New Hampshire § 406-B-16 - Section 406-B:16 Lawfully Procured Insurance in Unlicensed Companies; Exceptions to Unauthorized Provisions.

§ 406-B-16. Section 406-B:16 Lawfully Procured Insurance in Unlicensed Companies; Exceptions to Unauthorized Provisions.

The unauthorized provisions of this chapter do not apply to: I. The lawful transaction of surplus lines insurance. II. The lawful transaction of reinsurance by insurers. III. Transactions in this state involving a policy lawfully solicited, written, and delivered outside of this state covering only subjects of insurance not resident, located, or expressly to be performed in this state at the time of issuance, and which transactions are subsequent to the issuance of such policy. IV. Transactions involving contracts of insurance independently procured through negotiations occurring entirely outside of this state which are reported and on which premium tax is paid in accordance with RSA 406-B:17. V. Attorneys acting in the ordinary relation of attorney and client in the adjustment of claims or losses. VI. (a) Any insurance company or underwriter issuing contracts of insurance to industrial insureds, nor to any contract of insurance issued to any one or more industrial insureds. Every industrial insured under a contract procured from an unlicensed insurer shall pay to the commissioner of insurance before March 1 next succeeding the calendar year in which the insurance was so effectuated, continued, or renewed a premium receipts tax of 3 percent of the gross premiums charged for such insurance. For the purposes of this section, an "industrial insured" is: (1) An insured who procures the insurance of any risk or risks other than life and annuity contracts and health insurance contracts by use of the services of a full time employee acting as an insurance manager or buyer or the services of a regularly and continuously retained qualified insurance consultant; and (2) An insured whose aggregate annual premiums for insurance on all risks total at least $15,000; and (3) An insured having at least 25 full time employees. (b) Any insured failing to file the report or failing to remit the proper tax within the time period for filing shall pay a penalty contingent upon the number of days that have passed since the due date. For late payments received 1-30 days after the due date, the penalty fee shall be 3 percent of the amount of tax due. For late payments received 31-60 days after the due date, the penalty fee shall be 6 percent of the amount of tax due. For late payments received more than 60 days after the due date, the penalty fee shall be 12 percent of the amount of tax due. (c) For the purposes of this section, each insured filing under this section shall be subject to the provisions of RSA 400-A:32-a. VII. Transactions in this state involving any policy of insurance or annuity contract issued prior to the effective date of this section. VIII. Transactions in this state relative to a policy issued or to be issued outside this state involving insurance on vessels, craft or hulls, cargos, marine builder's risk, marine protection and indemnity or other risk, including strikes and war risks commonly insured under ocean or wet marine forms of policy. IX. This chapter shall not apply to any life insurance or annuity company organized and operated, without profit to any private shareholder or individual, exclusively for the purpose of aiding educational or scientific institutions organized and operated without profit to any private shareholder or individual, by issuing insurance and annuity contracts direct from the home office of the company and without agents or representatives in this state, only to or for the benefit of such institutions and individuals engaged in the service of such institutions; nor shall this chapter apply to any insurance or annuity contracts issued by any such life insurance or annuity company. X. The provisions of this chapter, other than the provisions of RSA 406-B:2, 4, and 5, do not apply to ocean marine insurance.