N.H.: Understanding S.B.423: Mandatory disclosure of insurance policy limits

May 15, 2024

In a recent legislative update, the New Hampshire Senate passed S.B.423, a bill that would introduce changes to improve transparency in the insurance industry—particularly in cases involving motor vehicle accidents. Sponsored by Sen. Sharon M. Carson, R-14, and co-sponsored by Sens. Regina Birdsell, R-19, and Donna M. Soucy, D-18, this bill would mandate insurers to provide written disclosure of all applicable liability coverage limits for claims involving personal, bodily or fatal injuries resulting from motor vehicle accidents. This disclosure must be made within 60 days of a request from a claimant or their attorney. If signed into law, the bill’s effective date would be Wednesday, Jan. 1, 2025.

The primary goal of S.B.423 would be to ensure that all parties involved in a claim have access to crucial information early in the legal process, which can impact negotiations and outcomes significantly. This bill includes strict guidelines on using the disclosed information, limiting its purpose solely to the relevant claim or lawsuit to protect privacy and confidentiality.

Already the law in Connecticut, New Jersey, New York and Vermont, these provisions would make New Hampshire the latest state in PIA Northeast’s footprint to implement pre-lawsuit disclosure of liability limits. To enforce compliance, S.B.423 would impose a $500 penalty on insurers that neglect to comply with the disclosure requirement and may require insurers to cover reasonable attorney’s fees incurred due to noncompliance.

Overall—if it becomes a law—S.B.423 would represent a significant step toward greater transparency and fairness in the handling of motor vehicle accident claims in New Hampshire. It also would align the Granite State with other New England states, such as Rhode Island, Maine and Massachusetts.

PIANH will continue to monitor S.B.423 as it continues to move through the legislative process.

Theophilus Alexander
PIA Northeast | + posts

Theophilus W. Alexander joined PIA Northeast as a government & industry affairs specialist for the Government & Industry Affairs Department in 2023. Prior to joining PIA, Theo had served in both houses of the New York State Legislature. Previously, he worked as a legislative analyst for Hon. New York State Sen. Samra G. Brouk, D-55, and he served at the New York State Assembly, as a policy analyst with New York Assembly Program & Counsel. Theo received his Bachelor of Arts degree in Politics from Ithaca College in Ithaca, N.Y.

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