2014 New Hampshire Revised Statutes
Title XXXVII - INSURANCE
Chapter 402-H - THIRD PARTY ADMINISTRATORS
Section 402-H:11 - Certificate of Authority Required.
402-H:11 Certificate of Authority Required.
I. No person shall act as, or offer to act as, or hold himself or herself out to be an administrator in this state without a valid certificate of authority as an administrator issued by the commissioner.
II. Applicants to be an administrator shall make an application to the commissioner upon a form to be furnished by the commissioner and fee paid pursuant to RSA 400-A:29, I(a). The application shall include or be accompanied by the following information and documents:
(a) All basic organizational documents of the administrator, including any articles of incorporation, articles of association, partnership agreement, trade name certificate, trust agreement, shareholder agreement and other applicable documents and all amendments to such documents.
(b) The bylaws, rules, regulations or similar documents regulating the internal affairs of the administrator.
(c) NAIC biographical affidavit for the individuals who are responsible for the conduct of affairs of the administrator; including all members of the board of directors, board of trustees, executive committee or other governing board or committee; the principal officers in the case of a corporation or the partners or members in the case of a partnership, association or limited liability company; any shareholder or member holding directly or indirectly 10 percent or more of the voting stock, voting securities, or voting interest of the administrator; and any other person who exercise control or influence over the affairs of the administrator.
(1) Audited financial statements or reports for the 2 most recent fiscal years that prove that the administrator has a positive net worth. If the administrator has been in existence for less than 2 fiscal years, the application shall include financial statements or reports, certified by an officer of the administrator and prepared in accordance with GAAP, for any completed fiscal years, and for any month during the current fiscal year for which such financial statements or reports have been completed. An audited financial/annual report prepared on a consolidated basis shall include a columnar consolidating or combining worksheet that shall be filed with the report and include the following:
(A) Amounts shown on the consolidated audited financial report shall be shown on the worksheet.
(B) Amounts for each entity shall be stated separately.
(C) Explanations of consolidating and eliminating entries shall be included.
(2) The administrator shall also include such other information as the commissioner may require in order to review the current financial condition of the applicant.
(e) A statement describing the business plan, including information of staffing levels and activities proposed in this state and nationwide. The plan shall provide details setting forth the administrator's capability for providing a sufficient number of experienced and qualified personnel in the areas of claims processing, recordkeeping and underwriting.
(f) An administrator that intends to directly solicit insurance contracts or to otherwise act as an insurance producer shall provide proof that it has a license as a producer in this state.
(g) Such other pertinent information as may be required by the commissioner.
III. An administrator licensed or applying for licensure under this section shall make available for inspection by the commissioner copies of all contracts with insurers or other persons utilizing the services of the administrator.
IV. An administrator licensed or applying for licensure under this section shall produce its accounts, records, and files for examination, and make its officers available to give information with respect to its affairs, as often as reasonably required by the commissioner.
V. The commissioner may refuse to issue a certificate of authority or license if the commissioner determines that the administrator, or any individual responsible for the conduct of affairs of the administrator, is not competent, trustworthy, financially responsible or of good personal and business reputation, or has had an insurance or an administrator certificate of authority or license denied or revoked for cause by any jurisdiction, or if the commissioner determines that any of the grounds set forth in RSA 402-H:14 exists with respect to the administrator.
VI. A certificate of authority issued under this section shall remain valid, unless surrendered, suspended or revoked by the commissioner until June 14 of each year. On June 14 of each year such certificate of authority may be renewed upon the filing of a renewal application together with the renewal fee under RSA 400-A: 29, and so long as the administrator continues in business in this state and remains in compliance with this chapter.
VII. An administrator licensed or applying for licensure under this section shall immediately notify the commissioner of any material change in its ownership, control, or other fact or circumstance affecting its qualification for a certificate of authority or license in this state. The commissioner shall record any such changes in the department's records.
VIII. An administrator licensed or applying for a certificate of authority that administers or will administer benefit plans that are fully insured by an insurer that is not licensed in this state, multiple employer welfare arrangements, or church self-insured plans shall maintain a surety bond for the use and benefit of the commissioner that covers individuals and persons in New Hampshire who have remitted premiums or insurance charges or other moneys to the administrator in the course of the administrator's business in the greater of $100,000 or 10 percent of the administrator's average daily client account balance during the preceding calendar year. However, in no event shall the bond be more than $1,000,000. If an administrator cannot obtain a bond, then another security, including, but not limited to, cash or negotiable securities in an amount equal to the amount of the required surety bond shall be set aside in one or more trusteed bank accounts in the state of New Hampshire under trust terms that require the commissioner's signature for any account activity, except the accumulation of interest or other funds into the account, and that allows the commissioner, by order, to disburse the trust funds for the satisfaction of policyholder or customer claims.
Source. 1993, 253:1, eff. Jan. 1, 1994. 2006, 271:8, eff. Aug. 8, 2006.
Disclaimer: These codes may not be the most recent version. New Hampshire may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.