administrator that administers benefit plans for an insurer that is not
licensed in New Hampshire, a multiple employer welfare arrangement, or a church
plan shall include a surety bond in a minimum amount of $100,000 or 10 percent
of the administrator's average daily client account balance during the
preceding calendar year, but not more than $1,000,000.
(b) If an administrator cannot obtain a bond,
then another security, including, but not limited to, cash or negotiable
securities in an amount equal to the amount of the required surety bond shall
be set aside in one or more trusteed bank accounts in the State of New
Hampshire under trust terms that require the commissioner's signature for any
account activity, except the accumulation of interest or other funds into the
account, and allow the commissioner, by order, to disburse the trust funds for
the satisfaction of policyholder or customer claims.
To be acceptable the surety bond shall
(2) Be issued by a bank or insurer licensed
to do business in New Hampshire; and
(3) Be payable to the commissioner to ensure
the financial protection of the administrator's customers, subject to the
dollar limitation of the surety bond.
N.H. Code Admin. R. Ins 2301.05
#5787, eff 2-14-94; ss by #7023, eff 7-1-99; ss by #7318,
eff 8-1-00; amd by #7506, eff 6-25-01; EXPIRED: 8-1-08 except for para.
New. #9510, eff
XXXVII Number 28, Filed July 13, 2017, Proposed by #12228,