NH Insurance Department reminds insurers of correct policy termination steps

A bulletin from the New Hampshire Insurance Department (NHID) reminds personal lines automobile insurers of their obligations under RSA 417-A:5 when terminating a policy after nonpayment of renewal premiums.

“New Hampshire law provides important protections for consumers who do not make a renewal premium payment by its due date,” said Insurance Commissioner D.J. Bettencourt in an NHID press release. “Insurers must provide the legally required notice and an opportunity to cure the nonpayment before terminating coverage. Consistent compliance with these requirements helps protect Granite Staters from an improper lapse in automobile insurance coverage.”

Under RSA 417-A:5, an insurer may issue a notice of termination when an insured fails to pay a renewal premium. The notice must provide a cure period of at least 10 days during which the insured may pay the overdue premium and continue coverage without a lapse.

A policy may be terminated for nonpayment of a renewal premium only after the insurer has issued a legally compliant termination notice and the required cure period has expired without payment.

“The bulletin reflects the NHID’s interpretation and enforcement of the existing requirements in RSA 417-A:5,” the release states. “The department issued the guidance after identifying termination notices used in the market that did not appear to conform fully to the statutory requirements when a renewal premium is not paid by its due date.

“The NHID is directing all personal lines automobile insurers to review their termination notices and related procedures for compliance. Insurers using notices that are inconsistent with RSA 417-A:5 should file revised notices with the NHID no later than Oct. 1, 2026.”

NHID says after Oct. 1, it may audit insurer notices and business practices to verify compliance. Notices previously approved by NHID still have to be revised if inconsistent with the statutory requirements described in the bulletin.

When considering whether administrative action is appropriate, NHID says it will consider the particular facts and circumstances, including prior department approval and a carrier’s efforts to timely remediate an identified deficiency.

However, it says failure to comply with RSA 417-A:5 may result in appropriate administrative action, including civil penalties authorized under New Hampshire law, when warranted by the facts and circumstances.

“Clear and consistent termination procedures are important for consumers and insurers alike,” said Deputy Insurance Commissioner Keith Nyhan in the release. “The NHID expects carriers to review their practices carefully and make any necessary revisions so New Hampshire consumers receive the protections required by law.”

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