New Hampshire
Summary
An NAIC model state.
NHSCA and SCIC and any other parties worked for several years to resolve the New Hampshire Department of Insurance position with that of various legislative leaders. The final result was an attempt to apply the NAIC Model law to virtually all types or pre-paid service contracts as “Consumer Guaranty Contracts.” SVB 448 was adopted and became effective January 1, 2005. It is now codified at Chapter 415C.
Essentials of the law are registration with the state, financial assurance, consumer disclosures and limited oversight and enforcement.
Major differences from the NAIC model are its broader scope, it high penalty provision, and a provision (C5 (3)) requiring a list of the locations where consumer guaranty contracts are marketed, sold, offered for sale, issued, made, or proposed to be made. Discussions were had with the insurance Department and some informal understanding that this provision will not be applied too literally. Fortunately, the problematic limited licensing of sales representatives and Realtors under INS 2500 is now eliminated.
Prior to this law, service contract providers were supposed to register under a free standing regulation INS 2500. INS 2500 was always of dubious legal authority and can only be based upon an informal (no outdated) position by the Department of insurance that service contracts were insurance.
Statutes
CHAPTER 415-C
CONSUMER GUARANTY CONTRACTS
For a direct link to the law 2004 Consumer guaranty contracts.
REGULATIONS
None at this time
