reglab/statecodes huggingface dataset:
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 6 - Group Self-Insurance › Section 52-6-1 - Short title.

Chapter 52, Article 6 NMSA 1978 may be cited as the "Group Self-Insurance Act".
History:
Laws 1986, ch. 22, § 75; 1990 (2nd S.S.), ch. 2, § 66.
ANNOTATIONS
The 1990 (2nd S.S.) amendment,
effective January 1, 1991, substituted "Chapter 52, Article 6 NMSA 1978" for "Sections 75 through 99 of this act".
Law reviews.
— For survey of 1990-91 workers' compensation law, see 22 N.M.L. Rev. 845 (1992).
Am. Jur. 2d, A.L.R. and C.J.S. references. —
82 Am. Jur. 2d Workers' Compensation §§ 465, 466, 675.
100 C.J.S. Workmen's Compensation §§ 354 to 356.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 6 - Group Self-Insurance › Section 52-6-3 - Scope.

The provisions of the Group Self-Insurance Act apply to groups. Except as provided by the provisions of that act, groups that are issued a certificate of approval by the director shall not be deemed to be insurers or businesses of insurance and shall not be subject to the provisions of the Insurance Code or other insurance laws and regulations.
History:
Laws 1986, ch. 22, § 77; 1990 (2nd S.S.), ch. 2, § 68.
ANNOTATIONS
Cross references.
— For the Insurance Code,
see
59A-1-1 NMSA 1978 and notes thereto.
The 1990 (2nd S.S.) amendment,
effective January 1, 1991, substituted "that" for "which" and "director" for "superintendent".
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 6 - Group Self-Insurance › Section 52-6-4 - Authority to act as a group.

No person, association or other entity shall act as a group unless it has been issued a certificate of approval by the director.
History:
Laws 1986, ch. 22, § 78; 1990 (2nd S.S.), ch. 2, § 69.
ANNOTATIONS
The 1990 (2nd S.S.) amendment,
effective January 1, 1991, substituted "director" for "superintendent".
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 6 - Group Self-Insurance › Section 52-6-6 - Certificate of approval; termination.

A. The certificate of approval issued by the director to a group authorizes the group to provide workers' compensation and occupational disease disablement benefits. The certificate of approval remains in effect until terminated at the request of the group or revoked by the director, pursuant to provisions of Section 52-6-23 NMSA 1978.
B. The director shall not grant the request of any group to terminate its certificate of approval unless the group has insured or reinsured all incurred workers' compensation or occupational disease disablement obligations with an authorized insurer under an agreement filed with and approved in writing by the director. Such obligations shall include both known claims and associated expenses and claims incurred but not reported and associated expenses.
C. Subject to approval of the director, a group may merge with another group engaged in the same or similar type of business only if the resulting group assumes in full all obligations of the merging groups. The director may hold a hearing on the merger and shall do so if any party, including a member of either group, so requests.
History:
Laws 1986, ch. 22, § 80; 1989, ch. 263, § 90; 1990 (2nd S.S.), ch. 2, § 71.
ANNOTATIONS
The 1990 (2nd S.S.) amendment,
effective January 1, 1991, substituted "director" for "superintendent" throughout the section and inserted references to occupational disease disablement in Subsections A and B.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 6 - Group Self-Insurance › Section 52-6-7 - Examinations.

The director may examine the affairs, transactions, accounts, records and assets and liabilities of each group as often as the director deems advisable. The expense of such examinations shall be assessed against the group in the same manner that insurers are assessed for examinations.
History:
Laws 1986, ch. 22, § 81; 1990 (2nd S.S.), ch. 2, § 72.
ANNOTATIONS
The 1990 (2nd S.S.) amendment,
effective January 1, 1991, substituted "director" for "superintendent" twice in the first sentence.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 6 - Group Self-Insurance › Section 52-6-9 - Group membership; termination; liability.

A. An employer joining a group after the group has been issued a certificate of approval shall:
(1) submit an application for membership to the board of trustees or its administrator; and
(2) if applicable, enter into the indemnity agreement required by Paragraph (5) of Subsection B of Section 52-6-5 NMSA 1978.
Membership takes effect no earlier than each member's date of approval. The application for membership and its approval shall be maintained as permanent records of the board of trustees.
B. Individual members of a group shall be subject to cancellation by the group pursuant to the bylaws of the group. In addition, individual members may elect to terminate their participation in the group. The group shall notify the director of the termination or cancellation of a member within ten days and shall maintain coverage of each canceled or terminated member for thirty days after such notice, at the terminating member's expense, unless the group is notified sooner by the director that the canceled or terminated member has procured workers' compensation and occupational disease disablement insurance, has become an approved self-insurer or has become a member of another group.
C. The group shall pay all workers' compensation and occupational disease disablement benefits for which each member incurs liability during its period of membership. A private employer member who elects to terminate his membership or is canceled by a group remains jointly and severally liable for workers' compensation and occupational disease disablement obligations of the group and its members that were incurred during the canceled or terminated member's period of membership.
D. A group member is not relieved of his workers' compensation or occupational disease disablement liabilities incurred during his period of membership except through payment by the group or the member of required workers' compensation and occupational disease disablement benefits.
E. The insolvency or bankruptcy of a member does not relieve the group or any other member of liability for the payment of any workers' compensation or occupational disease disablement benefits incurred during the insolvent or bankrupt member's period of membership.
History:
Laws 1986, ch. 22, § 83; 1989, ch. 263, § 91; 1990 (2nd S.S.), ch. 2, § 74.
ANNOTATIONS
The 1990 (2nd S.S.) amendment,
effective January 1, 1991, throughout the section, substituted "director" for "superintendent", inserted references to occupational disease disablement, and made stylistic changes.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 6 - Group Self-Insurance › Section 52-6-10 - Administrators and service companies; conflicts.

