reglab/statecodes huggingface dataset:
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 48 - Prepaid Dental Plans › Section 59A-48-5 - Issuance of certificate of authority.

A. Issuance of a certificate of authority shall be granted by the superintendent if the superintendent is satisfied that the following conditions are met:
(1) the persons responsible for conducting the affairs of the prepaid dental plan organization are competent and trustworthy and are professionally capable of providing or arranging for the provision of services offered;
(2) the prepaid dental plan organization constitutes an appropriate mechanism to achieve an effective prepaid dental plan, in accordance with regulations issued by the director of the health services division of the health and environment department [department of health], which shall include at least the basic dental services appropriate to such plan as determined by the director of the health services division of the health and environment department;
(3) the prepaid dental plan organization is financially responsible and may reasonably be expected to meet its obligations to members and prospective members. In making this determination, the superintendent shall consider at least:
(a) the financial soundness of the prepaid dental plan's arrangement for services and the schedule of charges used;
(b) any agreement with an insurer, a hospital or a medical service corporation, a government or any other organization for insuring the payment of the cost of prepaid dental services or the provisions for automatic applicability of an alternative coverage in the event of the discontinuance of the plan; and
(c) the sufficiency of an agreement with providers for the provision of prepaid dental services; and
(4) each officer responsible for conducting the affairs of the prepaid dental plan organization is covered under an individual or blanket fidelity bond in the amount of fifty thousand dollars ($50,000), and such bond has been filed with and approved by the superintendent.
B. A certificate of authority shall be subject to continuance, expiration, termination, suspension or revocation on the same applicable bases as provided under Article 5 [Chapter 59A, Article 5 NMSA 1978] of the Insurance Code as to insurers in general.
History:
Laws 1984, ch. 127, § 884.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law. Laws 1991, ch. 25, § 16 repealed former 9-7-4 NMSA 1978, relating to the health and environment department, and enacted a new 9-7-4 NMSA 1978, creating the department of health.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 48 - Prepaid Dental Plans › Section 59A-48-6 - Deposit requirement; exception.

A. A prepaid dental plan organization shall maintain on deposit with the state treasurer through the superintendent a surety bond guaranteeing services under the plan, or cash or securities eligible for investments of capital funds of health insurers under Chapter 59A, Article 9 NMSA 1978, in the following amounts depending on the number of members entitled to dental care services pursuant to contracts issued by the plan:
Number of Members
Deposit
2,500 or less
$25,000
2,501 - 5,000
30,000
5,001 - 7,500
40,000
7,501 - 10,000
50,000
10,001 - 15,000
75,000
15,001 - 20,000
100,000
20,001 - 25,000
125,000
25,001 - 30,000
150,000
30,001 - 40,000
175,000
40,001 and above
200,000
B. The deposit prescribed by Subsection A of this section shall be held by the state treasurer in trust for the benefit and protection of persons covered by a prepaid dental plan.
C. Any securities within the description of Subsection A of this section, with the approval of the superintendent may be exchanged for similar securities or cash of equal amount. Interest on securities deposited shall be payable to the prepaid dental plan organization depositing such securities.
D. An unpaid final judgment arising from a membership coverage shall be a lien on the deposit described in Subsection A of this section, subject to execution after thirty days from the entry of final judgment. If the deposit is reduced, it shall be replenished within ninety days by the prepaid dental plan organization.
E. Upon liquidation or dissolution of a prepaid dental plan organization and the satisfaction of all its debts and liabilities, any balance remaining of the cash or securities deposit prescribed in Subsection A of this section, together with any other assets of the prepaid dental plan organization, shall be returned by the superintendent to the prepaid dental plan organization.
F. The deposit prescribed by Subsection A of this section shall not apply with respect to a prepaid dental plan organization which is funded by the federal, state or a municipal government or any political subdivision or body to the extent and for such period of time that the prepaid dental plan organization can demonstrate to the superintendent the presence of operational commitments from such sources equivalent to such deposit.
History:
Laws 1984, ch. 127, § 885; 1993, ch. 320, § 104.
ANNOTATIONS
The 1993 amendment,
effective June 18, 1993, in Subsection A, substituted "Chapter 59A, Article 9 NMSA 1978" for "Article 9 (investments) of the Insurance Code", revised the "Number of Members" table, and made stylistic changes in Subsection D.
Severability.
— Laws 1993, ch. 320, § 106 provided for the severability of the act if any part or application thereof was held invalid.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 48 - Prepaid Dental Plans › Section 59A-48-7 - Reserve requirement; exception.

