Published Since 1865 Boston, Mass. February 5, 2010 Vol. 266 No. 5

N.H. Court Rules Against
State Taking JUA Funds

CONCORD, N.H. — The New Hampshire Supreme Court has ruled that the lawmakers cannot take funds that have accrued in the state’s Medical Malpractice Joint Underwriting Association to fill budget gaps.

The JUA had, in 2008, $152 million in assets, according to the Court. It wrote about $8.8 million in premiums, insuring 900 health care providers out of 11,000 in New Hampshire.

In March 2009, the New Hampshire Insurance Department estimated the JUA would have a surplus of between $140 million to $145 million and that this amount “ significantly exceeds” the capital needed to support the JUA. In June

2009, the state’s Legislature determined that the excess surplus – $110 million – should be transferred to New Hampshire’s general fund.

Before the Court, attorneys for the state argued that the justices need not determine whether the funds belonged to the government, merely whether the health care providers that pay into the fund and receive medical liability insurance have a “vested right” to them. The petitioning health care providers challenged the constitutionality of the state taking the $110 million in surplus.

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“This controversy centers upon the tension between the

OneBeacon Selling Personal
Lines Business to Tower Group

In This Issue Health, Legal Costs Grew for P/C Insurers

5

RIMS Opposes Obama’s Budget Ideas

5

CANTON, MASS. — OneBeacon Insurance Group this week announced that it would sell its personal lines business to Tower Group, allowing the company to complete its shift to a specialty lines insurer.

Vermont Mold Bill Won’t Grow into Problem

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Co-operative Insurance Upgraded

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Toyota Recall-Related Surcharge Appeals Allowed

7

The deal includes two insurers that write OneBeacon’s personal lines business – Massachusetts Homeland and York Insurance. Net written premiums for the books to be transferred were about $420 million at the end of 2009. OneBeacon will receive $32.5 million, as well as about $103 million and $45 million to account for the value of the business being sold.

Conn. Took in $3M in 2009

8

New HO Co. Seeks Northeast Entry

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Mass. DOI Releases Heating Oil Bulletin

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Standard Answers: Business Auto Policy

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Cell Phone Bans Don’t Lower Crash Rates

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More Co. Disputes Settled in 2009

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Coalition Opposes McCarran-Ferguson Repeal

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Executive Suite

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