New Hampshire: Senate Panel Approves Unfair Claim Practices Bill

The Senate Commerce, Labor and Consumer Protection Committee has approved legislation that would apply stringent consumer protection laws to insurance unfair claim practices.

Under existing New Hampshire law, the insurance industry and other highly regulated business sectors, such as securities, banks and public utilities, are exempt from the consumer protection law that enables plaintiffs to seek treble damages and attorneys fees. The bill, SB-188 would eliminate the exemption for unfair claims practices by insurers.

"This proposal would result in higher system costs, which would ultimately be passed onto consumers," noted Paul Tetrault, NAMIC’s Northeast state affairs manager. "However, the proponents have not made a case for why such a statutory change is warranted."

Tetrault noted that the New Hampshire Insurance Department has indicated it is opposed to the proposal both because it is unnecessary and would create a confusing situation regarding jurisdiction. NAMIC will support industry efforts to oppose the bill in the House of Representatives.

Direct questions to NAMIC State Affairs Manager Paul Tetrault.

Posted: Tuesday, April 17, 2007 12:00:00 AM. Modified: Tuesday, April 24, 2007 9:03:59 AM.

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We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.