reglab/statecodes huggingface dataset:
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 13 - Adjusters › Section 59A-13-1 - Scope of article.

This article [Chapter 59A, Article 13 NMSA 1978] defines adjusters, requires license, states qualifications for licensing, and other requirements of adjusters so acting in this state. As to licensing procedures, issuance, duration, suspension, revocation or refusal to continue license in general, refer to Article 11 [Chapter 59A, Article 11 NMSA 1978] of the Insurance Code.
History:
Laws 1984, ch. 127, § 229.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
44 Am. Jur. 2d Insurance § 1349.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 13 - Adjusters › Section 59A-13-3 - License required.

A. No person shall, in this state, act as, or make any representation as being, an adjuster unless licensed as such by the superintendent under the Insurance Code.
B. No person, regardless of location, shall act as, or make any representation as being, an adjuster with respect to workers' compensation claims of claimants resident or located in New Mexico unless licensed as such by the superintendent under the Insurance Code.
C. Notwithstanding any other provision of law, a nonresident may be licensed as a nonresident independent adjuster for the purposes of portable electronics insurance if that applicant has designated another state as the applicant's home state.
History:
Laws 1984, ch. 127, § 231; 1989, ch. 313, § 1; 2013, ch. 140, § 12.
ANNOTATIONS
The 2013 amendment,
effective July 1, 2013, provided for a nonresident independent adjustor license; and added Subsection C.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 13 - Adjusters › Section 59A-13-3.1 - Examination for license.

A. An individual applying for a license as an adjuster shall, prior to issuance of a license, personally take and pass a written examination. The examination shall test the knowledge of the individual concerning the duties and responsibilities of an adjuster and the insurance laws and rules of this state. Examinations required by this section shall be developed and conducted under rules prescribed by the superintendent.
B. The superintendent may contract with an outside testing service for administering examinations and collecting the nonrefundable fee set forth in Section 59A-6-1 NMSA 1978.
C. Each individual applying for an examination shall remit a nonrefundable fee as prescribed by the superintendent as set forth in Section 59A-6-1 NMSA 1978.
D. An individual who fails to appear for an examination as scheduled or fails to pass the examination shall reapply for an examination and remit all required fees and forms before being rescheduled for another examination.
E. No examination shall be required:
(1) for renewal or continuation of an existing license, except as provided in Subsection D of Section 59A-11-10 NMSA 1978; or
(2) if the applicant took and passed a similar examination in a state in which the applicant is already licensed, subject to Section 59A-5-33 NMSA 1978.
History:
Laws 2016, ch. 89, § 55; 2017, ch. 76, § 2.
ANNOTATIONS
The 2017 amendment,
effective June 16, 2017, removed the qualifying term "resident" from an individual applying for a license as an adjuster, and removed the provision related to temporary licenses; in Subsection A, deleted "A resident" and added "An"; in Subsection E, at the end of Paragraph E(1), added "or", deleted former Paragraph E(2) and redesignated former Paragraph E(3) as Paragraph E(2).
Severability.
— Laws 2016, ch. 89, § 71 provided that if any part or application of Laws 2016, ch. 89 is held invalid, the remainder or its application to other situations or persons shall not be affected.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 13 - Adjusters › Section 59A-13-5 - Bond.

A. With application for license as a public adjuster, the applicant shall file with the superintendent a surety bond in favor of the superintendent in aggregate amount of not less than ten thousand dollars ($10,000), conditioned to pay actual damages resulting to the state of New Mexico or any member of the public in New Mexico from violation of law by the licensee while acting as an adjuster. The bond shall be one executed by an authorized surety insurer.
B. The bond shall remain in effect for the duration of the license, or until the surety is released from liability by the superintendent, or until canceled by the surety. Without prejudice to any liability accrued prior to cancellation, the surety may cancel a bond by giving written notice to the superintendent at least thirty days prior to effective date of cancellation.
History:
Laws 1984, ch. 127, § 233; 2017, ch. 76, § 4; 2023, ch. 151, § 1.
ANNOTATIONS
Cross references.
— For existing deposits and bonds,
see
notes following 59A-5-18 NMSA 1978.
The 2023 amendment,
effective June 16, 2023, excluded certain adjusters from bonding provisions; in Subsection A, after "application for license as", added "a public", and deleted "other than as staff adjuster"; and deleted former Subsection C, which provided that the applicant or licensee may file with the superintendent a cash bond in like amount, in lieu of surety bond.
The 2017 amendment,
effective June 16, 2017, removed a reference to temporary licenses; in Subsection A, after "application for license", deleted "temporary or otherwise"; and in Subsection B, after "until", changed "cancelled" to "canceled".
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 13 - Adjusters › Section 59A-13-8 - Powers conferred by adjuster license.

