How life policy provisions, nonforfeiture options, dividend and settlement options and riders work in general is covered in the national Life Policy Provisions, Options and Riders guide. New Hampshire's life law was recodified in RSA 408 in 2023. Its policy standards are in Ins 401.05, its solicitation rule in Ins 301, its replacement rule in Ins 302 and its illustrations rule in Ins 309. Learn New Hampshire's version of each, because several details differ from other states.

Required provisions (RSA 408:13; Ins 401.05)

Graded death benefit policies must pay the full face amount after two years of premiums.

Free look and claims

• Free look (Ins 401.05(f)). A provision on the face page lets the owner return the policy within 10 days after receipt. The policy is then void, and the premium is refunded.
• Preneed funding policies may be canceled within 10 days after delivery with no charge.
• Death claim interest (408:11). Interest runs from the date of death. An extra 10% annual interest starts 31 days after the insurer receives proof of death or the information it needs.
• Retained asset accounts (408:9). Proceeds may go into one only if the beneficiary elects it after getting written information on all settlement options.
• Creditors (408:6). The beneficiary is protected from the insured's creditors. Premiums paid to defraud creditors go back to the creditors with interest.

Insurable interest and consent (RSA 408:3)

• Everyone has an unlimited insurable interest in their own life and may name any beneficiary.
• Insurable interest must exist when the policy is issued.
• The insured must consent in writing to a policy on their life.
• A charity has an insurable interest in anyone who consents in writing.
• A business may insure a key employee if it has a reasonable expectation of financial benefit from that person's continued life.
• Stranger-originated schemes that fake an insurable interest are insurance fraud.

Group life (RSA 408:14 to 408:18)

• Who's covered. A noncontributory plan must insure all eligible employees, except those whose evidence of insurability isn't satisfactory.
• Creditor group life can't exceed the greater of the scheduled or actual unpaid debt.
• Conversion (408:15):
  • Within 31 days, without evidence of insurability, to any form the insurer customarily issues except term.
  • Death during that window pays the convertible amount.
  • When the group policy itself ends, only people insured five years may convert, and the amount may be capped at $10,000.
  • Late notice extends the window to 15 days after notice, but never more than 60 days.
  • Portability is offered in addition to, not instead of, conversion.
• Facility of payment. Up to $2,000 may go to someone who paid funeral or last-illness expenses.
• Labor disputes. During a strike or lockout, an employee may pay premiums directly for up to six months (408:17).
• Pre-existing conditions. A group life policy can't reduce or deny benefits because a pre-existing condition contributed to the death (408:18).

Solicitation and illustrations

Solicitation (Ins 301)

• The producer must say they're acting as a life insurance producer and give the insurer's full name. Titles like "financial planner" can't imply fee-based advice unless that's true.
• Buyer's Guide. Given before the initial premium is accepted. With a refund provision of at least 10 days, it may come with the policy instead.
• The policy summary is titled "Statement of Policy Cost and Benefit Information." Policy data covers 20 years, and the insurer can't charge for it.
• Failing to provide these documents is an omission that misrepresents the policy.

Illustrations (Ins 309)

• An illustration must be labeled "life insurance illustration." It can't use "vanishing premium."
• If the policy is issued differently than illustrated, a signed "Revised Illustration" goes with the policy.
• If no illustration was used, the producer certifies that in writing.
• Signed illustrations are kept until three years after the policy ends.

Replacement (Ins 302)

Producer's duties

1. Get a statement signed by the applicant and producer on existing coverage. If the answer is no, the producer's duties are done.
2. Present and read the replacement notice no later than when the application is taken, unless the applicant initials that it needn't be read aloud.
3. Leave all sales material with the applicant. Electronic material goes in print by policy delivery.

Insurers' duties

• The replacing insurer notifies the existing insurer within five business days. It also gives the owner a 30-day unconditional refund right.
• The existing insurer offers the owner information on the old policy's values, such as an in-force illustration, within five business days.
• Same-company replacements credit time served under the old incontestability and suicide periods.

Other replacement rules

• Financed purchase. Using existing values within 4 months before or 13 months after the new policy date is evidence of a financed purchase.
• Exempt: non-convertible term expiring in five years or less that can't be renewed.
• Violations. Telling an applicant to answer "no" is a violation. A pattern of such replacements is evidence the producer knew.
• Records are kept at least five years.

Common exam traps

• New Hampshire's life free look is 10 days. The replacement refund period is 30 days.
• Incontestability has no general fraud exception. The only exceptions are nonpayment, wartime military service, and disability and AD&D provisions.
• Suicide can't be excluded after the second anniversary, and the insurer must refund at least the premiums paid.
• Dividends must begin by the fifth policy year.
• Death claims earn 10% extra interest starting 31 days after proof.