New Hampshire’s highest court has ruled that state lawmakers cannot raid $110 million in reserves from the Joint Underwriting Association, which underwrites medical malpractice insurance in the state.
, released this morning, upholds a lower-court decision that the move by Gov. John Lynch and lawmakers to take the money from the reserves of the Joint Underwriting Association (JUA) was a violation of contract laws in the state.
Lynch, a democrat, had planned to use the money to balance the budget over the next two years – a move criticized by republicans in the state.
Lawyers for the JUA argued that the move violated the state constitution.
The JUA was created in 1975 as a tax-exempt underwriter for medical malpractice insurance in the state. It has since grown to become a significant insurer of doctors and health care facilities in the Granite State.
It has a $152 million surplus, though it has only issued $1 million dividends to policyholders in the last 35 years.
Was this article valuable?
Here are more articles you may enjoy.
US P/C Rebounds to Post Q1 Underwriting Gain; Net Income Doubles 
NAIC Victim of Cyber Incident Via PeopleSoft System 
Trump Says Illegal Immigration Increased Car Insurance but Experts Say Otherwise 
Space Startups Seek Insurance for Orbital AI Data Centers 