A. A prepaid dental plan organization at all times shall maintain for protection of the members a financial reserve consisting of two percent of prepaid charges collected from members for the plan, until such reserve totals five hundred thousand dollars ($500,000). Such reserve shall be in addition to the deposit prescribed by Section 885 [59A-48-6 NMSA 1978] of this article.
B. The reserve prescribed by Subsection A of this section shall not apply with respect to a prepaid dental plan organization which is funded by the federal, state or a municipal government or any political subdivision or body and meets the requirement of Subsection F of Section 885 of this article.
History:
Laws 1984, ch. 127, § 886.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 48 - Prepaid Dental Plans › Section 59A-48-8 - Membership coverage.

A. Every member in a prepaid dental plan shall be issued a membership coverage form by the prepaid dental plan organization.
B. Any contract applied for that provides family coverage shall, as to such coverage of individuals in the family, also provide that the benefits applicable for children shall be payable with respect to a newly-born child of the insured from the instant of such child's birth to the same extent that such coverage applies to other individuals in the family. If payment of a specific premium is required to provide coverage for a child, the contract may require that notification of birth of a newly-born child and payment of the required premium shall be furnished to the insurer within thirty-one (31) days after the date of birth in order to have the coverage continue beyond the thirty-one-day period.
C. No membership coverage or amendment shall be issued or delivered to any person in this state until a copy of the form of the membership coverage or amendment has been filed with and approved by the superintendent.
D. A membership coverage shall contain a clear and complete statement of a contract, or a reasonably complete summary if a certificate of contract, of:
(1) the prepaid dental services or other benefits to which the member is entitled under the prepaid dental plan;
(2) any limitations of the services, kinds of services or benefits to be provided, including any deductible or copayment feature;
(3) where and in what manner information is available as to how services may be obtained; and
(4) the member's obligation respecting charges for the prepaid dental plan.
E. A membership coverage shall contain no provisions or statements which are unjust, unfair, inequitable, misleading, deceptive or which encourage misrepresentation or which are untrue.
F. The superintendent shall approve any form of membership coverage if the requirements of Subsections D and E of this section are met and the prepaid dental plan is able in the judgment of the superintendent to meet its financial obligations under the membership coverage. It is unlawful to issue such form until approved. If the superintendent does not disapprove any such form within thirty (30) days after the filing, it shall be deemed approved. If the superintendent disapproves a form of membership coverage, the superintendent shall notify the prepaid dental plan organization, specifying the reasons for disapproval. The superintendent shall grant a hearing on such disapproval within fifteen (15) days after a request in writing is received from the prepaid dental plan organization.
History:
Laws 1984, ch. 127, § 887.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 48 - Prepaid Dental Plans › Section 59A-48-9 - Examination of prepaid dental plan organization.

A. The superintendent may once in each six (6) months for the first three (3) years after organization and once each year thereafter, or more often if deemed necessary by the superintendent or director of the health services division of the health and environmental [environment] department [department of health], visit each prepaid dental plan organization organized under the law of this state and examine its financial condition, its ability to meet its liabilities and its compliance with the laws of this state affecting the conduct of its business. The superintendent may annually visit and examine each prepaid dental plan organization not organized under the laws of this state but authorized to transact business in this state.
B. The superintendent may in like manner examine each prepaid dental plan organization applying for an initial certificate of authority to do business in this state.
C. In lieu of making an examination, the superintendent may accept a full report of the most recent examination of a foreign or alien prepaid dental plan organization, certified to by the appropriate examining official of another state.
D. The director of the health services division of the health and environment department [department of health] may participate in the examinations and visits described in this section to verify the existence of an effective prepaid dental plan and to review the delivery of services by the prepaid dental plan organization.
E. The examination and all related matters shall otherwise be subject to the applicable provisions of Article 4 [Chapter 59A, Article 4 NMSA 1978] (examination, hearings and appeals) of the Insurance Code.
History:
Laws 1984, ch. 127, § 888.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law. Laws 1991, ch. 25, § 16 repealed former 9-7-4 NMSA 1978, relating to the health and environment department, and enacted a new 9-7-4 NMSA 1978, creating the department of health.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 48 - Prepaid Dental Plans › Section 59A-48-10 - Annual report to superintendent.

