reglab/statecodes huggingface dataset:
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12 - Insurance Producers › Section 59A-12-1 - Purpose and scope of article.

Chapter 59A, Article 12 NMSA 1978, in conjunction with Chapter 59A, Article 11 NMSA 1978, governs the qualifications and procedures for the licensing of insurance producers. Chapter 59A, Article 12 NMSA 1978 does not apply to surplus lines brokers that are licensed pursuant to Chapter 59A, Article 14 NMSA 1978 and that sell, solicit or negotiate insurance in this state solely for placement with eligible surplus lines insurers, except as provided in Sections 22 and 23 [59A-11-23 and 59A-11-24 NMSA 1978] of this 2016 act.
History:
Laws 1984, ch. 127, § 201; 2016, ch. 89, § 25.
ANNOTATIONS
The 2016 amendment,
effective July 1, 2017, clarified the purpose and scope of Chapter 59A, Article 12; in the catchline, added "purpose and"; in the first sentence, deleted "This article applies only to agents, brokers and solicitors, as hereinafter defined, as to transaction of one or more kinds of insurance or subdivisions thereof as defined in Article 7 of the Insurance Code" and added the remainder of the section.
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.
Claims not preempted by federal law.
— The Employee Retirement Income Security Act of 1974 (ERISA) did not preempt an insured's pre-plan fraud claims against its insurer.
Woodworker's Supply, Inc. v. Principal Mut. Life Ins. Co.
, 170 F.3d 985 (10th Cir. 1999).
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance §§ 108 to 158.
Provisions of insurance company's contract with independent insurance agent restricting competitive placements by agent as illegal restraint of trade under state law, 42 A.L.R.4th 1072.
Liability of insurance agent or broker to insured for misrepresentation of cash surrender value or accumulated value benefits of life insurance policy, 44 A.L.R.4th 1030.
Necessity of expert testimony to show standard of care in negligence action against insurance agent or broker, 52 A.L.R.4th 1232.
Liability of tortfeasor's insurance agent or broker to injured party for failure to procure or maintain liability insurance, 72 A.L.R.4th 1095.
Liability of insurer or agent of insurer for failure to advise insured as to coverage needs, 88 A.L.R.4th 249.
Liability of insurance agent or broker for placing insurance with insolvent carrier, 42 A.L.R.5th 199.
Insurance agents' and brokers' professional liability insurance, 55 A.L.R.5th 681.
Liability of insurance agent or broker on ground of inadequacy of liability-insurance coverage procured, 60 A.L.R.5th 165.
44 C.J.S. Insurance § 85 et seq.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12 - Insurance Producers › Section 59A-12-3 - "Broker" defined.

For the purpose of the Insurance Code [Chapter 59A NMSA 1978], a "broker" is a type of insurance producer who, not being an agent of the insurer, as an independent contractor and on behalf of the insured solicits, negotiates or procures insurance or annuity contracts or renewal or continuation thereof for insureds or prospective insureds other than the broker. "Broker" does not include a surplus line broker, as defined in Chapter 59A, Article 14 NMSA 1978.
History:
Laws 1984, ch. 127, § 203; 2016, ch. 89, § 27; 2021, ch. 108, § 7.
ANNOTATIONS
The 2021 amendment,
effective July 1, 2021, removed the definition of "service representative"; in the section heading, after "Broker", deleted "and service representative"; and deleted former Subsection B.
The 2016 amendment,
effective July 1, 2017, amended the definition of "broker" and defined "service representative" as used in the Insurance Code; in the catchline, after "'broker'", deleted "'nonresident broker'" and added "and 'service representative'"; in Subsection A, after "'broker' is a", deleted "person generally" and added "type of insurance producer", and after "insureds other than", deleted "himself" and added "the broker"; deleted former Subsection B; deleted the subsection designation "C" and added the sentence from former Subsection C to Subsection A, and in the sentence from former Subsection C, after "defined in", added "Chapter 59A", and after "Article 14", deleted "of the Insurance Code" and added "NMSA 1978; and"; and added a new Subsection B.
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.
Cross references.
— For the Insurance Code,
see
59A-1-1 NMSA 1978 and notes thereto.
Nonresident broker's license could not be issued
to a person who desired to solicit insurance business for a company because he would be acting as an agent or a solicitor for an agent. 1945 Op. Att'y Gen. No. 45-4640.
Foreign corporation.
— As a prerequisite to being licensed as a nonresident broker, a foreign corporation does not have to be admitted to do business in New Mexico. 1963 Op. Att'y Gen. No. 63-16.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12 - Insurance Producers › Section 59A-12-4 - License required.

