reglab/statecodes huggingface dataset:
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 44 - Fraternal Benefit Societies › Section 59A-44-29 - Foreign or alien society.

A. No foreign or alien society shall transact business in this state without a license issued by the superintendent. Any such society desiring admission to this state shall comply substantially with the requirements and limitations of Chapter 59A, Article 44 NMSA 1978 applicable to domestic societies. Any such society may be licensed to transact business in this state upon filing with the superintendent:
(1) a duly certified copy of its articles of incorporation;
(2) a copy of its bylaws, certified by its secretary or corresponding officer;
(3) a power of attorney to the superintendent as prescribed in Section 59A-44-35 NMSA 1978;
(4) a statement of its business under oath of its president and secretary or corresponding officers in a form prescribed by the superintendent, duly verified by an examination made by the supervising insurance official of its home state or other state, territory, province or country, satisfactory to the superintendent of this state;
(5) certification from the proper official of its home state, territory, province or country that the society is legally incorporated and licensed to transact business therein;
(6) copies of its certificate forms and accident and health rates; and
(7) such other information as the superintendent may deem necessary; and upon a showing that its assets are invested in accordance with the provisions of Chapter 59A, Article 44 NMSA 1978.
B. Any foreign or alien society desiring admission to this state shall have the qualifications required of domestic societies organized under Chapter 59A, Article 44 NMSA 1978.
History:
1978 Comp., § 59A-44-29, enacted by Laws 1989, ch. 388, § 29.
ANNOTATIONS
Repeals and reenactments.
— Laws 1989, ch. 388, § 29, repealed 59A-44-29 NMSA 1978, as enacted by Laws 1984, ch. 127, § 814, relating to service of process, and enacted a new section, effective January 1, 1990.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 44 - Fraternal Benefit Societies › Section 59A-44-31 - Suspension, revocation or refusal of license of foreign or alien society.

A. When the superintendent upon investigation finds that a foreign or alien society transacting or applying to transact business in this state:
(1) has exceeded its powers;
(2) has failed to comply with any of the provisions of Chapter 59A, Article 44 NMSA 1978;
(3) is not fulfilling its contracts in good faith; or
(4) is conducting its business fraudulently or in a manner hazardous to its members or creditors or the public,
the superintendent shall notify the society of any deficiency and state in writing the reasons for his dissatisfaction. The superintendent shall at once issue a written notice to the society requiring that any deficiency that exists be corrected. After such notice the society shall have a thirty-day period in which to comply with the superintendent's request for correction, and if the society fails to comply the superintendent shall notify the society of such findings of noncompliance and require the society to show cause on a date named why its license should not be suspended, revoked or refused. If on such date the society does not present good and sufficient reason why its authority to do business in this state should not be suspended, revoked or refused, the superintendent may suspend or refuse the license of the society to do business in this state until satisfactory evidence is furnished to the superintendent that such suspension or refusal should be withdrawn or the superintendent may revoke the authority of the society to do business in this state.
B. Nothing contained in this section shall be taken or construed as preventing any such society from continuing in good faith all contracts made in this state during the time such society was legally authorized to transact business therein.
History:
1978 Comp., § 59A-44-31, enacted by Laws 1989, ch. 388, § 31.
ANNOTATIONS
Repeals and reenactments.
— Laws 1989, ch. 388, § 31, repealed 59A-44-31 NMSA 1978, as enacted by Laws 1984, ch. 127, § 816, relating to review, and enacted a new section, effective January 1, 1990.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 44 - Fraternal Benefit Societies › Section 59A-44-32 - Injunction.

No application or petition for injunction against any domestic, foreign or alien society, or lodge thereof, shall be recognized in any court of this state unless made by the attorney general upon request of the superintendent.
History:
1978 Comp., § 59A-44-32, enacted by Laws 1989, ch. 388, § 32.
ANNOTATIONS
Repeals and reenactments.
— Laws 1989, ch. 388, § 32, repealed 59A-44-32 NMSA 1978, as enacted by Laws 1984, ch. 127, § 817, relating to funds, and enacted a new section, effective January 1, 1990.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
Right to assets of voluntarily dissolved lodge or club, 70 A.L.R.4th 897.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 44 - Fraternal Benefit Societies › Section 59A-44-33 - Licensing of agents.