A. Every prepaid dental plan organization annually on or before the first day of March shall file with the superintendent a report covering its activities for the preceding calendar year in form as prescribed by the superintendent, verified by at least two principal officers of the corporation. A copy of the report shall be sent by the prepaid dental plan organization to the department of health.
B. Such reports shall be on forms prescribed by the superintendent and shall include:
(1) an annual statement in accordance with the requirements of Section 59A-5-29 NMSA 1978 and a risk-based capital report in accordance with the requirements of Section 59A-5A-3 NMSA 1978;
(2) any material changes in the information;
(3) the number of persons who become members during the year, the number of members as of the end of the year and the number of memberships terminated during the year;
(4) the costs of all care provided and the number of units of care provided; and
(5) such other information relating to the performance of the prepaid dental plan organization as is necessary to enable the superintendent to carry out the duties prescribed by The [the] Prepaid Dental Plan Law.
C. The fee for filing the annual report shall be as specified in Section 59A-6-1 NMSA 1978.
History:
Laws 1984, ch. 127, § 889; 2014, ch. 59, § 53.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
The 2014 amendment,
effective July 1, 2014, required insurers to annually file a statement of financial condition and transactions and a risk-based capital report; in Subsection A, in the introductory paragraph, in the second sentence, after "plan organization to the", deleted "director of the health services division of the health and environment", and after "department", added "of health"; in Subsection B, Paragraph (1), deleted "a financial statement of the organization, including its balance sheet and receipts and disbursements for the preceding year certified as required by the form of the annual report" and added the current language; and in Subsection C, after "specified in Section", deleted "101(fee schedule) of the Insurance Code" and added "59A-6-1 NMSA 1978".
Severability.
— Laws 2014, ch. 59, § 54 provided that if any part or application of the provisions of Laws 2014, ch. 59 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 48 - Prepaid Dental Plans › Section 59A-48-11 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1991, ch. 9, § 45 repealed 59A-48-11 NMSA 1978, as enacted by Laws 1984, ch. 127, § 890, relating to taxes, effective July 1, 1993.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 48 - Prepaid Dental Plans › Section 59A-48-12 - Operational expenses.

No more than thirty percent of prepaid charges in the first year of operation, twenty-five percent in the second year of operation and twenty percent of prepaid charges in any subsequent year shall be used for the marketing and administrative expenses of a prepaid dental plan organization, including costs related to soliciting members and providers.
History:
Laws 1984, ch. 127, § 891.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 48 - Prepaid Dental Plans › Section 59A-48-13 - Prohibited practices.

Article 16 [Chapter 59A, Article 16 NMSA 1978] of the Insurance Code relating to unfair trade practices and frauds shall apply to prepaid dental plan organizations, except as to the extent the superintendent determines that the nature of prepaid dental plan organizations render particular provisions of such law inappropriate.
History:
Laws 1984, ch. 127, § 892.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 48 - Prepaid Dental Plans › Section 59A-48-14 - Agents and solicitors.

Solicitation of memberships in a prepaid dental plan shall be conducted by agents duly appointed by the dental plan organization or solicitors duly appointed by such agents, while licensed as such agents or solicitors under the same provisions and requirements of Articles 11 [Chapter 59A, Article 11 NMSA 1978] (licensing procedures) and 12 [Chapter 59A, Article 12 NMSA 1978] (insurance agents, brokers and solicitors) of the Insurance Code as apply to health insurance agents and solicitors. The fees for such licensing shall be the same as for such insurance agents and as specified in Section 101 [59A-6-1 NMSA 1978] (fee schedule) and Paragraph I of Section 185 [59A-11-6 NMSA 1978] of the Insurance Code.
History:
Laws 1984, ch. 127, § 893.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 48 - Prepaid Dental Plans › Section 59A-48-15 - Suspension or revocation of certificate of authority.

A. The superintendent may suspend or revoke any certificate of authority of a prepaid dental plan organization if he finds that any of the following conditions exist:
(1) the prepaid dental plan organization is operating contrary to its basic organizational documents or in a manner contrary to that described in, and reasonably inferred from, any other information submitted pursuant to Section 883 [59A-48-4 NMSA 1978] of this article;
(2) the prepaid dental plan organization issued membership coverage which does not comply with the requirements of Section 887 [59A-48-8 NMSA 1978] of this article;
(3) the prepaid dental plan does not provide or arrange for basic dental services appropriate to such plan as determined by the director of the health services division of the health and environment department [department of health];
(4) the prepaid dental plan organization can no longer be expected to meet the obligations to members or prospective members;
(5) the prepaid dental plan organization, or any authorized person on its behalf, has advertised or merchandized [merchandised] its services in an untrue, misleading, deceptive or unfair manner; or
(6) the prepaid dental plan organization has failed to substantially comply with this article or any rules and regulations promulgated thereunder.
B. When the certificate of authority of a prepaid dental plan organization is suspended the organization shall not, during the period of such suspension, accept any additional members except newborn children or other newly acquired dependents of existing members and shall not engage in any advertising or solicitation.
C. When the certificate of authority of a prepaid dental plan organization is revoked, such organization shall proceed immediately following the effective date of the order of revocation, to conclude its affairs and shall conduct no further business except as may be essential to the orderly conclusion of solicitation. The superintendent by written order, may permit such further operation of the organization as the superintendent finds to be in the best interest of members to the end that members shall be afforded the greatest practical opportunity to obtain continuing prepaid dental plan coverage.
D. Notwithstanding the provisions of Subsections B and C of this section, a prepaid dental plan organization which has had its certificate of authority denied, suspended or revoked, or has suffered an adverse decision by the superintendent shall be entitled to a hearing pursuant to Article 4 [Chapter 59A, Article 4 NMSA 1978] (examinations, hearings and appeals) of the Insurance Code.
History:
Laws 1984, ch. 127, § 894.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Laws 1991, ch. 25, § 16 repealed former 9-7-4 NMSA 1978, relating to the health and environment department, and enacted a new 9-7-4 NMSA 1978, creating the department of health.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 48 - Prepaid Dental Plans › Section 59A-48-16 - Approval of advertising and sales material.

