Chapter 417-B: Cancellation, Refusal to Write, Refusal to Renew Certain Property and Liability Insurance

This chapter shall apply to policies of insurance other than automobile insurance and workers' compensation insurance on personal, family, and household risks located or residents in this state which insure any of the following contingencies:

I. Loss of or damage to real property.

II. Loss of or damage to personal property.

III. Legal liability of a person or persons for loss of, damage to, or injury to, persons or property.

No insurer shall cancel or refuse to write or renew a policy of insurance insuring against any of the contingencies set forth in RSA 417-B:1 solely because of the age, residence, race, color, creed, national origin, ancestry, marital status, or lawful occupation, including the military service, of anyone who is or seeks to become insured or solely because another insurer has refused to write a policy, or has cancelled or has refused to renew an existing policy in which that person was the named insured.

No insurer shall cancel, refuse to write, or refuse to renew a policy under this chapter solely on the basis of credit information obtained from a credit rating, a credit history, or a credit scoring model, without consideration of any other applicable and permitted underwriting factor independent of credit information.

No insurer, after a policy has been in effect for 90 days, or if a policy is a renewal, effective immediately, shall cancel a policy except for one or more of the following reasons:

I. Nonpayment of premium, including nonpayment of any additional premiums, calculated in accordance with the current rating manual of the insurer, justified by a physical change in the insured property or a change in its occupancy or use.

II. Conviction of the named insured of a crime having as one of its necessary elements an act increasing any hazard insured against.

III. Discovery of fraud or material misrepresentation by the named insured in pursuing a claim under the policy.

IV. Discovery of grossly negligent acts or omissions by the insured substantially increasing any of the hazards insured against.

V. Physical changes in the insured property which result in the property becoming uninsurable.

VI. Specific request of the insured.

The nonrenewal of a homeowner's insurance policy is prohibited if the nonrenewal is based solely on the insured having filed a single valid claim within any one previous or current policy term. For policies that contain no fixed expiration date or that are issued for other than annual periods a term shall be considered each 12 month anniversary from the date of policy issuance. Inquiries about coverage on a policy do not constitute a valid claim and shall not be the basis for nonrenewals.

No cancellation or refusal to renew by an insurer of a policy of insurance insuring against any of the contingencies set forth in RSA 417-B:1 shall be effective unless the insurer or its agent either physically delivers or mails to the named insured, at the address shown in the policy, a written notice of the cancellation or refusal to renew or electronically delivers to the named insured a written notice of cancellation or refusal to renew. Such notice shall:

I. State the date on which such cancellation or refusal to renew shall become effective. The effective date shall not be less than 45 days after the date the notice is mailed or physically or electronically delivered to the named insured provided however, the effective date may be 10 days from the date of mailing or physical or electronic delivery when:

(a) The policy is being cancelled or not renewed for nonpayment of premium; or

(b) The policy is not a renewal policy and the cancellation notice is mailed or delivered within 90 days of the policy's effective date.

II. State the specific reason or reasons of the insurer for cancellation or refusal to renew.

III. Any policy written for a term of less than one year shall be considered as if written for a term of one year. Any policy written for a term longer than one year, or any policy with no fixed expiration date, shall be considered as if written for successive policy periods or terms of one year.

There shall be no liability on the part of, and no cause of action of any nature shall arise against the insurance commissioner, any insurer, the authorized representatives, agents, and employees of either for any statement made by any of them in complying with this chapter or for the providing of information pertaining thereto.

The commissioner may issue such rules, regulations, and orders as may be necessary to carry out the purposes and provisions of this chapter.

I. Failure by an insurer to comply with any section of this chapter, or rules, regulations and orders issued pursuant thereto shall subject an insurer to a fine not exceeding $500 in the discretion of the insurance commissioner, or suspension or revocation of such insurer's license, or both.

II. If any provisions or clause of this chapter or application thereof to any person or situation is held invalid, such invalidity shall not affect other provisions or applications of the chapter which can be given effect without the invalid provisions or applications, and to this end the provisions of this chapter are declared to be severable.

III. The insurance commissioner may require that each insurer shall maintain records of the numbers of cancellations and refusals to write or renew policies and the reasons therefor and shall supply to the insurance commissioner such information as he may request.

As used in this chapter, "insurer" means any insurance company, association, or exchange authorized to issue policies of insurance in the state of New Hampshire.