A person shall not sell, solicit or negotiate insurance in this state for any class or classes of insurance unless the person is licensed for that line of insurance in accordance with the Insurance Code.
History:
Laws 1984, ch. 127, § 205; 1999, ch. 272, § 5; 1999, ch. 289, § 6; 2016, ch. 89, § 28.
ANNOTATIONS
The 2016 amendment,
effective July 1, 2017, provided that a license is required to sell insurance in New Mexico; in the catchline, changed "'solicitor' defined" to "license required"; and in the paragraph, deleted "For the purposes of Chapter 59A, Article 12 NMSA 1978, a 'solicitor' is an individual employed by a licensed agent to solicit insurance and perform such other duties in handling the agent's business as the agent may authorize" and added the remainder of the section.
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.
The 1999 amendment,
effective June 18, 1999, updated the statutory reference and deleted "resident" following "licensed".
Soliciting and writing insurance distinguished from doing business.
— Instruction leading jury to believe they were warranted in convicting defendant if he had done business without a license was erroneous, where he was only charged with having solicited and written insurance.
State v. Loveless
, 1935-NMSC-023, 39 N.M. 142, 42 P.2d 211.
Employees of corporation licensed as insurance agent are solicitors
and must get licenses before they may solicit insurance on corporation's behalf. 1943 Op. Att'y Gen. No. 43-4227.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
Meaning of term "solicit" in statute relating to insurance agents, 48 A.L.R. 1173.
44 C.J.S. Insurance § 85 et seq.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12 - Insurance Producers › Section 59A-12-5 - Repealed.

History:
Laws 1984, ch. 127, § 206; repealed by Laws 2016, ch. 89, § 70.
ANNOTATIONS
Repeals.
— Laws 2016, ch. 89, § 70 repealed 59A-12-5 NMSA 1978, as enacted by Laws 1984, ch. 127, § 206, relating to service representative defined, 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 12 - Insurance Producers › Section 59A-12-6 - Repealed.

History:
Laws 1984, ch. 127, § 207; 2003, ch. 202, § 6; 2007, ch. 282, § 6; repealed by Laws 2016, ch. 89, § 70.
ANNOTATIONS
Repeals.
— Laws 2016, ch. 89, § 70 repealed 59A-12-6 NMSA 1978, as enacted by Laws 1984, ch. 127, § 207, relating to license required, penalty, 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 12 - Insurance Producers › Section 59A-12-8 - Repealed.

History:
Laws 1984, ch. 127, § 209; 1999, ch. 272, § 6; 1999, ch. 289, § 7; repealed by Laws 2016, ch. 89, § 70.
ANNOTATIONS
Repeals.
— Laws 2016, ch. 89, § 70 repealed 59A-12-8 NMSA 1978, as enacted by Laws 1984, ch. 127, § 209, relating to controlled business, 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 12 - Insurance Producers › Section 59A-12-9 - Repealed.

History:
Laws 1984, ch. 127, § 210; 1987, ch. 259, § 13; repealed by Laws 2016, ch. 89, § 70.
ANNOTATIONS
Repeals.
— Laws 2016, ch. 89, § 70 repealed 59A-12-9 NMSA 1978, as enacted by Laws 1984, ch. 127, § 210, relating to controlled business, exception, 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 12 - Insurance Producers › Section 59A-12-10 - Repealed.

History:
1978 Comp., § 59A-12-10, enacted by Laws 1997, ch. 48, § 1; 1999, ch. 272, § 7; 1999, ch. 289, § 8; 2001, ch. 309, § 1; 2013, ch. 74, § 18; repealed by Laws 2016, ch. 89, § 70.
ANNOTATIONS
Repeals.
— Laws 2016, ch. 89, § 70 repealed 59A-12-10 NMSA 1978, as enacted by Laws 1997, ch. 48, § 1, relating to licensing of lending institution, definitions and exceptions, 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 12 - Insurance Producers › Section 59A-12-11 - No license where shares or interest used as inducement to insurance.

The superintendent shall not license as an insurance producer, or permit any such license to continue, if the superintendent finds that the licensee did, or that the applicant for license intends to offer, give or sell stock or other ownership or participating interest in the agency or brokerage as inducement to or in connection with purchase of insurance.
History:
Laws 1984, ch. 127, § 212; 2016, ch. 89, § 30.
ANNOTATIONS
The 2016 amendment,
effective July 1, 2017, after "shall not license as", deleted "agent, broker or solicitor" and added "an insurance producer", after "license to continue", deleted "in force", and after "applicant for license", deleted "probably will" and added "intends to".
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 12 - Insurance Producers › Section 59A-12-12 - Application and general qualifications for individual insurance producer license.

