New Hampshire Revised Statutes 400-A:39 – Administration Fund
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I. There is hereby established in the state treasury an administration fund for the sole purpose of paying all costs of the office of the commissioner. The fund shall be administered by the commissioner. The state treasurer shall be the custodian of the fund and all moneys and securities in the fund shall be held in trust by the state treasurer and shall not constitute money or property of the state.
II. For the purposes of this section, “affiliate” shall be as defined in N.H. Rev. Stat. § 401-B:1, I.
III. The state treasurer is authorized to disburse moneys from the fund upon written order of both the insurance commissioner and commissioner of administrative services in accordance with a budget approved by the general court. The state treasurer shall be required to give bond in an amount to be fixed and with securities approved by the insurance commissioner conditioned upon the faithful performance of his or her duty as custodian of the fund.
IV. Each insurer licensed to do business in this state, including nonprofit health services corporations organized pursuant to RSA 420-A, health maintenance organizations organized pursuant to RSA 420-B, Delta Dental Plan of New Hampshire regulated pursuant to RSA 420-F, and multiple-employer welfare arrangements licensed pursuant to RSA 415-E, shall make payments to the fund each year of its pro rata share of the fiscal year‘s costs of the office of the commissioner to be appropriated out of the fund. Such share is to be computed in accordance with paragraphs V and VI of this section.
V. For each year, the total amount of such payments made to the fund by all such insurers shall be an amount that, when combined with any available fund balance, is not less than the amount appropriated by the general court for the expenses of the office of the commissioner for the fiscal year commencing on the July 1 in which the payments are due.
VI. The amount payable each year by each such insurer shall be computed by the commissioner as follows:
(a) Based on the annual statement filed in such year by each insurer under N.H. Rev. Stat. § 400-A:31, N.H. Rev. Stat. § 420-A:20, N.H. Rev. Stat. § 420-B:9, N.H. Rev. Stat. § 420-F:9, or other financial statement filed under N.H. Rev. Stat. § 415-E:11, the commissioner shall ascertain each insurer’s amount of gross direct premiums written, including policy, membership and other fees, service charges, policy dividends applied in payment for insurance, and all other considerations for insurance originating from policies covering property, subjects, or risks located, resident or to be performed in New Hampshire after deducting return premiums and dividends actually returned or credited to policyholders. The premium for Medicaid managed care coverage provided by a health carrier contracting with the department of health and human services under N.H. Rev. Stat. § 126-A:5, XIX shall not be included in an insurer’s assessable premium, except where that coverage is provided through the purchase of insurance coverage pursuant to the New Hampshire granite advantage health care program under RSA 126-AA. If any such insurer does not otherwise timely provide the commissioner with the information necessary for such ascertainment, it shall do so on or before May 1 of each year.
(b) The commissioner shall total the amounts ascertained for all such insurers under subparagraph (a) so that the commissioner has a total for each nonaffiliated individual insurer and for each group of affiliated insurers.
(c) If the total, determined in subparagraph (b), for any nonaffiliated individual insurer or for any group of affiliated insurers exceeds the maximum allowable assessable premium amount, the commissioner shall effect an adjustment.
(1) The maximum allowable assessable premium amount shall be $200,000,000 for assessments based on premiums reported in the calendar 2000 annual statements or other financial statement submitted in compliance with N.H. Rev. Stat. § 415-E:11. The maximum allowable assessable premium amount shall increase each year based on the change in the Consumer Price Index, all items, as published by the United States Department of Labor Statistics or any successor or substitute index generally used to determine the purchasing power of the United States dollar and adopted by the commissioner through regulation. For calendar years after 2000, the ratio of:
(A) the index for the period 2 years prior to the calendar year in question to
(B) the index for 1998 shall be multiplied by $200,000,000 and rounded to the nearest million to obtain the maximum allowable assessable premium amount.
The commissioner shall never implement an adjustment to the maximum allowable assessable premium amount that would cause it to decrease from the prior year.
(2) The commissioner shall adjust each insurer’s assessable premium from that calculated in subparagraph (a) by multiplying the amount ascertained in subparagraph (a) by the ratio of the maximum allowable assessable premium amount ascertained in subparagraph (c)(1) to the greater of the premium amount ascertained in subparagraph (b), or the maximum allowable assessable premium amount ascertained in subparagraph (c)(1).
(d) The commissioner shall total the adjusted amounts ascertained for all such insurers under subparagraph (c).
(e) For each such insurer, the commissioner shall determine the percent that the amount ascertained for it under subparagraph (c) is of the total amount ascertained for all such insurers under subparagraph (d).
