Industry Issues | Surplus Lines Reform

Surplus Lines Legislative Update - New Hampshire

Legislative Update - New Hampshire

January 31, 2019

HB 433 - The APCIA has been expending a significant amount of effort over the past couple of months to push back on the Department's proposal to require alien and foreign insurers to report surplus lines policy data to the Department. After meeting with the Commissioner and staff, the APCIA was successful in convincing them to drop the reporting proposal entirely as long as we assist them in obtaining the necessary information from certain alien insurers on a voluntary basis. As progress has been made on that front, the Department submitted an amendment last week to the House Commerce and Consumer Affairs Committee to remove the reporting requirement entirely. The amendment was approved by the committee. As such, the amended bill simply inserts a definitions section into RSA 405, which has been deemed acceptable.

HB 292 - On a related issue, the Department also sought to institute similar reporting requirements that would be mandated on surplus lines brokers. However, the original language was problematic as it required brokers to report policy data that could include multi-state policies where NH is not the home state of the insured, in violation of the NRRA. In collaboration with WSIA, the APCIA negotiated amendments with the Department to ensure that only policy data where New Hampshire is the home state would be reported. We expect the committee to vote on the amendments in the coming weeks. 

SB 189 - Additionally, legislation has also been proposed by the Department to standardize the premium tax levied on surplus lines insurance with multi-state risks and where New Hampshire is the home state to be at a flat premium tax rate. The APCIA will be weighing in to support this change when the bill is scheduled for a hearing.