An independent adjuster shall have the powers granted by its principal to investigate, report upon, adjust and settle claims on behalf of an insurer or self insurer and have additional powers as to claims and losses as may be conferred by the principal. A staff adjuster shall have only such powers with respect to claims and losses as granted by the adjuster's employer or affiliates of the adjuster's employer. A temporary adjuster shall, as to claims and losses, have the powers of the employer, subject to extension or limitation by contract.
History:
Laws 1984, ch. 127, § 236; 2007, ch. 282, § 9.
ANNOTATIONS
Cross references.
— For settlements, releases and statements of injured patients,
see
41-1-1, 41-1-2 NMSA 1978.
The 2007 amendment,
effective June 15, 2007, provided that an independent adjuster has the powers granted by its principal to investigate and report on claims.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
44 Am. Jur. 2d Insurance § 1702.
Activities of insurance adjusters as unauthorized practice of law, 29 A.L.R.4th 1156.
Liability of independent or public insurance adjuster to insured for conduct in adjusting claim, 50 A.L.R.4th 900.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 13 - Adjusters › Section 59A-13-9 - Place of business.

A. A resident adjuster shall have and maintain a principal place of business in this state that is easily accessible to the public and is the place where the adjuster principally conducts transactions under the license. The address of the principal place of business shall appear on the application for license and on the license.
B. An adjuster shall promptly notify the superintendent of a change of address. Failure to notify the superintendent of a change of address within twenty days shall subject the licensee to a penalty in the amount of fifty dollars ($50.00).
History:
Laws 1984, ch. 127, § 237; 2003, ch. 306, § 7; 2011, ch. 127, § 9.
ANNOTATIONS
The 2011 amendment,
effective July 1, 2011, required a resident adjuster to maintain a principal place of business in New Mexico and required an adjuster to notify the superintendent of a change of address.
The 2003 amendment,
effective June 20, 2003 substituted "and" for "in this state and while so licensed shall", inserted "in the state that is" following "principal place of business", and substituted "is the place" for "from which" all near the beginning of the section and added the final sentence.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 13 - Adjusters › Section 59A-13-10 - Records of independent adjuster.

A. Each independent adjuster shall keep at the business address shown on his license a record of all transactions under the license. The record shall include:
(1) the documents relating to all investigations or adjustments undertaken, and
(2) a statement of any fee, commission or other compensation received or to be received by the adjuster on account of such investigation or adjustment.
B. The adjuster shall make such records available for examination by the superintendent at all reasonable times, and shall retain records as to a particular investigation or adjustment for not less than three (3) years after completion of such investigation or adjustment.
History:
Laws 1984, ch. 127, § 238.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 13 - Adjusters › Section 59A-13-11 - Resident claims representative for payment of workers' compensation claims.

Each workers' compensation insurer shall have at least one claims representative within New Mexico, licensed as an adjuster, to pay workers' compensation claims of claimants resident or located in New Mexico. Such claims shall be paid promptly through such representatives from accounts in financial institutions located within New Mexico.
History:
1978 Comp., § 59A-13-11, enacted by Laws 1989, ch. 313, § 2.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 13 - Adjusters › Section 59A-13-12 - Continuing education.

A. The superintendent shall require as a condition to continuation of an adjuster license that during the twenty-four months next preceding expiration of the current license period, the licensee has attended the minimum number of hours of formal class instruction, lectures or seminars required and approved by the superintendent.
B. Instruction shall be designed to refresh the licensee's understanding of basic principles and coverages involved, recent and prospective changes, applicable laws and rules of the superintendent, proper conduct of the licensee's business and duties and responsibilities of the licensee.
C. The superintendent may permit licensees to successfully complete an equivalent course of study and instruction online or by mail.
D. The superintendent may impose a penalty not to exceed fifty dollars ($50.00) for a licensee's failure to timely report continuing education credits.
E. The superintendent shall charge, at the time of certifying each licensee's continuing education credits as a condition of continuation of license, a fee of one dollar ($1.00) per credit hour of continuing education; provided that the superintendent may contract with an independent agency to receive and review a continuing education compliance report, and in such a case, the fee shall be a reasonable amount fixed by the superintendent and payable to the contracting agency.
History:
Laws 2016, ch. 89, § 56; 2017, ch. 76, § 6.
ANNOTATIONS
The 2017 amendment,
effective June 16, 2017, removed certain conditions on allowing study and instruction online or by mail; and in Subsection C, after "may permit licensees", deleted "who, because of remoteness of residence or business, cannot with reasonable convenience attend formal instruction sessions".
Severability.
— Laws 2016, ch. 89, § 71 provided that if any part or application of Laws 2016, ch. 89 is held invalid, the remainder or its application to other situations or persons shall not be affected.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 13 - Adjusters › Section 59A-13-13 - Prohibited conduct regarding the adjustment and repair of property damage.