A. Each group shall have an administrator. In providing day-to-day management for the group, the administrator may provide claims adjustment; safety engineering; compilation of statistics and the preparation of premium, loss and tax reports; preparation of other required self-insurance reports; development of members' assessments and fees; and administration of a claim fund.
B. Each group may have a service company. The service company may provide services the administrator delegates to it or does not itself provide.
C. No service company or its employees, officers or directors shall be an employee, officer or director of, or have either a direct or indirect financial interest in, an administrator for the same group. No administrator or its employees, officers or directors shall be an employee, officer or director of, or have either a direct or indirect financial interest in, a service company for the same group. Nothing in this section shall prohibit an administrator or service company for one group from being an administrator or service company for another group.
D. An administrator, officer, trustee or employee of a group or an employee of an administrator shall disclose in writing to the group's board of trustees and director a conflict of interest. For purposes of this subsection, a "conflict of interest" means that a person accepts or is a beneficiary of a fee, brokerage, gift or other thing of value, other than fixed salary or compensation, as consideration for an investment, loan, deposit, purchase, sale, exchange, insurance, reinsurance or other similar transaction made by or for the group, or that a person is financially interested in any capacity in a transaction for the group except on behalf of the group.
E. No group shall pay remuneration, compensation or any thing of value to an officer, administrator or director of the group unless the payment has been authorized by the group's board of trustees.
F. A service contract shall state that, unless the director permits otherwise, the service company shall handle, to their conclusion, all claims and other obligations incurred during the contract period.
History:
Laws 1986, ch. 22, § 84; 1990 (2nd S.S.), ch. 2, § 75; 1993, ch. 96, § 1.
ANNOTATIONS
The 1993 amendment,
effective June 18, 1993, added "Administrators and" at the beginning of the catchline; inserted present Subsections A, B, D, and E, and redesignated former Subsections A and B as present Subsections C and F; and, in Subsection C, added "for the same group" at the end of the first and second sentences, and added the last sentence.
The 1990 (2nd S.S.) amendment,
effective January 1, 1991, substituted "director" for "superintendent" in Subsection B.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 6 - Group Self-Insurance › Section 52-6-11 - Licensing of agent.

Except for a salaried employee of a group, its administrator or its service company, any person soliciting membership in a group shall be a licensed solicitor or agent pursuant to the provisions of the Insurance Code.
History:
Laws 1986, ch. 22, § 85.
ANNOTATIONS
Cross references.
— For the Insurance Code,
see
59A-1-1 NMSA 1978 and notes thereto.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 6 - Group Self-Insurance › Section 52-6-12 - Financial statements; other reports.

A. Each group shall submit to the director a statement of financial condition audited by an independent certified public accountant on or before the last day of the sixth month following the end of the group's fiscal year. The financial statement shall be on a form prescribed by the director and shall include actuarially appropriate reserves for:
(1) known claims and associated expenses;
(2) claims incurred but not reported and associated expenses;
(3) unearned premiums; and
(4) bad debts, which reserves shall be shown as liabilities. An actuarial opinion regarding reserves for:
(a) known claims and associated expenses; and
(b) claims incurred but not reported and associated expenses shall be included in the audited financial statement. The actuarial opinion shall be given by a member of the American academy of actuaries or other qualified loss reserve specialist as defined in the annual statement adopted by the national association of insurance commissioners.
B. The director may prescribe the format and frequency of other reports, which may include payroll audit reports, summary loss reports and quarterly financial statements.
History:
Laws 1986, ch. 22, § 86; 1990 (2nd S.S.), ch. 2, § 76.
ANNOTATIONS
The 1990 (2nd S.S.) amendment,
effective January 1, 1991, substituted "director" for "superintendent" throughout the section.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 6 - Group Self-Insurance › Section 52-6-13 - Repealed.

History:
Laws 1986, ch. 22, § 87; 1987, ch. 145, § 1; repealed by Laws 2021, ch. 65, § 38.
ANNOTATIONS
Repeals.
— Laws 2021, ch. 65, § 38 repealed 52-6-13 NMSA 1978, as enacted by Laws 1986, ch. 22, § 87, relating to premium tax, effective July 1, 2021. For provisions of former section,
see
the 2020 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 6 - Group Self-Insurance › Section 52-6-14 - Subsequent injury fund.

A group shall be subject to the provisions of the Subsequent Injury Act.
History:
Laws 1986, ch. 22, § 88.
ANNOTATIONS
Compiler's notes.
— For the Subsequent Injury Act,
see
52-2-1 NMSA 1978 and notes thereto.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 6 - Group Self-Insurance › Section 52-6-16 - Investments.

