NH Insurance Department Directs Auto Insurers To Review Nonpayment Termination Notices

The New Hampshire Insurance Department is directing personal lines automobile insurers to review their policy termination notices and procedures for compliance with state requirements governing the nonpayment of renewal premiums.

The Department issued the guidance after identifying termination notices being used in the market that did not appear to fully comply with RSA 417-A:5 when an insured fails to pay a renewal premium by its due date.

Insurers using notices that are inconsistent with the statute should file revised notices with the NHID by October 1, 2026.

Insureds Must Receive At Least 10 Days To Cure Nonpayment

Under RSA 417-A:5, an insurer may issue a notice of termination when an insured fails to timely pay a renewal premium. The notice must provide a cure period of at least 10 days during which the insured can pay the overdue premium and continue coverage without a lapse.

A policy may be terminated for nonpayment of a renewal premium only after the insurer has issued a legally compliant termination notice and the required cure period has expired without payment.

“New Hampshire law provides important protections for consumers who do not make a renewal premium payment by its due date,” said Insurance Commissioner D.J. Bettencourt. “Insurers must provide the legally required notice and an opportunity to cure the nonpayment before terminating coverage. Consistent compliance with these requirements helps protect Granite Staters from an improper lapse in automobile insurance coverage.”

Previously Approved Notices May Still Require Revision

The bulletin reflects the NHID’s interpretation and enforcement of the existing requirements of RSA 417-A:5. The Department said it issued the guidance after identifying notices in the market that did not appear to conform fully to those statutory requirements.

The NHID is directing all personal lines automobile insurers to review their termination notices and related procedures. Carriers using notices inconsistent with RSA 417-A:5 should file revised notices with the Department no later than October 1.

Importantly, prior Department approval does not necessarily mean that an existing notice can continue to be used. According to the NHID, a previously approved notice must still be revised if it is inconsistent with the statutory requirements described in the bulletin.

“Clear and consistent termination procedures are important for consumers and insurers alike,” said Deputy Insurance Commissioner Keith Nyhan. “The NHID expects carriers to review their practices carefully and make any necessary revisions so New Hampshire consumers receive the protections required by law.”

NHID May Begin Compliance Audits After October 1

After October 1, 2026, the NHID may audit insurer notices and business practices to verify compliance.

In determining whether administrative action is appropriate, the Department said it will consider the particular facts and circumstances, including prior Department approval and a carrier’s efforts to timely remediate an identified deficiency.

Failure to comply with RSA 417-A:5 may result in administrative action, including civil penalties authorized under New Hampshire law when warranted by the facts and circumstances.

The Department’s bulletin is Docket #INS 26-052-AB. Questions concerning the bulletin may be directed to the NHID Property and Casualty Division at PropertyCasualty@ins.nh.gov.