A. The prepaid dental plan organization shall prior to use thereof file with the superintendent for his approval all advertising and sales material proposed to be used by it, through agents, solicitors, or otherwise, in advertising solicitation or sale of membership coverage to be offered by such organization.
B. Within thirty (30) days after such filing the superintendent shall either approve or disapprove the advertising matter or sales material so filed; and if not disapproved within such period or within such extension of not to exceed an additional thirty (30) days as may be requested by the superintendent and communicated by him in writing to the prepaid dental plan organization, the advertising matter and sales material shall be deemed approved.
C. The superintendent shall disapprove any such advertising matter or sales material if found by him to be in whole or part untrue, deceptive, misleading, or conducive to misrepresentation.
D. The superintendent may withdraw any previous approval, or negate any prior failure to disapprove within the applicable period, as to any advertising matter or sales material found by him to be subject to disapproval on any of the grounds stated in this section. Any such withdrawal of a prior approval or negation of prior failure to disapprove, shall allow a reasonable period for withdrawal of the advertising matter or sales material involved.
E. Any such disapproval, withdrawal, or negation shall be by the superintendent's order stating the grounds therefor.
F. No prepaid dental plan organization and no representative thereof shall use or permit to be outstanding, any advertising matter or sales material as to which the superintendent's disapproval then exists. In addition to other applicable penalties for violation of this section, the superintendent may without additional cause withdraw approval of any membership coverage or other form as to which such advertising or sales material is used.
History:
Laws 1984, ch. 127, § 895.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 48 - Prepaid Dental Plans › Section 59A-48-17 - Solicitation not violation of certain laws relating to providers.

Solicitation by prepaid dental plan organizations or anyone acting on their behalf to educate members and potential members of the coverage and operation of the organization's plan shall not be construed to be a violation of any provisions of law relating to solicitation or advertising by prepaid dental plan providers, if such solicitation including advertising and sales material:
A. is approved in advance by the superintendent as provided for in Section 895 [59A-48-16 NMSA 1978] of this article;
B. does not identify the providers nor describe their professional qualifications, except upon the request of the person being solicited;
C. does not describe the professional experience or attainments of such providers individually or as a group or contain language that directly or indirectly states, evaluates or lauds the professional competence, skills or reputations of such providers; and
D. shall not otherwise cause any of such providers to violate any professional ethics or laws prohibiting the solicitation of patients, except as permitted in this article.
History:
Laws 1984, ch. 127, § 896.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 48 - Prepaid Dental Plans › Section 59A-48-18 - Conservation, rehabilitation, liquidation.

Any conservation, rehabilitation or liquidation of a prepaid dental plan organization shall be deemed to be that of an insurer and shall be conducted pursuant to Article 41 [Chapter 59A, Article 41 NMSA 1978] of the Insurance Code.
History:
Laws 1984, ch. 127, § 897.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 48 - Prepaid Dental Plans › Section 59A-48-19 - Other provisions applicable.

In addition to those referred to in Chapter 59A, Article 48 NMSA 1978, the following articles and provisions of the Insurance Code [Chapter 59A NMSA 1978] shall also apply, to the extent reasonably applicable and subject to the provisions of that article, as to prepaid dental plan organizations, their sponsors, directors, officers, personnel and representatives and member contracts. For the purposes of this provision, such organizations may be referred to as "insurers" and such contracts as "policies":
A. Chapter 59A, Article 1 NMSA 1978;
B. Chapter 59A, Article 2 NMSA 1978;
C. Chapter 59A, Article 4 NMSA 1978;
D. Subsection C of Section 59A-5-22 NMSA 1978;
E. Section 59A-5-33 NMSA 1978;
F. Sections 59A-6-1, 59A-6-3, 59A-6-4 and 59A-6-6 NMSA 1978;
G. Section 59A-7-11 NMSA 1978 [repealed];
H. Chapter 59A, Article 8 NMSA 1978;
I. Chapter 59A, Article 10 NMSA 1978;
J. Section 59A-12-22 NMSA 1978;
K. the Insurance Fraud Act [Chapter 59A, Article 16C NMSA 1978];
L. Chapter 59A, Article 18 NMSA 1978;
M. the Policy Language Simplification Law [Chapter 59A, Article 19 NMSA 1978];
N. Section 59A-34-10 NMSA 1978, as to domestic prepaid dental plans; and
O. The Insurance Holding Company Law [Chapter 59A, Article 37 NMSA 1978].
History:
Laws 1984, ch. 127, § 898; 2001, ch. 297, § 7; 2007, ch. 282, § 12.
ANNOTATIONS
The 2007 amendment,
effective June 15, 2007, added Subsection O.
The 2001 amendment,
effective June 15, 2001, inserted current Subsection K; redesignated former Subsection K as L; redesignated former Subsection L as updated Subsection M; deleted former Subsection N, listing Article 53 and substituted the citation of the provision for the title throughout the section.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 49 - Prearranged Funeral Plans › Section 59A-49-1 - Short title.