Funds not needed for current obligations may be invested by the board of trustees in accordance with the provisions of Chapter 59A, Article 9 NMSA 1978 applicable to investments, except that, notwithstanding the provisions of Section 59A-9-18 NMSA 1978:
A. the board of trustees may make loans or investments not otherwise expressly permitted under Chapter 59A, Article 9 NMSA 1978, in an aggregate amount not exceeding ten percent of the group's assets and not exceeding two percent of such assets as to any one such loan or investment, provided that such loans and investments do not constitute an amount that is greater than total surplus, if the loan or investment meets the requirements of Section 59A-9-3 NMSA 1978 and by reason of safety of principal and yield otherwise qualifies as a sound investment; and
B. the calculation of the group's other loans and investments described in Subsection A of this section shall not include the fair market value of any real property occupied by the group.
History:
Laws 1986, ch. 22, § 90; 2007, ch. 205, § 1.
ANNOTATIONS
The 2007 amendment,
effective July 1, 2007, added Subsections A and B.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 6 - Group Self-Insurance › Section 52-6-17 - Rates; reporting.

A. Every group shall adhere to the uniform classification system, uniform experience-rating plan and manual rules filed with the superintendent by an advisory organization designated by the director.
B. Premium contributions to the group shall be determined by applying the manual rates and rules to the appropriate classification of each member, which shall be adjusted by each member's experience credit or debit. Subject to approval by the director, premium contributions may also be reduced by an advance premium discount reflecting the group's expense levels and loss experience.
C. Notwithstanding Subsection B of this section, a group may apply to the director for permission to make its own rates. Such rates shall be based on at least three years of the group's experience.
D. Each group shall be audited at least annually by an auditor acceptable to the director to verify proper classifications, experience rating, payroll and rates. A report of the audit shall be filed with the director in a form acceptable to him. A group or any member thereof may request a hearing on any objections to the classifications. If the director determines that, as a result of an improper classification, a member's premium contribution is insufficient, he shall order the group to assess that member an amount equal to the deficiency. If the director determines that, as a result of an improper classification, a member's premium is excessive, he shall order the group to refund to the member the excess collected. The audit shall be at the expense of the group.
History:
Laws 1986, ch. 22, § 91; 1987, ch. 11, § 3; 1990 (2nd S.S.), ch. 2, § 77.
ANNOTATIONS
The 1990 (2nd S.S.) amendment,
effective January 1, 1991, substituted "director" for "superintendent" throughout the section.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 6 - Group Self-Insurance › Section 52-6-18 - Refunds.

A. Any money for a fund year in excess of the amount necessary to fund all obligations for that fund year may be declared to be refundable by the board of trustees not less than twelve months after the end of the fund year.
B. Each member shall be given a written description of the refund plan at the time of application for membership. A refund for any fund year shall be paid only to those employers who remain participants in the group for the entire fund year. Payment of a refund based on a previous fund year shall not be contingent on continued membership in the group after that fund year.
History:
Laws 1986, ch. 22, § 92.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 6 - Group Self-Insurance › Section 52-6-19 - Premium payment; reserves.

A. Each group shall establish to the satisfaction of the director a premium payment plan that shall include:
(1) an initial payment by each member of at least twenty-five percent of that member's annual premium before the start of the group's fund year; and
(2) payment of the balance of each member's annual premium in monthly or quarterly installments during that fund year.
B. Upon approval by the director, a group may establish an alternative premium payment plan that shall include:
(1) provision by each member of premium security by surety bond in an amount equal to at least twenty-five percent of the member's annual premium; provided that the surety bond shall be in a form acceptable to the group, shall be issued by a corporate surety company authorized to transact business in this state and shall be effective before the start of the group's fund year; and
(2) payment by each member of the member's annual premium in monthly or quarterly installments during the group's fund year.
C. Each group shall establish and maintain actuarially appropriate loss reserves that shall include reserves for:
(1) known claims and associated expenses; and
(2) claims incurred but not reported and associated expenses.
D. Each group shall establish and maintain bad debt reserves based on the historical experience of the group or other groups.
History:
Laws 1986, ch. 22, § 93; 1990 (2nd S.S.), ch. 2, § 78; 1997, ch. 146, § 1.
ANNOTATIONS
The 1997 amendment,
effective April 9, 1997, added Subsection B and redesignated former Subsections B and C as Subsections C and D.
The 1990 (2nd S.S.) amendment,
effective January 1, 1991, substituted "director" for "superintendent" in Subsection A and made stylistic changes.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 6 - Group Self-Insurance › Section 52-6-20 - Deficits and insolvencies.

