reglab/statecodes huggingface dataset:
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 13 - PROPERTY INSURANCE › Part 3 - THE NEW MEXICO FAIR PLAN › Section 13.13.3.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Sections 59A-2-9, 59A-3-6, 59A-18-17 and 59A-29-2 NMSA
				  1978.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 13 - PROPERTY INSURANCE › Part 3 - THE NEW MEXICO FAIR PLAN › Section 13.13.3.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
September 15, 1993, unless a later date is cited at the end
				  of a section or paragraph. Repromulgated in NMAC format effective July 1,
				  1997.
Compiler's note: The words or paragraph, above, are no
					 longer applicable. Later dates are now cited only at the end of sections, in
					 the history notes appearing in brackets.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 13 - PROPERTY INSURANCE › Part 3 - THE NEW MEXICO FAIR PLAN › Section 13.13.3.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
This rule specifies minimum coverages to be provided by the
				  New Mexico property insurance program, the underwriting association established
				  under Section 59A-29-2 NMSA 1978 of the FAIR Plan Act.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 13 - PROPERTY INSURANCE › Part 3 - THE NEW MEXICO FAIR PLAN › Section 13.13.3.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
"Actual
				cash value"
means replacement cost minus depreciation.
B.
"Essential property
				insurance"
means any policy of insurance which contains insurance
				against direct loss to real and tangible personal property at a fixed location
				as defined and limited in the standard fire policy and extended coverage
				endorsement and vandalism or malicious mischief endorsement (including builders
				risk coverage) approved by the superintendent. Essential property insurance
				does not include automobile risks, farm risks, or manufacturing
				risks.
C.
"Extended
				coverage"
means coverage for a package of perils insured on an optional
				basis, including: windstorm, hail, smoke, explosion, riot or civil commotion,
				aircraft damage, vehicle damage, and volcanic eruption. The package of perils
				included in extended coverage may change by custom or order of the
				superintendent.
D.
"Fire"
means a rapid oxidation with a flame or glow that is
				hostile, or goes beyond intended confines.
E.
"Manufacturing risks"
means
				all properties used for the fabrication, processing, or assembly of products or
				components of products, each of which:
(a)
				employ fifteen or more persons; and
(b) have an insurable value in excess of two
				hundred fifty thousand dollars ($250,000).
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 13 - PROPERTY INSURANCE › Part 3 - THE NEW MEXICO FAIR PLAN › Section 13.13.3.8 - FAIR PLAN OPERATIONS

Current through Register Vol. 35, No. 13, July 16, 2024
FAIR plan articles of association, by-laws, guidelines and
				  operating procedures of the New Mexico property insurance program shall be
				  subject to the superintendent's prior approval.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 13 - PROPERTY INSURANCE › Part 3 - THE NEW MEXICO FAIR PLAN › Section 13.13.3.9 - FAIR PLAN ESSENTIAL PROPERTY INSURANCE

Current through Register Vol. 35, No. 13, July 16, 2024
For purposes of the FAIR Plan Act, Chapter 59A, Article 29
				  NMSA 1978, all authorized insurers authorized to write and writing essential
				  property insurance shall be members of the New Mexico property insurance
				  program and shall participate in the program in accordance with the FAIR plan
				  articles of association, by-laws, guidelines and operating procedures of the
				  New Mexico property insurance program.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 13 - PROPERTY INSURANCE › Part 3 - THE NEW MEXICO FAIR PLAN › Section 13.13.3.10 - FAIR PLAN COVERAGES AND RATES

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				The New Mexico property insurance program shall, at a minimum, offer insurance
				for the perils of fire, extended coverage and vandalism or malicious mischief
				for buildings and contents. Additional coverages may be provided, so long as
				they are included in the FAIR plan articles of association, by-laws, guidelines
				and operating procedures of the New Mexico property insurance program.
				Replacement cost coverage may be provided by the New Mexico property insurance
				program subject to reasonable eligibility criteria approved by the
				superintendent, so long as it is provided for in the FAIR plan articles of
				association, by-laws, guidelines and operating procedures of the New Mexico
				property insurance program. Replacement cost coverage, if offered, shall be an
				optional coverage.
B. Insurance
				coverage shall be provided to eligible properties located within the state of
				New Mexico. Reasonable eligibility criteria may be specified by the New Mexico
				property insurance program, as approved by the superintendent.
C. Actual cash value coverage shall be
				offered by the New Mexico property insurance program subject to applicable
				eligibility criteria. Section 59A-18-17C NMSA 1978, requiring residential
				property insurance policies to cover the cost to repair or replace without
				deduction for depreciation, does not apply to the New Mexico property insurance
				program.
D. FAIR Plan Act insurance
				shall be written on policy forms filed with and approved by the
				superintendent.
E. FAIR Plan Act
				rates shall be subject to the superintendent's prior approval.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 13 - PROPERTY INSURANCE › Part 3 - THE NEW MEXICO FAIR PLAN › Section 13.13.3.11 - GENERAL PENALTY