This article [Chapter 59A, Article 49 NMSA 1978] may be cited as the "Prearranged Funeral Plan Regulatory Law".
History:
Laws 1984, ch. 127, § 899.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance §§ 8, 1098.
What are necessary funeral expenses within coverage of medical payment and funeral expense provision of insurance policy, 87 A.L.R.3d 497.
Construction and effect of contracts or insurance policies providing pre-need coverage of burial expense or services, 67 A.L.R.4th 36.
44 C.J.S. Insurance §§ 10 et seq., 43.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 49 - Prearranged Funeral Plans › Section 59A-49-2 - Purpose of article.

Money for funeral and burial purposes usually comes from one or more sources, such as the proceeds of life insurance, allowances of governmental agencies, union and fraternal organization benefits and savings and estate funds. Sometimes funeral insurance is also sold for such purposes. Experience in this and other states has proven that contract payments for funeral insurance are customarily to be made within a short period of time as compared to the average lapse of time until performance of the funeral insurance; that during the long interval between full receipt of the purchase price and contract performance, the possibilities for fraud are great and risk of insolvency, with consequent inability to perform, are inherent; and that, in addition to regulation of funeral plans in the same manner as life insurance, providing for the establishment of trust funds to require reserves sufficient to assure the purchasers that the sellers of funeral plans will be able to complete their contracts when the time for performance arrives and other restrictions are required to protect the public welfare, health and safety. The purpose of this article is to regulate funeral plans and related matters as experience has proven necessary in order to protect against fraud and deceit and otherwise to accomplish and promote the protection and welfare of the public.
History:
Laws 1984, ch. 127, § 900.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance § 8.
Contracts entered into before death, relating to burial or cremation, or steps incident thereto, as opposed to public policy, or as proper subject of regulation by statute, 68 A.L.R. 1525.
Validity of statutes regulating pre-need contracts for the sale or furnishing of burial services and merchandise, 68 A.L.R.2d 1251.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 49 - Prearranged Funeral Plans › Section 59A-49-3 - Prearranged funeral plans and purchases; regulation and control.

The superintendent shall regulate and control, in the same manner and with the same powers as he regulates the business of life insurance, the granting, sale or offering for sale of prearranged funeral plans. Provided however, that the provisions governing prearranged funeral plans contained in this article that require stricter control or higher obligations on the part of the seller shall control.
History:
Laws 1984, ch. 127, § 901.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance § 8.
What constitutes insurance - burial expenses, 63 A.L.R. 723, 100 A.L.R. 1449, 119 A.L.R. 1241.
Contracts entered into before death, relating to burial or cremation, or steps incident thereto, as opposed to public policy, or as proper subject of regulation by statute, 68 A.L.R. 1525.
Validity of statutes regulating pre-need contracts for the sale or furnishing of burial services and merchandise, 68 A.L.R.2d 1251.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 49 - Prearranged Funeral Plans › Section 59A-49-5 - Restrictions on persons, places for sale of funeral plans.

A. No person who works in, or owns any interest in, any business which sells or furnishes any of the property, facilities or services customarily furnished in connection with funerals, burials or other services attending the disposition of human bodies after death may be licensed or otherwise authorized to sell prearranged funeral plans, but may be licensed or otherwise authorized to sell life insurance specifically designed to fund funeral plans.
B. No person licensed or otherwise authorized to sell funeral plans may pay any retainer, salary, commission or premium to any person who sells or furnishes any personal property, facilities or services customarily furnished in connection with funerals or other services attending the disposition of human bodies after death for soliciting or otherwise promoting the sale of funeral plans.
History:
Laws 1984, ch. 127, § 903; 1987, ch. 48, § 1.
ANNOTATIONS
Sale of life insurance.
— A person licensed to sell life insurance specifically designed to fund funeral plans need not be licensed to practice "funeral service." 1987 Op. Att'y Gen. No. 87-60.
If the seller of life insurance specifically designed to fund funeral plans is a funeral practitioner, the seller must be sure to conduct the sale in a way that does not deprive or tend to deprive a person desiring to acquire funeral services of the advantages of competition in their acquisition, such as representing that his particular funeral establishment must be the beneficiary, or that the funds generated by the policy can be used only at his establishment; such practice would cause the life insurance to become a "funeral plan" under 59A-49-4A NMSA 1978, which a funeral practitioner is forbidden to prearrange. 1987 Op. Att'y Gen. No. 87-60.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance § 8.
What constitutes insurance - burial expenses, 63 A.L.R. 723, 100 A.L.R. 1449, 119 A.L.R. 1241.
Contracts entered into before death, relating to burial or cremation, or steps incident thereto, as opposed to public policy, or as proper subject of regulation by statute, 68 A.L.R. 1525.
Validity of statutes regulating pre-need contracts for the sale or furnishing of burial services and merchandise, 68 A.L.R.2d 1251.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 49 - Prearranged Funeral Plans › Section 59A-49-7 - May not enforce contract sold in violation; insurer may not pay to restricted persons without consent.

