N.H. Code Admin. R. Ins 2301.05 - Surety Bond

(a) An 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.

(c) To be acceptable the surety bond shall be:

(1) Unconditional;

(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.

Notes

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. (c)(3)

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.