A. An adjuster may not adjust a loss related to physical damage of a property on which the adjuster is also a contractor, acts as a contractor or is employed as a contractor, including a roofing contractor, building contractor or plumbing contractor, or otherwise provides building repairs or products, including building or plumbing repairs or products, for compensation or is a controlling person in a business relating to such contracting.
B. A contractor or a roofing contractor may not act as an adjuster or advertise to adjust claims for any property for which the contractor is providing or may provide roofing, building, plumbing or other contractor services, regardless of whether the contractor is a licensed adjuster.
C. In those instances in which an adjuster who is also a contractor is performing either as an adjuster or as a contractor on behalf of an insured, the adjuster shall provide the insured with a disclaimer, on a form promulgated by the superintendent and signed by the adjuster, indicating in which of these two capacities the adjuster is serving the insured and affirming that the adjuster is not serving the insured in the other capacity. The adjuster shall retain copies of such signed disclaimers and make them available to the superintendent upon the superintendent's request.
History:
Laws 2017, ch. 76, § 7.
ANNOTATIONS
Effective dates.
— Laws 2017, ch. 76 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 16, 2017, 90 days after the adjournment of the legislature.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 13 - Adjusters › Section 59A-13-16 - Escrow or trust accounts.

A public adjuster who receives, accepts or holds any funds on behalf of an insured toward the settlement of a claim for loss or damage shall deposit the funds in a non-interest-bearing escrow or trust account in a financial institution that is insured by an agency of the federal government in the public adjuster's home state or where the loss occurred.
History:
Laws 2017, ch. 76, § 10.
ANNOTATIONS
Effective dates.
— Laws 2017, ch. 76 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 16, 2017, 90 days after the adjournment of the legislature.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 13 - Adjusters › Section 59A-13-17 - Records of public adjuster.

A. A public adjuster shall maintain a complete record of each transaction as a public adjuster. The records required by this section shall include the following:
(1) the name of the insured;
(2) the date, location and amount of the loss;
(3) a copy of the contract between the public adjuster and the insured;
(4) the name of the insurer, amount, expiration date and number of each policy carried with respect to the loss;
(5) an itemized statement of the insured's recoveries;
(6) an itemized statement of all of the compensation received by the public adjuster, from any source whatsoever, in connection with the loss;
(7) a register of all of the money received, deposited, disbursed or withdrawn in connection with a transaction with an insured, including fees, transfers and disbursements from a trust account and all transactions concerning all interest-bearing accounts;
(8) the name of the public adjuster who executed the contract; and
(9) the name of the attorney representing the insured, if applicable, and the name of the claims representatives of the insurance company.
B. Records shall be maintained for at least five years after the termination of the transaction with an insured and shall be open to examination by the superintendent at all times.
C. Records submitted to the superintendent pursuant to this section that contain information identified in writing as proprietary by the public adjuster and accepted as confidential by the superintendent shall be treated as confidential by the superintendent, shall not be subject to the Inspection of Public Records Act [Chapter 14, Article 2 NMSA 1978], shall not be subject to subpoena and shall not be subject to discovery or admissible as evidence in any private civil action.
History:
Laws 2017, ch. 76, § 11.
ANNOTATIONS
Effective dates.
— Laws 2017, ch. 76 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 16, 2017, 90 days after the adjournment of the legislature.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 14 - Surplus Line Insurance › Section 59A-14-4.1 - Withdrawal of eligibility from a surplus lines insurer.

The superintendent may at any time declare an eligible surplus lines insurer to be ineligible if the superintendent has reason to believe that the insurer:
A. is in unsound financial condition;
B. is subject to delinquency proceedings in this state or any other jurisdiction;
C. is no longer eligible under Section 59A-14-4 NMSA 1978;
D. has violated the laws of this state, including any violation of the Insurance Code or the superintendent's orders;
E. does not make reasonably prompt payment of loss claims or other obligations in this state or elsewhere;
F. has failed within sixty days to satisfy a final judgment rendered against it or against an insured for which it is legally liable under the terms of a contract of surplus lines insurance; or
G. has failed to satisfy the superintendent that it is fit to be allowed to continue to do business in this state.
The superintendent shall promptly mail notice of all such declarations to the insurer and to every surplus lines broker. Notice sent pursuant to this subsection to a licensed surplus lines broker may, at the option of the surplus lines broker, be sent by the superintendent via electronic mail.
History:
1978 Comp., § 59A-14-4.1, enacted by Laws 1991, ch. 125, § 15; 2017, ch. 130, § 9.
ANNOTATIONS
Cross references.
— For the Insurance Code,
see
59A-1-1 NMSA 1978 and notes thereto.
The 2017 amendment,
effective July 1, 2017, authorized the superintendent of insurance to use electronic mail to notify surplus lines brokers of ineligible surplus lines insurers; in Subsection D, after "including", deleted "but not limited to"; and added the last sentence of Subsection G.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 14 - Surplus Line Insurance › Section 59A-14-5 - Signature and special endorsement of surplus lines policy.