A. If the assets of a group are at any time insufficient to enable the group to discharge its legal liabilities and other obligations and to maintain the reserves required of it under the Group Self-Insurance Act, it shall forthwith make up the deficiency or levy an assessment upon its members for the amount needed to make up the deficiency.
B. In the event of a deficiency in any fund year, such deficiency shall be made up immediately, either from:
(1) surplus from a fund year other than the current fund year;
(2) administrative funds;
(3) assessment of the membership, if ordered by the group; or
(4) such alternate method as the director may approve or direct.
The director shall be notified prior to any transfer of surplus funds from one fund year to another.
C. If the group fails to assess its members or to otherwise make up such deficit within thirty days, the director shall order it to do so.
D. If the group fails to make the required assessment of its members within thirty days after the director orders it to do so, or if the deficiency is not fully made up within sixty days after the date on which such assessment is made, or within such longer period of time as may be specified by the director, the group shall be deemed to be insolvent.
E. The director shall proceed against an insolvent group in the same manner as the superintendent would proceed against an insolvent domestic insurer in this state as prescribed by the Insurance Code. The director shall have the same powers and limitations in such proceedings as are provided to the superintendent under that code, except as otherwise provided in the Group Self-Insurance Act.
F. In the event of the liquidation of a group, the director shall levy an assessment upon its members for such an amount as the director determines to be necessary to discharge all liabilities of the group, including the reasonable cost of liquidation.
History:
Laws 1986, ch. 22, § 94; 1990 (2nd S.S.), ch. 2, § 79.
ANNOTATIONS
Cross references.
— For the Insurance Code,
see
59A-1-1 NMSA 1978 and notes thereto.
The 1990 (2nd S.S.) amendment,
effective January 1, 1991, substituted "director" for "superintendent" throughout the section and inserted "to the superintendent" in Subsection E.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 6 - Group Self-Insurance › Section 52-6-21 - Monetary penalties.

After notice and opportunity for a hearing, the director may impose a monetary penalty on any person or group found to be in violation of any provision of the Group Self-Insurance Act or of any rules or regulations promulgated thereunder. The monetary penalty shall not exceed one thousand dollars ($1,000) for each act or violation and shall not exceed ten thousand dollars ($10,000) in the aggregate. The amount of the monetary penalty shall be paid to the director for credit to the workers' compensation administration fund.
History:
Laws 1986, ch. 22, § 95; 1990 (2nd S.S.), ch. 3, § 4.
ANNOTATIONS
The 1990 (2nd S.S.) amendment,
effective January 1, 1991, substituted "director" for "superintendent" twice and, at the end of the last sentence, substituted "workers' compensation administration fund" for "general fund".
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 6 - Group Self-Insurance › Section 52-6-22 - Cease and desist orders.

A. After notice and opportunity for a hearing, the director may issue an order requiring a person or group to cease and desist from engaging in an act or practice found to be in violation of any provision of the Group Self-Insurance Act or of any rules or regulations promulgated thereunder.
B. Upon a finding, after notice and opportunity for a hearing, that any person or group has violated any cease and desist order, the director may do either or both of the following:
(1) impose a monetary penalty of not more than ten thousand dollars ($10,000) for each and every act or violation of such order not to exceed an aggregate monetary penalty of one hundred thousand dollars ($100,000); and
(2) revoke the group's certificate of approval or any insurance license held by the person.
History:
Laws 1986, ch. 22, § 96; 1990 (2nd S.S.), ch. 2, § 80.
ANNOTATIONS
The 1990 (2nd S.S.) amendment,
effective January 1, 1991, substituted "director" for "superintendent" in both subsections and "and" for "or" at the end of Subsection B(1).
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 6 - Group Self-Insurance › Section 52-6-23 - Revocation of certificate of approval.

A. After notice and opportunity for a hearing, the director may revoke a group's certificate of approval if it:
(1) is found to be insolvent;
(2) fails to pay any premium tax, regulatory fee or assessment or special fund contribution imposed upon it; or
(3) fails to comply with any of the provisions of the Group Self-Insurance Act, with any rules or regulations promulgated thereunder or with any lawful order of the director within the time prescribed.
B. The director may revoke a group's certificate of approval if, after notice and opportunity for hearing, he finds that:
(1) any certificate of approval that was issued to the group was obtained by fraud;
(2) there was a material misrepresentation in the application for the certificate of approval; or
(3) the group or its administrator has misappropriated, converted, illegally withheld or refused to pay over, upon proper demand, any money that belongs to a member, an employee of a member or a person otherwise entitled to it and that has been entrusted to the group or its administrator in its fiduciary capacities.
History:
Laws 1986, ch. 22, § 97; 1990 (2nd S.S.), ch. 2, § 81.
ANNOTATIONS
The 1990 (2nd S.S.) amendment,
effective January 1, 1991, substituted "director" for "superintendent" throughout the section and "has" for "have" at its second occurrence in Subsection B(3).
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 6 - Group Self-Insurance › Section 52-6-24 - Notice and hearing; appeal.

Notice and hearing required by the provisions of Sections 52-6-21, 52-6-22 and 52-6-23 NMSA 1978 shall be given and held pursuant to the applicable provisions of Chapter 59A, Article 4 NMSA 1978. A party may appeal from an order of the director made after a hearing, pursuant to Section 39-3-1.1 NMSA 1978.
History:
Laws 1986, ch. 22, § 98; 2003, ch. 259, § 11.
ANNOTATIONS
The 2003 amendment,
effective June 20, 2003, rewrote this section to the extent that a detailed comparison is impracticable.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 6 - Group Self-Insurance › Section 52-6-25 - Rules and regulations.

