CHAPTER 255

HB 782-FN – FINAL VERSION

27Mar2007… 0736h

05/17/07 1467s

13Jun2007… 2121eba

2007 SESSION

07-0571

01/04

HOUSE BILL 782-FN

AN ACT relative to reinsurance intermediaries, conduct of examinations, and certain business transfer tax credits.

SPONSORS: Rep. DeStefano, Merr 13; Rep. McLeod, Graf 2; Rep. D. Flanders, Belk 4; Rep. Headd, Rock 3

COMMITTEE: Commerce

AMENDED ANALYSIS

This bill clarifies the law governing reinsurance intermediaries.

This bill clarifies expenses for examination of companies.

This bill also allows the transfer of the business enterprise tax credit from one insurance affiliate to another insurance affiliate within the unitary business.

This bill is a request of the insurance department.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

27Mar2007… 0736h

05/17/07 1467s

13Jun2007… 2121eba

07-0571

01/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seven

AN ACT relative to reinsurance intermediaries, conduct of examinations, and certain business transfer tax credits.

Be it Enacted by the Senate and House of Representatives in General Court convened:

255:1 Reinsurance Intermediaries; Definitions. Amend RSA 402-F:1, VI-VIII to read as follows:

VI. “Reinsurance intermediary-broker” or [“broker”] “RB” means [any] a person, other than an officer or employee of the ceding insurer, firm, association or corporation who solicits, negotiates or places reinsurance cessions or retrocessions on behalf of a ceding insurer without [the authority or power to bind reinsurance] acting as a reinsurance intermediary-manager (RM) on behalf of such insurer.

VII. “Reinsurance intermediary-manager” or [“manager”] “RM” means [any] a person, firm, association or corporation, whether known as an RM, manager, or other similar term, who has authority to bind or [manage] manages all or part of the assumed reinsurance business of a reinsurer, including the management of a separate division, department or underwriting office, and acts as an agent for such reinsurer [whether known as a reinsurance intermediary-manager, manager or other similar term. Notwithstanding the above, the following persons shall not be considered managers, with respect to such reinsurer, for the purposes of this chapter], except the following:

(a) An employee of the reinsurer.

(b) A United States manager of the [United States] U.S. branch of an alien reinsurer.

(c) An underwriting manager [which] that, pursuant to contract, manages all or part of the reinsurance [operation] operations of the reinsurer, is under common control with the reinsurer, subject to RSA 401-B, and [whose compensation] that is not [based] compensated on the volume of premiums written.

(d) The manager of a group, association, pool or organization of insurers which engage in joint underwriting or joint reinsurance [and who] but only if the group, association, pool, or organization of insurers [are], as distinguished from its members, is subject to examination by the insurance commissioner of the state in which the manager’s principal business office is located.

VIII. “Reinsurer” means [any] a person, firm, association or corporation duly licensed in this state pursuant to the applicable provisions of the insurance law as an insurer with the authority to assume reinsurance.

255:2 Reinsurance Intermediaries; Licensure. Amend RSA 402-F:2 through RSA 402-F:9 to read as follows:

402-F:2 Licensure.

I. No person, firm, association or corporation shall act as [a reinsurance intermediary-broker] an RB in this state if the [broker] RB maintains an office either directly or as a member or employee of a firm or association, or an officer, director or employee of a corporation:

(a) In this state, unless [such broker] the RB is a licensed producer or reinsurance intermediary in this state[.]; or

(b) In another state, unless [such broker] the RB is a licensed producer or reinsurance intermediary in this state or another state having a law substantially similar to this law [or such broker is licensed in this state as a nonresident reinsurance intermediary].

II. No person, firm, association or corporation shall act as [a reinsurance intermediary-manager] an RM:

(a) For a reinsurer domiciled in this state, unless [such manager] the RM is a licensed producer or reinsurance intermediary in this state.

(b) In this state, if the [manager] RM maintains an office either directly or as a member or employee of a firm or association, or an officer, director or employee of a corporation in this state, unless [such manager] the RM is a licensed producer or reinsurance intermediary in this state.

[(c) In another state for a nondomestic insurer, unless such manager is a licensed producer in this state or another state having a law substantially similar to this law or such person is licensed in this state as a nonresident reinsurance intermediary.]

III. The commissioner may require a [manager] resident RM subject to paragraph II to:

(a) File a bond in an amount from an insurer acceptable to the commissioner for the protection of the reinsurer; and

(b) Maintain an errors and omissions policy in an amount acceptable to the commissioner.