A. An individual applying for a resident insurance producer license shall apply to the superintendent on the uniform application and declare under penalty of refusal, suspension or revocation of the license that the statements made in the application are true, correct and complete to the best of the applicant's knowledge and belief.
B. Before approving the application, the superintendent shall:
(1) confirm that the applicant:
(a) is at least eighteen years of age;
(b) has not committed any act that is a ground for denial, suspension or revocation under the Insurance Code;
(c) has paid the fees set forth in Section 59A-6-1 NMSA 1978;
(d) has successfully passed the examinations for the lines of authority for which the application is made, if such examination is required; and
(e) is in compliance with other applicable qualifications and requirements of the Insurance Code;
(2) review the applicant's answers to the standard background questions on the uniform application;
(3) obtain the applicant's fingerprints; and
(4) conduct state and federal criminal background checks on the applicant.
C. The superintendent may require any documents reasonably necessary to verify the information contained in an application. The superintendent may obtain fingerprints from licensed resident insurance producers from whom fingerprints were not obtained at the time of application or when adding additional lines of authority to their license.
D. Each insurer that sells, solicits or negotiates any form of limited line credit insurance shall provide to each individual whose duties will include selling, soliciting or negotiating limited line credit insurance a program of instruction approved by the superintendent.
History:
Laws 1984, ch. 127, § 213; 1999, ch. 272, § 8; 1999, ch. 289, § 9; 1978 Comp., § 59A-12-2, repealed and reenacted by Laws 2016, ch. 89, § 31.
ANNOTATIONS
Repeals and reenactments.
— Laws 2016, ch. 89, § 31 repealed 59A-12-12 NMSA 1978, and enacted a new section, effective July 1, 2017.
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 12 - Insurance Producers › Section 59A-12-13 - Special requirements, title insurance producers.

A. The superintendent shall not issue or permit to continue an insurance producer license for title insurance except for an applicant or a licensee who, in addition to other applicable qualifications and requirements, owns, operates or controls an abstract plant consisting of a set of records in which an entry has been made of all documents or matters that under law impart constructive notice of matters affecting title to real property or any interest therein or encumbrance thereon, which have been filed or recorded in the county for which such title plant is maintained for a period of not less than twenty years immediately prior to date of application for license. Such records shall consist of:
(1) an index or indices in which notations of or references to any documents that describe property affected thereby are posted, entered or otherwise included, according to the property described therein, or copies or briefs of all documents that describe the property affected thereby that are sorted and filed according to such property; and
(2) an index or indices in which all other such documents are posted, entered or otherwise included, according to the name or names of the parties whose title to real property or any interest therein or encumbrances thereon is affected.
B. A license to issue title insurance shall permit the licensee to issue policies only on property located in the county or counties for which the licensee has the necessary abstract plant.
History:
Laws 1984, ch. 127, § 214; 2016, ch. 89, § 32.
ANNOTATIONS
The 2016 amendment,
effective July 1, 2017, removed the exemption from the requirement of having a twenty-year abstract plant, and replaced "agent" with "insurance producer"; in the catchline, after "title insurance", deleted "agents" and added "producers"; in Subsection A, in the introductory paragraph, after "issue or permit to", deleted "remain in force an agent" and added "continue an insurance producer", after "license", deleted "as to" and added "for", after "insurance except", deleted "as to" and added "for", after "an applicant", added "or a licensee", after "all documents or matters", deleted "which" and added "that", and after "not less than twenty", deleted "(20)", in Paragraph (1), after "references to any", deleted "such", after "briefs of all", deleted "such", and after "affected thereby", deleted "which" and added "that"; deleted Subsection B and redesignated former Subsection C as new Subsection B; and in Subsection B, after "A license", deleted "as agent".
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 12 - Insurance Producers › Section 59A-12-14 - Repealed.

History:
Laws 1984, ch. 127, § 215; repealed by Laws 2016, ch. 89, § 70.
ANNOTATIONS
Repeals.
— Laws 2016, ch. 89, § 70 repealed 59A-12-14 NMSA 1978, as enacted by Laws 1984, ch. 127, § 215, relating to special requirements as to solicitors, 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 12 - Insurance Producers › Section 59A-12-19 - Temporary licenses.