The director may make rules and regulations necessary to implement the provisions of the Group Self-Insurance Act.
History:
Laws 1986, ch. 22, § 99; 1990 (2nd S.S.), ch. 2, § 82.
ANNOTATIONS
The 1990 (2nd S.S.) amendment,
effective January 1, 1991, substituted "director" for "superintendent" and deleted "pursuant to Section 59A-2-9 NMSA 1978" following "Act".
Temporary provisions.
— Laws 1990 (2nd S.S.), ch. 2, § 147, effective January 1, 1991, provided that all rules and regulations adopted by the superintendent pursuant to the Group Self-Insurance Act shall remain in effect until rules are adopted by the director pursuant to the Group Self-Insurance Act.
Applicability.
— Laws 1986, ch. 22, § 101 made Laws 1986, Chapter 22, with specific exceptions, applicable to claims for injuries and deaths occurring in occupational diseases manifesting themselves on or after December 1, 1986. All claims filed after December 1, 1986 shall be filed with the director of the workmen's compensation administration.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 7 - Workers' Compensation Oversight Committee (Repealed.) › Section 52-7-1 to 52-7-6 - Repealed.

ANNOTATIONS
Repeals.
— Laws 2003, ch. 223, § 3 repealed 52-7-1 to 52-7-6 NMSA 1978, as enacted by Laws 1990 (2nd S.S.), ch. 2, §§ 83 to 88, relating to workers' compensation oversight committee. For provisions of former sections,
see
the 2002 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 8 - Self-Insurers' Guarantee Fund Act › Section 52-8-1 - Short title.

Sections 109 through 120 [52-8-1 to 52-8-12 NMSA 1978] of this act may be cited as the "Self-Insurers' Guarantee Fund Act".
History:
Laws 1990 (2nd S.S.), ch. 2, § 109.
ANNOTATIONS
Effective dates.
— Laws 1990 (2nd S.S.), ch. 2, § 153 made Laws 1990 (2nd S.S.), ch. 2, § 109 effective January 1, 1991.
Compiler's notes.
— The phrase "this act" means Laws 1990 (2nd S.S.), ch. 2, §§ 109 through 120 which appear as 52-8-1 to 52-8-12 NMSA 1978.
Law reviews.
— For survey of 1990-91 workers' compensation law, see 22 N.M.L. Rev. 845 (1992).
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 8 - Self-Insurers' Guarantee Fund Act › Section 52-8-2 - Purpose.

The purpose of the Self-Insurers' Guarantee Fund Act is to provide a guarantee fund for self-insurers to protect the workers and the families of workers employed by self-insurers who become insolvent. The Self-Insurers' Guarantee Fund Act is designed to help ensure the integrity and financial health of the workers' compensation and occupational disease disablement system as it applies to self-insurers in New Mexico.
History:
Laws 1990 (2nd S.S.), ch. 2, § 110.
ANNOTATIONS
Effective dates.
— Laws 1990 (2nd S.S.), ch. 2, § 153 made Laws 1990 (2nd S.S.), ch. 2, § 110 effective January 1, 1991.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 8 - Self-Insurers' Guarantee Fund Act › Section 52-8-3 - Definitions.

As used in the Self-Insurers' Guarantee Fund Act:
A. "benefits" means any benefits to which a worker may be entitled under the provisions of the Workers' Compensation Act [Chapter 52, Article 1 NMSA 1978], the Subsequent Injury Act or the New Mexico Occupational Disease Disablement Law [52-3-1 NMSA 1978];
B. "board" means the board of directors of the self-insurers' guarantee fund commission;
C. "commission" means the self-insurers' guarantee fund commission;
D. "director" means the director of the workers' compensation administration;
E. "fund" means the self-insurers' guarantee fund;
F. "insolvent" means that a self-insurer is unable to pay its outstanding lawful obligations as they mature in the regular course of business, as shown both by having an excess of required reserves and other liabilities over assets and by not having sufficient assets to reinsure all outstanding liabilities after paying all accrued claims owed;
G. "private employer" means an employer subject to the Workers' Compensation Act or the New Mexico Occupational Disease Disablement Law who is not a public employer or a public hospital employer;
H. "public employer" means the state of New Mexico or any of its branches, agencies, departments, boards, instrumentalities or institutions and all school districts and all political subdivisions of the state or any of their agencies, instrumentalities or institutions. "Public employer" does not include a public hospital employer;
I. "public hospital employer" means any local, county, district, city-county or other public hospital or public health-related facility, whether operating in wholly or partially owned or leased premises;
J. "self-insurer" means a private employer certified by the director as being qualified to be self-insured for workers' compensation purposes. "Self-insurer" does not include a member of a group covered by the Group Self-Insurance Act [Chapter 52, Article 6 NMSA 1978]; and
K. "worker" means an individual who is defined to be a "worker" under Section 52-1-16 NMSA 1978 or "employee" under Section 52-3-3 NMSA 1978.
History:
Laws 1990 (2nd S.S.), ch. 2, § 111.
ANNOTATIONS
Effective dates.
— Laws 1990 (2nd S.S.), ch. 2, § 153 made Laws 1990 (2nd S.S.), ch. 2, § 111 effective January 1, 1991.
Compiler's notes.
— For the Subsequent Injury Act,
see
52-2-1 NMSA 1978 and notes thereto.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 8 - Self-Insurers' Guarantee Fund Act › Section 52-8-4 - Scope of act.