Every insurance contract procured and delivered as surplus lines insurance pursuant to Chapter 59A, Article 14 NMSA 1978 shall bear the name, address and signature of the surplus lines broker who procured it and have stamped, printed or otherwise displayed prominently in boldface ten-point or larger type either upon its declarations page or by attachment of an endorsement, the form of which may be promulgated by the superintendent, the following: "This policy provides surplus lines insurance by an insurer not otherwise authorized to transact business in New Mexico. This policy is not subject to supervision, review or approval by the superintendent of insurance. The insurance so provided is not within the protection of any guaranty fund law of New Mexico designed to protect the public in the event of the insurer's insolvency.".
History:
Laws 1984, ch. 127, § 243; 1991, ch. 125, § 16; 1999, ch. 111, § 1.
ANNOTATIONS
The 1999 amendment,
effective June 18, 1999, substituted "lines" for "line" in the section heading; in the first sentence, substituted "lines" for "line", deleted "upon its declarations page" following "displayed", and inserted "either upon its declarations page or by attachment of an endorsement, the form of which may be promulgated by the superintendent".
The 1991 amendment,
effective April 3, 1991, rewrote this section which read "Every insurance contract procured and delivered as surplus line coverage pursuant to this article shall bear the signature of the surplus line broker who procured it and have stamped, printed or otherwise displayed upon it the following: 'this contract is registered and delivered as a surplus line coverage under the insurance laws of New Mexico by an insurer not otherwise authorized to transact business in that state and not subject to supervision, or examination by the superintendent of insurance. The insurance so provided is not within the protection of any guaranty fund law of New Mexico'."
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 14 - Surplus Line Insurance › Section 59A-14-6 - Surplus line insurance valid.

Insurance contracts procured as surplus line coverage from unauthorized insurers in accordance with the article shall be fully valid and enforceable as to all parties, and shall be given recognition in all matters and respects and to the same effect as like contracts issued by authorized insurers.
History:
Laws 1984, ch. 127, § 244.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 14 - Surplus Line Insurance › Section 59A-14-8 - Repealed.

ANNOTATIONS
Repeals.
— Laws 2003, ch. 202, § 16 repealed 59A-14-8 NMSA 1978, as enacted by Laws 1984, ch. 127, § 246, relating to a bond required of applicants for surplus line broker licenses, effective June 20, 2003. For provisions of former section,
see
the 2002 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 14 - Surplus Line Insurance › Section 59A-14-9 - Surplus line broker may accept business from insurance producers; compensation of others prohibited.

A. A surplus line broker may accept and export surplus line business from and for any insurance producer licensed by this state for the kind of insurance involved, and may compensate the insurance producer therefor.
B. A surplus line broker shall not directly or indirectly compensate any person other than a licensed insurance producer for origination of business. This provision shall not be deemed to prohibit payment of regular salaries to the surplus line broker's employees or sharing of compensation with other persons entitled thereto under firm and corporate agreements and surplus line broker licenses. Violation of this provision is a misdemeanor.
History:
Laws 1984, ch. 127, § 247; 2016, ch. 89, § 57.
ANNOTATIONS
Cross references.
— For general penalty provision,
see
59A-1-18 NMSA 1978.
For penalty for misdemeanor,
see
31-19-1 NMSA 1978.
The 2016 amendment,
effective July 1, 2017, in the catchline, added "Surplus line", deleted "agents" and added "insurance producers"; in Subsection A, after "any insurance", deleted "agent or broker" and added "producer", and after "may compensate the", deleted "agent or broker" and added "insurance producer"; and in Subsection B, after "any person other than", deleted "such", after "a licensed", deleted "agent or broker as to" and added "insurance producer for", and after "origination of", deleted "such".
Severability.
— Laws 2016, ch. 89, § 71 provided that if any part or application of Laws 2016, ch. 89 is held invalid, the remainder or its application to other situations or persons shall not be affected.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 14 - Surplus Line Insurance › Section 59A-14-10 - Office and records.

A. A surplus line broker shall maintain an office accessible to the public wherein transactions under his license may be transacted. Nothing herein shall be deemed to prohibit maintenance of the office in the surplus line broker's place of residence, subject to accessibility above stated.
B. The surplus line broker shall keep in the office complete records of surplus line insurance business transacted, including, but not limited to, income and disbursements, copies of all policies, endorsements, cancellations, filing documents, reports and other related records. The records shall be made available for examination by the superintendent at all times within seven years after issuance of a coverage to which the record relates.
C. The surplus line broker shall immediately notify the superintendent in writing of any change of office address. Failure to notify the superintendent of a change of address within twenty days shall subject the licensee to a penalty in the amount of fifty dollars ($50.00).
History:
Laws 1984, ch. 127, § 248; 2003, ch. 202, § 8.
ANNOTATIONS
The 2003 amendment,
effective June 20, 2003, deleted "in this state" following "broker shall maintain" in Subsection A; in Subsection B, deleted "surplus line broker shall not remove the records from this state, and the" following "related records. The", substituted "seven" for "five (5)" following "all times within"; and added the last sentence in Subsection C.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 14 - Surplus Line Insurance › Section 59A-14-12 - Repealed.