A. Agents of societies shall be licensed in accordance with the applicable provisions of Chapter 59A, Articles 11 and 12 NMSA 1978 regulating the licensing, revocation, suspension or termination of license of agents, but shall not be subject to the provisions of Section 59A-12-26 NMSA 1978.
B. No examination or license shall be required of any regular salaried officer, employee or member of a licensed society who devotes or intends to devote fifty percent or more of his services to activities other than the solicitation of fraternal insurance contracts from the public and who receives for the solicitation of such contracts no commission or other compensation directly dependent upon the amount of business obtained.
C. Any person who in the preceding calendar year has solicited and procured life insurance contracts on behalf of any society in an amount of insurance in excess of fifty thousand dollars ($50,000) or, in the case of any other kind of insurance that the society might write, on the persons of more than twenty-five individuals and who has received or will receive a commission or other compensation therefor shall be presumed to be devoting or intending to devote fifty percent of his time to the solicitation or procurement of insurance contracts for such society.
History:
1978 Comp., § 59A-44-33, enacted by Laws 1989, ch. 388, § 33; 1991, ch. 169, § 1; 1999, ch. 272, § 22; 1999, ch. 289, § 32.
ANNOTATIONS
Repeals and reenactments.
— Laws 1989, ch. 388, § 33, repealed 59A-44-33 NMSA 1978, as enacted by Laws 1984, ch. 127, § 818, relating to investments, and enacted a new section, effective January 1, 1990.
The 1999 amendment,
effective June 18, 1999, deleted "resident and nonresident" preceding "agents, but shall not" in Subsection A and deleted "or kinds" following "any other kind" in Subsection C.
Laws 1999, ch. 272, § 22 and by Laws 1999, ch. 289, § 32, both effective June 18, 1999, enacted identical amendments to this section. The section was set out as amended by Laws 1999, ch. 289, § 32.
See
12-1-8 NMSA 1978.
The 1991 amendment,
effective June 14, 1991, added "but shall not be subject to the provisions of Section 59A-12-26 NMSA 1978" at the end in Subsection A; substituted "or intends to devote fifty percent or more" for "substantially" in Subsection B; and, in Subsection C, deleted the former first sentence, which read "Any agent or representative of a society who devotes or intends to devote less than fifty percent of his time to the solicitation and procurement of insurance contracts for such society," and made a minor stylistic change.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 44 - Fraternal Benefit Societies › Section 59A-44-34 - Unfair methods of competition and unfair and deceptive acts and practices.

Every society authorized to do business in this state shall be subject to the provisions of Chapter 59A, Article 16 NMSA 1978 relating to trade practices and frauds; provided, however, that nothing in such provisions shall be construed as applying to or affecting the right of any society to determine its eligibility requirements for membership or be construed as applying to or affecting the offering of benefits exclusively to members or persons eligible for membership in the society by a subsidiary corporation.
History:
1978 Comp., § 59A-44-34, enacted by Laws 1989, ch. 388, § 34.
ANNOTATIONS
Repeals and reenactments.
— Laws 1989, ch. 388, § 34, repealed 59A-44-34 NMSA 1978, as amended by Laws 1987, ch. 259, § 27, relating to reports and valuations, and enacted a new section, effective January 1, 1990.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 44 - Fraternal Benefit Societies › Section 59A-44-35 - Service of process.

A. Every society authorized to do business in this state shall appoint in writing the superintendent and each successor in office to be its true and lawful attorney upon whom all lawful process in any action or proceeding against it shall be served and shall agree in such writing that any lawful process against it which is served on said attorney shall be the same legal force and validity as if served upon the society, and that the authority shall continue in force so long as any liability remains outstanding in this state. Copies of such appointment, certified by said superintendent, shall be deemed sufficient evidence thereof and shall be admitted in evidence with the same force and effect as the original thereof might be admitted.
B. Service shall only be made upon the superintendent, or if absent, upon the person in charge of the superintendent's office. It shall be made in duplicate and shall constitute sufficient service upon the society. When legal process against a society is served upon the superintendent, the superintendent shall forthwith forward one of the duplicate copies by registered mail, prepaid, directed to the secretary or corresponding officer. No such service shall require a society to file its answer, pleading or defense in less than thirty days from the date of mailing the copy of the service to a society. Legal process shall not be served upon a society except in the manner herein provided. At the time of serving any process upon the superintendent, the plaintiff or complainant in the action shall pay to the superintendent a fee of ten dollars ($10.00).
History:
1978 Comp., § 59A-44-35, enacted by Laws 1989, ch. 388, § 35.
ANNOTATIONS
Repeals and reenactments.
— Laws 1989, ch. 388, § 35, repealed 59A-44-35 NMSA 1978, as enacted by Laws 1984, ch. 127, § 820, relating to examination of domestic societies, and enacted a new section, effective January 1, 1990.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 44 - Fraternal Benefit Societies › Section 59A-44-36 - Fee schedule.

