New Hampshire Consumer Protection Requirements

New Hampshire balances minimal insurance mandates with strong consumer protections. While the state trusts consumers to make insurance decisions, it strictly enforces fair treatment, honest dealing, and proper disclosure.

Unfair Trade Practices

Prohibited Practices

New Hampshire RSA 417 prohibits unfair methods of competition and unfair/deceptive acts in insurance:

Enforcement and Penalties

Investigation Process:

1. Complaint filed with Insurance Department
2. Department investigates allegations
3. Hearing conducted if violation found
4. Penalties imposed based on severity
5. Right to appeal adverse decisions

Possible Penalties:

Exam Tip: New Hampshire prohibits unfair and deceptive practices through RSA 417. Violations include misrepresentation, false advertising, rebating, twisting, and unfair discrimination. Penalties range from warnings to license revocation depending on severity.

Disclosure Requirements

Material Information Must Be Disclosed

Before Policy Purchase:

• Coverage provided and limitations
• Exclusions and conditions
• Deductibles and copayments
• Policy period and territory
• Cancellation and non-renewal terms
• Premium amount and payment terms
• Renewal provisions

New Hampshire-Specific Disclosures

Auto Insurance:

• Explanation of NH's voluntary insurance system
• Financial responsibility requirements (25/50/25)
• UM/UIM coverage offer (must equal liability limits)
• Right to reject UM/UIM in writing
• Consequences of driving uninsured
• SR-22 requirements if applicable

Homeowners Insurance:

• Replacement cost vs. actual cash value options
• 80% coinsurance requirement
• Flood exclusion and need for separate coverage
• Special limits on jewelry, money, business property
• Ice dam and frozen pipe coverage conditions
• Claims handling procedures

Commercial Property:

• Coinsurance clauses and penalties
• Valuation methods (replacement cost, ACV, agreed value)
• Business income coverage triggers and limits
• Sub-limits on money, valuable papers, electronic data
• Exclusions (flood, earthquake, wear and tear)

Written Disclosure Requirements

Must Be in Writing:

• UM/UIM rejection forms (if declining)
• Material coverage changes or reductions
• Policy cancellation or non-renewal notices
• Premium increase notifications
• Claims denial reasons
• Right to appeal adverse decisions

Timing of Disclosures

Exam Tip: Material information must be disclosed BEFORE the policy is purchased. Waiting until policy delivery is too late for coverage limitations that affect the purchase decision. Document all important disclosures in writing.

Fair Claims Handling Practices

Insurer Claims Obligations

New Hampshire Requires:

Prohibited Claims Practices

Insurers/Producers Cannot:

Producer's Role in Claims

Ethical Claims Assistance:

• Help client understand coverage
• Explain claims process and timelines
• Assist with documentation
• Advocate with insurer when appropriate
• Follow up on claim status
• Explain denial reasons if claim denied

Cannot:

• Guarantee claim will be paid
• Misrepresent coverage to insurer
• Assist in fraudulent claims
• Advise exaggerating damages
• Promise specific settlement amounts
• Threaten insurer with bad faith

Claims Documentation

Producer Should Document:

• Initial claim notification to insurer
• Assistance provided to client
• Communications with adjuster
• Coverage questions raised
• Client concerns and responses
• Final claim resolution

Benefits:

• Protects producer from disputes
• Demonstrates service value
• Helps with similar claims later
• Evidence of professional handling

Exam Tip: New Hampshire requires insurers to acknowledge claims within 15 days and begin investigation within 30 days. Unreasonable delays, low-ball offers, and failure to investigate are unfair claims practices subject to penalties and consumer complaints.

Privacy and Data Security

Gramm-Leach-Bliley Act (GLBA) Requirements

Federal Law Requires:

• Annual privacy notices to customers
• Opt-out rights for information sharing
• Safeguards for customer information
• Vendor oversight for data security

Privacy Notice Requirements

Must Include:

• What information is collected
• How information is used
• With whom information is shared
• How information is protected
• Customer rights and choices
• How to opt out of sharing

Delivery:

• Initial notice at start of relationship
• Annual notice each year
• Notice of material changes in policy
• Electronic delivery allowed with consent

Safeguards Rule

Producers Must:

• Implement data security program
• Assess risks to customer information
• Design safeguards to control risks
• Train staff on security procedures
• Regularly test and monitor systems
• Oversee service providers' security

Breach Notification

If Data Breach Occurs:

1. Investigate extent and impact
2. Contain breach immediately
3. Notify affected customers promptly
4. Report to Insurance Department if significant
5. Offer credit monitoring if SSNs exposed
6. Review and improve security measures

Notification Must Include:

• What information was exposed
• How breach occurred
• Steps being taken to address
• Resources available to customers
• Contact information for questions

Exam Tip: The Gramm-Leach-Bliley Act (GLBA) requires annual privacy notices, opt-out rights, and safeguards for customer information. Producers must implement data security programs and notify customers of breaches.

