The bill SB 297-FN proposes comprehensive reforms to the management and regulation of pooled risk management programs in New Hampshire, transferring oversight from the secretary of state to the insurance department. Key provisions include the requirement for these programs to be licensed by the insurance department, the establishment of a guaranty fund to protect against financial impairment, and the maintenance of excess or stop-loss coverage. The bill introduces new definitions and standards for these programs, mandates annual audits and actuarial evaluations, and emphasizes the governance structure to ensure member ownership and fiduciary responsibility. Notably, it requires programs to adhere to a "standard of care" and return surplus earnings to participating political subdivisions.

Significant deletions from current law include the removal of language assessing the adequacy of contributions, replaced by a requirement to calculate contributions and assessments. The bill also establishes minimum and maximum contingency reserve requirements, mandates public disclosure of non-insurance status, and outlines conditions for member assessments. Additionally, it introduces a new chapter, Chapter 420-R, to facilitate the creation of pooled risk management programs, emphasizing their importance for political subdivisions while exempting them from state taxation and insurance regulation, except as specified. Overall, the bill aims to enhance transparency, accountability, and financial stability within these programs, while imposing new financial responsibilities on municipalities to ensure adequate reserves and mitigate risks.

Statutes affected:
Introduced: 5-B:2, 5-B:5, 5-B:6
As Amended by the Senate: 5-B:2, 5-B:5, 5-B:6
As Amended by the House: 5-B:2, 5-B:5, 5-B:6, 420-E:2, 420-G:11, 402-H:11-b