History:
Laws 1984, ch. 127, § 250; 1999, ch. 111, § 3; 2011, ch. 156, § 9; 2017, ch. 130, § 11; repealed by Laws 2018, ch. 57, § 31.
ANNOTATIONS
Repeals.
— Laws 2018, ch. 57, § 31 repealed 59A-14-12 NMSA 1978, as enacted by Laws 1984, ch. 127, § 250, relating to Premium tax on surplus lines insurance, effective January 1, 2020. For provisions of former section,
see
the 2019 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 14 - Surplus Line Insurance › Section 59A-14-13 - Examination of surplus line broker.

A. The superintendent whenever deemed necessary may examine the records and accounts of any surplus line broker for determining whether the surplus line broker is conducting business in accordance with the requirements of this article.
B. The superintendent shall conduct the examination, and the surplus line broker shall pay the cost thereof, as provided in the applicable provisions of Article 4 [Chapter 59A, Article 4 NMSA 1978] (examinations, hearings and appeals) of the Insurance Code.
History:
Laws 1984, ch. 127, § 251.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 14 - Surplus Line Insurance › Section 59A-14-15 - Liability of insurer.

A. As to a risk assumed by an unauthorized insurer under Chapter 59A, Article 14 NMSA 1978, and if the premium thereon has been received by the producing broker or the surplus lines broker who placed the insurance, in all questions thereafter arising under the coverage between the insurer and the insured the insurer shall be deemed to have received the premium due it for the coverage; and the insurer shall be liable to the insured for losses covered by the insurance and for unearned premiums that may become payable to the insured upon cancellation of the insurance, whether or not in fact the surplus lines broker is indebted to the insurer as to the insurance or for any other cause.
B. Each unauthorized insurer assuming a surplus lines risk under Chapter 59A, Article 14 NMSA 1978 shall be deemed thereby to have subjected itself to the terms of this section.
History:
Laws 1984, ch. 127, § 253; 1991, ch. 125, § 19.
ANNOTATIONS
The 1991 amendment,
effective April 3, 1991, substituted "Chapter 59A, Article 14 NMSA 1978" for "this article" in Subsections A and B; in Subsection A, inserted "the producing broker or" near the beginning and substituted "lines broker" for "line broker" in two places; substituted "lines risk" for "line risk" in Subsection B; and made a minor stylistic change in Subsection A.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 14 - Surplus Line Insurance › Section 59A-14-16 - Legal process against surplus line insurer; venue.

A. An unauthorized insurer shall be sued, upon any cause of action arising in this state under any surplus line insurance policy issued by it, in the district court of the county in which the cause of action arose.
B. Service of legal process against the insurer may be made in any such action by service upon the superintendent as provided for in Section 99 [59A-5-32 NMSA 1978] of the Insurance Code.
C. Each surplus line insurer may file with the superintendent designation in writing of the name and address of the person to whom the superintendent shall forward legal process served upon him as process attorney for the insurer. The insurer may change such designation by filing a new designation with the superintendent. The surplus line broker placing surplus line insurance with an unauthorized insurer shall take reasonable steps to inform the insurer of its right to file such designation.
D. Upon receipt of such process the superintendent shall promptly mail one copy thereof, by certified or registered mail with return receipt requested, to the person currently designated by the insurer pursuant to Subsection C, above; and if no such designation has been made or is not currently in force, the process shall be so mailed addressed to the insurer at its home office last of record with the superintendent, wherever located. The insurer shall have thirty (30) days from date of service upon the superintendent within which to plead, answer or otherwise defend the action. Upon service of process upon the superintendent and mailing in accordance with this provision the court shall be deemed to have jurisdiction in personam of the insurer.
E. An unauthorized insurer issuing the policy shall be deemed thereby to have authorized service of process against it in the manner and to the effect as provided in this section. Any such policy shall contain a provision stating that service of process against it may be made upon the superintendent as in this section provided.
History:
Laws 1984, ch. 127, § 254.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 14 - Surplus Line Insurance › Section 59A-14-17 - Certain other provisions applicable.

In addition to provisions generally applicable, the following provisions of the Insurance Code shall also apply as to surplus line brokers:
A. Section 210 [209] [59A-12-8 NMSA 1978[repealed]] (controlled business);
B. Section 218 [59A-12-17 NMSA 1978] (scope of license); and
C. Section 223 [59A-12-22 NMSA 1978] (fiduciary funds).
History:
Laws 1984, ch. 127, § 255.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and it is not part of the law. The reference to § 210 of the Insurance Code is apparently incorrect. The section dealing with controlled business is § 209 compiled as 59A-12-8 NMSA 1978. Section 210, compiled as 59A-12-9 NMSA 1978, provides a limitation on the construction of § 209.
Laws 2016, ch. 89, § 70 repealed 59A-12-8 NMSA 1978, effective July 1, 2017. For provisions of former section,
see
the 2016 NMSA 1978 on
NMOneSource.com.
Cross references.
— For the Insurance Code,
see
59A-1-1 NMSA 1978 and notes thereto.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 14 - Surplus Line Insurance › Section 59A-14-18 - Repealed.

