner a copy of its constitution; its articles of incorporation, agreement or association; its bylaws, rules and regulations governing its activities; its members; the name and address of a resident of this state upon whom notices or orders of the commissioner or process may be served; and any changes in amendments or changes in the foregoing.
VI. (a) Any residual market mechanism, plan, or agreement to implement such a mechanism, and any changes or amendments thereto, shall be submitted in writing to the commissioner for consideration and approval, together with such information as may be reasonably required. The commissioner shall approve only such agreements as are found to contemplate:
(1) The use of rates which meet the standards prescribed by this chapter; and
(2) Activities and practices that are not unfair, unreasonable, or otherwise inconsistent with the provisions of this chapter.
(b) At any time after such agreements are in effect, the commissioner may review the practices and activities of the adherents to such agreements and if, after a hearing, the commissioner finds that any such practice or activity is unfair or unreasonable, or is otherwise inconsistent with the provisions of this chapter, the commissioner may issue a written order to the parties and either require the discontinuance of such acts or revoke approval of any such agreement.
Source. 2003, 150:1, eff. Jan. 1, 2004.