IV. The commissioner may issue a reinsurance intermediary license to any person, firm, association or corporation who has complied with the requirements of this chapter. [Any such] A license issued to a firm or association will authorize all the members of such firm or association and any designated employees to act as reinsurance intermediaries under the license, and all such persons shall be named in the application and any supplements to the application. [Any such] A license issued to a corporation shall authorize all of the officers, and any designated employees and directors of the corporation, to act as reinsurance intermediaries on behalf of [such] the corporation, and all such persons shall be named in the application and any supplements to the application.

V. [If the applicant for a reinsurance intermediary license is a nonresident, such applicant, as a condition precedent to receiving or holding a license, shall designate the commissioner as agent for service of process in the manner, and with the same legal effect, provided for by this chapter for designation of service of process upon unauthorized insurers. The applicant also shall furnish the commissioner with the name and address of a resident of this state upon whom notices or orders of the commissioner or process affecting such nonresident reinsurance intermediary may be served. Such licensee shall promptly notify the commissioner in writing of every change in its designated agent for service of process, and such change shall not become effective until acknowledged by the commissioner.] The commissioner shall issue a nonresident reinsurance intermediary license if:

(a) The person is currently licensed as a resident reinsurance intermediary or insurance producer and in good standing in his or her home state.

(b) The person has submitted the proper request for licensure and has paid the fees required by RSA 400-A:29.

(c) The person has submitted or transmitted to the insurance commissioner the application for licensure that the person submitted to his or her home state, or in lieu of that application, a completed application deemed appropriate by the commissioner.

(d) The person’s home state awards nonresident licenses to residents of this state on the same basis.

VI. The commissioner may refuse to issue a reinsurance intermediary license if, in his or her judgment, the applicant, anyone named on the application, or any member, principal, officer or director of the applicant, is not trustworthy, or that any controlling person of such applicant is not trustworthy to act as a reinsurance intermediary, or that any [such person] of the foregoing has given cause for revocation or suspension of such license, or has failed to comply with any prerequisite for the issuance of such license. Upon written request, the commissioner shall furnish a summary of the basis for refusal to issue a license, which document shall be privileged and not subject to RSA 91-A.

VII. Licensed attorneys at law of this state when acting in their professional capacity as such shall be exempt from this section.

[VIII. The reinsurance intermediary license shall be renewed annually upon payment of the required fee and so long as the reinsurance intermediary complies with applicable law and rules.

IX. The commissioner may require financial and other data in form and context satisfactory to the commissioner as part of the license application process.]

402-F:3 Required Contract Provisions; Reinsurance Intermediary-Brokers. Transactions between [a reinsurance intermediary-broker] an RB and the insurer it represents in such capacity shall only be entered into pursuant to a written authorization, specifying the responsibilities of each party. The authorization shall, at a minimum, [contain provisions] provide that:

I. The insurer may terminate the [broker’s] RB’s authority at any time.

II. The [broker] RB shall render accounts to the insurer accurately detailing all material transactions, including information necessary to support all commissions, charges and other fees received by, or owing, to the [broker] RB, and remit all funds due to the insurer within 30 days of receipt.

III. All funds collected for the insurer’s account shall be held by the [broker] RB in a fiduciary capacity in a bank [which] that is a qualified U.S. financial institution, as defined in RSA 402--F:1, X.

IV. The [broker] RB shall comply with the written standards established by the insurer for the cession or retrocession of all risks.

V. The [broker] RB shall disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded.

VI. The RB shall comply with RSA 402-F:4.

402-F:4 Books and Records; Reinsurance Intermediary-Brokers.

I. For at least 10 years after expiration of each contract of reinsurance transacted by the [broker] RB, the [broker] RB shall keep a complete record for each transaction showing:

(a) The type of contract, limits, underwriting restrictions, classes or risks and territory.

(b) Period of coverage, including effective and expiration dates, cancellation provisions and notice required of cancellation.

(c) Reporting and settlement requirements of balances.

(d) Rates used to compute the reinsurance premium.

(e) Names and addresses of assuming reinsurers.

(f) Rates of all reinsurance commissions, including the commissions on any retrocessions handled by the [broker] RB.

(g) Related correspondence and memoranda.

(h) Proof of placement.

(i) Details regarding retrocessions handled by the [broker] RB, including the identity of retrocessionaires and percentage of each contract assumed or ceded.

(j) Financial records, including but not limited to, premium and loss accounts.

