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 specific levels of excess or stop-loss coverage. The bill introduces new definitions and standards for these programs, mandates annual audits and actuarial evaluations, and emphasizes member governance through a board primarily composed of public officials. Significant deletions from current law include the removal of language assessing the adequacy of contributions and reserves, replaced with a requirement to calculate necessary contributions.

Additionally, the bill creates a new chapter, Chapter 420-R, specifically for the Advanced Premium Pooled Risk Management Program, allowing political subdivisions to form associations for pooled risk management. It outlines licensing requirements, permissible coverages, and governance structures, ensuring that programs are nonprofit entities governed by written bylaws. The bill also enhances the insurance commissioner's authority to examine financials, approve rates, and enforce compliance, while establishing financial reporting requirements and investment standards. Overall, SB 297-FN aims to improve the regulatory framework for pooled risk management programs, ensuring financial stability and accountability while providing protections for participating municipalities.

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