Volume 1, Issue 6

    11.5 BILLION DOLLAR STATE BUDGET PASSES ON CLOSE VOTES…SOME BUSINESS TAXES ELIMINATED…

The New Hampshire General Court passed the state budget on a 13-11 vote in the Senate, and a 201-183 vote in the House while demonstrators outside the chambers called for defeat of the document

In the final version NH LLC’s will be taxed 5% on all profits taken as income and many fees have doubled. The meal and rooms tax is now 9%, cigarette tax went up 45 cents, and gambling winnings over $600 will be taxed at 10%.  $90 million of spending will be spread out among cities and towns so expect property taxes to increase once again!!  $110 million of surplus will be taken from the Doctor’s JUA fund, and the state is currently being sued for that approach!

The controversy is not over, even thought the Governor will sign the budget.  In the final analysis, budget spending increase over 7% in our worse recession since the depression.

The good news is insurance premium taxes will continue to reduce at the rate of ½% a year, capital gains and delay of BET credits against the BPT tax were eliminated, and no death tax was instituted.

    UNIVERSAL HEALTH CARE LEGISLATION DRIVES ON WITH INSURANCE AGENTS FUTURE CLOUDY

The Kennedy universal health care initiative, and the House Democrats Health Care reform Bill are continuing to receive attention by the House and Senate in Washington DC.  It is too early to for see the final outcome, but initial drafts would potentially eliminate the independent insurance agent from selling health care products.

IIABNH and IIABA have opposed both approachs with letters to the appropriate legislators, and will be flying to Washington in July to personally oppose the public plan concept part of the legislation.
Click here to read a synopsis of the House Plan
Click here to read an article soon to appear in Independent Agent magazine explaining our positions

    FEDERAL REGULATION OF INSURANCE…AGENTS CONTINUE OPPOSITION

HB 1880 introduced by Congressmen Bean of Illinois, and Royce of California establishing a optional federal charter for insurance is being pursued by several associations representing insurance interests supporting federal regulation.  IIABA and IIABNH have written the New Hampshire House delegation opposing these efforts, and asking both Congressman Hodes and Congresswoman Shea-Porter to oppose HB 1880. 
Click here to read a generic example of the letter

The letter is designed for any agency/agent to express their opposition to an optional federal charter.  Simply download, fill in the blanks, and fax or email to the two representatives.

In a rare instance of industry support the New York Times editorialized in opposition to a federal charter and in support of the “Big I’s” position. Click here to read the full editorial

   REGULATORY UPDATES

Three (3) hours of ethics are required every two year compliance period as part of each producer’s continuing education commitment.  IIABNH reminds all members that hold the CIC designation, and receive most of their CE credits through that program, that the CIC program does not include ethics, and does not provide the full 24 hours of CE required!  Clarification is at the request of many members that were unaware of the requirement!

  INSURANCE 3300…CREDIT SCORES

Insurance regulation 3300 is being revised.  New regulations outlining the conditions required to be met before insurers can use insurance scores or information from consumer reports as part of their underwriting and/or rating criteria.

The full text of the proposed revisions can be found at the NH Department of Insurance web site.  Public hearing set for July 2, 2009 at 10AM at DOI headquarters.

  COMPANY NEWS

First Comp has notified their appointed agencies that they are converting policies from Southern Insurance Co. to their own paper.  At this point, First Comp does not have an AM Best rating. Under the insolvency endorsement of your E&O polices (Swiss Re or FFIC) any company that continues to be an admitted NH company and contributes to the NH Guaranty Fund your liability policy will respond in the event of insolvency.  We continue to wait for further information from First Comp. 
Click here for Fireman’s Fund insolvency provision
Click here for Westport’s insolvency endorsement 

MVP has been downgraded by AM Best to a “B” rating.  In response to IIABNH inquiries, MVP indicated the “B” rating is specific to the NH Corporation only, and not the parent company.  AM Best indicated they expect continued growth and financial strengthening by MVP with support from their parent company.  As long as you are writing in the MVP   Health Insurance Company of new Hampshire which belongs to the NH Guaranty Association, your E&O carrier will respond.

   ASSOCIATION NEWS & EVENTS

ANNUAL TRUSTED CHOICE GOLF TOURNAMENT DRAWS 100 GOLFERS…

100 golfers teed off June 9th at the IIABNH Trusted Choice Golf Classic in heavy rain, but with good spirits.  Over $4000 of prizes, awards, merchandise, and Red Sox tickets were given away.  SERVICEMASTER ELITE, the major sponsor at the tournament, and owners Alan and John Degeorge were luncheon sponsors.  As always, IIABNH thanks ServiceMaster Elite and all other sponsors for their participation! 
Click here for golf pictures! 

IIABNH Annual Meeting                                                    Sept 29 – Oct 1
Mt. Washington Hotel
Bretton Woods, NH

Quarterly Education Calendar                                        view calendar

Register on-line, by fax, by mail, by phone

     NH Insurance Department E-Newsletter...read here

NEW....The NH Insurance Department will no longer be printing and mailing paper Producer or Adjuster licenses effective April 1, 2009. 

Read the complete Licensing Bulletin here.