(k) When the [broker] RB procures a reinsurance contract on behalf of a licensed ceding insurer:

(1) Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk[.]; or

(2) If placed through a representative of the assuming reinsurer, other than an employee, written evidence that such reinsurer has delegated binding authority to the representative.

II. The insurer shall have access and the right to copy and audit all accounts and records maintained by the [broker] RB related to [the insurer’s]its business in a form usable by the insurer.

402-F:5 Duties of Insurers Utilizing the Services of a Reinsurance Intermediary-Broker.

I. An insurer shall not engage the services of any person, firm, association or corporation to act as [a broker] an RB on its behalf, unless [such] the person is licensed as required by RSA 402-F:2, I.

II. An insurer [shall] may not employ an individual who is employed by [a broker] an RB with which it transacts business, unless [such broker] the RB is under common control with the insurer and subject to RSA 401-B.

III. The insurer shall annually obtain a copy of statements of the financial condition of each [broker] RB with which it transacts business.

402-F:6 Required Contract Provisions; Reinsurance Intermediary-Managers. Transactions between [a reinsurance intermediary-manager] an RM and the reinsurer it represents in such capacity shall only be entered into pursuant to a written contract, specifying the responsibilities of each party, which shall be approved by the reinsurer’s board of directors. At least 30 days before such reinsurer assumes or cedes business through [such]the producer, a true copy of the approved contract shall be filed with the commissioner for approval. The contract shall, at a minimum, [contain provisions] provide that:

I. The reinsurer may terminate the contract for cause upon written notice to the [manager] RM. The reinsurer may immediately suspend the authority of the [manager] RM to assume or cede business during the pendency of any dispute regarding the cause for termination.

II. The [manager] RM shall render accounts to the reinsurer accurately detailing all material transactions, including information necessary to support all commissions, charges and other fees received by, or owing to the [manager] RM, and remit all funds due under the contract to the reinsurer on [at least] not less than a monthly basis.

III. All funds collected for the reinsurer’s account shall be held by the [manager] RM in a fiduciary capacity in a bank [which] that is a qualified U.S. financial institution, as defined in RSA 402-F:1, X. The [manager shall] RM may retain no more than 3 months’ estimated claims payments and allocated loss adjustment expenses. The [manager] RM shall maintain a separate bank account for each reinsurer that it represents.

IV. For at least 10 years after expiration of each contract of reinsurance transacted by the [manager] RM, the [manager] RM shall keep a complete record for each transaction showing:

(a) The type of contract, limits, underwriting restrictions, classes or risks and territory.

(b) Period of coverage, including effective and expiration dates, cancellation provisions and notices required of cancellation, and disposition of outstanding reserves on covered risks.

(c) Reporting and settlement requirements of balances.

(d) Rates used to compute the reinsurance premium.

(e) Names and addresses of reinsurers.

(f) Rates of all reinsurance commissions, including the commissions on any retrocessions handled by the [manager] RM.

(g) Related correspondence and memoranda.

(h) Proof of placement.

(i) Details regarding retrocessions handled by the [manager] RM, as permitted [under]by RSA 402-F:8, IV, including the identity of retrocessionaires and percentage of each contract assumed or ceded.

(j) Financial records, including but not limited to, premium and loss accounts.

(k) When the [manager] RM places a reinsurance contract on behalf of a ceding insurer:

(1) Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk[.]; or

(2) If placed through a representative of the assuming reinsurer, other than an employee, written evidence that such reinsurer has delegated binding authority to the representative.

V. The reinsurer shall have access and the right to copy all accounts and records maintained by the [manager] RM related to [the reinsurer’s] its business in a form usable by the reinsurer.

VI. The contract cannot be assigned in whole or in part by the [manager] RM.

VII. The [manager] RM shall comply with the written underwriting and rating standards established by the insurer for the acceptance, rejection or cession of all risks.

VIII. [Set forth the] Rates, terms and purposes of commissions, charges and other fees which the [manager] RM may levy against the [insurer] reinsurer as are set forth.

IX. If the contract permits the [manager] RM to settle claims on behalf of the reinsurer:

(a) All claims shall be reported to the reinsurer in a timely manner.

(b) A copy of the claim file shall be sent to the reinsurer at its request or as soon as it becomes known that the claim:

(1) Has the potential to exceed the lesser of an amount determined by the commissioner or the limit set by the reinsurer;

(2) Involves a coverage dispute;

(3) May exceed the [manager’s] RM’s claims settlement authority;

(4) Is open for more than 6 months; or

(5) Is closed by payment of the lesser of an amount set by the commissioner or an amount set by the reinsurer.