Every private, individual certified self-insurer shall be a general member of the commission and shall comply with the provisions of the Self-Insurers' Guarantee Fund Act.
History:
Laws 1990 (2nd S.S.), ch. 2, § 112.
ANNOTATIONS
Effective dates.
— Laws 1990 (2nd S.S.), ch. 2, § 153 made Laws 1990 (2nd S.S.), ch. 2, § 112 effective January 1, 1991.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 8 - Self-Insurers' Guarantee Fund Act › Section 52-8-5 - Self-insurers' guarantee fund commission created; organized as an independent commission; board created; administrative support.

A. The "self-insurers' guarantee fund commission" is created as a nonprofit, independent, public corporation for the purpose of administering the Self-Insurers' Guarantee Fund Act. The commission shall not be considered either a state agency or an insurance company.
B. The commission shall have a board of directors which shall consist of five members. Four members shall represent small, medium and large employers, provided that not more than one member shall be from any single employer or industry. The director shall serve, ex officio, as the fifth member. The initial membership of the board shall include four self-insurer representatives appointed by the director. Two of the four self-insurer members originally appointed to the board shall be appointed for an initial term of two years, and two for an initial term of four years. Thereafter, except for the director, members of the board shall serve four-year terms and shall be elected by the general membership of the commission. In the event of a resignation prior to the end of a board member's term, the board shall appoint a replacement to serve the remainder of the term.
C. The workers' compensation administration shall provide office space, staff and supplies as is necessary to support the board's operation.
D. Each general member of the commission shall have one vote in determining the board membership.
History:
Laws 1990 (2nd S.S.), ch. 2, § 113.
ANNOTATIONS
Effective dates.
— Laws 1990 (2nd S.S.), ch. 2, § 153 made Laws 1990 (2nd S.S.), ch. 2, § 113 effective January 1, 1991.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 8 - Self-Insurers' Guarantee Fund Act › Section 52-8-6 - Board powers and duties; liability.

A. The board may:
(1) purchase insurance or reinsurance as is necessary to insure any potential liabilities to the fund;
(2) provide for the imposition of assessments to ensure the financial stability of the fund; and
(3) adopt bylaws and rules necessary to carry out the functions of the commission.
B. Except for intentional acts or acts of gross negligence, neither board members nor general members of the commission shall be liable for their acts or omissions in the administration of the Self-Insurers' Guarantee Fund Act.
History:
Laws 1990 (2nd S.S.), ch. 2, § 114.
ANNOTATIONS
Effective dates.
— Laws 1990 (2nd S.S.), ch. 2, § 153 made Laws 1990 (2nd S.S.), ch. 2, § 114 effective January 1, 1991.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 8 - Self-Insurers' Guarantee Fund Act › Section 52-8-7 - Guarantee fund created; assessment for funding.

A. Each certified self-insurer shall contribute to a fund to be known as the "self-insurers' guarantee fund". The fund shall be used as a last resort to provide benefits to workers and the families of workers of self-insurers who become insolvent and otherwise unable to meet their financial obligations. The board shall determine, subject to approval by the director, when payments may be made from the fund and when a self-insurer becomes insolvent and otherwise unable to meet his financial obligations.
B. At the time of the initial certification, each self-insurer shall deposit in the fund an amount equal to one percent of his paid losses for the immediately preceding year or an average of the preceding three years' New Mexico paid losses, whichever is less or, in the event the self-insurer has no previous experience, an amount to be determined by the board and approved by the director.
C. After the initial contribution, each certified self-insurer shall continue to make an annual contribution, based on one percent of the previous year's paid losses, for two more years. After three years of consecutive contributions, a certified self-insurer shall no longer be required to pay additional contributions to the fund unless:
(1) the director determines that, due to the insolvency of a member of the fund, an additional assessment is necessary to make the fund actuarially sound; or
(2) the board determines the need for any special assessment to ensure the financial stability of the fund.
D. If, at any time, the fund account balance of the self-insurer exceeds one hundred fifty percent, as calculated in Subsection C of this section, the amount in excess of one hundred fifty percent shall be refunded to the insurer.
E. In computing the account balance due, a self-insurer shall be credited with past contributions, including interest earned on those contributions.
F. Each self-insurer may be required to contribute additional amounts, as determined by the board and approved by the director, to maintain the financial stability of the fund. The board shall review at least annually the fund account balance and shall assess members as appropriate to maintain an adequate fund balance. Catastrophic losses shall be accounted for by a special assessment on members as determined by the board and approved by the director.
G. The assets of the fund are the sole property of the fund; they are not the property of the self-insurers who contribute to the fund.
H. The fund shall be maintained at one or more New Mexico financial institutions as determined by the board. The fund shall not be considered public money.
History:
Laws 1990 (2nd S.S.), ch. 2, § 115.
ANNOTATIONS
Effective dates.
— Laws 1990 (2nd S.S.), ch. 2, § 153 made Laws 1990 (2nd S.S.), ch. 2, § 115 effective January 1, 1991.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 8 - Self-Insurers' Guarantee Fund Act › Section 52-8-8 - Fund liability period for guarantee fund.

