HB 520 - AS INTRODUCED
2021 SESSION
21-0854
10/11
HOUSE BILL 520
AN ACT relative to e-delivery of insurance documents and commercial lines renewal
notices.
SPONSORS: Rep. Bartlett, Merr. 19; Rep. Hunt, Ches. 11; Sen. Cavanaugh, Dist 16
COMMITTEE: Commerce and Consumer Affairs
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ANALYSIS
This bill provides for electronic delivery of insurance documents and commercial lines renewal
notices.
This bill is a request of the insurance department.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
 HB 520 - AS INTRODUCED
21-0854
10/11
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty One
AN ACT relative to e-delivery of insurance documents and commercial lines renewal
notices.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 1 Automobile Insurance; Cancellation, Refusal to Renew, Notice. Amend the introductory
2 paragraph of RSA 417-A:5 to read as follows:
3 No cancellation or refusal to renew by an insurer of a policy of automobile insurance shall be
4 effective unless the insurer or its agent either physically [(not electronically)] delivers or mails[,] to
5 the named insured, at the address shown in the policy, a written notice of the cancellation or refusal
6 to renew or electronically delivers to the named insured a written notice of cancellation or
7 refusal to renew. Such notice shall:
8 2 Automobile Insurance; Cancellation, refusal to Renew; Notice. Amend the introductory
9 paragraph of RSA 417-A:5, II to read as follows:
10 II. State the date on which such cancellation or refusal to renew shall become effective. The
11 effective date shall not be less than 45 days after the date the notice is mailed or physically or
12 electronically delivered to the named insured provided however, the effective date may be 10 days
13 from the date of mailing or physical or electronic delivery when:
14 3 Certain Property and Liability Insurance; Cancellation, Refusal to Renew; Notice. Amend the
15 introductory paragraph of RSA 417-B:4 and the introductory paragraph of RSA 417-B:4, I to read as
16 follows:
17 No cancellation or refusal to renew by an insurer of a policy of insurance insuring against any of
18 the contingencies set forth in RSA 417-B:1 shall be effective unless the insurer or its agent either
19 physically [(not electronically)] delivers or mails[,] to the named insured, at the address shown in the
20 policy, a written notice of the cancellation or refusal to renew or electronically delivers to the
21 named insured a written notice of cancellation or refusal to renew. Such notice shall:
22 I. State the date on which such cancellation or refusal to renew shall become effective. The
23 effective date shall not be less than 45 days after the date the notice is mailed or physically or
24 electronically delivered to the named insured provided however, the effective date may be 10 days
25 from the date of mailing or physical or electronic delivery when:
26 4 Commercial Insurance; Notice of CancellationNotice of Nonrenewal and Renewals; Premiums.
27 Amend RSA 417-C:2 through RSA 417-C:4 to read as follows:
28 417-C:2 Notice of Cancellation.
29 I. No notice of cancellation shall be effective unless mailed [or], physically [(not
30 electronically)] delivered or electronically delivered by the insurer or its agent to the named
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1 insureds at least 60 days prior to the effective date of cancellation; provided, however, that where
2 cancellation is for nonpayment of premium or substantial increase in hazard, or the cancellation
3 notice is mailed, physically delivered, or electronically delivered within the first 60 days of the
4 effective date for new policies, at least 10 days' notice of cancellation shall be given. In all instances,
5 the reason or reasons for cancellation shall accompany or be included in the notice of cancellation.
6 An insurer shall not be held liable in any claim or suit for damages arising solely from the insurer's
7 compliance with the requirement that the reason for cancellation be specified.
8 II. [Notice of cancellation under this section shall be by certified mail, except that in the case
9 of cancellation for nonpayment of premium, notice shall be by certified mail or certificate of mailing.
10 III.] The commissioner shall have the authority to waive any provision of paragraph I upon
11 the written request of an insurer specifying the reasons therefor.
12 [IV.] III. This section shall not apply to nonrenewal.
13 417-C:3 Notice of Nonrenewal. No insurer shall[ increase renewal premiums more than 25
14 percent for a 12-month renewal term or] refuse to renew a policy at its expiration or anniversary if
15 written for a term of more than one year unless such insurer or its agent shall mail [or], physically
16 [(not electronically)] deliver or electronically deliver to the named insureds [at the address shown
17 in the policy,] advance notice of [the proposed renewal premium or] its intention not to renew. The
18 notice shall be at least 60 days in advance of the policy's scheduled expiration or anniversary date.