A. The superintendent may issue a temporary insurance producer license for a period not to exceed one hundred eighty days without requiring an examination if the superintendent deems that the temporary license is necessary for the servicing of an insurance business in the following cases:
(1) to the surviving spouse or court- appointed personal representative of a licensed insurance producer who dies or becomes mentally or physically disabled to allow adequate time for the sale of the insurance business owned by the insurance producer or for the recovery or return of the insurance producer to the business or to provide for the training and licensing of new personnel to operate the insurance producer's business;
(2) to a member or employee of a business entity licensed as an insurance producer, upon the death or disability of an individual designated in the business entity application or the license;
(3) to the designee of a licensed insurance producer entering active service in the armed forces of the United States; or
(4) in any other circumstance where the superintendent deems that the public interest will best be served by the issuance of the license.
B. The superintendent may by order limit the authority of any temporary licensee in any way deemed necessary to protect insureds and the public. The superintendent may require the temporary licensee to have a suitable sponsor who is a licensed insurance producer or insurer and who assumes responsibility for all acts of the temporary licensee and may impose other similar requirements designed to protect insureds and the public. The superintendent may by order revoke a temporary license if the interest of insureds or the public is endangered. A temporary license shall not continue after the owner or the personal representative disposes of the business.
History:
Laws 1984, ch. 127, § 220; 1978 Comp., § 59A-12-19, repealed and reenacted by Laws 2016, ch. 89, § 38.
ANNOTATIONS
Repeals and reenactments.
— Laws 2016, ch. 89, § 38 repealed 59A-12-19 NMSA 1978, and enacted a new section, effective July 1, 2017.
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 12 - Insurance Producers › Section 59A-12-20 - Place of business.

An insurance producer shall have and maintain a place of business accessible to the public where the licensee conducts transactions under the license. Nothing in this section shall prohibit maintenance of the place of business in the licensee's residence.
History:
Laws 1984, ch. 127, § 221; 1999, ch. 272, § 12; 1999, ch. 289, § 13; 2003, ch. 306, § 3; 2016, ch. 89, § 39.
ANNOTATIONS
The 2016 amendment,
effective July 1, 2017, required an insurance producer to maintain a place of business accessible to the public; in the catchline, after "place of business", deleted "display of license"; deleted the subsection designation "A" and "A general lines agent" and added "An insurance producer"; and deleted Subsections B and C.
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.
The 2003 amendment,
effective June 20, 2003, in Subsection A, deleted "The address of the place of business shall appear upon the application for license when issued, and the licensee shall promptly notify the superintendent in writing of any change of address".
The 1999 amendment,
effective June 18, 1999, in Subsection A, deleted "of this state" following "have and maintain" and "principally" following "the licensee" in the first sentence; substituted "the place of business" for "such place" and "change of address" for "change thereof" in the second sentence; and substituted "the place of business" for "such place" and deleted "in this state" at the end of the third sentence.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12 - Insurance Producers › Section 59A-12-20.1 - Repealed.

History:
Laws 2003, ch. 306, § 5; repealed by Laws 2016, ch. 89, § 70.
ANNOTATIONS
Repeals.
— Laws 2016, ch. 89, § 70 repealed 59A-12-20.1 NMSA 1978, as enacted by Laws 2003, ch. 306, § 5, relating to change of address, notice required, penalty, 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 12 - Insurance Producers › Section 59A-12-21 - Records of insurance producer.

A. Every insurance producer shall keep in the insurance producer's place of business complete records of transactions under the license. The record shall show the following information for each insurance policy placed by or through the licensee:
(1) the names of the insurer and insured;
(2) the number and expiration date of each policy;
(3) the premium payable for each policy;
(4) the names of all other persons from whom business is accepted or to whom commissions are promised or paid;
(5) all premiums collected; and
(6) any additional information the superintendent may require.
B. The records shall be open to the superintendent's examination, and the superintendent may at any reasonable time require the licensee to furnish, in the manner or form that the superintendent may require, any information kept or required to be kept in such records.
C. Records as to a particular policy may be destroyed on expiration of three years after the policy's expiration.
History:
Laws 1984, ch. 127, § 222; 2016, ch. 89, § 40.
ANNOTATIONS
The 2016 amendment,
effective July 1, 2017, required insurance producers to keep complete records of transactions under the license, amended the required information to be kept in the records, and removed the exemptions for life insurance, annuity contracts or health insurance; in the catchline, after "records of", deleted "general lines agent" and added "insurance producer"; in Subsection A, in the introductory paragraph, after "Every", deleted "general lines agent" and added "insurance producer", after "shall keep in", deleted "his" and added "the insurance producer's", after "place of business", deleted "referred to in Section 221 of this article", after "transactions under", deleted "his" and added "the", after "license", deleted "and those of his solicitors", after "The record shall show", added "the following information", and after "through the licensee", deleted "not less than" and added the paragraph designation "(1)", in Paragraph (1), after "insurer and insured;", deleted "the number and expiration date of, and premium payable as to, the policy, the names of all other persons from whom business is accepted or to whom commissions are promised or paid, all premiums collected, and such additional information as the superintendent may reasonably require", and added new Paragraphs (2) through (6); in Subsection B, after "furnish, in", deleted "such" and added "the"; in Subsection C, after "on expiration of three", deleted "(3)"; and deleted Subsection D.
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 12 - Insurance Producers › Section 59A-12-23 - Insurance vending machines.

