Bill Text: NH SB170 | 2011 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relative to the New Hampshire Medical Malpractice Joint Underwriting Association.

Spectrum: Partisan Bill (Republican 13-0)

Status: (Passed) 2011-06-16 - Senate Law Without Signature 6/16/11; Chapter 0201; Art 44, Pt II, NH Constitution [SB170 Detail]

Download: New_Hampshire-2011-SB170-Introduced.html

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SB 170 – AS INTRODUCED

2011 SESSION

11-0967

01/10

SENATE BILL 170

AN ACT relative to the New Hampshire Medical Malpractice Joint Underwriting Association.

SPONSORS: Sen. Carson, Dist 14; Sen. Bradley, Dist 3; Sen. Bragdon, Dist 11; Sen. Groen, Dist 6; Sen. White, Dist 9; Sen. Lambert, Dist 13; Sen. Luther, Dist 12; Sen. Rausch, Dist 19; Sen. Stiles, Dist 24; Rep. B. Patten, Carr 4; Rep. Bettencourt, Rock 4; Rep. Kidder, Merr 1; Rep. Renzullo, Hills 27

COMMITTEE: Executive Departments and Administration

ANALYSIS

This bill declares that the state shall not take or transfer, through taxation or otherwise, any funds now held by the New Hampshire Medical Malpractice Joint Underwriting Association (NHMMJUA). This bill also requires the NHMMJUA, the insurance commissioner, and a representative of NHMMJUA policyholders to jointly approach the Internal Revenue Service to resolve any federal tax liability arising from excess surplus funds.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

11-0967

01/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eleven

AN ACT relative to the New Hampshire Medical Malpractice Joint Underwriting Association.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Statement of Purpose. The general court finds that the New Hampshire Medical Malpractice Joint Underwriting Association (NHMMJUA) conducts business through a board of directors which is vested with all necessary powers relating to the operation of the association, including the authority to retain counsel of its choosing. The general court further finds that the board owes fiduciary duties to NHMMJUA members and policyholders. The general court hereby determines that no member of the executive branch has authority to act on behalf of the NHMMJUA.

2 New Section; New Hampshire Medical Malpractice Joint Underwriting Association (NHMMJUA). Amend RSA 404-C by inserting after section 13 the following new section:

404-C:14 New Hampshire Medical Malpractice Joint Underwriting Association (NHMMJUA).

I. Notwithstanding any provision of law to the contrary, no officer or agent of the state shall take or transfer, through taxation or otherwise, any funds now held by the NHMMJU.

II. All funds held as of the effective date of this section by the NHMMJUA in excess of the amount required for the fund to remain actuarially sound, as determined by a qualified actuary shall constitute excess surplus funds. All excess surplus funds have resulted from premiums paid under assessable and participating medical malpractice insurance policies, belong to the policyholders who paid these premiums, and shall be returned as directed under this section.

III. Within 30 days of the effective date of this section, the NHMMJUA, the insurance commissioner, or designee, and a representative of NHMMJUA policyholders, designated by the president of the New Hampshire Medical Society shall jointly approach the United States Internal Revenue Service to obtain a closing agreement, or its equivalent, determining whether the NHMMJUA has any federal tax liability arising from the excess surplus funds.

IV. No later than 30 days after receipt of the closing agreement, or its equivalent, the NHMMJUA shall determine the amount of excess surplus funds remaining after satisfaction of any federal tax liability, if any, as described in this section. Within 90 days after receipt of the closing agreement or its equivalent, the NHMMJUA shall determine the allocation of these remaining excess surplus funds among all NHMMJUA policyholders during the period from 1986 through 2010. Within 30 days after such allocation determination, the NHMMJUA shall distribute such funds to policyholders or their designated agents. Funds that cannot be distributed to a policyholder due to the inability to locate the policyholder after reasonable efforts, shall revert to the NHMMJUA.

V. Undistributed funds that revert to the NHMMJUA as provided in this section shall be used to provide grants in aid to health care providers servicing medically underserved populations to assist in the NHMMJUA coverage.

3 Effective Date. This act shall take effect 60 days after its passage.