This bill amends New Hampshire's laws regarding pooled risk management programs by introducing new definitions and operational standards. Key provisions include the authority for the secretary of state to mandate the abatement of deficiencies in program assets or to seek receivership if necessary. It establishes that participating members will be assessed on a pro rata basis to address any identified deficiencies and emphasizes the need for diligence, prudence, and skill in program management. The bill also requires annual audits and actuarial evaluations to ensure financial stability and compliance. Significant new legal language is inserted into RSA 5-B, including definitions for "Administration," "Reserves," "Excess insurance," and "Assessments," while existing standards are modified to clarify the responsibilities of board members and the process for addressing insolvency or financial impairment.

Additionally, SB 297-FN mandates that pooled risk management programs conduct assessments based on actuarial calculations and notify members of any mandatory assessments due within 30 days. It requires two public hearings to inform participants about potential rate increases and gather feedback on surplus returns. The bill sets minimum and maximum contingency reserve requirements for workers' compensation and health coverage lines, ensuring adequate reserves to cover liabilities. It also introduces a requirement for programs to include a disclaimer in all member agreements, clarifying that they do not operate like traditional insurance companies and may require assessments if assets are insufficient. If a program fails to conduct an annual audit or actuarial evaluation, the department will perform these tasks and charge the program for the incurred costs. The effective date for the contingency reserve amendments is July 1, 2026, while the rest of the act will take effect upon passage.