Dec 6, 2015 1:08 PM
Insurance pool that serves NH cities and town ordered to stop issuing policies
PORTSMOUTH – An insurance pool that provides policies to hundreds of New Hampshire communities will soon be barred from issuing or renewing policies.
According to seacoastonline.com, a state hearings officer has determined that the Property Liability Trust inflated its value, and may not have the money to back the policies it provides to its 279 municipal customers and 149 workers comp customers in the future. The insurance pool provided property liability, workers and unemployment compensation, and was was funded by taxpayers.
Existing policies will be honored, according to the company, but no new policies will be issued after July 1, 2016. Cities and towns will have to find new insurers.
Property Liability Trust and a sister enterprise, Health Trust, were once part of the Local Government Center, which was ordered in 2011 to stop comingling funds and ordered to pay back towns millions of dollars it overcharged them.
The Local Government Center was found to have overcharged for health, dental and property liability insurance and kept the surplus. Portsmouth was the largest LGC customer and was the first community in the state to petition the LGC for a refund - a sum that amounted to $84,570 returned to the city.