(c)[(1)] All claim files shall be the joint property of the reinsurer and the [manager] RM. However, upon an order of liquidation of the reinsurer such files shall become the sole property of the reinsurer or its estate, and the [manager] RM shall have reasonable access to and the right to copy the files on a timely basis.

[(2) Any person who, in any manner or in any capacity other than purely clerical, handles, services, or adjusts claims for or on behalf of a reinsurance intermediary shall be licensed as required by RSA 402-B.]

(d) Any settlement authority granted to the [manager] RM may be terminated for cause upon the reinsurer’s written notice to the [manager] RM or upon the termination of the contract. The reinsurer may suspend the settlement authority during the pendency of the dispute regarding the cause of termination.

X. If the contract provides for a sharing of interim profits by the [manager] RM, [that such] interim profits shall not be paid until one year after the end of each underwriting period for property business and 5 years after the end of each underwriting period for casualty business, or a later period set by the commissioner for specified lines of insurance, and not until the adequacy of reserves on remaining claims has been verified pursuant to RSA 402-F:8, III.

XI. The [manager] RM shall annually provide the reinsurer with a statement of its financial condition prepared by an independent certified accountant.

XII. The reinsurer shall periodically, at least [2 times per year shall] semi-annually, conduct an on-site review of the underwriting and claims processing operation of the [manager] RM.

XIII. The [manager] RM shall disclose to the reinsurer any relationship it has with any insurer prior to ceding or assuming any business with such insurer pursuant to this contract.

XIV. Within the scope of its actual or apparent authority, the acts of the [manager] RM shall be deemed to be the acts of the reinsurer on whose behalf it is acting.

402-F:7 Prohibited Acts. The [reinsurance intermediary-manager] RM shall not:

I. Cede retrocessions on behalf of the reinsurer, except that the [manager] RM may cede facultative retrocessions pursuant to obligatory facultative agreements if the contract with the reinsurer contains reinsurance underwriting guidelines for such retrocession. [Such] The guidelines shall include a list of reinsurers with which such automatic agreements are in effect, and for each such reinsurer, the coverages and amounts or percentages that may be reinsured, and commission schedules.

II. Commit the reinsurer to participate in reinsurance syndicates.

III. Appoint any producer without assuring that the producer is lawfully licensed to transact the type of reinsurance for which he or she is appointed.

IV. Without prior approval of the reinsurer, pay or commit the reinsurer to pay a claim, net of retrocessions, that exceeds the lesser of an amount specified by the reinsurer or one percent of the reinsurer’s policyholders’ surplus as of December 31 of the last complete calendar year.

V. Collect any payment from a retrocessionaire or commit the reinsurer to any claim settlement with a retrocessionaire, without prior approval of the reinsurer. If prior approval is given, a report must be promptly forwarded to the reinsurer.

VI. Jointly employ an individual who is employed by the reinsurer unless such RM is under common control with the reinsurer subject to RSA 401-B.

VII. Appoint a [reinsurance intermediary-submanager] sub-RM.

402-F:8 Duties of Reinsurers Utilizing the Services of [a Reinsurance Intermediary-Manager]an RM.

I. A reinsurer shall not engage the services of any person, firm, association or corporation to act as [a manager] an RM on its behalf unless [such] the person is licensed as required by RSA 402-F:2.

II. The reinsurer shall annually obtain a copy of statements of the financial condition of each [manager] RM which such reinsurer has engaged prepared by an independent certified accountant in a form acceptable to the commissioner.

III. If [a manager] an RM establishes loss reserves, the reinsurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the [manager] RM. This opinion shall be in addition to any other required loss reserve certification.

IV. Binding authority for all retrocessional contracts or participation in reinsurance syndicates shall rest with an officer of the reinsurer who shall not be affiliated with the [manager] RM.

V. Within 30 days [after] of termination of a contract with [a manager] an RM, the reinsurer shall provide written notification of [such] termination to the commissioner.

VI. A reinsurer shall not appoint to its board of directors any officer, director, employee, controlling shareholder or subproducer of its [manager] RM. This paragraph shall not apply to relationships governed by RSA 401-B.

402-F:9 Examination Authority.

I. A reinsurance intermediary shall be subject to examination by the commissioner. The commissioner shall have access to all books, bank accounts and records of the reinsurance intermediary in a form usable to the commissioner.