A. Except as provided in Subsection B of this section, every society authorized to transact business in New Mexico shall pay to the superintendent the following fees:
(1) for annual certificate of authority continuation $100.00;
(2) for filing annual statement 100.00;
(3) for each license of agent or annual continuation thereof 30.00;
(4) for annual continuation of appointment 20.00;
and
(5) for each signature of the superintendent affixed to any instrument 10.00.
B. Every society which:
(1) issues certificates providing benefits strictly in accordance with the provisions of Chapter 59A, Article 44 NMSA 1978;
(2) limits its membership to members of one religious faith or to persons engaged in one or more hazardous occupations in the same or similar lines of business;
(3) does not employ paid solicitors or salesmen either on salary, commission or fee basis for procuring new insurance or members; and
(4) does not solicit insurance applications from the general public, but limits such solicitation to members in good standing in such society; shall be exempt from the fees specified in Subsection A of this section and in lieu thereof shall pay to the superintendent fees as follows:
(a) for annual license to transact business $50.00;
(b) for filing annual statement 50.00;
and
(c) for each seal and signature of the superintendent affixed to any instrument 10.00.
C. Failure to pay any fees imposed under Chapter 59A, Article 44 NMSA 1978 shall render the society liable to this state for the amount thereof and to the applicable penalties provided by Section 59A-6-4 NMSA 1978 as though such a society were an insurer.
History:
1978 Comp., § 59A-44-36, enacted by Laws 1989, ch. 388, § 36; 1993, ch. 320, § 102.
ANNOTATIONS
Repeals and reenactments.
— Laws 1989, ch. 388, § 36, repealed 59A-44-36 NMSA 1978, as enacted by Laws 1984, ch. 127, § 821, relating to examination of foreign and alien societies, and enacted a new section, effective January 1, 1990.
The 1993 amendment,
effective June 18, 1993, in Subsection A, revised the fee schedule; inserted present Paragraph (4) and redesignated former Paragraph (4) as Paragraph (5); revised the fee schedule in Subsection B(4); and substituted "Section 59A-6-4 NMSA 1978" for "Section 59A-6-42" in Subsection C.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 44 - Fraternal Benefit Societies › Section 59A-44-37 - Carrie Tingley crippled children's hospital fund.

The superintendent shall pay to the state treasurer, and the state treasurer shall convert into the fund of the Carrie Tingley crippled children's hospital, located in Bernalillo county, all money collected by the superintendent from or as to fraternal benefit societies under Chapter 59A, Article 44 NMSA 1978.
History:
1978 Comp., § 59A-44-37, enacted by Laws 1989, ch. 388, § 37.
ANNOTATIONS
Repeals and reenactments.
— Laws 1989, ch. 388, § 37, repealed 59A-44-37 NMSA 1978, as enacted by Laws 1984, ch. 127, § 822, relating to prohibition of public statements during examination, and enacted a new section, effective January 1, 1990.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 44 - Fraternal Benefit Societies › Section 59A-44-38 - Review.

All decisions and findings of the superintendent made under the provisions of Chapter 59A, Article 44 NMSA 1978 shall be subject to review as provided in Section 59A-4-20 NMSA 1978.
History:
1978 Comp., § 59A-44-38, enacted by Laws 1989, ch. 388, § 38.
ANNOTATIONS
Repeals and reenactments.
— Laws 1989, ch. 388, § 38, repealed 59A-44-38 NMSA 1978, as enacted by Laws 1984, ch. 127, § 823, relating to misrepresentation, and enacted a new section, effective January 1, 1990.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 44 - Fraternal Benefit Societies › Section 59A-44-39 - Penalties.

A. Any person who willfully makes a false or fraudulent statement in or relating to an application for membership or for the purpose of obtaining money from or a benefit in any society, shall upon conviction be fined not less than one hundred dollars ($100) or more than one thousand dollars ($1,000).
B. Any person who willfully makes a false or fraudulent statement in any verified report or declaration under oath required or authorized by Chapter 59A, Article 44 NMSA 1978, or of any material fact or thing contained in a sworn statement concerning the death or disability of a member for the purpose of procuring payment of a benefit named in the certificate, shall be guilty of a fourth degree felony and shall be sentenced pursuant to the provisions of Section 31-18-15 NMSA 1978.
C. Any person who solicits membership for, or in any manner assists in procuring membership in, any society not licensed to do business in this state shall upon conviction be fined not less than one hundred dollars ($100) or more than five hundred dollars ($500).
D. Any person guilty of a willful violation of, or neglect or refusal to comply with, the provisions of Chapter 59A, Article 44 NMSA 1978 for which a penalty is not otherwise prescribed shall upon conviction be subject to a fine not to exceed one thousand dollars ($1,000).
History:
1978 Comp., § 59A-44-39, enacted by Laws 1989, ch. 388, § 39.
ANNOTATIONS
Repeals and reenactments.
— Laws 1989, ch. 388, § 39, repealed 59A-44-39 NMSA 1978, as enacted by Laws 1984, ch. 127, § 824, relating to discrimination and rebates, and enacted a new section, effective January 1, 1990.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 44 - Fraternal Benefit Societies › Section 59A-44-41 - Applicability of Insurance Code.