A. A licensed insurance producer may solicit for and issue personal travel accident insurance policies of an authorized insurer by means of mechanical vending machines supervised by the insurance producer and placed at airports and other places of convenience to the traveling public, if the superintendent finds that:
(1) the policy provides reasonable coverage and benefits, is suitable for sale and issuance by vending machine and use of such a machine in a proposed location would be of material convenience to the public;
(2) the type of machine proposed to be used is reasonably suitable for the purpose;
(3) reasonable means are provided for informing prospective purchasers of policy coverages and restrictions;
(4) reasonable means are provided for refund of money inserted in defective machines and for which insurance so paid for is not received; and
(5) the cost of maintaining such a machine at a particular location is reasonable.
B. For each machine to be used the superintendent shall issue to the applicant a special vending machine license. The license shall state the name and address of the insurer and insurance producer, name of the policy to be sold and serial number and operating location of the machine. The license shall be subject to biennial continuation, to expiration, suspension or revocation coincidentally with that of the insurance producer. The superintendent shall also revoke the license as to any machine as to which the superintendent finds that license qualifications no longer exist. Proof of existence of a subsisting license shall be displayed on or about each machine in use in the manner that the superintendent reasonably requires.
History:
Laws 1984, ch. 127, § 224; 1999, ch. 272, § 13; 1999, ch. 289, § 14; 2016, ch. 89, § 42.
ANNOTATIONS
The 2016 amendment,
effective July 1, 2017, replaced "agent" with "insurance producer" throughout the section and extended the duration of a license; in Subsection B, after "The license shall be subject to", deleted "annual" and added "biennial", after "any machine as to which", deleted "he" and added "the superintendent", after "each machine in use in", deleted "such" and added "the", and after "manner", deleted "as" and added "that".
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.
The 1999 amendment,
effective June 18, 1999, deleted "resident" preceding "agent" in the introductory language of Subsection A.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12 - Insurance Producers › Section 59A-12-24 - Sharing of commissions.

A. An agent or broker shall share a commission or compensation for or on account of the solicitation or negotiation in this state of insurance on individuals or property or risks in this state only with the agent's duly licensed solicitor, or duly licensed agent of the insurer with which the insurance was placed, or duly licensed broker.
B. No such licensee shall share in commission or compensation as to a kind of insurance for which not licensed.
C. Such sharing in commissions and compensation between the same such licensees shall be infrequently only, and shall not unduly obviate the general necessity of appointment of the agent by the insurer with which the insurance is placed.
D. Nothing in the Insurance Code [Chapter 59A NMSA 1978] shall be deemed to prohibit payment, to or for the account of a former owner of an insurance agency or brokerage, of commissions or part thereof currently accruing on business of the agency or brokerage, as part of the purchase price of the agency or brokerage, whether or not such former owner is currently licensed as agent, solicitor or broker.
E. Nothing in the Insurance Code shall be deemed to prohibit the payment of a commission, compensation or other valuable consideration to the personal representative of the estate, their trust or beneficiary, of a deceased agent or broker or the heirs or devisees if the estate has been distributed, if that agent or broker would otherwise be entitled to that payment.
History:
Laws 1984, ch. 127, § 225; 1999, ch. 272, § 14; 1999, ch. 289, § 15; 2017, ch. 37, § 1.
ANNOTATIONS
The 2017 amendment,
effective June 16, 2017, allowed for payment of incurred insurance agent and broker commissions and other compensation to deceased agents' and brokers' estates, and added Subsection E.
The 1999 amendment,
effective June 18, 1999, in Subsection A, substituted "broker shall share a commission" for "nonresident broker or nonresident agent shall share a commission" near the beginning; deleted "resident" preceding "agent of the insurer" near the middle; and deleted "nonresident" preceding, and "or nonresident agent" following, "broker" at the end.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12 - Insurance Producers › Section 59A-12-26.1 - Insurance licensee continuing education fund.

There is created in the state treasury a fund that shall be known as the "insurance licensee continuing education fund". All fees imposed by the provisions of Section 59A-12-26 NMSA 1978 shall be deposited in the insurance licensee continuing education fund for the purpose of administering the continuing education program.
History:
Laws 1988, ch. 112, § 1; 2016, ch. 89, § 45.
ANNOTATIONS
The 2016 amendment,
effective July 1, 2017, clarified language regarding the insurance licensee continuing education fund; in the catchline, added "insurance licensee", and after "fund", deleted "appropriation"; in the first sentence, after "treasury a fund", deleted "which" and added "that"; and in the second sentence, after "provisions of Section", deleted "2 of this act" and added "59A-12-26 NMSA 1978", after "in the insurance licensee continuing education fund", deleted "and are appropriated", and after "administering the continuing education program", deleted "pursuant to the provisions of Section 59A-12-26 NMSA 1978 to be expended upon voucher by the superintendent of insurance".
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 12 - Insurance Producers › Section 59A-12-27 - Assumed names.