II. [A reinsurance intermediary-manager] An RM may be examined as if it were the reinsurer.

[III. The commissioner may designate examiners or consultants, as appropriate, to perform an audit when the commissioner considers an audit necessary. The audit shall be conducted at the expense of the reinsurance intermediary. Reinsurance intermediaries shall make all records and books of account available to the examiners or consultants, and shall otherwise facilitate the performance of the audit.]

255:3 New Section; Reinsurance Intermediaries; Compliance With Orders. Amend RSA 402-F by inserting after section 9 the following new section:

402-F:9-a Compliance with Orders.

I. An RB or RM shall comply with any order of a court of competent jurisdiction or a duly constituted arbitration panel requiring the production of non-privileged documents by the RB or RM, or the testimony of an employee or other individual otherwise under the control of the RB or RM with respect to any reinsurance transaction for which it acted as an RB or RM.

II. Compliance shall be subject to the right of the RB or RM, and the parties to the reinsurance transaction, to object to the court or arbitration panel concerning the nature or scope of the documents or testimony or the time within which it must comply with the order. Failure to comply with the order shall be deemed to be a material non-compliance with this chapter. However, in no event shall this section be construed to require more than one appearance by the same witness in a single action or arbitration.

255:4 Penalties and Liabilities. RSA 402-F:10 is repealed and reenacted to read as follows:

402-F:10 Penalties and Liabilities.

I. If the commissioner determines that the reinsurance intermediary or any other person has not materially complied with this chapter, or any rule or order adopted under this chapter, after notice and opportunity to be heard, the commissioner may order:

(a) For each separate violation, a civil penalty in an amount not exceeding $5,000.

(b) Revocation or suspension of the reinsurance intermediary’s license; and

(c) If it was found that because of such material non-compliance that the insurer or reinsurer has suffered any loss or damage, the commissioner may maintain a civil action brought by or on behalf of the reinsurer or insurer and its policyholders and creditors for recovery of compensatory damages for the benefit of the reinsurer or insurer and its policyholders and creditors or seek other appropriate relief.

II. If an order of rehabilitation or liquidation of the insurer has been entered pursuant to RSA 402-C, and the receiver appointed under that order determines that the reinsurance intermediary or any other person has not materially complied with this chapter, or any rule or order promulgated under this chapter, and the insurer suffered any loss or damage therefrom, the receiver may maintain a civil action for recovery of damages or other appropriate sanctions for the benefit of the insurer.

III. Nothing contained in this section shall affect the right of the commissioner to impose any other penalties provided in the insurance laws.

IV. Nothing contained in this chapter shall in any manner limit or restrict the rights of policyholders, claimants, creditors, or other third parties or confer any rights to such persons.

255:5 New Sections; Reciprocity; Service of Process. Amend RSA 402-F by inserting after section 10 the following new sections:

402-F:10-a Reciprocity.

I. The insurance commissioner shall waive any requirements for a nonresident license application with a valid license from the applicant’s home state, except the requirements imposed by RSA 402-F:2, if the applicant’s home state awards nonresident licenses to residents of this state on the same basis.

II. A nonresident reinsurance intermediary’s satisfaction of any applicable home state continuing education requirements, if any, for licenses as insurance producers or reinsurance intermediaries shall constitute satisfaction of the state’s continuing education requirements if the nonresident producer’s home state recognizes the satisfaction of its continuing education requirements imposed upon producers or reinsurance intermediaries from this state on the same basis.

402-F:10-b Service of Process. A reinsurance intermediary, by accepting licensure in this state, is deemed to have consented to the jurisdiction of the commissioner and the courts of this state with respect to all activities conducted under the license, and to have designated the commissioner as its agent for service of process. Each licensed reinsurance intermediary shall furnish the commissioner with the name and address of a designated contact resident of this state to whom notices or orders of the commissioner or process affecting the reinsurance intermediary may be forwarded. The licensee shall promptly notify the commissioner in writing of every change in this designated contact for service of process, and such changes shall not become effective until acknowledged by the commissioner.

255:6 Conduct of Examinations. Amend RSA 400-A:37, III(d) to read as follows:

(d) When making an examination under this title, the commissioner may retain, without appropriation under RSA 9 and without qualifying as a department expenditure under RSA 4:15, attorneys, appraisers, independent actuaries, independent certified public accountants or other professionals and specialists as examiners, the cost of which shall be borne by the company which is the subject of the examination. The company shall pay the retained professional or specialist directly for these costs.

