Key Takeaways
- New Hampshire producers must act in the best interest of clients
- Producers must disclose compensation arrangements and conflicts of interest
- Trust funds and premiums must be handled according to strict requirements
- Producers must maintain accurate records
- Continuing education includes ethics requirements
Last updated: January 2026
Producer Conduct and Fiduciary Duties
New Hampshire insurance producers have legal and ethical obligations to their clients and the public.
Producer Duties
Insurance producers owe duties to their clients:
Key Duties
| Duty | Description |
|---|---|
| Loyalty | Put client's interests first |
| Disclosure | Reveal all material information |
| Competence | Maintain professional knowledge |
| Confidentiality | Protect client information |
| Good Faith | Act honestly in all dealings |
Disclosure Requirements
New Hampshire producers must disclose:
Compensation Disclosures
- Method of compensation (commission, fee, both)
- Material conflicts of interest
- Ownership interests in recommending insurers
- Referral arrangements
Product Disclosures
- All material terms and conditions
- Limitations and exclusions
- Premium and cost information
- Comparison with alternatives when replacing
Handling of Funds
Producers must handle premiums and client funds according to strict rules:
Premium Collection
| Requirement | Rule |
|---|---|
| Deposit | Promptly to insurer or trust account |
| Commingling | Cannot mix with personal funds |
| Trust Account | Required for holding premiums |
| Records | Must maintain detailed records |
Consequences of Mishandling
| Consequence | Detail |
|---|---|
| License Suspension | Immediate suspension pending investigation |
| License Revocation | Permanent loss of license |
| Restitution | Must repay all misappropriated funds |
| Civil Liability | Subject to lawsuits from harmed parties |
| Criminal Charges | Potential felony prosecution |
| NIPR Reporting | Reported to NIPR and other states |
Record Keeping Requirements
New Hampshire requires producers to maintain records:
| Record Type | Retention Period |
|---|---|
| Applications | As required |
| Policy Documents | As required |
| Correspondence | As required |
| Replacement Documents | Per replacement regulations |
| Commission Records | As required |
Insurance Fraud
New Hampshire prosecutes insurance fraud:
Types of Insurance Fraud
| Type | Description |
|---|---|
| Application Fraud | False statements on applications |
| Claims Fraud | Exaggerated or fabricated claims |
| Premium Fraud | Non-payment or diversion of premiums |
| Agent Fraud | Misappropriation, forgery, unauthorized policies |
Fraud Reporting
| Obligation | Requirement |
|---|---|
| Insurers | Must report suspected fraud |
| Producers | Should report suspected fraud |
| Immunity | Good faith reporters have civil immunity |
Continuing Education
New Hampshire requires producers to complete continuing education:
- 24 hours every 2 years
- 3 hours ethics minimum (10 hours maximum)
- Complete 60 days before expiration
- First-time renewals exempt
Test Your Knowledge
What is the consequence of a New Hampshire producer commingling client funds with personal funds?
A
B
C
D