19 If all or any part of the 60-day notice is not in advance of the expiration or anniversary
20 date, renewal coverage shall be provided on the same terms and conditions as the expiring
21 policy until the 60-day notice requirement has been fulfilled. This section shall not apply [if
22 the insurer has manifested its willingness to renew with a premium increase of no more than 25
23 percent, or] in case of nonpayment of premium, or if the insured fails to pay any advance premium
24 required by the insurer for renewal. However, notwithstanding the failure of an insurer to comply
25 with this section, any coverage shall terminate on the effective date of any other coverage acquired
26 by the insured to the extent the acquired coverage substantially duplicates coverages of the renewal.
27 Renewal of a policy shall not constitute a waiver or estoppel with respect to grounds for cancellation
28 which existed before the effective date of such renewal.
29 417-C:4 Renewals; Premiums.
30 I. Any renewal premium increase in excess of 25 percent is controlled by the provisions of
31 RSA 417-C:3. The notice may indicate that renewal is conditioned upon the premium
32 increase without reference to nonrenewal.
33 II. Any renewal premium increase of 25 percent or less shall not be implemented until the
34 insured has had a minimum of 30 days' notice of the renewal premium. [If all or any part of the 30
35 day notice is not in advance of the expiration or anniversary date, renewal coverage shall be
36 provided, on a pro rata basis, at the rates or premiums in effect under the expiring policy until the
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1 30 days' notice requirement has been fulfilled. This paragraph shall not apply if the insured accepts
2 the renewal policy.]
3 III. If the applicable 60-day notice period required by RSA 417-C:3 or 30-day notice
4 period required by paragraph II is not satisfied in advance of the policy's scheduled
5 expiration or anniversary date, renewal coverage shall be provided, on a pro rata basis, at
6 the rates or premiums in effect under the expiring policy until the applicable 60-day or 30-
7 day notice requirement has been fulfilled. This paragraph shall not apply if the insured
8 accepts the renewal policy.
9 IV. Development of renewal premium for the purpose of determining the percentage of
10 change from expiring premium shall be based on the same coverages, conditions, and ratable
11 exposures as those contained in the expiring policy.
12 5 New Chapter; Electronic Delivery of Insurance Documents and Notices. Amend RSA by
13 inserting after chapter 420-P the following new chapter:
14 CHAPTER 420-Q
15 ELECTRONIC DELIVERY OF INSURANCE DOCUMENTS AND NOTICES
16 420-Q:1 Purpose and Scope. The purpose of this chapter is to set forth standards and
17 procedures for electronic delivery of insurance documents and notices in a manner that will promote
18 efficient delivery while maintaining consumer protection.
19 420-Q:2 Delivery Standards and Procedures.
20 I. Subject to the requirements of this section, any notice to a party or any other document
21 required by law in an insurance transaction or that is to serve as evidence of insurance coverage may
22 be delivered, stored, and presented by electronic means if the electronic means meet the
23 requirements of the RSA 294-E.
24 II. Delivery of a notice or document in accordance with this section shall be considered
25 equivalent to and have the same effect as any delivery method required by law, including delivery by
26 first class mail, first class mail with postage prepaid, certified mail, certificate of mail, or certificate
27 of mailing.
28 III. A notice or document may be delivered by electronic means by an insurer to a party
29 pursuant to this section if the following applies:
30 (a) The party has affirmatively consented electronically, or confirmed consent
31 electronically, in a manner that reasonably demonstrates that the party can access information in
32 the electronic form that will be used for notices or documents delivered by electronic means to which
33 the party has given consent, and the party has not withdrawn the consent.
34 (b) The party, before giving consent, is provided with a clear and conspicuous statement
35 informing the party of all of the following:
36 (1) The hardware and software requirements for access to and retention of a notice
37 or document delivered by electronic means.
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1 (2) The types of notices and documents to which the party's consent would apply.
2 (3) The right of the party to withdraw consent to have a notice or document delivered
3 by electronic means, at any time, and any conditions or consequences imposed in the event consent is
4 withdrawn.
5 (4) The procedures a party must follow to withdraw consent to have a notice or
6 document delivered by electronic means and to update the party's electronic mail address.
7 (5) The right of a party to have a notice or document delivered, upon request, in
8 paper form.
9 IV. An insurer shall take all measures reasonably calculated to ensure that delivery by
10 electronic means results in receipt of the notice or document by the party.
11 6 Effective Date. This act shall take effect 60 days after its passage.


Statutes affected:
Introduced: 417-C:2
Ought to Pass: 417-C:2
latest version: 417-C:2