New Hampshire Insurance Department Joins Multi-State Amicus Brief Defending State-Based Insurance Regulation

CONCORD, NH (September 17, 2024) – The New Hampshire Insurance Department (NHID) has joined 13 other states in filing an amicus brief with the United States Court of Appeals for the Seventh Circuit in support of the Property Casualty Insurers Association of America (PCI) and the American Property Casualty Insurance Association (APCIA). The appeal challenges the U.S. Department of Housing and Urban Development’s (HUD) application of its disparate-impact liability rule to risk-based pricing and underwriting practices in homeowners insurance.

The core issue in this case concerns the preservation of state-based regulation of the insurance industry under the McCarran-Ferguson Act, a federal law that entrusts states with primary authority to regulate insurance. HUD’s rule introduces federal oversight into actuarial decisions traditionally overseen by state insurance regulators, creating potential disruptions to established risk-based pricing methods.

“New Hampshire stands firm in defending the state’s authority to regulate the insurance market. Risk-based pricing and underwriting are cornerstones of ensuring financial stability and protecting consumers,” said Insurance Commissioner DJ. Bettencourt. “Allowing federal intervention in these matters jeopardizes the fair and objective practices that state regulators have long upheld.”

This lawsuit, initiated by APCIA over a decade ago, argues that HUD’s rule violates both the Administrative Procedure Act, which governs federal agency rule-making, and the McCarran-Ferguson Act. The brief filed by the NHID and the other states emphasizes the importance of actuarially sound, risk-based pricing to the financial health of the property casualty insurance market and its ability to protect businesses and consumers from unexpected losses.

“This appeal is about more than insurance: it is about maintaining the integrity of state regulatory authority and ensuring that federal agencies do not overstep their bounds in ways that could harm consumers and disrupt markets,” Commissioner Bettencourt added.

The NHID joins insurance regulators from Idaho, Montana, Louisiana, Georgia, South Dakota, Oklahoma, North Dakota, Mississippi, Ohio, Iowa, Alabama, Arkansas, and Utah in supporting the appeal to reverse the district court’s ruling and protect state sovereignty in insurance regulation.

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/.