A. No person may enforce in any court of this state any asserted obligation of a purchaser of a funeral plan sold in violation of this article.
B. No authorized insurer shall pay or permit to be paid any money accruing as a benefit of a policy to any person restricted from selling funeral plans under Subsection A of Section 903 [59A-49-5 NMSA 1978] of this article without the written consent of the person or persons entitled to such benefit after accrual thereof.
History:
Laws 1984, ch. 127, § 905.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 49 - Prearranged Funeral Plans › Section 59A-49-8 - Criminal penalties.

Any seller of prearranged funeral plans who sells any such plan without having been properly licensed to do so, or who violates any of the requirements of this article or any lawful regulation or order of the superintendent in connection with the sale of funeral plans, is guilty of a misdemeanor, and upon conviction shall be punished by a fine not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000). Each sale of each instrument shall be considered a separate offense, and each day in which any seller fails to comply with a lawful order of the superintendent is a separate offense. The penalties contained in this section shall be in addition to and not in lieu of any other penalties which may apply.
History:
Laws 1984, ch. 127, § 906.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
Contracts entered into before death, relating to burial or cremation, or steps incident thereto, as opposed to public policy, or as proper subject of regulation by statute, 68 A.L.R. 1525.
Validity of statutes regulating pre-need contracts for the sale or furnishing of burial services and merchandise, 68 A.L.R.2d 1251.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 50 - Motor Clubs › Section 59A-50-1 - Short title.

This article [Chapter 59A, Article 50 NMSA 1978] may be cited as the "Motor Club Law".
History:
Laws 1984, ch. 127, § 907.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
7A Am. Jur. 2d Automobiles and Highway Traffic § 62.
Constitutionality, construction and application of statutes relating to motor club service, 89 A.L.R. 930.
Combining or "stacking" of "no fault" or personal injury protection (PIP) coverages in automobile liability policy or policies, 29 A.L.R.4th 12.
Combining or "stacking" medical payment provisions of automobile liability policy or policies issued by one or more insurers to one insured, 29 A.L.R.4th 49.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 50 - Motor Clubs › Section 59A-50-3 - Certificate of authority required; fees.

No person shall provide motor club services or do business as a motor club in this state without having first met the requirements of this article, and having obtained a certificate of authority from the superintendent. The fee for such certificate shall be as specified in Section 101 [59A-6-1 NMSA 1978] (fee schedule) of the Insurance Code.
History:
Laws 1984, ch. 127, § 909.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 50 - Motor Clubs › Section 59A-50-5 - Issuance, refusal of certificate of authority; continuance or expiration.

A. Within a reasonable time after application for certificate of authority is filed, the superintendent shall either issue or refuse to issue the certificate. The superintendent shall issue the certificate to the applicant unless:
(1) the applicant has not met all requirements of this article; or
(2) the applicant does not, in the superintendent's judgment, have sufficient financial responsibility to engage in business as a motor club; or
(3) the applicant has failed to make a reasonable showing that all of its owners, managers, officers, directors or representatives are persons of reliability and integrity.
B. If the superintendent refuses to issue the certificate of authority he shall notify the applicant as soon as practicable, stating the reasons for such refusal, and inform the applicant of its right to a hearing on the matter as provided in Section 59 [59A-4-15 NMSA 1978] (hearings, in general) of the Insurance Code.
C. All certificates of authority issued under this article shall be subject to continuance and expiration in the same applicable manner and on dates as provided in Article 5 [Chapter 59A, Article 5 NMSA 1978] of the Insurance Code with respect to certificates of authority of insurers, and for the purpose thereof a motor club may be referred to as an "insurer" therein. As prerequisite to continuance of the certificate of authority the superintendent may require the motor club to file with him its financial statement for the previous calendar year in such form as he may prescribe or accept.
History:
Laws 1984, ch. 127, § 911.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 50 - Motor Clubs › Section 59A-50-6 - Additional security.