Consumer Complaint Process

How Consumers File Complaints

Contact Information:

• Phone: (603) 271-2261
• Toll-Free: (800) 852-3416
• Email: consumerservices@ins.nh.gov
• Mail: 21 South Fruit Street, Suite 14, Concord, NH 03301
• Website: insurance.nh.gov (online complaint form)

Complaint Investigation Process

Department Process:

1. Intake (1-3 days)

   • Review complaint for jurisdiction
   • Assign to investigator
   • Acknowledge receipt to consumer

2. Investigation (30-90 days)

   • Request response from producer/insurer
   • Review documentation and evidence
   • Interview parties if needed
   • Analyze against legal standards

3. Resolution

   • Dismiss - no violation found
   • Informal resolution - parties agree on solution
   • Consent order - settlement with conditions
   • Formal discipline - hearing and penalties
   • Referral - to law enforcement if criminal

Producer's Response to Complaints

When Notified of Complaint:

1. Take it seriously - don't dismiss or ignore
2. Respond promptly - within deadline (typically 15-30 days)
3. Be thorough - provide full explanation and documents
4. Be honest - acknowledge mistakes if made
5. Propose resolution - suggest fair solution if appropriate
6. Seek counsel - consult attorney if serious allegations

What to Include in Response:

• Point-by-point response to allegations
• Timeline of events
• Supporting documentation
• Explanation of actions taken
• Industry standard practices
• Any mitigating circumstances
• Proposed resolution if applicable

Exam Tip: New Hampshire Insurance Department investigates consumer complaints actively. Producers should respond promptly, thoroughly, and honestly. Taking complaints seriously and proposing fair resolutions often prevents formal discipline.

Market Conduct Examinations

Purpose of Market Conduct Exams

Department Examines:

• Compliance with insurance laws
• Fair treatment of consumers
• Proper premium handling
• Claims handling practices
• Advertising and marketing
• Record keeping
• Producer licensing and appointments

Examination Process

Typical Timeline:

1. Pre-exam notification (30+ days advance)
2. Document requests (provide records)
3. On-site review (1-5 days typically)
4. Draft report (findings identified)
5. Response opportunity (30 days to respond)
6. Final report (issued with required actions)
7. Follow-up (verify corrections made)

What Examiners Review

Common Review Areas:

Preparing for Examination

Best Practices:

• Maintain organized records (5+ year retention)
• Document all important transactions and decisions
• Keep CE certificates readily accessible
• Have written office procedures
• Train staff on compliance requirements
• Conduct self-audits periodically
• Address issues proactively

Exam Tip: Market conduct examinations review producer compliance with insurance laws and consumer protection standards. Maintaining organized records, documenting decisions, and addressing issues proactively helps producers succeed in examinations.

Best Practices for Consumer Protection

Proactive Consumer Protection

Go Beyond Minimum Requirements:

Client Education

Educate Clients About:

• How their coverage works
• What's covered and excluded
• Deductibles and how they apply
• Claims process and expectations
• Premium factors and discounts
• Coverage options and endorsements
• Review and update importance

Methods:

• Welcome packets for new clients
• Annual review meetings
• Educational newsletters
• Coverage summaries at renewal
• Claims process guides
• FAQ documents
• Video explanations

Technology and Consumer Protection

Use Technology To:

• Secure client data with encryption
• Provide 24/7 access to policy information
• Send electronic reminders for renewals
• Process transactions efficiently
• Communicate securely
• Document all interactions
• Track follow-up items

Privacy Considerations:

• Secure email for sensitive information
• Password-protected client portals
• Two-factor authentication
• Regular security updates
• Staff training on data security
• Vendor due diligence

Building Consumer Trust

Trust is Built Through:

• Consistent honesty and integrity
• Following through on commitments
• Admitting and correcting mistakes
• Putting client interests first
• Transparent communication
• Professional competence
• Responsive service
• Fair dealing

Exam Tip: Consumer protection goes beyond avoiding violations—it includes proactive practices like client education, annual reviews, clear documentation, and using technology securely. Building consumer trust benefits both clients and producers long-term.

Special Populations and Considerations

Senior Citizens

Extra Care Required:

• Explain coverage clearly without jargon
• Allow time for questions and understanding
• Watch for signs of confusion or cognitive decline
• Protect from high-pressure sales tactics
• Avoid unnecessary replacements
• Involve family members if appropriate (with permission)

Medicare Supplement Considerations:

• Special licensing required
• Strict sales practice rules
• Cannot sell unnecessary coverage
• Cannot misrepresent Medicare

Non-English Speakers

Best Practices:

• Provide materials in client's language if available
• Use qualified interpreters (not family members)
• Ensure understanding before purchase
• Document language assistance provided
• Never pressure quick decisions due to language barrier

Individuals with Disabilities

Accommodations:

• Accessible office locations
• Alternative communication methods
• Extra time for understanding
• Assistive technology if needed
• Respect and dignity in all interactions

Exam Tip: Special populations (seniors, non-English speakers, individuals with disabilities) require extra care and accommodations. Ensure understanding, avoid high-pressure tactics, provide language assistance, and never take advantage of vulnerabilities.