A. The fund may be used to pay benefits to the worker or legal representative of the worker that are required of the self-insurer who becomes insolvent and otherwise unable to meet his financial obligations, provided that the injury or death occurred on or after January 1, 1992, or, in the case of an occupational disease, that the last injurious exposure occurred on or after January 1, 1992.
B. Notwithstanding the provisions of Subsection A of this section, the fund may only be used to pay benefits to an injured worker if the worker's injury occurs after the date on which the self-insurer is certified and has made a contribution to the fund.
History:
Laws 1990 (2nd S.S.), ch. 2, § 116.
ANNOTATIONS
Effective dates.
— Laws 1990 (2nd S.S.), ch. 2, § 153 made Laws 1990 (2nd S.S.), ch. 2, § 116 effective January 1, 1991.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 8 - Self-Insurers' Guarantee Fund Act › Section 52-8-9 - Fund membership termination.

A. The board may recommend to the director that a private employer be terminated as a self-insurer. The director may also terminate a self-insurer at his own initiative.
B. In the case of termination, the fund shall remain liable for future compensation for injuries and diseases to workers of the private employer that occurred prior to termination as a qualified self-insurer.
History:
Laws 1990 (2nd S.S.), ch. 2, § 117.
ANNOTATIONS
Effective dates.
— Laws 1990 (2nd S.S.), ch. 2, § 153 made Laws 1990 (2nd S.S.), ch. 2, § 117 effective January 1, 1991.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 8 - Self-Insurers' Guarantee Fund Act › Section 52-8-10 - Withdrawal of certification; grounds.

A. If certification of a self-insurer is withdrawn by the director, the private employer shall not be considered a self-insurer during any appeal of that determination. The private employer shall therefore obtain any necessary coverage from other sources pending resolution of the appeal.
B. Certification of a self-insurer may be withdrawn by the director in accordance with regulations he adopts. The regulations shall consider the following as grounds for termination:
(1) the employer no longer meets the requirements, financial or otherwise, of being a qualified self-insurer;
(2) the self-insurer engages in or induces workers to engage in fraudulent practices;
(3) the self-insurer fails to comply with rules and regulations of the director; or
(4) the self-insurer fails to maintain a sufficient fund balance, in which event certification shall be withdrawn effective the date that the fund balance is insufficient.
History:
Laws 1990 (2nd S.S.), ch. 2, § 118.
ANNOTATIONS
Effective dates.
— Laws 1990 (2nd S.S.), ch. 2, § 153 made Laws 1990 (2nd S.S.), ch. 2, § 118 effective January 1, 1991.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 8 - Self-Insurers' Guarantee Fund Act › Section 52-8-11 - Rules and regulations.

The director shall adopt rules and regulations that he determines are necessary or appropriate to fulfill the purposes of and implement the provisions of the Self-Insurers' Guarantee Fund Act including requiring adequate accountability of the collection and disbursement of money in the fund.
History:
Laws 1990 (2nd S.S.), ch. 2, § 119.
ANNOTATIONS
Effective dates.
— Laws 1990 (2nd S.S.), ch. 2, § 153 made Laws 1990 (2nd S.S.), ch. 2, § 119 effective January 1, 1991.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 8 - Self-Insurers' Guarantee Fund Act › Section 52-8-12 - Regulations remain in effect; initial commission general members.

A. The regulations adopted by the director to determine whether a private employer is financially solvent and does not need insurance coverage under Section 52-1-4 NMSA 1978 shall remain in effect until superceded by regulations adopted by the director pursuant to the Self-Insurers' Guarantee Fund Act. The director may require a self-insurer to provide a bond or other suitable financial instrument.
B. The initial general members of the commission shall be private employers certified as of January 1, 1992, as being financially solvent and not needing insurance coverage under Section 52-1-4 NMSA 1978.
History:
Laws 1990 (2nd S.S.), ch. 2, § 120.
ANNOTATIONS
Effective dates.
— Laws 1990 (2nd S.S.), ch. 2, § 153 made Laws 1990 (2nd S.S.), ch. 2, § 120 effective January 1, 1991.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 9 - Employers Mutual Company › Section 52-9-1 - Short title.

Sections 121 through 144 [52-9-1 to 52-9-24 NMSA 1978] of this act may be cited as the "Employers Mutual Company Act".
History:
Laws 1990 (2nd S.S.), ch. 2, § 121.
ANNOTATIONS
Effective dates.
— Laws 1990 (2nd S.S.), ch. 2, § 153 made Laws 1990 (2nd S.S.), ch. 2, § 121 effective January 1, 1991.
Compiler's notes.
— The phrase "this act" means Laws 1990 (2nd S.S.), ch. 2, §§ 121 to 144 which appear as 52-9-1 to 52-9-24 NMSA 1978.
Constitutionality.
— Under existing New Mexico case law, the legislation creating the employers mutual company appears to be an unconstitutional special law chartering or licensing an insurance company. Because the company is intended to be operated as a private entity, it is not clear that the exemption from the prohibition against special laws created by other states' courts for public corporations would save the legislation. 1990 Op. Att'y Gen. No. 90-25.
The latest pronouncements of the New Mexico supreme court indicate that a loan of state funds to the employers mutual company, as authorized by the workers' compensation law, violates the antidonation clause of Article IX, Section 14 of the New Mexico Constitution. 1990 Op. Att'y Gen. No. 90-25.
The 1990 workers' compensation legislation is constitutionally infirm under N.M. Const., Art. VIII, § 10 to the extent the legislature intends to supplant its judgment for that of the state investment council and the state investment officer in determining whether to invest the severance tax permanent fund in bonds issued by the employers mutual company and to direct that the severance tax permanent fund purchase those bonds. To that extent also, the legislation may constitute a prohibited loan guaranty arrangement under N.M. Const., Art. IX, § 14. However, the legislature has not clearly and unequivocally mandated the purchase. Consequently, it may not be concluded that the legislation is patently unconstitutional on those grounds. 1990 Op. Att'y Gen. No. 90-25.
Law reviews.
— For survey of 1990-91 workers' compensation law, see 22 N.M.L. Rev. 845 (1992).
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 9 - Employers Mutual Company › Section 52-9-2 - Findings and purpose.

