“We are pleased with the results of this legislative session” said Laura Kersey, AIA Northeast Region assistant vice president. “The property/casualty industry worked hard to protect the health of the insurance climate for New Hampshire’s policyholders, and we commend the General Court for not advancing onerous bills that would have driven up costs for consumers and hampered the marketplace.”
In addition to the defeat of various plaintiffs’ bar bills, AIA helped prevent provisions designed to postpone the scheduled reduction in premium taxes from being incorporated into the budget. The original legislation, House Bill 627, sought to freeze the insurance premium tax at its current rate of 1.5% until 2012. According to New Hampshire's current law, the premium tax would be reduced to 1.25% in 2010 and 1% in 2011.
“The budget agreement does not include the provisions that would have postponed the scheduled reduction in premium taxes for the next two years,” explained Kersey. “This was a positive outcome for the industry.”