The Professional Insurance Agents of New Hampshire Inc. recently said it supports two insurance department proposals and offered further recommendations to clarify fiduciary and licensing rules affecting agents.
The association sent comments on each proposal (Chapter Ins. 4300 on the fiduciary obligations of producers and Chapter Ins. 1300 on agents, brokers and adjusters) for consideration prior to finalization.
According to Judy George, president of PIANH, while the association generally agrees with the changes regarding producers’ fiduciary obligations, it also suggested the department take the opportunity to address unanswered questions, such as whether a producer may retain interest that accrues on funds maintained in an interest-bearing premium trust account.
“PIANH suggests that producers should be permitted to keep the accrued interest,” said George. “The practice, which is permitted in other states, will not compromise the integrity of a premium trust account or threaten the availability of funds.”
Additionally, the association asked the department to clarify whether a producer is required to maintain his or her premium trust account in a bank that is located in New Hampshire.
Regarding the department’s proposal of Chapter Ins. 1300, PIANH voiced some concern with the deletion of provisions for the educational requirements of people applying for new licenses.
“Although the proposed sections clearly set forth the requirements applicable to producers and adjusters seeking to renew their licenses, these sections fail to specify the requirements for an individual applying for a new license,” said George.
Also, while the proposal includes a provision regarding reciprocal licensing for adjusters, the association questioned the lack of a similar provision for producers. According to PIANH, it would be beneficial for the proposed rule to set forth the requirements applicable to nonresidents that apply for licenses in New Hampshire.
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