Section Ins 1501.17 - Transactions Subject to Prior Notice - Notice Filing(a) An insurer required to give notice of a proposed transaction pursuant to RSA 401-B:5 shall furnish the required information on Form D, hereby made a part of these rules.(b) Agreements for cost sharing services and management services shall at a minimum and as applicable: (1) Identify the person providing services and the nature of such services;(2) Set forth the methods to allocate costs;(3) Require timely settlement, not less frequently than on a quarterly basis, and compliance with the requirements in the NAIC Accounting Practices and Procedures Manual;(4) Prohibit advancement of funds by the insurer to the affiliate except to pay for services defined in the agreement;(5) State that the insurer will maintain oversight for functions provided to the insurer by the affiliate and that the insurer will monitor services annually for quality assurance;(6) Define records and data of the insurer to include all records and data developed or maintained under or related to the agreement that are otherwise the property of the insurer, in whatever form maintained, including, but not limited to, claims and claim files, policyholder lists, application files, litigation files, premium records, rate books, underwriting manuals, personnel records, financial records or similar records within the possession, custody or control of the affiliate;(7) Specify that all books and records of the insurer are and remain the property of the insurer and:a. Are subject to control of the insurer;c. Are segregated from all other persons' records and data or are readily capable of segregation at no additional cost to the insurer;(8) State that all funds and invested assets of the insurer are the exclusive property of the insurer, held for the benefit of the insurer and are subject to the control of the insurer;(9) Include standards for termination of the agreement with and without cause;(10) Include provisions for indemnification of the insurer in the event of gross negligence or willful misconduct on the part of the affiliate providing the services and for any actions by the affiliate that violate provisions of the agreement required in Subsections Ins 1501.17(b)(11), Ins 1501.17(b)(12), Ins 1501.17(b)(13), Ins 1501.17(b)(14) and Ins 1501.17(b)(15) of this rule;(11) Specify that, if the insurer is placed in supervision, seizure, conservatorship or receivership pursuant to RSA 402-C: a. All of the rights of the insurer under the agreement extend to the receiver or commissioner to the extent permitted by RSA 402-C;b. All records and data of the insurer shall be identifiable and segregated from all other persons' records and data or readily capable of segregation at no additional cost to the receiver or the commissioner;c. A complete set of records and data of the insurer will immediately be made available to the receiver or the commissioner, shall be made available in a usable format and shall be turned over to the receiver or commissioner immediately upon the receiver or the commissioner's request, and the cost to transfer data to the receiver or the commissioner shall be fair and reasonable; andd. The affiliated person(s) will make available all employees essential to the operations of the insurer and the services associated therewith for the immediate continued performance of the essential services ordered or directed by the receiver or commissioner;(12) Specify that the affiliate has no automatic right to terminate the agreement if the insurer is placed in receivership pursuant to RSA 402-C; and(13) Specify that the affiliate will provide the essential services for a minimum period of time [specified in the agreement] after termination of the agreement, if the insurer is placed into supervision, seizure, conservatorship or receivership pursuant to RSA 402-C, as ordered or directed by the receiver or commissioner. Performance of the essential services will continue to be provided without regard to pre-receivership unpaid fees, so long as the affiliate continues to receive timely payment for post-receivership services rendered, and unless released by the receiver, commissioner or supervising court;(14) Specify that the affiliate will continue to maintain any systems, programs or other infrastructure, notwithstanding supervision, seizure, conservatorship or receivership pursuant to RSA 402-C, and will make them available to the receiver or commissioner as ordered or directed by the receiver or commissioner for so long as the affiliate continues to receive timely payment for post-receivership services rendered, and unless released by the receiver, commissioner or supervising court; and(15) Specify that, in furtherance of the cooperation between the receiver and the affected guaranty association(s) and subject to the receiver's authority over the insurer, if the insurer is placed into supervision, seizure, conservatorship or receivership pursuant to RSA 402-C, and portions of the insurer's policies or contracts are eligible for coverage by one or more guaranty associations, the affiliate's commitments under Subsections Ins 1501.17(b)(11), Ins 1501.17(b)(12), Ins 1501.17(b)(13) and Ins 1501.17(b)(14) of this rule will extend to such guaranty association(s).N.H. Admin. Code § Ins 1501.17
#1900, eff 1-1-82; ss by #4287, eff 7-1-87; ss by #5652, eff 7-1-93; ss by #6985, eff 5-1-99, EXPIRED: 5-1-07
New. #8910, eff 7-1-07; ss by#10450, eff 1-1-14
Amended by Number 32, Filed August 10, 2023, Proposed by #13692, Effective 7/21/2023, Expires 7/21/2033.