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 safeguard against financial impairment, and the maintenance of specific levels of excess or stop-loss coverage. The bill also introduces new definitions and terms related to pooled risk management, mandates annual audits and actuarial evaluations, and requires programs to return surplus earnings to participating political subdivisions after covering necessary expenses. Additionally, it specifies that board members must be member-owned and act in good faith, ensuring accountability and transparency in governance.

Furthermore, the bill establishes a new chapter titled "Advanced Premium Pooled Risk Management Program," allowing political subdivisions to form associations for shared risk management while exempting these programs from state taxation. It outlines licensing requirements, operational governance, and financial reporting obligations, including the maintenance of capital above risk-based capital levels. The bill also emphasizes the insurance commissioner's authority to conduct examinations, approve rate schedules, and enforce compliance with regulations. Notably, it repeals RSA 402-H:11-b, which provided certain exemptions for third-party administrators, and sets an effective date for specific provisions on July 1, 2026. Overall, the legislation aims to enhance the financial stability and regulatory framework of pooled risk management programs while imposing new responsibilities on municipalities involved in these initiatives.

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