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 obtain a license from the insurance department, the establishment of a guaranty fund to protect against financial impairment, and the maintenance of excess or stop-loss coverage unless otherwise determined by the insurance commissioner. The bill also introduces new definitions and standards for operation, emphasizing member ownership and governance by a board primarily composed of public officials. Significant changes include the introduction of a "standard of care" for program management, annual audits, and actuarial evaluations to ensure financial stability, as well as requirements for returning surplus earnings to participating political subdivisions.

Additionally, the bill outlines financial reporting requirements, mandates the submission of verified financial statements, and establishes guidelines for the investment of program assets. It enhances the enforcement authority of the insurance commissioner, allowing for corrective actions against non-compliant programs and includes provisions for appeals of the commissioner's decisions. Notably, the bill repeals certain exemptions for third-party administrators and sets an effective date for the amended provisions of July 1, 2026. Overall, SB 297-FN aims to improve the financial stability and accountability of pooled risk management programs while ensuring they operate in the best interests of their members, with a focus on transparency and member participation in financial decisions.

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