History:
Laws 1984, ch. 127, § 256; repealed by Laws 2018, ch. 57, § 31.
ANNOTATIONS
Repeals.
— Laws 2018, ch. 57, § 31 repealed 59A-14-18 NMSA 1978, as enacted by Laws 1984, ch. 127, § 256, relating to violations and penalties, effective January 1, 2020. For the provisions of former section,
see
the 2019 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 14 - Surplus Line Insurance › Section 59A-14-19 - National database; participation required.

No later than July 21, 2012, the superintendent shall participate in the national insurance producer database of the association, or any other equivalent uniform national database, for the licensure of surplus lines brokers and the renewal of the licenses.
History:
Laws 2011, ch. 156, § 10.
ANNOTATIONS
Effective dates.
— Laws 2011, ch. contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 17, 2011, 90 days after the adjournment of the legislature.
Applicability.
— Laws 2011, ch. 156, § 11 provided that the provisions §§ 3 through 10 of Laws 2011, ch. 156 are applicable to insurance policies issued on or after July 21, 2011.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 14A - Surplus Lines Insurance Multistate Compliance Compact (Repealed.) › Section 59A-14A-1 - Repealed.

History:
Laws 2011, ch. 156, § 1; repealed by Laws 2017, ch. 130, § 19.
ANNOTATIONS
Repeals.
— Laws 2017, ch. 130, § 19 repealed 59A-14A-1 NMSA 1978, as enacted by Laws 2011, ch. 156, § 1, relating to the Surplus Lines Insurance Multistate Compliance Compact, entered into, effective July 1, 2017. For provisions of former section,
see
the 2016 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 14A - Surplus Lines Insurance Multistate Compliance Compact (Repealed.) › Section 59A-14A-2 - Repealed.

History:
Laws 2011, ch. 156, § 2; repealed by Laws 2017, ch. 130, § 19.
ANNOTATIONS
Repeals.
— Laws 2017, ch. 130, § 19 repealed 59A-14A-2 NMSA 1978, as enacted by Laws 2011, ch. 156, § 2, relating to the Surplus Lines Insurance Multistate Compliance Compact, state representative, effective July 1, 2017. For provisions of former section,
see
the 2016 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 15 - Unauthorized Insurers › Section 59A-15-1 - Purposes of article.

The purpose of this article [Chapter 59A, Article 15 NMSA 1978] is to subject certain persons and insurers to the jurisdiction of the superintendent and the courts of this state in suits by or on behalf of the state and others. The legislature declares that it is concerned with the protection of residents of this state against acts by insurers not authorized to do an insurance business in this state, by the maintenance of fair and honest insurance markets, by protecting authorized insurers which are subject to regulation from unfair competition by unauthorized insurers, and by protecting against the evasion of the insurance regulatory laws of this state. In furtherance of such state interest, the legislature provides methods in this article for substituted service of process upon such insurers in any proceeding, suit or action in any court and substituted service of any notice, order, pleading or process upon such insurers in any proceeding by the superintendent to enforce or effect full compliance with the insurance laws of this state. In so doing, the state exercises its powers to protect residents of this state and to define what constitutes transacting an insurance business in this state, and also exercises powers and privileges available to this state by virtue of Public Law 79-15, (1945), 79th Congress of the United States, Chapter 20, 1st Sess., S. 340, 59 Stat. 33; 15 U.S.C. Secs. 1011 to 1015, inclusive, as amended, which declares that the business of insurance and every person engaged therein shall be subject to the laws of the several states.
History:
Laws 1984, ch. 127, § 257.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance §§ 37 to 54.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 15 - Unauthorized Insurers › Section 59A-15-2 - Representing or aiding unauthorized insurer prohibited.

A. No person shall in this state directly or indirectly act as agent for, or otherwise represent or aid on behalf of another, any unauthorized insurer in solicitation, negotiation, procurement or effectuation of insurance or renewals thereof, or forwarding of applications, or delivery of policies or contracts, or inspection of risks, or fixing of rates, or investigation or adjustment of claims or losses, or collection or forwarding of premiums, or in any other manner represent or assist such insurer in transaction of insurance in this state.
B. This section shall not apply as to:
(1) matters authorized to be done by the superintendent under service of process provisions of Chapter 59A, Article 15 NMSA 1978;
(2) transactions for which certificate of authority is not required of an insurer under Section 59A-5-11 NMSA 1978;
(3) subject to Subsection B of Section 59A-5-10 NMSA 1978, insurances exempt from the surplus line law under Section 59A-14-1 NMSA 1978;
(4) insurance policies and annuity contracts in force in this state prior to the effective date of the Insurance Code, transactions as to which shall be governed by laws in force immediately prior to such effective date; or
(5) a transaction or transactions in this state involving contracts of insurance to one or more industrial insureds. For the purposes of this section, an industrial insured is an insured:
(a) which procures the insurance of any risk by the use of the services of a full-time employee acting as a risk manager or insurance manager or by utilizing the services of a regularly and continuously qualified insurance consultant;
(b) which has aggregate annual premiums for insurance on all risks of at least twenty-five thousand dollars ($25,000); and
(c) which has at least twenty-five full-time employees.
C. Violation of this section shall be subject to the general penalty provided under Section 59A-1-18 NMSA 1978.
History:
Laws 1984, ch. 127, § 258; 1987, ch. 259, § 15.
ANNOTATIONS
Effective dates.
— Laws 1984, ch. 127, § 999 made the Insurance Code effective January 1, 1985.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 15 - Unauthorized Insurers › Section 59A-15-3 - Inclusion of unauthorized insurer in coverage.