Current through Register Vol. 35, No. 13, July 16, 2024
In addition to any other penalty provided by law or
				  regulation, violation of the provisions of this rule is subject to penalties
				  for violation of the Insurance Code (Chapter 59A NMSA 1978).
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 1 - GENERAL PROVISIONS › Section 13.14.1.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This rule applies to all title insurers, title insurance
				  agencies, and title insurance agents conducting the business of title insurance
				  in New Mexico.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 1 - GENERAL PROVISIONS › Section 13.14.1.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Sections
				  59A-2-8,
				  59A-2-9,
				  59A-30-4,
				  59A-30-6,
				  59A-30-6.1,
				  59A-30-6.2
				  and
				  59A-30-8 NMSA
				  1978.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 1 - GENERAL PROVISIONS › Section 13.14.1.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
For definitions of terms contained in this rule, refer to
				  Section 59A-30-3 NMSA 1978, unless
				  otherwise noted below.
A.
"Abstract plant"
means title plant.
B.
"Agency"
means a business
				entity as defined in Subsection B of Section
				59A-12-2 NMSA 1978, including a
				sole proprietorship that transacts title insurance business.
C.
"ALTA"
means the American
				Land Title Association.
D.
"Basic premium rate"
means the premiums set from time to time by
				the superintendent for an original owner's policy.
E.
"Commitment"
means an NM form
				6 issued to a customer.
F.
"Day or Days"
means, unless otherwise specified:
(1) one to five days excludes weekends and
				state holidays; and
(2) six days or
				more, includes weekends and holidays.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 1 - GENERAL PROVISIONS › Section 13.14.1.8 - GENERAL PROVISIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A.Every
				title insurer shall establish written instructions and underwriting standards
				consistent with these rules, including, without limitation, underwriter
				approval requirements and underwriting approval record retention requirements.
				Unless otherwise specifically required or limited by these rules, a title
				insurer in its discretion may determine what risks the insurer is willing to
				insure.
B. Unless otherwise
				specified, whenever these rules allow modification or deletion of provisions of
				a form of policy or endorsement or permit the modification of language required
				by these rules to be included in policies (including pro forma policies),
				commitments or endorsements, that change may be made by:
(1) striking through the language of the
				form;
(2) deleting the language of
				the form; or
(3) attaching an
				endorsement to the policy that makes the change.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 1 - GENERAL PROVISIONS › Section 13.14.1.9 - RULE NONCOMPLIANCE

Current through Register Vol. 35, No. 13, July 16, 2024
Failure to comply with any provision of these rules is
				  punishable under the applicable provisions of the Insurance
				  Code.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 2 - LICENSING AND REPORTING REQUIREMENTS › Section 13.14.2.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This rule applies to all title insurers, title insurance
				  agencies, and title insurance agents conducting title insurance business in New
				  Mexico.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 2 - LICENSING AND REPORTING REQUIREMENTS › Section 13.14.2.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Sections
				  59A-2-8,
				  59A-2-9,
				  59A-30-4,
				  59A-30-6,
				  59A-30-6.1,
				  59A-30-6.2
				  and
				  59A-30-8 NMSA
				  1978.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 2 - LICENSING AND REPORTING REQUIREMENTS › Section 13.14.2.8 - LICENSING

Current through Register Vol. 35, No. 13, July 16, 2024
A. OSI shall
				inspect or cause to be inspected any title plant owned, operated, or controlled
				within this state.
(1) An agency shall
				maintain its title plant for a period of at least 20 years immediately prior to
				the date of application for license.
(2) An agency shall keep its title plant not
				more than 30 days in arrears in posting, unless such arrearage is caused by
				delay in indexing of the public records in the county for which such plant is
				maintained, or by other factors that OSI deems as being undue hardships in
				obtaining the public records or facsimiles thereof, in which event the title
				plant must at least be current with the public records as then
				indexed.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 2 - LICENSING AND REPORTING REQUIREMENTS › Section 13.14.2.9 - OWNS, OPERATES OR CONTROLS

