New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 21 - PATIENT'S COMPENSATION FUND › Part 2 - QUALIFICATIONS AND ADMISSIONS › Section 13.21.2.10 - FINANCIAL RESPONSIBILITY - SELF-INSURANCE

Current through Register Vol. 35, No. 13, July 16, 2024
An independent provider may qualify for admission to the
				  fund by having continuously on deposit the sum of $750,000 in cash, as long as
				  the following conditions are met:
A.
				The deposit shall be conditioned only for, dedicated exclusively to, and held
				in trust for the benefit and protection of and as security for the prompt
				payment of all medical malpractice claims arising or asserted against the
				health care provider.
B. A
				self-insured health care provider shall be required to execute a pledge
				agreement for the money on deposit prescribed and supplied by the
				superintendent.
C. Sums on deposit
				with the superintendent pursuant to this rule shall not be assigned,
				transferred, mortgaged, pledged, hypothecated, or otherwise encumbered by the
				health care provider nor shall any such deposit be subject to writ of
				attachment, sequestration, or execution except pursuant to a final judgment or
				court-approved settlement issued or made in connection with and arising out of
				a malpractice claim against the health care provider.
D. To maintain financial responsibility for
				continuing qualification with the fund, a self-insured health care provider
				shall at all times maintain the sum on deposit provided for by this rule at not
				less than $750,000. The value of the health care provider's deposit shall be
				deemed impaired when any portion is seized or released pursuant to judicial
				process.
E. In the event that a
				self-insured health care provider's deposit provided for by this rule becomes
				impaired, the superintendent shall give written notice of such impairment to
				the self-insured health care provider, and the self-insured health care
				provider shall, unless a longer period is provided for by the superintendent,
				have five days from receipt of such notice to make such additional deposit as
				will restore the minimum deposit value prescribed by this rule. A self-insured
				health care provider's qualification with the fund shall terminate on and as of
				the later of the last day set by these rules or, if applicable, by the
				superintendent, if the self-insured health care provider has not on or prior to
				such date restored the minimum deposit value prescribed by this rule. In the
				case of multiple self-insured health care providers approved by the
				superintendent to post one deposit, as set forth in Subsection B of this
				section, the admission to the fund of each member of the group or each related
				entity shall terminate on and as of the last day set by these rules or, if
				applicable, by the superintendent, if the self-insured health care provider has
				not on or prior to such date restored the minimum deposit value prescribed by
				this rule.
F. A self-insured health
				care provider shall, within 120 days of receiving notice of a request for
				review of a malpractice claim, submit a report to the superintendent and the
				TPA of the anticipated exposure to the fund and the self-insured health care
				provider and containing sufficient details supporting the anticipated exposure.
				In addition, said self-insured heath care provider shall provide updates to the
				superintendent and the TPA when significant changes in anticipated exposure
				occur.
G. A self-insured health
				care provider who has evidenced financial responsibility pursuant to this rule
				may withdraw the deposit prescribed by this rule upon authorization of the
				superintendent. All money shall remain on deposit and pledged to the fund
				during the term of the health care provider's admission as a self-insured
				health care provider with the fund and for the longer of a three-year period
				following termination of such admission or as long as any medical malpractice
				claim is pending, whether with the medical review commission or in a court of
				competent jurisdiction. After this time period, authorization may be given when
				the health care provider files with the superintendent and the TPA, not less
				than 30 days prior to the date such withdrawal is to be effected, a certificate
				signed by the health care provider, certifying:
(1) the date the health care provider
				terminated admission to the fund as a self-insured health care
				provider;
(2) that there are no
				medical malpractice claims pending with the medical review commission or in a
				court of competent jurisdiction;
(3) that there are no unpaid final judgments
				or settlements against or made by the health care provider in connection with
				or arising out of a malpractice claim; and
(4) that there are no unasserted medical
				malpractice claims which are probable of assertion against the health care
				provider.