No insurance agent licensed in this state shall include, or permit inclusion, in any insurance coverage of a subject of insurance resident, located or to be performed in this state and placed by the agent, of an unauthorized insurer among the insurers assuming direct risk under such coverage. This section shall not apply as to coverages exempt under Section 258 [59A-15-2 NMSA 1978] of this article.
History:
Laws 1984, ch. 127, § 259.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 15 - Unauthorized Insurers › Section 59A-15-5 - Validity of contract not impaired; right of insurer as to court action.

Failure of an insurer transacting insurance in this state to have a certificate of authority shall not impair the validity of any act or contract of the insurer and shall not prevent the insurer from defending any action in any court in this state; but no such insurer shall be permitted to maintain an action in any court of this state to enforce any right, claim or demand arising out of any such transaction, other than as to a surplus line coverage duly written through a licensed surplus line broker of this state, until the insurer has obtained a certificate of authority.
History:
Laws 1984, ch. 127, § 260.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 15 - Unauthorized Insurers › Section 59A-15-6 - Superintendent is attorney of unauthorized insurer for service of process.

Any act of transacting an insurance business in this state by any unauthorized insurer is equivalent to and shall constitute an irrevocable appointment by such insurer, binding upon him, his executor or administrator, or successor in interest if a corporation, of the superintendent or his successor in office, to be the true and lawful attorney of the insurer upon whom may be served all lawful process in any action, suit or proceeding in any court by the superintendent or by the state or others, and upon whom may be served any notice, order, pleading or process in any proceeding before the superintendent, and which arises out of transacting an insurance business in this state by such insurer. Any act of transacting an insurance business in this state by any unauthorized insurer shall be signification of its agreement that any such lawful process in such court action, suit or proceeding and any such notice, order, pleading or process in such administrative proceeding before the superintendent so served shall be of the same legal force and validity as personal service of process in this state upon the insurer.
History:
Laws 1984, ch. 127, § 261.
ANNOTATIONS
Law reviews.
— For article, "Attachment in New Mexico - Part I," see 1 Nat. Resources J. 303 (1961).
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 15 - Unauthorized Insurers › Section 59A-15-7 - Service of process on unauthorized insurer.

A. Service of process in such action or proceeding shall be made by delivering to and leaving with the superintendent, or some person in apparent charge of his office, two (2) copies thereof and by payment to the superintendent of the fee prescribed by Section 101 [59A-6-1 NMSA 1978] (fee schedule) of the Insurance Code. Service upon the superintendent as such attorney shall be service upon the insurer.
B. The superintendent shall forthwith forward by certified mail one of the copies of such process, or such notice, order, pleading or process in proceedings before the superintendent, to the defendant in such court proceeding or to whom the notice, order, pleading or process in such administrative proceeding is addressed or directed, at its principal place of business last known to the superintendent and shall keep a record of all process so served on him which shall show the day and hour of service. Such service is sufficient if:
(1) notice of such service and a copy of the court process or the notice, order, pleading or process in such administrative proceeding are sent within ten (10) days thereafter by certified mail (with return receipt requested) by the plaintiff or the plaintiff's attorney in the court proceeding, or by the superintendent in the administrative proceeding, to the defendant in the court proceeding or to whom the notice, order, pleading or process in such administrative proceeding is addressed or directed, at the last-known principal place of business of the defendant in the court or administrative proceeding, and
(2) the defendant's receipt or receipts issued by the post office with which the letter is certified, showing the name of the sender of the letter and the name and address of the person or insurer to whom the letter is addressed, and an affidavit of the plaintiff or the plaintiff's attorney in court proceeding, or of the superintendent in administrative proceeding, showing compliance therewith are filed with the clerk of the court in which such action, suit or proceeding is pending or with the superintendent in administrative proceedings, on or before the date the defendant in the court or administrative proceedings is required to appear or respond thereto, or within such further time as the court or superintendent may allow.
C. No plaintiff shall be entitled to a judgment or determination by default in any court or administrative proceeding in which court process or notice, order, pleading or process in proceedings before the superintendent is served under this section until the expiration of forty-five (45) days from the date of filing of the affidavit of compliance.
D. Nothing in this section limits or affects the right to serve any process, notice, order or demand upon any person or insurer in any other manner permitted by law.
History:
Laws 1984, ch. 127, § 262.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d § 40.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 15 - Unauthorized Insurers › Section 59A-15-8 - Defense of action by unauthorized insurer; bond.