To the extent not in conflict with the express provisions of Chapter 59A, Article 44 NMSA 1978 and the reasonable implications thereof, the following provisions of the Insurance Code [Chapter 59A NMSA 1978] shall also apply as to fraternal benefit societies, and for such purpose a society may therein be referred to as an "insurer":
A. Chapter 59A, Article 1 NMSA 1978;
B. Chapter 59A, Article 2 NMSA 1978;
C. Chapter 59A, Article 4 NMSA 1978;
D. Sections 59A-8-1 and 59A-8-2 NMSA 1978;
E. Section 59A-12-22 NMSA 1978;
F. the Insurance Fraud Act [Chapter 59A, Article 16C NMSA 1978];
G. Chapter 59A, Article 18 NMSA 1978;
H. the Policy Language Simplification Law [Chapter 59A, Article 19 NMSA 1978];
I. the Medicare Supplement Act [Chapter 59A, Article 24A NMSA 1978];
J. Chapter 59A, Articles 20 and 22 NMSA 1978; and
K. the Insurers Conservation, Rehabilitation and Liquidation Law [Chapter 59A, Article 41 NMSA 1978].
History:
1978 Comp., § 59A-44-41, enacted by Laws 1989, ch. 388, § 41; 1999, ch. 289, § 33; 2001, ch. 297, § 4.
ANNOTATIONS
Repeals and reenactments.
— Laws 1989, ch. 388, § 41, repealed 59A-44-41 NMSA 1978, as enacted by Laws 1984, ch. 127, § 826, relating to monies for Carrie Tingley hospital, and enacted a new section, effective January 1, 1990.
The 2001 amendment,
effective June 15, 2001, inserted current Subsection F and redesignated the remaining pargraphs accordingly, substituting article titles for statutory citation.
The 1999 amendment,
effective June 18, 1999, substituted "Article 24A" for "Article 24" in Subsection H.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 44 - Fraternal Benefit Societies › Section 59A-44-42 - Severability.

If any provision of Chapter 59A, Article 44 NMSA 1978 or the application of such provision to any circumstance is held invalid, the remainder of the article or the application of the provision to other circumstances shall not be affected thereby.
History:
1978 Comp., § 59A-44-42, enacted by Laws 1989, ch. 388, § 42.
ANNOTATIONS
Repeals and reenactments.
— Laws 1989, ch. 388, § 42, repealed 59A-44-42 NMSA 1978, as enacted by Laws 1984, ch. 127, § 827, relating to exemptions, and enacted a new section, effective January 1, 1990.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 44 - Fraternal Benefit Societies › Section 59A-44-43 to 59A-44-45 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1989, ch. 388, § 43 repealed 59A-44-43 to 59A-44-45 NMSA 1978, as enacted by Laws 1984, ch. 127, §§ 828, 829, and as amended by Laws 1988, ch. 89, § 4, relating to exemptions of certain societies, penalties, and other applicable provisions, effective January 1, 1990.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 44 - Fraternal Benefit Societies › Section 59A-44-46 - Fraternal benefit societies; certificate provisions relating to individuals who are eligible for medical benefits under the medicaid program.

A. Each individual or group policy or certificate of accident or health insurance issued by a society that is delivered, issued for delivery or renewed in this state shall include provisions that require benefits paid on behalf of a child or other insured person under the policy or certificate to be paid to the human services department [health care authority department] when:
(1) the human services department [health care authority department] has paid or is paying benefits on behalf of the child or other insured person under the state's medicaid program pursuant to Title XIX of the federal Social Security Act, 42 U.S.C. 1396, et seq.;
(2) payment for the services in question has been made by the human services department [health care authority department] to the medicaid provider; and
(3) the society is notified that the insured individual receives benefits under the medicaid program and that benefits must be paid directly to the human services department [health care authority department].
B. The notice required under Paragraph (3) of Subsection A of this section may be accomplished through an attachment to the claim by the human services department [health care authority department] for insurance benefits when the claim is first submitted by the human services department [health care authority department] to the society.
C. Notwithstanding any other provisions of law, checks in payment for claims pursuant to any individual or group policy or certificate of accident or health insurance for health care services provided to persons who are also eligible for benefits under the medicaid program and provided by medical providers qualified to participate under the policy or certificate shall be made payable to the provider. The society may be notified that the insured individual is eligible for medicaid benefits through an attachment to the claim by the provider for insurance benefits when the claim is first submitted by the provider to the society.
D. No individual or group policy or certificate of accident or health insurance issued by a society that is delivered, issued for delivery or renewed in this state on or after the effective date of this section shall contain any provision denying or limiting insurance benefits because services are rendered to an insured who is eligible for or who has received medical assistance under the medicaid program of this state.
History:
1978 Comp., § 59A-44-46, enacted by Laws 1989, ch. 183, § 5.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law. Laws 2023, ch. 205, § 16 provided that references to the human services department shall be deemed to be references to the health care authority department.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 45 - Premium Financing › Section 59A-45-1 - Short title.

This article [Chapter 59A, Article 45 NMSA 1978] may be cited as the "Insurance Premium Financing Law".
History:
Laws 1984, ch. 127, § 831.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance §§ 51, 52, 589, 857.
44 C.J.S. Insurance § 15 et seq.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 45 - Premium Financing › Section 59A-45-2 - Definitions.