A. The legislature finds that the cost, service and benefits of workers' compensation and occupational disease disablement insurance are of utmost importance to the health, welfare and economic well-being of all the citizens of New Mexico. To help provide competitive workers' compensation insurance coverage, the legislature enacts the Employers Mutual Company Act.
B. The legislature finds that, based on the relative amounts of premiums paid, small and medium-sized employers who are good risks for workers' compensation and occupational disease disablement insurance nevertheless can face serious obstacles in securing insurance at reasonable rates in the private voluntary market. A primary purpose of the Employers Mutual Company Act is to create an insurance entity that will provide, consistent with sound underwriting practices, assistance and competitively priced workers' compensation and occupational disease disablement insurance to those small and medium-sized employers.
C. The legislature finds that employers of all sizes should benefit from the availability of competitively priced insurance from the employers mutual company. A purpose of the Employers Mutual Company Act is to create an insurance entity that will provide assistance and competitively priced workers' compensation and occupational disease disablement insurance to all employers; provided, however, that priority attention is reserved for small and medium-sized employers.
D. The legislature finds that workers' compensation and occupational disease disablement insurance premiums and costs are at a critically high level that threatens the health of New Mexico's economy. A purpose of the Employers Mutual Company Act is to improve and stimulate the state's economy, including critical industries relating to oil and gas production in the state. The legislature further finds that improving the workers' compensation and occupational disease disablement system in New Mexico by creating the employers mutual company will enhance the performance of industries relating to oil and gas production and increase severance tax revenues. For these reasons, the legislature finds investment of the severance tax permanent fund in revenue bonds issued by the employers mutual company is a prudent investment and provides adequate legal consideration for the state.
E. The legislature finds a serious lack of relevant data based on New Mexico experience alone that can be used to assess the impact of workers' compensation and occupational disease disablement laws in the state. A purpose of the Employers Mutual Company Act is to generate data on New Mexico experience alone to assess more accurately the performance of New Mexico's workers' compensation and occupational disease disablement system and the impact of New Mexico's laws.
History:
Laws 1990 (2nd S.S.), ch. 2, § 122.
ANNOTATIONS
Effective dates.
— Laws 1990 (2nd S.S.), ch. 2, § 153 made Laws 1990 (2nd S.S.), ch. 2, § 122 effective January 1, 1991.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 9 - Employers Mutual Company › Section 52-9-3 - Definitions.

As used in the Employers Mutual Company Act:
A. "benefits" means any benefits to which a worker may be entitled under the provisions of the Workers' Compensation Act [Chapter 52, Article 1 NMSA 1978], the Subsequent Injury Act and the New Mexico Occupational Disease Disablement Law [52-3-1 NMSA 1978];
B. "board" means the board of directors of the employers mutual company created under the Employers Mutual Company Act;
C. "claim" means the assertion by or on behalf of a worker of a right to benefits;
D. "company" means the employers mutual company created and authorized under the Employers Mutual Company Act;
E. "director" or "member" means a member of the board;
F. "president" means the president of the employers mutual company; and
G. "worker" means an individual who is included in the definition of "worker" under Section 52-1-16 NMSA 1978 or "employee" under Section 52-3-3 NMSA 1978.
History:
Laws 1990 (2nd S.S.), ch. 2, § 123.
ANNOTATIONS
Effective dates.
— Laws 1990 (2nd S.S.), ch. 2, § 153 made Laws 1990 (2nd S.S.), ch. 2, § 123 effective January 1, 1991.
Compiler's notes.
— For the Subsequent Injury Act,
see
52-2-1 NMSA 1978 and notes thereto.
2023 New Mexico Statutes › Chapter 52 - Workers' Compensation › Article 9 - Employers Mutual Company › Section 52-9-4 - Employers mutual company created; organized as a domestic mutual insurance company.

The "employers mutual company" is created as a nonprofit, independent, public corporation for the purpose of insuring employers against the risk of liability for payment of benefits claims to workers. The company shall be organized as a domestic mutual insurance company and shall be domiciled in a class A county.
History:
Laws 1990 (2nd S.S.), ch. 2, § 124.
ANNOTATIONS
Effective dates.
— Laws 1990 (2nd S.S.), ch. 2, § 153 made Laws 1990 (2nd S.S.), ch. 2, § 124 effective January 1, 1991.