(f) For each such insurer, the commissioner shall multiply the percent ascertained for it under subparagraph (e) by the sum of the amount indicated by paragraph V plus all credits applied pursuant to N.H. Rev. Stat. § 400-A:10, III, N.H. Rev. Stat. § 400-A:36, X, or N.H. Rev. Stat. § 401-C:7, II. The amount resulting, less any credits for which the insurer is eligible under N.H. Rev. Stat. § 400-A:10, III, N.H. Rev. Stat. § 400-A:36, X, or N.H. Rev. Stat. § 401-C:7, II, shall be the administrative fee for such insurer, provided that the minimum administrative fee payable by any such insurer shall be $100.
VII. At the close of each fiscal year, the commissioner shall review the department’s actual expenditures against funds collected. Total assessments shall not exceed the amount appropriated to the fund. The commissioner shall not be required to return previously collected assessments. The balance in the fund at the beginning of the new fiscal year shall proportionately be used to reduce future assessments under this section.
VIII. The commissioner shall perform the calculations required by this section and notify each insurer of the insurer’s assessment payable under this section as soon as practicable after July 1 of each year. The commissioner shall provide notice to the insurer by electronic means as specified by the commissioner. The notice shall be deemed to have been given when emailed to the insurer at the insurer’s email address on file with the department. The copy of the email shall be prima facie evidence that notice has been provided.
IX. The commissioner shall be charged with the conservation of the assets of the fund. In furtherance of this purpose, the attorney general shall appoint a member of his or her staff to represent the fund in all proceedings brought to enforce payment of assessments as provided in paragraph VI.
X. This section shall not apply to fraternal benefit societies or town mutual insurance companies.
XI. Any insurer that does not pay amounts due under this section within 45 days of the billing date shall incur a late payment penalty contingent upon the number of days that have passed since the due date. For late payments received 1-30 days after the due date, the penalty fee shall be 3 percent of the amount of tax due. For late payments received 31-60 days after the due date, the penalty fee shall be 6 percent of the amount of tax due. For late payments received more than 60 days after the due date, the penalty fee shall be 12 percent of the amount of tax due.
XII. The commissioner shall restrict the authority of any insurer, who does not pay amounts due under this section within 90 days of the billing date, to servicing existing in-force business only.
XIII. For any insurer, who does not pay amounts due under this section within 180 days of the billing date, the commissioner may suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in this state.
XIV. The commissioner may adopt rules that provide for the administration of this section in accordance with state agency accounting principles and practices.
II. For the purposes of this section, “affiliate” shall be as defined in N.H. Rev. Stat. § 401-B:1, I.
Terms Used In New Hampshire Revised Statutes 400-A:39
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- state: when applied to different parts of the United States, may extend to and include the District of Columbia and the several territories, so called; and the words "United States" shall include said district and territories. See New Hampshire Revised Statutes 21:4
- United States: shall include said district and territories. See New Hampshire Revised Statutes 21:4
III. The state treasurer is authorized to disburse moneys from the fund upon written order of both the insurance commissioner and commissioner of administrative services in accordance with a budget approved by the general court. The state treasurer shall be required to give bond in an amount to be fixed and with securities approved by the insurance commissioner conditioned upon the faithful performance of his or her duty as custodian of the fund.
IV. Each insurer licensed to do business in this state, including nonprofit health services corporations organized pursuant to RSA 420-A, health maintenance organizations organized pursuant to RSA 420-B, Delta Dental Plan of New Hampshire regulated pursuant to RSA 420-F, and multiple-employer welfare arrangements licensed pursuant to RSA 415-E, shall make payments to the fund each year of its pro rata share of the fiscal year‘s costs of the office of the commissioner to be appropriated out of the fund. Such share is to be computed in accordance with paragraphs V and VI of this section.
V. For each year, the total amount of such payments made to the fund by all such insurers shall be an amount that, when combined with any available fund balance, is not less than the amount appropriated by the general court for the expenses of the office of the commissioner for the fiscal year commencing on the July 1 in which the payments are due.
VI. The amount payable each year by each such insurer shall be computed by the commissioner as follows:
(a) Based on the annual statement filed in such year by each insurer under N.H. Rev. Stat. § 400-A:31, N.H. Rev. Stat. § 420-A:20, N.H. Rev. Stat. § 420-B:9, N.H. Rev. Stat. § 420-F:9, or other financial statement filed under N.H. Rev. Stat. § 415-E:11, the commissioner shall ascertain each insurer’s amount of gross direct premiums written, including policy, membership and other fees, service charges, policy dividends applied in payment for insurance, and all other considerations for insurance originating from policies covering property, subjects, or risks located, resident or to be performed in New Hampshire after deducting return premiums and dividends actually returned or credited to policyholders. The premium for Medicaid managed care coverage provided by a health carrier contracting with the department of health and human services under N.H. Rev. Stat. § 126-A:5, XIX shall not be included in an insurer’s assessable premium, except where that coverage is provided through the purchase of insurance coverage pursuant to the New Hampshire granite advantage health care program under RSA 126-AA. If any such insurer does not otherwise timely provide the commissioner with the information necessary for such ascertainment, it shall do so on or before May 1 of each year.
