Bill > SB661

This bill aims to strengthen the oversight and financial stability of pooled risk management programs, which are cooperative arrangements where political subdivisions (like cities and towns) pool their resources to manage risks, often related to insurance. Key provisions include empowering the Secretary of State to intervene if a program has insufficient assets, potentially by requiring immediate action to fix the shortfall or by taking over the program's management (receivership). Participating members will be required to contribute proportionally to cover any financial deficiencies, with these contributions determined by actuarial calculations. The bill also mandates that the governing boards of these programs must act with a high standard of care, diligence, prudence, and skill, similar to how a trustee would manage assets for beneficiaries. Furthermore, it establishes specific standards for "contingency reserves," which are funds set aside to cover unexpected or extraordinary losses, and requires programs to replenish these reserves if they fall below minimum levels, with these levels varying based on the type of coverage provided (e.g., health versus property and casualty). Finally, the bill mandates that these programs must provide clear public disclosures to potential and current member political subdivisions, informing them that the program does not function like a traditional insurance company and that they may be subject to additional assessments if the program's assets are insufficient to meet its obligations.

Budget and Finance

https://gc.nh.gov/bill_status/legacy/bs2016/bill_status.aspx?lsr=3262&sy=2026&sortoption=&txtsessionyear=2026&txtbillnumber=SB661