New Hampshire § 383-A-4-406 - Section 383-A:4-406 Errors and Omissions Liability Insurance.

§ 383-A-4-406. Section 383-A:4-406 Errors and Omissions Liability Insurance.

(a) A state bank or credit union shall maintain a liability policy that insures against losses that any of its customers incurs by reason of the errors and omissions of the state bank or credit union or any of its directors, officers, employees, and agents. (b) Except as provided in subsection (c), the errors and omissions liability policy shall be issued by: (1) An insurer licensed under the laws of this state; or (2) A foreign surplus lines insurer authorized to sell insurance in this state and licensed by any state, district, or territory of the United States. (c) The issuer of the errors and omissions liability policy may be a person other than as described in (b) if, under the terms of the policy, the issuer unconditionally consents to: (1) The resolution of any claim or dispute involving the policy by a court located in this state; and (2) The personal jurisdiction of the courts located in this state in connection with any matter involving the policy. (d) The board of directors shall review the errors and omissions liability policy annually, or as circumstances require, to evaluate the adequacy of the amount of coverage. (e) A state bank or credit union shall give notice to the commissioner in accordance with RSA 383-A:6-602 if coverage under the errors and omissions liability policy is decreased by 25 percent or more in any 12-month period. (f) From time to time, the commissioner may reduce or increase the amount of errors and omissions liability insurance coverage that a state bank or credit union is required to maintain. At no time shall the amount of insurance fall below the minimum required by the commissioner. (g) The policy shall require that the errors and omissions liability insurer provide 10 days' notice to the commissioner before cancellation or nonrenewal of the errors and omissions liability shall take effect.