As used in this article:
A. "person" means any individual, corporation, association, partnership or any other legal entity;
B. "insurance policy" or "insurance contract" means any contract of insurance, indemnity, medical or hospital services, suretyship or annuity issued, proposed for issuance or intended for issuance by any person;
C. "insurance premium finance agreement" means an agreement by which an insured or a prospective insured promises to pay to any person engaged in the business of premium financing, the amount advanced or to be advanced under the agreement to an insurer or to an insurance agent or broker in payment of premiums on an insurance contract; and
D. "insurance premium finance company" means a person engaged in the business of entering into insurance premium finance agreements.
History:
Laws 1984, ch. 127, § 832.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 45 - Premium Financing › Section 59A-45-3 - Licensing requirements.

A. No person shall engage in the business of financing insurance premiums in this state without first having obtained an insurance premium financing license from the superintendent.
B. The annual license fee shall be as stated in Section 101 [59A-6-1 NMSA 1978] (fee schedule) of the Insurance Code. Licenses may be renewed from year to year as of the first day of May of each year upon payment of the fee specified in such Section 101.
C. Licensing procedures and requirements shall be established by the superintendent by rule and regulation.
History:
Laws 1984, ch. 127, § 833.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 45 - Premium Financing › Section 59A-45-4 - Bonding requirements for licensees.

A. Prior to the issuance of an insurance premium financing license, the applicant shall file with the superintendent a surety bond or a bank certificate of deposit in favor of the superintendent in a total aggregate amount of not less than ten thousand dollars ($10,000), conditioned to pay the actual damages resulting to the state, to any policyholder or to any member of the public from violation by the licensee of the provisions of this article. The bond shall be executed by a surety insurer authorized to do business in this state. The certificate of deposit shall be issued from a bank licensed to do business in this state.
B. Bonds and certificates of deposit shall remain in effect during the term of the license. Without prejudice to any liability accrued prior to a cancellation, sureties may cancel their bonds by giving written notice to the superintendent at least thirty (30) days prior to the effective date of the cancellation.
C. The superintendent may increase the required amount of the bond or certificate of deposit according to a business volume scale which shall be established by the superintendent through rule or regulation.
History:
Laws 1984, ch. 127, § 834.
ANNOTATIONS
Compiler's notes.
— Laws 1984, ch. 127, § 993, provided that any deposit or surety bond filed in lieu thereof with or through the superintendent or state treasurer by any insurer in conjunction with authority to transact business in the state immediately prior to the effective date of the act (January 1, 1985) shall be given effect to the extent it complies with similar bonds required by the act after that date.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 45 - Premium Financing › Section 59A-45-5 - Exemptions.

A. The provisions of this article shall not limit the authority of the following institutions to engage in insurance premium financing or apply to:
(1) any life insurer authorized to do business in the state;
(2) any national banking institution;
(3) any state bank;
(4) any savings and loan association;
(5) any small loan company; or
(6) any credit union.
B. The licensing and bonding provisions of this article shall not apply to:
(1) any insurer, other than those exempt from this article pursuant to Paragraph A(1); and
(2) any insurance agent licensed by this state.
C. This article shall not apply to the financing of insurance premiums in connection with a transaction under the Motor Vehicle Sales Finance Act [58-19-1 to 58-19-12 NMSA 1978], or under Sections 56-1-1 to 56-1-15 NMSA 1978.
History:
Laws 1984, ch. 127, § 835.
ANNOTATIONS
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 45 - Premium Financing › Section 59A-45-6 - Books and records.

A. Every person engaged in the business of financing insurance premiums shall maintain records of his premium finance transactions and the records shall be open to examination and investigation by the superintendent. The superintendent may at any time require any such persons to bring such records as he may direct to the superintendent's office for examination.
B. Every person who is engaged in the business of financing insurance premiums shall preserve his records of premium finance transactions, including cards used in a card system, for at least three (3) years after making the final entry in respect to any premium finance agreement. The preservation of records in photographic forms shall constitute compliance with this requirement.
History:
Laws 1984, ch. 127, § 836.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 45 - Premium Financing › Section 59A-45-7 - Form of premium finance agreement.

A premium finance agreement shall:
A. comply with all existing federal laws;
B. comply with any requirements established by the superintendent by way of rule or regulation; and
C. contain a statement that the Insurance Premium Financing Law does not require a person to enter into an insurance premium financing agreement as a condition of the purchase of any insurance policy.
History:
Laws 1984, ch. 127, § 837.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 45 - Premium Financing › Section 59A-45-8 - Additional requirements.

