Last reviewed: 7 October 2026
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United StatesNew Hampshire regulates consumer guaranty contracts, which include service contracts on consumer goods: obligors register, back their claims one of three ways and follow a list of prohibited acts
In New Hampshire, RSA chapter 415-C covers consumer guaranty contracts. The chapter defines "service contract" as one kind, covering consumer goods including automobiles, household systems and appliances, and excludes categories such as warranties, maintenance agreements and a manufacturer's contracts on its own products. For contracts inside the chapter, it says they are not insurance, requires the party obligated to pay to register with the Insurance Commissioner and show financial responsibility, and sets what a contract must say. This page sets out what the text provides.
The short answer
- Registered, not an insurer: consumer guaranty contracts within the chapter are exempt from the state's insurance laws except RSA 400-A:16 to 400-A:25 and the chapter's own rules, and each obligor registers with the Insurance Commissioner. 2 3
- Three ways to show financial responsibility: a bond (at least $25,000 or 5 percent of New Hampshire contracts sold, up to $250,000) plus a reserve of at least 40 percent of contract fees less claims, or a reimbursement insurance policy, or a net worth of $25,000,000 or more. 5
- Refund and fee rule: for a contract of 12 months or more, unearned fees must be refunded and fees are earned pro rata. The cancellation administrative fee may not exceed the lesser of 10 percent of the contract price or $75. 7
- Pressure tactics: fake checks, false final notices and false notices of price increases are listed examples of prohibited "pressure tactics." 7
The vocabulary: "consumer guaranty contract," "obligor" and "service contract"
New Hampshire does not use "service contract provider" as its main label. Chapter 415-C is titled Consumer Guaranty Contracts, and it calls the party bound to pay or perform the "obligor," defined as "a person who is legally obligated to a contract holder under the terms of the consumer guaranty contract."1 Section 415-C:1 defines "service contract" as a subtype inside that category: "a contract or agreement for a separately stated consideration, and a specified period of time or usage, covering any consumer good," and its examples include automobiles, household systems and appliances.1 The section also excludes several categories from the definition of consumer guaranty contract, including warranties, maintenance agreements, motor vehicle road service under RSA 407-C, public-utility transmission-device contracts, heating-fuel-related contracts, contracts sold to non-consumers, debt cancellation or suspension contracts, prepaid legal contracts, and a manufacturer's service contracts on its own products.1 The registration, backing and disclosure rules below apply only to contracts inside the chapter's definitions. The chapter has 14 sections, from definitions through severability.11
Not insurance, but registered
Section 415-C:2 says consumer guaranty contracts "are not insurance and are exempt from this state's insurance laws, except for" RSA 400-A:16 through 400-A:25 or as provided by the chapter. The same exemption covers an obligor and the related seller, administrator or other related person for marketing, selling, issuing and administering the contracts.2
No obligor may offer, administer, sell, solicit, negotiate or act under a consumer guaranty contract in New Hampshire unless it registers with the Insurance Commissioner and pays the fee. A registration includes the obligor's name, address and phone number, a certified copy of its charter and bylaws, a sworn certificate that the fiscal requirements are met, and other information the Commissioner requires, including the names and contact details of all administrators and sellers, updated at least yearly. A registration expires on the next June 14 unless renewed. Admitted insurers and approved surplus lines insurers that register are exempt from the registration-content paragraph and from the fiscal requirements section.3
Contract forms and other contract language must be filed within 30 days after first being offered to a consumer in New Hampshire, and filed forms are open to public inspection after filing, except for supporting information exempt from disclosure by law or rule. The section took effect January 1, 2025.4
How an obligor shows it can pay claims
Section 415-C:4 requires an obligor to give the insurance department proof of financial responsibility in one of three ways.5
| Route | What the statute says |
|---|---|
| Bond and reserve | Post a bond of at least $25,000 or 5 percent of all consumer guaranty contracts sold in New Hampshire, whichever is greater, up to a maximum of $250,000, and maintain a reserve account of no less than 40 percent of the gross consideration received for contract fees from contracts issued to New Hampshire residents, less claims paid.5 |
| Reimbursement insurance | Insure all consumer guaranty contracts under a reimbursement insurance policy issued by an insurer authorized to issue it in New Hampshire.5 |
| Net worth | Show, alone or together with its parent, a net worth or stockholders' equity of $25,000,000 or more, evidenced by an annual audited financial statement or a Form 10-K or 20-F filed with the SEC.5 |
The section says proof is deemed acceptable if the Commissioner does not reject it in writing within 60 days of submission.5 Where a contract is insured under a reimbursement policy, it must state the insurer's name, address and toll-free number, and if the obligor does not provide covered services within 60 days after the holder submits proof of loss, the holder may apply directly to the reimbursement insurer.8
What the contract must say
A contract may not be issued, sold or offered for sale unless the obligor or an authorized sales representative has given the holder a receipt or other written evidence of purchase and a copy of the contract, with its terms, within a reasonable time after purchase.6 Section 415-C:6 also requires the contract to be dated and written in clear, understandable language.6
