The American Insurance Association issued a bulletin noting that the New Hampshire legislature has passed an insurance regulatory modernization bill (HB 684) that “will provide benefits to consumers and insurers alike.” It now goes to Republican Governor Craig Benson, who is expected to sign it.
“AIA has worked closely with the New Hampshire Department of Insurance to move this legislation forward,” stated Paul Moran, AIA VP, northeast region. “This measure will make it easier for insurers to bring products to the market in New Hampshire, providing consumers with more choices.”
The bill, which was also supported by the NAII (see IJ Website May 29), makes personal lines rate regulation a 30-day file-and-use system, moving away from a strict prior approval system. It also lowers the definition of an Exempt Commercial Policyholder (ECP) from a $500,000 premium threshold to $100,000 and makes most other commercial lines rate regulation use-and-file.
“This is a very important measure for both personal and commercial lines. For example, it will enable insurers to adapt quickly to changes in the marketplace, and design insurance products tailor-made for more of their commercial customers,” Moran indicated.
“Further, by removing the bureaucratic obstacle of required prior approval from the Insurance Department for personal lines rates, this legislation will provide insurers with the flexibility to design new and innovative products for their personal lines customers. This should promote competition and encourage efficient marketing practices, all of which should benefit New Hampshire’s economy,” he concluded.
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