The following additional provisions shall be applicable to an insurance premium finance agreement:
A. a premium finance company shall not charge, contract for, receive or collect a rate other than permitted pursuant to this article;
B. the rate is to be computed on the balance of the premium due, after subtracting the down payment made by the insured in accordance with the premium finance agreement, from the effective date of the insurance coverage for which premiums are being advanced, to and including the date when the final installment of the premium finance agreement is payable;
C. nothing contained in this article shall limit or restrict the manner of calculating the interest charges whether by way of add-on, discount, simple annual rate or otherwise, so long as the rate of interest charge does not exceed that permitted pursuant to this article. If the loan is a precomputed loan transaction:
(1) the interest charge may be calculated on the assumption that all scheduled payments will be made when due; and
(2) the effect of prepayment is governed by the provisions on rebate upon prepayment in this section;
D. if the entire unpaid balance outstanding on a precomputed loan transaction is paid by cash, renewal or otherwise, at any time prior to maturity, the premium finance company shall give a refund or credit of the unearned portion of such charge, according to the rule commonly known as "the rule of 78's", which refund or credit shall represent at least as great a portion of the original charge as the sum of the consecutive balances of the contract scheduled to be outstanding after the date of prepayment bears to the sum of all the consecutive monthly balances of the contract scheduled to be outstanding under the schedule of payments in the original instrument or instruments evidencing the loan; except, that if the contract is prepaid in cash rather than renewed or refinanced, the premium finance company shall not be required to make a refund or credit if the amount, computed as herein set forth, would be less than one dollar ($1) for each loan prior to the maturity;
E. in precomputed loan transactions where the insurer and the premium finance company execute an extension agreement for the deferral of an installment payment, the premium finance company may make an interest charge on the monthly installment that is deferred at a rate not exceeding one percent per month for each month or portion thereof that the payment has been deferred; and
F. for repayment in greater or lesser periods or amounts, or in unequal, irregular or other than monthly installment, the rate may be computed at an equivalent effective rate having due regard for the installments as scheduled.
History:
Laws 1984, ch. 127, § 839.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 45 - Premium Financing › Section 59A-45-9 - Assignee subject to defenses.

An assignee of the rights of a creditor under an insurance premium finance agreement, for the purchase of insurance primarily for personal, family or household purposes, is a holder within the meaning of the Uniform Commercial Code (55-1-101 to 55-9-507 NMSA 1978) and is subject to all defenses of the insured notwithstanding that there is an agreement to the contrary.
History:
Laws 1984, ch. 127, § 840.
ANNOTATIONS
Cross references.
— For negotiable instrument provisions of Uniform Commercial Code,
see
55-3-101 NMSA 1978, et seq.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 45 - Premium Financing › Section 59A-45-10 - Delinquency charges.

A premium finance agreement may provide for the payment by the insured of a delinquency charge on each installment in default for a period of more than ten days and in an amount not to exceed five percent of each installment, or five dollars ($5.00), whichever is less, or in lieu thereof, interest after maturity of each such installment not to exceed the highest lawful contract rate; except that with respect to agreements financing coverages for other than personal, family or household purposes, the delinquency charge shall be an amount equal to five percent of the unpaid installment, but in no event more than five hundred dollars ($500). In addition, such contract may provide for the payment of an attorney's reasonable fee, where it is referred for collection to an attorney not a salaried employee of the person to whom the installment payment is due, and for court costs and disbursements.
History:
Laws 1984, ch. 127, § 841; 1999, ch. 75, § 1.
ANNOTATIONS
The 1999 amendment,
effective June 18, 1999, inserted the language beginning "except that" in the first sentence, and made minor stylistic changes.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 45 - Premium Financing › Section 59A-45-11 - Cancellation of insurance contract upon default.

A. When a premium finance agreement contains a power of attorney enabling the premium finance company to cancel any insurance contract or contracts listed in the agreement, the insurance contract or contracts shall not be cancelled by the premium finance company unless such cancellation is made in accordance with this article.
B. Not less than ten (10) days written notice shall be mailed to the insured of the intent of the premium finance company to cancel the insurance contract unless the default is cured within the ten-day period.
C. After expiration of the ten-day period, the premium finance company may thereafter request, in the name of the insured, cancellation of such insurance contract or contracts by mailing to the insurer or its licensed agent a notice of cancellation, and the insurance contract shall be cancelled as if such notice of cancellation had been submitted by the insured himself, but without requiring the return of the insurance contract or contracts. The premium finance company shall also mail a notice of cancellation to the insured at his last known address.
D. All statutory, regulatory and contractual restrictions providing that the insurance contract may not be given to a governmental agency, mortgagee or other third party, shall apply where cancellation is made under this section. The insurer or its licensed agent shall give the prescribed notice on behalf of itself or the insured to any governmental agency, mortgagee or other third party on or before the tenth (10) [10th] business day after the day it receives the notice of cancellation from the premium finance company and shall determine the effective date of cancellation, taking into consideration the number of days' notice required to complete the cancellation.
E. Whenever an insurance contract is cancelled in accordance with this section, the insurer or its licensed agent shall return whatever gross unearned premiums are due under the insurance contract to the premium finance company effecting the cancellation for the account of the insured or insureds.
F. In the event that the crediting of return premiums to the account of the insured results in a surplus over the amount due from the insured, the premium finance company shall refund such excess to the insured provided that no such refund shall be required if it amounts to less than one dollar ($1).
History:
Laws 1984, ch. 127, § 842.
ANNOTATIONS
Return of unearned premiums. —
This section requires an insurer to return unearned premiums before the cancellation of an insurance policy financed by a premium finance company becomes effective.
Rodeo, Inc. v. Columbia Cas. Co.
, 2007-NMCA-013, 141 N.M. 32, 150 P.3d 982, cert. denied, 2007-NMCERT-001, 141 N.M. 163, 152 P.3d 150.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 45 - Premium Financing › Section 59A-45-12 - Exemption from any filing requirement.

