Security Deposit Information

Follow the these procedures to obtain a security deposit.

• The first step is to send or fax a letter stating the name of the bank and type of security along with cusip number to Insurance Department.
• The Insurance Department will then send the company and the bank a letter either approving or disapproving the security.
• Send 3 original custodial agreements to one of the banks on the approved bank list. Please make sure to use the custodial agreement for a foreign company if the company is not domiciled in New Hampshire.
• The bank will then distribute the custodial agreements (one original back to the company and one original to the Insurance Department).

If you have any questions, please contact Diane Cygan , or write to the New Hampshire Insurance Department.

All domestic life companies must have a deposit in New Hampshire. The following RSA’s contain information on domestic requirements:

• Custodial Agreement – Domestic Company
• Approved Bank List
• RSA 411:1 - Domestic Life - Stock Company
• RSA 411:3 - Domestic Life - Mutual Company
• RSA 411:8 - Domestic Life Information
• RSA 402:73 - Deposits in Trusts Misc. Provisions

All newly licensed Foreign companies are required to have a deposit in New Hampshire. The deposit amount is at the discretion of the Commissioner.

Licensed companies may be required to obtain or increase a deposit at any time. Per RSA 405:12, if the Commissioner is not satisfied that a company has the requisite capital and assets and is a safe, reliable company, entitled to confidence, he does not have to renew the company's license. By obtaining a security deposit, the Department feels more confident with a company and alleviates the need to restrict/cancel the license.

The following RSA’s include information on the requirements of the security deposit:

• Custodial Agreement – Foreign Company
• Approved Bank List
• RSA 402:2 - Foreign - Mutual Company
• RSA 408:17 - Foreign - Life Company (casualty)
• RSA 408:20 - Foreign - Life Company (casualty)

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