(b) The commissioner shall total the amounts ascertained for all such insurers under subparagraph (a) so that the commissioner has a total for each nonaffiliated individual insurer and for each group of affiliated insurers.
(c) If the total, determined in subparagraph (b), for any nonaffiliated individual insurer or for any group of affiliated insurers exceeds the maximum allowable assessable premium amount, the commissioner shall effect an adjustment.
(1) The maximum allowable assessable premium amount shall be $200,000,000 for assessments based on premiums reported in the calendar 2000 annual statements or other financial statement submitted in compliance with N.H. Rev. Stat. § 415-E:11. The maximum allowable assessable premium amount shall increase each year based on the change in the Consumer Price Index, all items, as published by the United States Department of Labor Statistics or any successor or substitute index generally used to determine the purchasing power of the United States dollar and adopted by the commissioner through regulation. For calendar years after 2000, the ratio of:
(A) the index for the period 2 years prior to the calendar year in question to
(B) the index for 1998 shall be multiplied by $200,000,000 and rounded to the nearest million to obtain the maximum allowable assessable premium amount.
The commissioner shall never implement an adjustment to the maximum allowable assessable premium amount that would cause it to decrease from the prior year.
(2) The commissioner shall adjust each insurer’s assessable premium from that calculated in subparagraph (a) by multiplying the amount ascertained in subparagraph (a) by the ratio of the maximum allowable assessable premium amount ascertained in subparagraph (c)(1) to the greater of the premium amount ascertained in subparagraph (b), or the maximum allowable assessable premium amount ascertained in subparagraph (c)(1).
(d) The commissioner shall total the adjusted amounts ascertained for all such insurers under subparagraph (c).
(e) For each such insurer, the commissioner shall determine the percent that the amount ascertained for it under subparagraph (c) is of the total amount ascertained for all such insurers under subparagraph (d).
(f) For each such insurer, the commissioner shall multiply the percent ascertained for it under subparagraph (e) by the sum of the amount indicated by paragraph V plus all credits applied pursuant to N.H. Rev. Stat. § 400-A:10, III, N.H. Rev. Stat. § 400-A:36, X, or N.H. Rev. Stat. § 401-C:7, II. The amount resulting, less any credits for which the insurer is eligible under N.H. Rev. Stat. § 400-A:10, III, N.H. Rev. Stat. § 400-A:36, X, or N.H. Rev. Stat. § 401-C:7, II, shall be the administrative fee for such insurer, provided that the minimum administrative fee payable by any such insurer shall be $100.
VII. At the close of each fiscal year, the commissioner shall review the department’s actual expenditures against funds collected. Total assessments shall not exceed the amount appropriated to the fund. The commissioner shall not be required to return previously collected assessments. The balance in the fund at the beginning of the new fiscal year shall proportionately be used to reduce future assessments under this section.
VIII. The commissioner shall perform the calculations required by this section and notify each insurer of the insurer’s assessment payable under this section as soon as practicable after July 1 of each year. The commissioner shall provide notice to the insurer by electronic means as specified by the commissioner. The notice shall be deemed to have been given when emailed to the insurer at the insurer’s email address on file with the department. The copy of the email shall be prima facie evidence that notice has been provided.
IX. The commissioner shall be charged with the conservation of the assets of the fund. In furtherance of this purpose, the attorney general shall appoint a member of his or her staff to represent the fund in all proceedings brought to enforce payment of assessments as provided in paragraph VI.
X. This section shall not apply to fraternal benefit societies or town mutual insurance companies.
XI. Any insurer that does not pay amounts due under this section within 45 days of the billing date shall incur a late payment penalty contingent upon the number of days that have passed since the due date. For late payments received 1-30 days after the due date, the penalty fee shall be 3 percent of the amount of tax due. For late payments received 31-60 days after the due date, the penalty fee shall be 6 percent of the amount of tax due. For late payments received more than 60 days after the due date, the penalty fee shall be 12 percent of the amount of tax due.
XII. The commissioner shall restrict the authority of any insurer, who does not pay amounts due under this section within 90 days of the billing date, to servicing existing in-force business only.
XIII. For any insurer, who does not pay amounts due under this section within 180 days of the billing date, the commissioner may suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in this state.
XIV. The commissioner may adopt rules that provide for the administration of this section in accordance with state agency accounting principles and practices.