No filing of the premium finance agreement shall be necessary to perfect the validity of such agreement as a secured transaction as against creditors, subsequent purchasers, pledges and encumbrances, successor or assigns.
History:
Laws 1984, ch. 127, § 843.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 45 - Premium Financing › Section 59A-45-13 - Revocation and suspension of licenses.

A. The superintendent may revoke or suspend the insurance premium financing license of any person when after investigation it appears to the superintendent that:
(1) any license issued to such person was obtained by fraud;
(2) there was any misrepresentation in the application of the license;
(3) the holder of such license has otherwise shown himself untrustworthy or incompetent to act as a premium finance company;
(4) such person has violated any of the provisions of this article; or
(5) such person has been rebating part of any valid service charge to an insurance agent, his employee or to any other person as an inducement to the financing of any insurance policy.
B. The procedures for revocation and suspension of licenses shall be established by the superintendent through rule and regulation.
History:
Laws 1984, ch. 127, § 844.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 45 - Premium Financing › Section 59A-45-14 - Cease and desist order from the superintendent.

Upon a determination by hearing that a person has violated any provision of this article or any rules or regulations adopted thereunder, the superintendent may issue an order requiring the person to cease and desist from engaging in such violation. If the alleged violator fails to comply with the cease and desist order from the superintendent, the superintendent shall bring action for injunction in the district court in the county of Santa Fe.
History:
Laws 1984, ch. 127, § 845.
ANNOTATIONS
Cross references.
— For injunctions,
see
Rule 1-066 NMRA.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 45 - Premium Financing › Section 59A-45-15 - Civil penalties.

In addition to any penalties imposed pursuant to Sections 844 or 845 [59A-45-13 or 59A-45-14 NMSA 1978] of this article, the district court may, in an action filed by the superintendent, impose the following civil penalties:
A. for each violation of this article a penalty of not more than one thousand dollars ($1,000) but not to exceed an aggregate penalty of ten thousand dollars ($10,000) in any six-month period; and
B. for each violation of an order issued by the superintendent pursuant to Section 845 of this article, a penalty of not more than ten thousand dollars ($10,000).
History:
Laws 1984, ch. 127, § 846.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 45 - Premium Financing › Section 59A-45-16 - Other code provisions applicable.

The following additional articles and provisions of the Insurance Code shall also apply, as applicable, to insurance premium finance companies and their operations:
A. Article 1 [Chapter 59A, Article 1 NMSA 1978] (scope of code, initial definitions, general penalty);
B. Article 2 [Chapter 59A, Article 2 NMSA 1978] (department of insurance);
C. Article 4 [Chapter 59A, Article 4 NMSA 1978] (examination, hearings and appeals);
D. Article 10 [Chapter 59A, Article 10 NMSA 1978] (administration of deposits);
E. Article 16 [Chapter 59A, Article 16 NMSA 1978] (trade practices and frauds); and
F. Article 53 [not codified] (transitory provisions).
History:
Laws 1984, ch. 127, § 847.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law. The reference in Subsection F to "Article 53 (transitory provisions)" apparently refers to the uncodified article 53 of Laws 1984, ch. 127, which contains sections 989 to 997 of the act pertaining to repeals of sections of the former Insurance Code in Chapter 59 NMSA 1978, continuation of certain departments, boards and offices, continuation under Chapter 59A NMSA 1978 of certificates of authority, licenses, bonds, forms, etc. granted or approved under provision in the former Insurance Code in Chapter 59 NMSA 1978, and other transitory provisions.
Cross references.
— For the Insurance Code,
see
59A-1-1 NMSA 1978 and notes thereto.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 46 - Health Maintenance Organizations › Section 59A-46-1 - Short title.

Chapter 59A, Article 46 NMSA 1978 may be cited as the "Health Maintenance Organization Law".
History:
Laws 1984, ch. 127, § 848; 1993, ch. 266, § 1.
ANNOTATIONS
The 1993 amendment,
effective January 1, 1994, substituted "Chapter 59A, Article 46 NMSA 1978" for "This article" and substituted "'Law'" for "'Act.'".
Am. Jur. 2d, A.L.R. and C.J.S. references. —
Liability of health maintenance organizations (hmos) for negligence of member physicians, 51 A.L.R.5th 271.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 46 - Health Maintenance Organizations › Section 59A-46-4 - Issuance of certificate of authority.