A. Before any unauthorized insurer files or causes to be filed any pleading in any court action, suit or proceeding or any notice, order, pleading or process in an administrative proceeding before the superintendent instituted against such person or insurer, by service made as provided in Section 262 [59A-15-7 NMSA 1978] of this article, such insurer shall either:
(1) deposit with the clerk of the court in which such action, suit or proceeding is pending, or with the superintendent in administrative proceedings before the superintendent, cash or securities, or file with such clerk or the superintendent a bond with good and sufficient sureties, to be approved by the clerk or the superintendent, in an amount to be fixed by the court or superintendent sufficient to secure the payment of any final judgment which may be rendered in such action or administrative proceeding; or
(2) procure a certificate of authority to transact insurance in this state. In considering the application of an insurer for a certificate of authority, for the purposes of this paragraph the superintendent need not assert the provisions of Section 100 [59A-5-33 NMSA 1978] (reciprocity provision) of the Insurance Code against such insurer with respect to its application if he determines that the insurer would otherwise comply with the requirements for such certificate of authority.
B. The superintendent, in any administrative proceeding in which service is made as provided in Section 262 of this article, may in his discretion order such postponement as may be necessary to afford the defendant reasonable opportunity to comply with the provisions of Paragraph (1) above, and to defend such action.
C. Nothing in Subsection A above, shall be construed to prevent an unauthorized insurer from filing a motion to quash a writ or to set aside service thereof, on the ground that such unauthorized insurer has not transacted insurance in this state.
History:
Laws 1984, ch. 127, § 263.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance § 267.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 15 - Unauthorized Insurers › Section 59A-15-10 - Penalty for violation.

Any unauthorized insurer which transacts in this state any insurance business in violation of the Insurance Code shall be subject to fine of not to exceed twenty thousand dollars ($20,000) for each such violation.
History:
Laws 1984, ch. 127, § 265.
ANNOTATIONS
Cross references.
— For the Insurance Code,
see
59A-1-1 NMSA 1978 and notes thereto.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 15 - Unauthorized Insurers › Section 59A-15-11 - Unauthorized Insurers False Advertising Process Law; title.

Sections 266 through 268 [59A-15-11 to 59A-15-13 NMSA 1978] of this article constitute and may be referred to as the "Unauthorized Insurers False Advertising Process Law".
History:
Laws 1984, ch. 127, § 266.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 15 - Unauthorized Insurers › Section 59A-15-12 - Notice to domiciliary supervisory official.

No unauthorized insurer through any estimate, illustration, circular, pamphlet, letter, announcement, statement or any other means or medium shall misrepresent to any person in this state its financial condition or the terms of any contract issued or to be issued by it or the advantages thereof, or the dividends or share to be received thereon. Whenever the superintendent has reason to believe that any such insurer is so misrepresenting, he shall notify the insurer and the insurance supervisory officer of the insurer's domiciliary state or province by registered or certified mail.
History:
Laws 1984, ch. 127, § 267.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 15 - Unauthorized Insurers › Section 59A-15-13 - Action by superintendent.

A. If within thirty (30) days following the giving of the notice provided for in Section 267 [59A-15-12 NMSA 1978] of the article the insurer has not ceased such dissemination, and if the superintendent has reason to believe that such insurer is soliciting, issuing or delivering contracts of insurance to residents of this state or collecting premiums on such contracts or performing any other transaction in connection with such insurance, and that a proceeding by him in respect to such matters would be to the interest of the public, he shall take action against such insurer under the provisions of Section 262 [59A-15-7 NMSA 1978] of the article (service of process on unauthorized insurer).
B. If upon such hearing the superintendent finds that the insurer has misrepresented as referred to in Section 267 of the article, he shall by order on such hearing require the insurer to cease and desist from such violation, and shall mail a copy of the order by registered or certified mail to the insurer at its principal place of business last of record with the superintendent, and to the insurance supervisory officer of the insurer's domiciliary state, country or province. Each violation thereafter of such desist order shall subject the insurer to a penalty of two thousand dollars ($2,000), to be recovered by a civil action brought against the insurer by the superintendent. Service of process upon the insurer in such action may be made upon the superintendent pursuant to Section 262 of this article or in any other lawful manner.
History:
Laws 1984, ch. 127, § 268.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 15 - Unauthorized Insurers › Section 59A-15-14 - Short title; Health Care Benefits Jurisdiction Act.

Sections 59A-15-14 through 59A-15-19 NMSA 1978 may be cited as the "Health Care Benefits Jurisdiction Act".
History:
1978 Comp., § 59A-15-14, enacted by Laws 1991, ch. 125, § 20.