An insurance producer shall not do business under any name other than the insurance producer's legal name without prior written approval of the superintendent.
History:
Laws 2016, ch. 89, § 46.
ANNOTATIONS
Effective dates.
— Laws 2016, ch. 89, § 72 made Laws 2016, ch. 89, § 46 effective July 1, 2017.
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 12 - Insurance Producers › Section 59A-12-28 - Commissions.

A. An insurance company or insurance producer shall not pay a commission, service fee, brokerage or other valuable consideration to a person for selling, soliciting or negotiating insurance in this state if that person is required to be licensed under Chapter 59A, Article 12 NMSA 1978 and is not so licensed.
B. A person shall not accept a commission, service fee, brokerage or other valuable consideration for selling, soliciting or negotiating insurance in this state if that person is required to be licensed under Chapter 59A, Article 12 NMSA 1978 and is not so licensed.
C. Renewal or other deferred commissions may be paid to a person for selling, soliciting or negotiating insurance in this state if the person was required to be licensed under Chapter 59A, Article 12 NMSA 1978 at the time of the sale, solicitation or negotiation and was so licensed at that time.
D. An insurer or insurance producer shall not pay or assign commissions, service fees, brokerages or other valuable consideration to an insurance agency or to persons who do not sell, solicit or negotiate insurance in this state.
History:
Laws 2016, ch. 89, § 47.
ANNOTATIONS
Effective dates.
— Laws 2016, ch. 89, § 72 made Laws 2016, ch. 89, § 47 effective July 1, 2017.
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 12A - Insurance Administrators › Section 59A-12A-1 - Scope of the article.

Chapter 59A, Article 12A NMSA 1978 shall apply to all administrators who provide administrative services in connection with insurance or alternatives to insurance or who, in a fiduciary capacity or otherwise, manage or handle funds, money, premiums, fees or other forms of consideration in connection with insurance or alternatives to insurance. That article shall also apply to the claims practices of insurers or alternatives to insurance, whether or not they are administered by a third party.
History:
1978 Comp., § 59A-12A-1, enacted by Laws 1989, ch. 374, § 1.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12A - Insurance Administrators › Section 59A-12A-3 - License required; penalty.

A. No administrator shall perform or provide any service, function, duty or activity respecting any insurance, plan, self-insurance or alternatives to insurance in an administrative or management capacity in this state or with respect to risks located or partially located in this state or on behalf of persons in this state unless licensed as an administrator under the Insurance Code.
B. Licensing procedures for administrators shall be in accordance with Chapter 59A, Article 11 NMSA 1978.
C. In addition to any applicable denial, suspension or revocation of a license, refusal to continue license or administrative fine, violation of this section shall be a misdemeanor punishable by a fine not to exceed one thousand dollars ($1,000) and by forfeiture to the state of an amount equal to all compensation for services as administrator received or to be received by the violator by reason of the prohibited transactions.
History:
1978 Comp., § 59A-12A-3, enacted by Laws 1989, ch. 374, § 3; 2016, ch. 89, § 50.
ANNOTATIONS
The 2016 amendment,
effective July 1, 2017, removed the superintendent's authority to waive examination requirements for certain administrators, and removed the requirement that every corporation or partnership licensed as an insurance administrator have each of its officers, managers and partners individually licensed as insurance administrators; in Subsection A, after "alternatives to insurance in", deleted "any" and added "an"; in Subsection B, after "Licensing", deleted "and examination", and after "Article 11 NMSA 1978", deleted "except that the superintendent may, in his discretion, waive the examination requirements for administrators who are operating in New Mexico prior to the effective date of Chapter 59A, Article 12A NMSA 1978"; and deleted former Subsection C and redesignated Subsection D as Subsection C.
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 12A - Insurance Administrators › Section 59A-12A-4 - Written agreement necessary.

A. No administrator shall act as such without a written agreement between the administrator and the insurer, and the written agreement shall be retained as part of the official records of both the insurer and the administrator for the duration of the agreement and five years thereafter. The written agreement shall contain provisions which include the requirements of Chapter 59A, Article 12A NMSA 1978, except insofar as those requirements do not apply to the functions performed by the administrator.
B. When a policy is issued to a trustee or trustees, a copy of the trust agreement and any amendments thereto shall be furnished to the insurer by the administrator and shall be retained as part of the official records of both the insurer and the administrator for the duration of the policy and five years thereafter.
History:
1978 Comp., § 59A-12A-4, enacted by Laws 1989, ch. 374, § 4.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12A - Insurance Administrators › Section 59A-12A-5 - Payment to administrator.

