N.H. Code Admin. R. Ins 2301.14 - Periodic Audit

(a) The commissioner shall examine an administrator pursuant to RSA 402-H:4, II on a regularly scheduled basis or pursuant to RSA 402-H:13 when an evaluation of any submission to the department by the administrator, insurer, policyholder or publication indicates potential financial or operational irregularities contrary to statute or rule. The cost of the audit shall be paid by the administrator pursuant to RSA 402-H:13. Audits shall include, but not be limited to financial condition, premium collection, claims processing and marketing practices.

(b) Any one or more of the following factors present shall require an additional amount of security:

(1) A material reduction in liquid assets or retained earnings, or liquid assets below the level that would be called for in a surety bond;

(2) A deteriorating financial condition, as evidenced through an audit by the commissioner or any other insurance commissioner; and

(3) Any other relevant considerations jeopardizing insurers and insureds, including a pattern of complaints by consumers, material litigation, revocation or cancellation of surety bonds or errors and omissions insurance coverage, missing, incomplete, or inaccurate financial and transaction records.

(c) The administrator shall have continuing access to all books and records in order to fulfill its contractual obligations.

(d) All books and records maintained by the administrator as part of that contractual obligation shall:

(1) Be owned by the insurer or the administrator;

(2) Conform to the standards of insurance record keeping required of insurers subject to filing an annual audited financial statement pursuant to RSA 400-A:36;

(3) Be retained for 5 years from the date of their creation; and

(4) Be subject to examination by the commissioner or the insurer for which the records are kept.

(e) Upon termination of an agreement between the administrator and person contracting for the services pursuant to the termination provisions in the agreement, the records may be transferred to a new administrator in lieu of the required 5 year retention. If such a transfer occurs, the new administrator shall acknowledge in writing that he/she has received the records and shall be responsible for them.

Notes

N.H. Code Admin. R. Ins 2301.14

#5787, eff 2-14-94; ss by #7023, eff 7-1-99; ss by #7318, eff 8-1-00, EXPIRED: 8-1-08

New. #9510, eff 7-10-09

Amended by Volume XXXVII Number 28, Filed July 13, 2017, Proposed by #12228, Effective 7/10/2017, Expires 7/10/2027.