N.H. Rev. Stat. § 404-C:16 — NH Code / Title XXXVII / Chapter 404-C / Section 16
404-C:16 Receivership of the Association.
Status: in_force

I. The insurance commissioner, as receiver of the NHMMJUA, shall, consistent with this section, RSA 404-C:14, RSA 404-C:15, RSA 404-C:17, and the provisions of RSA 402-C wind-down its business, seeking to facilitate the payment of all policyholder coverage obligations in full and in the normal course of business. The receiver shall make monthly reports to the court detailing progress made in the wind-down of the NHMMJUA, including expenses incurred. Interested persons, including policyholders, shall have standing in the receivership and the right to be heard in reference to the monthly reports. II. After the effective date of this section, the commissioner, as receiver, shall promptly seek competitive bids to have all of the coverage-related obligations under policies issued by the NHMMJUA assumed by an insurer or insurers. At the earliest practicable date, the receiver shall then enter an agreement or agreements with an insurer or insurers to provide for the assumption and novation of all of the coverage-related obligations under policies issued by the NHMMJUA. Any such assumption and novation agreement shall be subject to the approval of the supervising court after a hearing at which all interested persons, including policyholders, have standing and may be heard. The assumption and novation agreement shall be on commercially reasonable terms and shall provide for continued protection for the NHMMJUA's policyholders against liability and expense in accordance with the coverage terms of their policies, as well as providing for established obligations to claimants under such policies. III. Within 60 days of the initiation of the receivership, the receiver shall allocate a portion of the NHMMJUA surplus to establish a hardship fund in the amount of $2,000,000. This fund shall be used for hardship claims by current NHMMJUA policyholders. The hardship fund shall be available to provide grants payable directly to midwives certified under RSA 326-D and other health care providers who are licensed or approved by the state, who have in-force policies with the NHMMJUA as of the effective date of this section, and who can demonstrate by application to the receiver that they will suffer significant adverse economic hardship as a result of an increase of at least 25 percent in the cost of medical malpractice insurance coverage in the private market as compared to their coverage from the NHMMJUA as of the effective date of this section. Any grant provided shall not exceed the difference between the cost of insurance through the NHMMJUA plus 25 percent and the premium charged in the private market for the most comparable coverage available. The receiver's determination of grant eligibility shall be subject to court approval. The hardship fund shall be administered until exhausted or until the termination of the receivership, whichever occurs first. If funds remain in the hardship fund at the termination of the receivership, the receiver shall, with court approval, and before discharge of the receiver, transfer any remaining funds to a charitable organization that promotes aid to health care providers servicing medically underserved populations. IV. Upon appointment of the commissioner as receiver of the association, no assessments of any kind shall thereafter be made by the receiver or ordered by the court. V. The board members and officers of the NHMMJUA shall continue to be officers, trustees, officials, or employees of the state subject to RSA 99-D through the date of the rehabilitation order. VI. Until liquidated, the NHMMJUA shall continue as a legally cognizable unincorporated association solely for the purpose of winding down the NHMMJUA, consistent with this chapter. The provisions of this section and RSA 402-C shall control the management of claims and obligations of the association and shall supersede the provisions of administrative rules governing the operation of the NHMMJUA.