New Hampshire’s Raffle Law Takes Effect

January 15, 2016

New Hampshire’s new law removing the monetary cap on prize values at promotional raffles and other similar events conducted by insurance producers went into effect this month.

H.B.171 (“An Act relative to rebating”), which was signed by New Hampshire Gov. Maggie Hassan in June 2015, went into effect on Jan. 1, 2016.

Previously, when a producer in New Hampshire conducted contests, sweepstakes, raffles or drawings in connection with the marketing or promotion of insurance products, the cumulative prize values could not exceed $1,000 during a 12-month period. However, this limit did not apply to insurers.

The law now removes the monetary cap on promotional events for producers.

The Professional Insurance Agents of New Hampshire Inc. (PIANH), a statewide trade group for independent insurance agents, brokers and their employees, said the new law will help independent agents compete “on an even playing field” against direct writers. PIANH helped draft and introduce the bill.

Producers and carriers still need to follow a set of requirements to qualify for exceptions to the anti-rebating law. Organizers for promotional events must make sure that there is no participation cost to entrants.

Organizers must also make sure that the events are open to consumers who are not policyholders and that the consumers are not required to purchase policies in order to be eligible to enter the contests and receive prizes.

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