Whenever an insurer utilizes the services of an administrator under the terms of a written contract as required in Section 59A-12A-4 NMSA 1978, the payment to the administrator of any premiums or charges for insurance by or on behalf of the insured shall be deemed to have been received by the insurer, and the payment of return premiums or claims by the insurer to the administrator shall not be deemed payment to the insured or claimant until such payments are received by the insured or claimant. Nothing in this section limits any right of the insurer against the administrator resulting from its failure to make payments to the insurer, insured or claimants.
History:
1978 Comp., § 59A-12A-5, enacted by Laws 1989, ch. 374, § 5.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12A - Insurance Administrators › Section 59A-12A-6 - Maintenance of information.

Every administrator shall maintain at its principal administrative office for the duration of the written agreement referred to in Section 59A-12A-4 NMSA 1978 and five years thereafter adequate books and records of all transactions between it, insurers and insured persons. Such books and records shall be maintained in accordance with prudent standards of insurance record keeping. The superintendent shall have access to such books and records for the purpose of examination, audit and inspection. Any trade secrets contained therein, including but not limited to the identity and addresses of policyholders and certificate holders, shall be confidential, except that the superintendent may use such information in any proceedings instituted against the administrator. The insurer shall retain the right to continuing access to such books and records of the administrator sufficient to permit the insurer to fulfill all of its contractual obligations to insured persons, subject to any restrictions in the written agreement between the insurer and administrator on the proprietary rights of the parties in such books and records.
History:
1978 Comp., § 59A-12A-6, enacted by Laws 1989, ch. 374, § 6.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12A - Insurance Administrators › Section 59A-12A-7 - Approval of advertising.

An administrator may use only such advertising pertaining to the business underwritten by an insurer, plan or alternative to insurance as has been approved by such insurer, plan or alternative to insurance in advance of its use.
History:
1978 Comp., § 59A-12A-7, enacted by Laws 1989, ch. 374, § 7.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12A - Insurance Administrators › Section 59A-12A-8 - Underwriting provision.

The agreement required under Section 59A-12A-4 NMSA 1978 shall make provision with respect to the underwriting or other standards pertaining to the business underwritten by such insurer.
History:
1978 Comp., § 59A-12A-8, enacted by Laws 1989, ch. 374, § 8.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12A - Insurance Administrators › Section 59A-12A-9 - Premium collection.

A. All insurance charges or premiums collected by an administrator on behalf of or for an insurer or insurers, and return premiums received from such insurer or insurers, shall be held by the administrator in a fiduciary capacity. Such funds shall be immediately remitted to the person or persons entitled thereto or shall be deposited promptly in a fiduciary bank account established and maintained by the administrator. If charges or premiums so deposited have been collected on behalf of or for more than one insurer, the administrator shall cause the bank in which such fiduciary account is maintained to keep records, clearly recording the deposits in and withdrawals from such account on behalf of or for each insurer.
B. The administrator shall promptly obtain and keep copies of all such records and, upon request of an insurer, shall furnish that insurer with copies of all records pertaining to deposits and withdrawals on behalf of or for such insurer.
C. The administrator shall not pay any claim by withdrawals from such fiduciary account. Withdrawals from such account shall be made, as provided in the written agreement between the administrator and the insurer, for:
(1) remittance to an insurer entitled thereto;
(2) deposit in an account maintained in the name of such insurer;
(3) transfer to and deposit in a claims paying account, with claims to be paid as provided in Section 59A-12A-10 NMSA 1978;
(4) payment to a group policyholder for remittance to the insurer entitled thereto;
(5) payment to the administrator of its commission, fees or charges; or
(6) remittance of return premiums to the person or persons entitled thereto.
History:
1978 Comp., § 59A-12A-9, enacted by Laws 1989, ch. 374, § 9.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12A - Insurance Administrators › Section 59A-12A-10 - Payment of claims.

All claims paid by the administrator from funds collected on behalf of the insurer shall be paid only on drafts of and as authorized by such insurer.
History:
1978 Comp., § 59A-12A-10, enacted by Laws 1989, ch. 374, § 10.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12A - Insurance Administrators › Section 59A-12A-11 - Claim adjustment or settlement.

With respect to any policies where an administrator adjusts or settles claims, the compensation to the administrator with regard to such policies shall in no way be contingent on claim experience. No provision of Chapter 59A, Article 12A NMSA 1978 prevents the compensation of an administrator from being based on premiums or charges collected or number of claims paid or processed.
History:
1978 Comp., § 59A-12A-11, enacted by Laws 1989, ch. 374, § 11.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12A - Insurance Administrators › Section 59A-12A-12 - Notification required.