255:7 Conduct of Examinations. Amend RSA 400-A:37, VII and VIII to read as follows:

VII. EXAMINATION EXPENSE. The insurer or other person examined pursuant to this section shall bear the expense of the examination. Such expense shall be limited to expenses charged pursuant to RSA 400-A:37, III(d) and a reasonable per diem allowance for compensation and expenses for state employee examiners as determined by the commissioner. As to the per diem expense allowance and compensation allowance involved in any such examination, the commissioner may give due consideration to scales and limitations recommended by the National Association of Insurance Commissioners and outlined in the examination manual sponsored by that association. Provided, however, that if upon examination of any person specified in RSA 400-A:37, II(a) the commissioner shall determine that such person is not in violation of the provisions of Title XXXVII or applicable regulations, the expense of the examination shall be borne by the department.

VIII. STATE EMPLOYEE EXAMINERS. Notwithstanding any other provision of law, the insurer or other person liable for the travel expense of an examination pursuant to RSA 400-A:37, VII shall make such payment either directly to the [individual] state employee examiner conducting the examination, whether or not such individual is [a] in the classified [state employee] system, or to the state of New Hampshire, as may be directed by the commissioner. The commissioner may direct that the travel expense allowance be paid directly to the individual conducting the examination. The compensation allowance charged for work by state employee examiners shall be paid directly to the state. The amounts paid directly to individuals conducting the examination pursuant to this paragraph may be in excess of any amounts that may be appropriated for such purposes.

255:8 Insurance Holding Companies. Amend RSA 401-B:6, III to read as follows:

III. USE OF CONSULTANTS. The commissioner may retain [at the insurer’s expense], without appropriation under RSA 9, without qualifying as a department expenditure under RSA 4:15, and at the insurer’s expense, such attorneys, actuaries, accountants and other experts not otherwise a part of the commissioner’s staff as shall be reasonably necessary to assist in the conduct of the examination under RSA 401-B:6, I. The company shall pay the retained experts directly for these costs. Any persons so retained shall be under the direction and control of the commissioner and shall act in a purely advisory capacity.

255:9 Credit for Business Enterprise Tax. Amend RSA 400-A:34-a to read as follows:

400-A:34-a Credit for Business Enterprise Tax. The tax imposed under RSA 77-E shall be allowed as a credit against the taxes due under this chapter and shall be deemed to be taxes paid pursuant to this chapter for the purposes of RSA 77-A:5, III. Any insurer subject to taxation under this chapter shall first apply such credits as provided in this section, and then pursuant to RSA 77-A:5, X. The taxes paid pursuant to RSA 77-E by an individual member of a unitary business within the meaning of RSA 77-A:1, XIV shall be allowed as a credit against any other individual member’s liability under this chapter, provided that such other member is also subject to the tax imposed by this chapter. To the extent the credit for taxes paid pursuant to RSA 77-E exceeds the taxes imposed under this chapter, such excess shall be deemed to be taxes imposed under RSA 77-E and shall be allowed as a credit against the taxes due under RSA 77-A as provided by RSA 77-A:5, X.

255:10 High Risk Pool; Reference Change. Amend RSA 404-G:5-f, II to read as follows:

II. [The following] All the provisions of title 37 shall apply to the pool to the extent applicable and not inconsistent with the express provisions of this chapter, except for the following: [RSA 415:5, 415:6, 415:6-a, 415:6-b, 415:6-c, 415:6-f, 415:6-g, 415:6-h, 415:7, 415:9-415:13, 415:22, 415:22-a, 415:22-b, 415:23, RSA 415-A, RSA 417, RSA 420-B:8, 420-B:8-b, 420-B:8-d, 420-B:8-e, 420-B:8-ee, 420-B:8-f, 420-B:8-ff, 420-B:8-g, 420-B:8-gg, 420-B:8-h, 420-B:8-i, 420-B:8-j, 420-B:8-k, 420-B:8-m, 420-B:11-12, RSA 420-C, RSA 420-E:4, RSA 420-G:7, 420-G:8, 420-G:11, RSA 420-H, RSA 420-I, and RSA 420-J:3.] RSA 400-A:29, RSA 400-A:31 through 400-A:35, RSA 404-B, RSA 404-D, RSA 404-H, RSA 408-B, and RSA 420-K. For the purposes of this chapter, the pool shall be deemed an insurer, pool coverage shall be deemed individual health insurance, and pool coverage contracts shall be deemed policies.

255:11 Effective Date. This act shall take effect January 1, 2008.

Approved: June 28, 2007

Effective: January 1, 2008