A. Upon receipt of an application for issuance of a certificate of authority, the superintendent may transmit copies of such application and accompanying documents to the secretary of health.
B. If requested by the superintendent, the secretary of health shall determine whether the applicant for a certificate of authority, with respect to health care services to be furnished, has complied with Section 59A-46-7 NMSA 1978.
C. If requested by the superintendent, the secretary of health shall certify to the superintendent, within forty-five days of receipt of the application for issuance of a certificate of authority, that the proposed health maintenance organization meets the requirements of Section 59A-46-7 NMSA 1978 or notify the superintendent that the health maintenance organization does not meet such requirements and specify in what respects it is deficient.
D. The superintendent shall within forty-five days of receipt of certification or notice of deficiencies from the secretary of health pursuant to Subsection C of this section, or within sixty days of receipt of the application indicated in Subsection A of this section if no request has been made of the secretary of health, issue a certificate of authority to any person filing a completed application upon receiving the prescribed fees and upon the superintendent being satisfied that:
(1) the persons responsible for the conduct of the affairs of the applicant are competent, trustworthy and possess good reputations;
(2) any deficiencies identified by the secretary of health pursuant to Subsection C of this section have been corrected and the secretary of health has certified to the superintendent that the health maintenance organization's proposed plan of operation meets the requirements of Section 59A-46-7 NMSA 1978;
(3) the health maintenance organization will effectively provide or arrange for the provision of basic health care services on a prepaid basis, through insurance or otherwise, except to the extent of reasonable requirements for copayments or deductibles, or both; and
(4) the health maintenance organization is in compliance with Sections 59A-46-13 and 59A-46-15 NMSA 1978.
E. A certificate of authority shall be denied only after the superintendent complies with the requirements of Section 59A-46-20 NMSA 1978.
History:
1978 Comp., § 59A-46-4, enacted by Laws 1993, ch. 266, § 4.
ANNOTATIONS
Repeals and reenactments.
— Laws 1993, ch. 266, § 43 repealed former 59A-46-4 NMSA 1978, as enacted by Laws 1984, ch. 127, § 851, and Laws 1993, ch. 266, § 4 enacted a new section, effective January 1, 1994.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 46 - Health Maintenance Organizations › Section 59A-46-5 - Powers of health maintenance organizations.

A. The powers of a health maintenance organization include, but are not limited to, the following:
(1) the purchase, lease, construction, renovation, operation or maintenance of hospitals, medical facilities, or both, and their ancillary equipment, and such property as may reasonably be required for its principal office or for such purposes as may be necessary in the transaction of the business of the organization;
(2) transactions between or among affiliated entities, including loans and the transfer of responsibility under all contracts, including without limitation provider and subscriber contracts between or among affiliates or between the health maintenance organization and its parent;
(3) the furnishing of health care services through providers, provider associations or agents for providers that are under contract with or employed by the health maintenance organization;
(4) the contracting with any person for the performance on its behalf of certain functions such as marketing, enrollment and administration;
(5) the contracting with an authorized insurer in this state for the provision of insurance, indemnity or reimbursement against the cost of health care services provided by the health maintenance organization;
(6) the offering of other health care services, in addition to basic health care services; and
(7) the joint marketing of products with an insurer authorized to do business in this state as long as the company that is offering each product is clearly identified.
B. A health maintenance organization shall file notice, with adequate supporting information, with the superintendent prior to the exercise of any power granted in Paragraph (1), (2) or (4) of Subsection A of this section that may affect the financial soundness of the health maintenance organization. The superintendent shall disapprove such exercise of power only if in his opinion it would substantially and adversely affect the financial soundness of the health maintenance organization and endanger its ability to meet its obligations. If the superintendent does not disapprove within thirty days of the filing, it shall be deemed approved, but the superintendent may in his sole discretion postpone the action for an additional thirty days as necessary for proper consideration of the effects of the proposed action.
C. The superintendent may adopt rules and regulations exempting from the filing requirement of Subsection B of this section those activities having a de minimis effect.
History:
1978 Comp., § 59A-46-5, enacted by Laws 1993, ch. 266, § 5.
ANNOTATIONS
Repeals and reenactments.
— Laws 1993, ch. 266, § 43 repealed former 59A-46-5 NMSA 1978, as enacted by Laws 1984, ch. 127, § 852, and Laws 1993, ch. 266, § 5 enacted a new section, effective January 1, 1994.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 46 - Health Maintenance Organizations › Section 59A-46-6 - Fiduciary responsibilities; fidelity bond.

A. Any director, officer, employee or partner of a health maintenance organization who receives, collects, disburses or invests funds in connection with the activities of the organization shall be responsible for such funds in a fiduciary relationship to the organization.
B. A health maintenance organization shall maintain in force a fidelity bond or fidelity insurance on the employees and officers, directors and partners described in Subsection A of this section in an amount not less than two hundred fifty thousand dollars ($250,000) for each health maintenance organization or a maximum of five million dollars ($5,000,000) in aggregate maintained on behalf of health maintenance organizations owned by a common parent corporation, or such sum as may be prescribed by the superintendent.
History:
1978 Comp., § 59A-46-6, enacted by Laws 1993, ch. 266, § 6.
ANNOTATIONS
Recompilations.
— Laws 1993, ch. 266, § 31 recompiled former 59A-46-6 NMSA 1978, as enacted by Laws 1984, ch. 127, § 853, relating to governing bodies, as 59A-46-33 NMSA 1978, effective January 1, 1994.