A. In addition to the security deposited by a motor club at the time application for certificate of authority is made, the superintendent may require the motor club to establish and maintain reserves out of the receipts from the sale of motor club services under contract. The amount required, if any, may be established from time to time as the superintendent determines is reasonable and necessary for the protection of motor club members but in any event shall not exceed fifty percent of the receipts collected for the period of the service contract. Funds received under this section shall be placed in trust and released as directed by regulation or order of the superintendent.
B. Notwithstanding the provisions of Section 910 [59A-50-4 NMSA 1978] of this article and Subsection A of this section the superintendent may require additional general deposits, in a reasonable amount and in admitted assets of the types of securities authorized by law, whenever he deems it necessary.
History:
Laws 1984, ch. 127, § 912.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 50 - Motor Clubs › Section 59A-50-7 - Service contracts.

A. Any motor club service contract form, amendment thereof and agreement collateral thereto shall be filed with the superintendent before final execution of any such document. The superintendent shall prohibit the use of any language, condition or requirement in such service contracts, amendments and collateral agreements which is false, misleading, unfair, inequitable or otherwise contrary to public interest. Any prohibition of language, condition or requirement shall be made by the superintendent within thirty (30) days after the date the document is filed or shall be made anytime thereafter pursuant to the administrative hearing procedures provided for in Article 4 [Chapter 59A, Article 4 NMSA 1978] of the Insurance Code.
B. Each service contract shall contain a provision that if the motor club is unable to perform a contract obligation either on a service or indemnity basis the cash retail equivalent shall be paid to the member.
History:
Laws 1984, ch. 127, § 913.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 50 - Motor Clubs › Section 59A-50-8 - Investigations, examinations.

The superintendent shall have the same powers and authority under this article to conduct investigations, and to conduct examinations of books, records and accounts at the expense of the person so examined, as vested in him with respect to insurers and other persons under Article 4 [Chapter 59A, Article 4 NMSA 1978] of the Insurance Code and subject to the applicable provisions of such Article 4.
History:
Laws 1984, ch. 127, § 914.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 50 - Motor Clubs › Section 59A-50-9 - Suspension, revocation or refusal to continue certificate of authority.

The superintendent may suspend, revoke, or refuse to continue the certificate of authority of a motor club upon finding, after notice and opportunity for hearing, that the motor club has:
A. violated any provision of this article;
B. failed to maintain the standards required for issuance of its original certificate of authority as specified in this article;
C. become insolvent;
D. liabilities in excess of its assets;
E. engaged in one or more fraudulent or deceptive acts; or
F. entered into a service contract the form of which has not been filed with the superintendent, or containing language, condition or requirement prohibited by the superintendent pursuant to Section 913 [59A-50-7 NMSA 1978] of this article.
History:
Laws 1984, ch. 127, § 915.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 50 - Motor Clubs › Section 59A-50-10 - Name, trademarks, emblems.

The superintendent may disapprove the name, trademarks and emblems which a motor club employs or proposes to employ in connection with its business. If such a name, trademarks or emblems are distinctive and are not similar to or in conflict with a local organization or a nationally registered or copyrighted name, emblem or insignia and not likely to confuse or mislead the public as to the nature or identity of the motor club using or proposing to use it, and will not interfere with the transactions of a motor club already operating in this state, then they shall be approved. Otherwise, the superintendent may disapprove their use and order that the motor club cease to use them.
History:
Laws 1984, ch. 127, § 916.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 50 - Motor Clubs › Section 59A-50-11 - Violation hearings.

A. If as a result of investigation or examination the superintendent has cause to believe that any person is violating any provision of this article, he shall send notice of the violation by certified mail to the person so believed to be in violation. The notice shall state the time and place for a hearing to be held on the alleged violation, within not less than thirty (30) days from the date of the notice.
B. The hearing shall be conducted and be subject to provisions relative to hearings of the superintendent in general under Article 4 [Chapter 59A, Article 4 NMSA 1978] of the Insurance Code.
History:
Laws 1984, ch. 127, § 917.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 50 - Motor Clubs › Section 59A-50-12 - Service of process; superintendent appointed attorney.

A. Every authorized motor club shall file with the superintendent its appointment of the superintendent in writing, on form as prescribed and furnished by the superintendent, as its true and lawful attorney, upon whom all lawful process in any action or proceeding against the motor club may be served. In the power of attorney the motor club shall stipulate and agree that all such process served upon the superintendent, or, in his absence, upon any employee in apparent charge of his office, shall be of the same legal force and validity as if served on the motor club itself, and that the authority shall continue in force so long as any liability or obligation remains outstanding in this state against the motor club by reason of its operations under this article.
B. Whenever such process is served upon the superintendent three (3) copies thereof shall be furnished. The superintendent shall forthwith forward by certified mail (return receipt requested) one copy of the process to the motor club and one copy to its resident manager or other similar official, if any, in this state, directed to the address of the motor club, manager or official at address thereof last of record with the superintendent. The server of the process shall at time of such service pay to the superintendent the service of process fee in amount specified in Section 101 [59A-6-1 NMSA 1978] (fee schedule) of the Insurance Code, taxable as costs in the action or proceeding.
C. Process so served upon the superintendent and copies mailed as hereinabove required shall constitute effective service of such process upon the motor club.
History:
Laws 1984, ch. 127, § 918.
ANNOTATIONS
Cross references.
— For service of process, see Rule 1-004 NMRA.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 50 - Motor Clubs › Section 59A-50-13 - Registered representatives required; qualifications for registration.