Where the services of an administrator are utilized, the administrator shall provide a written notice approved by the insurer to insured individuals advising them of the identity of and relationship among the administrator, the policyholder and the insurer. Where an administrator collects funds, it shall identify and state separately in writing to the person paying to the administrator any charge or premium for insurance coverage and the amount of any such charge or premium specified by the insurer for such insurance coverage.
History:
1978 Comp., § 59A-12A-12, enacted by Laws 1989, ch. 374, § 12.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12A - Insurance Administrators › Section 59A-12A-13 - Business name.

Each administrator shall transact business under its own name. An administrator shall not do business in this state under a false or misleading name or under a name that is the same as or that closely resembles the name of any other administrator licensed in the state.
History:
1978 Comp., § 59A-12A-13, enacted by Laws 1989, ch. 374, § 13.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12A - Insurance Administrators › Section 59A-12A-14 - Confidentiality.

A. An administrator shall provide for the confidentiality of personal data identifying an individual covered by a plan or insurance carrier or data concerning a person that self insures. An administrator shall not disclose records containing personal information that may be associated with an identifiable individual covered by a plan or insurance carrier or data relating to a person that self insures to a person other than the individual to whom the information pertains, except as necessary to comply with the superintendent's inquiry or a court order. Other than to comply with the superintendent's inquiry or a court order, an administrator shall not disclose personal data without the prior consent of the covered individual or person that self insures.
B. Subsection A of this section does not apply to information disclosed for any of the following reasons or to an indicated entity:
(1) claims adjudication;
(2) claims verification;
(3) other proper plan or insurance carrier administration;
(4) an audit conducted pursuant to ERISA;
(5) an insurer or plan for the purchase of excess loss insurance and for claims under the excess loss insurance, provided, an insurer obtaining information under this paragraph shall be subject to the requirements of Subsection A of this section;
(6) the plan, insurance carrier, person that self insures or a fiduciary of the plan;
(7) the superintendent or the superintendent's designees; provided the information obtained by the superintendent under this subsection is confidential, except that the superintendent may use the information in any proceeding instituted against the administrator; or
(8) as required by law.
History:
1978 Comp., § 59A-12A-14, enacted by Laws 1989, ch. 374, § 14; 1999, ch. 289, § 18.
ANNOTATIONS
Cross references.
— For the federal Employee Retirement Income Security Act (ERISA),
see
29 U.S.C. § 1001 et seq.
The 1999 amendment,
effective June 18, 1999, substituted references to the insurance board for references to the superintendent in the last sentence of Subsection A and in Subsection B(7).
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12A - Insurance Administrators › Section 59A-12A-15 - Prohibited inducements.

An administrator, in order to induce a person that self insures or a plan or insurance carrier to contract or to continue to contract with the administrator, to induce a person that self insures or an insurance carrier or plan to lapse, forfeit or surrender a service contract entered into with an administrator or to induce a person that self insures or an insurance carrier or plan to secure or terminate coverage with an insurance carrier or other person that self insures, shall not directly or indirectly:
A. offer to make an agreement relating to a service contract or issue or deliver to the person money or any other valuable consideration other than as plainly expressed in the service contract;
B. give or pay or offer to give or pay a rebate or adjustment of the fee payable under the service contract or an advantage under a service contract, except as reflected in the fee and expressly provided by the service contract;
C. make, issue or circulate, or cause to be made, issued or circulated, any estimate, illustration, circular or statement misrepresenting the terms of a service contract, the advantages provided under a service contract or the true nature of a service contract; or
D. make a misrepresentation in a comparison, whether oral or written, between service contracts of the administrator and another administrator or between service contracts of the administrator and an insurance carrier.
History:
1978 Comp., § 59A-12A-15, enacted by Laws 1989, ch. 374, § 15.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12A - Insurance Administrators › Section 59A-12A-16 - General and claims practices.

A. The claims practices of every administrator, insurer, plan or alternative to insurance, as defined in Chapter 59A, Article 12A NMSA 1978, shall be subject to the provisions of Chapter 59A, Article 16 NMSA 1978.
B. The claims practices of any insurer, plan or alternative to insurance as defined in Chapter 59A, Article 12A NMSA 1978 shall be subject to the provisions of the Insurance Code.
History:
1978 Comp., § 59A-12A-16, enacted by Laws 1989, ch. 374, § 16.
ANNOTATIONS
Cross references.
— For the Insurance Code,
see
59A-1-1 NMSA 1978 and notes thereto.