| Subject | What the statute requires |
|---|---|
| Price and coverage | The total purchase price (which need not be preprinted and may be negotiated at sale); the specific products and services and any limitations, exceptions or exclusions; any deductible.6 |
| Transfer, cancellation, duties | Terms, restrictions or conditions governing transfer, cancellation and termination by either side; all the holder's obligations and duties.6 |
| Claims | The prior-approval procedure if one applies; the claims procedure, including a toll-free telephone number for service.6 |
| Complaints | A procedure for questions or complaints that includes a statement substantially like: "In the event you do not receive satisfaction under this contract, you may contact the New Hampshire insurance department," with the department's current address and phone number.6 |
| Preexisting conditions | If any preexisting condition is excluded, the contract must state the basis on which service may be denied for it.6 |
What an obligor and its representatives may not do
Section 415-C:7 lists prohibited acts and terms.7
| Subject | What the statute says |
|---|---|
| Misleading statements | No false or misleading statement or representation, and no misleading omission of a material statement, in a sale, offer or advertisement.7 |
| Pressure tactics | No "pressure tactics," defined to include force, fright, threat or undue pressure, and listed examples "fake checks, false final notices, false indications that a consumer has failed to activate something they already possess, and false notices of price increases."7 |
| Unbranded direct marketing | No "unbranded consumer-specific direct marketing" that does not include the seller's name, address and phone number and the obligor's name as filed with the insurance department.7 |
| Required purchase | No requiring the purchase of a consumer guaranty contract or representing that the purchase is mandatory.7 |
| Names | No use in an obligor's name of the words insurance, casualty, guaranty, surety or mutual, or other words descriptive of the insurance, casualty, guaranty or surety business, or a name deceptively similar to that of an insurance or surety corporation or another obligor; a company already using such a name before the section took effect must disclose in its contracts, conspicuously: "This agreement is not an insurance contract." Unlike Maine, Alaska and the District of Columbia, New Hampshire's list includes "guaranty."7 |
| Claims handling | Duties to acknowledge and act reasonably and promptly on claim communications, to adopt standards for prompt and reasonable investigation, and to attempt in good faith to effectuate prompt, fair and equitable settlements; no knowingly underestimating a claim's value.7 |
| Refunds and fees | An obligor may not fail to refund unearned contract fees on cancellation of a contract with a duration of 12 months or more; fees for such contracts are earned pro rata over the contract length. The cancellation administrative fee may not exceed 10 percent of the contract price or $75, whichever is less, for a contract of any duration, and must be disclosed in the contract.7 |
| Dispute terms | A contract may not provide that the consumer is not a party, that the obligor has no liability, that the consumer cannot sue to enforce it or challenge a claim denial, or that any action or alternative dispute resolution must be brought outside New Hampshire. Alternative dispute resolution, including binding arbitration, is allowed if it complies with RSA 542 and the provision states it is subject to RSA 542.7 |
Enforcement and a consumer's own action
After notice and hearing, the Commissioner may revoke or suspend an obligor's registration, order it to stop, impose a penalty of "not more than $1000 for each violation or $10,000 for each violation the commissioner finds to be willful," and require restitution.9
Section 415-C:10-a lets a consumer harmed by a violation pursue damages after the Commissioner has found a violation or issued a cease-and-desist order and that finding or order has become final, if restitution has not been provided to the consumer under RSA 415-C:10, IV or the obligor has not made voluntary restitution acceptable to the consumer within 30 days of the finding or order. For the limited purpose of the appeal rights in RSA 541 and 541-A, it also says that the Commissioner's failure to act under RSA 415-C:10 within 120 days of receiving a complaint from an alleged injured person is treated as a finding that the alleged act or practice is not a violation of the chapter; that finding may be appealed, and if the Commissioner's decision is not upheld on appeal the consumer may proceed under RSA 415-C:10-a, I. The 120 days do not bar the Commissioner from bringing an enforcement action later.10
Where this fits our standard
Points 1 to 4 of our standard look at contract terms disclosed before purchase, cancellation and refund rights, state registration, and funded-claims backing where a state requires one. New Hampshire's registration, three backing routes and disclosure list are what those points would check for a contract covered by RSA 415-C. The Register describes a method, not a verdict on any company.
How to verify this yourself
- Open RSA 415-C:2, 3, 4, 6, 7 and 8 (references 2, 3, 5, 6, 7 and 8). The registration, backing, contract and prohibition statements above come from them.
- Section 415-C:6 requires a contract to carry a statement referring the holder to the New Hampshire insurance department.6
- This page does not describe what the department will tell the public about a particular obligor's registration or filings; ask it directly.
What this page is not
This is general information about the text of one state's chapter, not legal advice. It does not say whether any contract or company meets the chapter. The Contract Forms section took effect January 1, 2025. This page does not cover RSA 400-A:16 to 400-A:25, which the exemption section preserves. Statutes change; confirm the current text before relying on it.
What to do next
The tables above summarize the statute. For general guides, see how to verify a home warranty company and home warranty cancellation and refund rights, or start from the state regulation hub.