General property and casualty concepts are covered in the national Property and Casualty Insurance Basics guide. This guide collects the New Hampshire law behind them. The property side covers the New Hampshire Standard Fire Policy (RSA 407:22) and the fire insurance statutes. The casualty side covers comparative fault, commercial cancellation (RSA 417-C) and the guaranty association.

The New Hampshire Standard Fire Policy (RSA 407:22)

Coverage

• Perils: fire, lightning and removal. Removed property is covered pro rata for 5 days at each place it's taken.
• Never covered: accounts, bills, currency, deeds, evidences of debt, money and securities.
• Not covered: theft, and the insured's neglect to save property at and after a loss.

When coverage is suspended

• while the hazard is increased by means within the insured's control or knowledge
• while the building is vacant or unoccupied beyond 60 consecutive days

Cancellation

• When the insured cancels, the refund is figured at short rate. When the company cancels, it's pro rata.
• For personal lines, though, all unearned premium is returned when either party cancels (RSA 412:15, VII). Short-rate refunds come up only on other policies.

Mortgagees. The mortgagee's interest can be canceled on 10 days' notice. If the insured doesn't file proof of loss, the mortgagee files within 60 days after notice.

After a loss

• Other insurance. Each policy pays its share in proportion to all the insurance, collectible or not (pro rata liability).
• Proof of loss. A signed, sworn proof of loss is due within 60 days.
• Appraisal. If the appraisers can't agree on an umpire in 15 days, a judge picks one. Each side pays its own appraiser and splits the umpire's cost.
• Company's options. The insurer gives notice of its option to repair or replace within 30 days after the proof of loss.
• No abandonment. The insured can't abandon property to the insurer.
• Suit. A lawsuit must be started within 12 months after the loss.
• Subrogation. The insurer may require an assignment of recovery rights to the extent it paid.

Other fire insurance statutes (RSA 407)

• Binders may be oral or written and include all the standard fire policy terms (407:6).
• Package policies may depart from the standard form if their fire coverage is at least equal to it and the mortgagee clause is unchanged (407:2-a).
• Applications. Statements of value and title in the application aren't warranties (407:9). The insurer is charged with the knowledge of whoever prepared the application (407:10).
• Valued policy law (407:11):
  • When a building is totally destroyed by fire or lightning, the amount insured is its value, unless the overinsurance was obtained by fraud.
  • Partial losses pay the actual loss, up to the limit.
  • The law doesn't apply to blanket coverage.
• Paying fire claims (407:12 to 407:15):
  • Adjustment begins within 15 days.
  • The loss is due 60 days after proof of loss.
  • Undisputed incidental costs are paid within 15 days.
  • An insurer that elects to rebuild starts within 20 days after adjusting the loss. If it neglects the work, the insured may repair at the insurer's expense or sue.
  • A written denial must warn of the 12-month suit deadline.
• Fire reporting. Insurers report suspected non-accidental fires of $1,000 or more to the state fire marshal, and file monthly reports on fire losses of $5,000 or more (RSA 153:13, 153:13-a).

Lines of authority (402-J:7)

The property line covers direct or consequential loss to property of every kind. The personal lines authority also lets a producer sell homeowners insurance.

Comparative fault (RSA 507:7-d, 507:7-e)

• A plaintiff's own fault doesn't bar recovery if it was not greater than the fault of the defendant, or the defendants combined. Damages are reduced in proportion to the plaintiff's fault.

• Several liability. A defendant less than 50% at fault pays only its own share. The exception is parties who knowingly pursued a common plan.

Commercial cancellation and nonrenewal (RSA 417-C)

Scope. The law doesn't apply to mortgage guaranty, surety bonds, workers' comp, or policies covered by RSA 417-A (auto) or 417-B (personal property).

Allowed reasons for cancellation (417-C:1)

• nonpayment
• fraud or material misrepresentation, or violation of policy terms
• a change in risk that substantially increases a hazard

Notice (417-C:2 to 417-C:4)

• Cancellation: at least 60 days, with reasons. 10 days for nonpayment, a substantial increase in hazard, or a new policy within its first 60 days.
• Nonrenewal: 60 days' notice. If it's late, coverage continues on the same terms until the 60 days are met.
• Renewal premium increases:
  • 25% or less needs at least 30 days' notice.
  • More than 25% follows the 60-day nonrenewal rule.
• Insured's cancellation. The insurer must honor an insured's specific request to cancel, with any contract notice period capped at 10 days.

Other casualty rules (RSA 412)

• Criminal fines. No policy may cover a fine or penalty for a crime, though it may cover defense costs and restitution to injured parties (412:5, III).
• Form filing exemptions. Some commercial forms skip the form-filing waiting period. These include fidelity, excess and umbrella, D&O, fiduciary, EPL, E&O and product liability (412:5, I-a).
• Schedule rating for management, safety and loss control is limited to plus or minus 40% (412:15, IV).
• Rate classifications may not be based on race, creed, national origin or religion.
• Large commercial policyholders. Policies exempt from rate and form requirements must carry a conspicuous 10-point bold disclaimer that the insured signs (412:7).
• Certificates of insurance are for information only. They confer no rights and can't amend the policy. Only an additional insured named in the policy gets notice rights (412:6-b).
• Casualty line of authority (402-J:7). It covers legal liability, including liability for death, injury, disability, or damage to property.

The guaranty association (RSA 404-H)

• The New Hampshire Insurance Guaranty Association pays covered claims of insolvent P&C insurers up to $300,000 per claim. Workers' comp claims are paid in full.
• Claims must arise within 30 days after the liquidation order.
• Claimants exhaust other coverage first, including UM.
• It excludes fidelity and surety bonds, title, credit and ocean marine.

Common exam traps

• The New Hampshire standard fire policy allows 12 months to sue.
• Vacancy beyond 60 consecutive days suspends coverage.
• The valued policy law covers buildings totally destroyed by fire or lightning only.
• Personal lines cancellations always refund all unearned premium.
• A New Hampshire plaintiff recovers if their fault is not greater than the defendants'. Someone at 50% still recovers half.
• A defendant under 50% at fault pays only its own share.
• Commercial cancellation notice is 60 days. Renewal increases over 25% need 60 days' notice too.
• Insurance can't cover criminal fines.