New Hampshire Insurance Department Announces Important Updates to Consumer Guaranty Contract Law

CONCORD, NH (November 15, 2024) – The New Hampshire Insurance Department (NHID) today announced significant changes to the regulation of consumer guaranty contracts, which will take effect on January 1, 2025. These updates, driven by an increase in consumer complaints, were developed in collaboration with industry stakeholders and passed into law through Senate Bill 515. The changes expand protections for consumers purchasing service contracts related to homes, automobiles, and other products.

The new law expands coverage to include manufacturers’ service contracts, ensuring that consumers who purchase products with such agreements are afforded the protections under NH RSA 415-C. This change offers greater clarity and consistency in how service contracts are regulated within the state.

“The changes to this law reflect the Department’s commitment to safeguarding Granite State consumers from unfair practices in the service contract industry,” said New Hampshire Insurance Commissioner DJ Bettencourt. “By ensuring that entities offering service contracts comply with these enhanced standards, we are strengthening the trust consumers place in the products and services they purchase.”

Additionally, all entities that offer service contracts will now be required to submit annual lists of the administrators and sellers they work with, ensuring greater transparency and enabling the NHID to maintain better oversight of the marketplace. Also, all service contract forms must be filed with the NHID through the System for Electronic Rates & Forms Filing (SERFF). The NHID will review these forms to ensure they meet the required standards and do not include terms that are contrary to the public interest or are misleading.

Marketing practices for service contracts will also face stricter oversight. New prohibitions will address high-pressure sales tactics, unbranded materials, and any marketing practices that specifically target senior citizens. These changes are designed to enhance consumer protection and foster fairness in the marketplace.

“These updates mark an important step in enhancing consumer protection and ensuring a level playing field for all participants in the service contract industry,” said Deputy Insurance Commissioner Keith Nyhan. “By reinforcing transparency and accountability, we are helping to build greater confidence in the marketplace and safeguard the interests of Granite Staters.”

Entities offering or administering service contracts in New Hampshire should submit their forms through SERFF in advance of the January 1, 2025, compliance deadline. There are no NHID fees associated with these SERFF filing submissions. However, as before, obligors must adhere to the registration and renewal requirements of RSA 415-C:3, including paying the required related fees. Obligors and other entities offering service contracts to New Hampshire residents are encouraged to file their forms through SERFF as soon as possible to comply with the updated law.

The NHID is prepared to assist stakeholders as they adapt to these changes. For further information on the revised RSA 415-C or any related inquiries, please contact the NHID at consumerguarantycontracts@ins.nh.gov. The bulletin, Docket #INS 24-068-AB, may be found on the NHID website at https://mm.nh.gov/files/uploads/nhid/documents/bulletin-consumer-guaranty-contracts-20241022.pdf. 

The New Hampshire Insurance Department Can Help

The New Hampshire Insurance Department’s mission is to promote and protect the public good by ensuring the existence of a safe and competitive insurance marketplace through the development and enforcement of the insurance laws of the State of New Hampshire. Contact us with any questions or concerns you may have regarding your insurance coverage at 1‐800‐ 852‐3416 or (603) 271‐2261, or by email at consumerservices@ins.nh.gov. For more information, visit https://insurance.nh.gov.