A. No person shall be, act as or purport to be a representative of a motor club in this state unless then registered as such with the superintendent by the motor club.
B. To qualify for registration the applicant shall:
(1) be an individual not less than eighteen years of age;
(2) be of good personal and business reputation;
(3) not previously have been refused registration or had registration revoked;
(4) be suitable and competent to act as such representative; and
(5) intend in good faith to act and hold himself out as such a representative.
C. As part of an application for registration, a nonresident applicant shall appoint the superintendent, on a form prescribed and furnished by the superintendent, as agent on whom may be served all legal process issued by a court in this state in any action involving the nonresident registrant. The appointment is irrevocable and continues for so long as an action involving the nonresident registrant could arise. Duplicate copies of process shall be served upon the superintendent or other person in apparent charge of the insurance division during the superintendent's absence, accompanied by payment of the process service fee specified in Section 59A-6-1 NMSA 1978. Upon service the superintendent shall promptly forward a copy by certified mail, return receipt requested, to the nonresident registrant at his last address of record with the superintendent. Process served and copy forwarded as so provided constitutes personal service upon the nonresident registrant.
D. A nonresident registrant shall also file with the superintendent a written agreement to appear before the superintendent pursuant to a notice of hearing, show cause order or subpoena issued by the superintendent and deposited, postage paid, by certified mail in a letter depository of the United States post office, addressed to the nonresident registrant at his last address of record with the superintendent, and that upon failure of the nonresident registrant to appear, the nonresident registrant consents to subsequent suspension, revocation or refusal of the superintendent to continue the license.
History:
Laws 1984, ch. 127, § 919; 1999, ch. 272, § 24; 1999, ch. 289, § 37.
ANNOTATIONS
The 1999 amendment,
effective June 18, 1999, deleted former Paragraph B(2), which read "be a resident of New Mexico", redesignated the subsequent paragraphs accordingly, and added Subsections C and D.
Laws 1999, ch. 272, § 24 and Laws 1999, ch. 289, § 37, both effective June 18, 1999, enacted identical amendments to this section. The section was set out as amended by Laws 1999, ch. 289, § 37.
See
12-1-8 NMSA 1978.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 50 - Motor Clubs › Section 59A-50-14 - Registration procedure and matters relating to registration of representatives.

Appointment of representatives, issuance or refusal of certificate of registration, continuance or expiration of registration, suspension, revocation or refusal to continue registration, and all related matters shall be governed by the applicable provisions of Article 11 [Chapter 59A, Article 11 NMSA 1978] (licensing procedures) of the Insurance Code as though registration of a motor club representative were the same as licensing of an agent by a casualty insurer, except that applicant for registration as motor club representative shall not be required to take and pass an examination, whether written or oral, as a qualification for registration. The fee for filing application for registration and annual continuance of registration shall be as specified in Section 101 [59A-6-1 NMSA 1978] (fee schedule) of the Insurance Code.
History:
Laws 1984, ch. 127, § 920.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 50 - Motor Clubs › Section 59A-50-16 - Representing unauthorized motor club prohibited.

No person shall in this state be, act as, or purport to be a salesman, solicitor or representative of a motor club doing business in this state and not then holding certificate of authority issued by the superintendent.
History:
Laws 1984, ch. 127, § 922.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 50 - Motor Clubs › Section 59A-50-17 - Limitations upon advertising.

Motor clubs shall make no reference to their certificate of authority or approval from the superintendent or the state in any advertising, circular, contract or membership card nor shall any such motor club advertise or describe its services in such a manner as would lead the public to believe that such services include motor vehicle insurance.
History:
Laws 1984, ch. 127, § 923.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 50 - Motor Clubs › Section 59A-50-18 - Service contract and membership card.

Every motor club shall furnish to its members a service contract and membership card together with the following information:
A. the exact name of the motor club;
B. the exact location of the motor club's home office, and of its usual place or places of business in this state, giving telephone numbers, street numbers, city and zip code; and
C. a description of the services or benefits to which the member or subscriber is entitled. The completed application and the description of services shall constitute the service contract unless the motor club otherwise provides and the superintendent approves another form of service contract.
History:
Laws 1984, ch. 127, § 924.