Current through Register Vol. 35, No. 13, July 16, 2024
For purposes of Section
				  59A-12-13
				  NMSA 1978 "owns, operates, or controls" include the following
				  activities:
A.
"Owns"
-
				holding legal or equitable title or controlling interest in a title plant,
				either as sole or joint proprietor, any partner of a general partnership, or
				the general partner of a limited partnership, holder of more than ten percent
				of the voting stock of a corporation, or as a lessee under a written lease
				agreement or lease purchase agreement.
B.
"Operates"
- directly
				responsible for the maintenance, updating or retrieval of information contained
				in a title plant or the searching, abstracting, or examining of title to real
				property or preparation of abstracts, searches, or commitments relating to real
				property derived from research from a title plant.
C.
"Controls"
- ultimate
				regulating authority or any intermediate supervisory authority over any person
				directly responsible for the operation of a title plant, who promulgates or
				administers the general policies providing for the direction and management of
				a title plant, including general policies of maintenance, updating, and
				retrieval of information from a title plant or the purchase, sale, or leasing
				of a title plant. A lease of a title plant shall qualify as "control" if the
				following conditions are met:
(1) All initial
				leases for a title plant must contain the terms of a minimum of five years and
				renewals for a minimum term of three years. No early termination of leases
				shall be allowed without the express written consent of OSI.
(2) A lease agreement shall be invalid unless
				approved by OSI.
(3) Access to a
				title plant under a lease agreement has not been terminated, suspended or
				denied.
(a) If the lessee is denied access to
				a leased title plant, the lessee shall notify OSI of the date of denial of
				access and the reason.
(b) Upon
				notification of a lessee's denial of access to a leased title plant, OSI shall
				notify each title insurer who has appointed the lessee of such denial of
				access.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 2 - LICENSING AND REPORTING REQUIREMENTS › Section 13.14.2.10 - MAINTENANCE ASSESSMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
The superintendent shall annually issue a directive
				  establishing the maintenance assessment authorized by Section
				  59A-30-12
				  NMSA 1978 on policies written during the preceding calendar year insuring
				  property or interests in property in New Mexico for each fiscal year commencing
				  on July 1 and ending on June 30. The directive shall be issued at least 30 days
				  before it is to become effective and shall include a brief statement describing
				  how the maintenance assessment was determined. A title insurer shall correctly
				  calculate its assessment based upon its New Mexico gross premium for the most
				  recent preceding full calendar year and shall remit the same to OSI as
				  specified in the superintendent's directive. A title insurer's assessment shall
				  be rounded to the nearest dollar after computation has been performed. Fifty
				  cents or more shall be rounded up; 49 cents or less shall be rounded
				  down.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 2 - LICENSING AND REPORTING REQUIREMENTS › Section 13.14.2.11 - AUDITS

Current through Register Vol. 35, No. 13, July 16, 2024
OSI may at any time audit any title insurance agent, agency,
				  or title insurer. If the audit provides cause for additional examination, such
				  examination shall be conducted pursuant to Article 4 of Section 59A NMSA 1978,
				  as applicable.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 2 - LICENSING AND REPORTING REQUIREMENTS › Section 13.14.2.12 - TITLE INSURANCE AGENCIES CEASING OPERATION

Current through Register Vol. 35, No. 13, July 16, 2024
Prior to ceasing the business of title insurance, an agency
				  shall comply with the following requirements:
A. Forty-five days prior to its ceasing of
				operations, the agency shall notify each of the following of the cessation
				date:
(1) OSI title insurance
				bureau;
(2) all appointing title
				insurers; and
(3) the public by
				prominently displaying on the front of the business and on the landing page of
				the agency website, a notice reading, "Notice: this title insurance agency will
				cease operations on "."
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 3 - AGENCY AGREEMENTS › Section 13.14.3.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This rule applies to all title insurers, title insurance
				  agencies, and title insurance agents conducting the business of title insurance
				  in New Mexico.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 3 - AGENCY AGREEMENTS › Section 13.14.3.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Sections
				  59A-2-8,
				  59A-2-9,
				  59A-30-4,
				  59A-30-6,
				  59A-30-6.1,
				  59A-30-6.2
				  and
				  59A-30-8 NMSA
				  1978.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 3 - AGENCY AGREEMENTS › Section 13.14.3.8 - AGENCY AGREEMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
A. All
				agreements and amendments between title insurers and title insurance agencies
				or agents shall comply with these rules, and shall be filed with OSI within 30
				days of execution. All existing agency agreements shall be amended within 60
				days of the effective date of any applicable change to these rules. An
				amendment may be in the form of an addendum to an existing agreement.
B. An agreement between a title insurance
				agency or agent and a title insurer shall specify that the title insurance
				agency or agent has no authority to negotiate or settle policy
				claims.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 3 - AGENCY AGREEMENTS › Section 13.14.3.9 - PAYMENTS OF PREMIUM AND MAINTENANCE TAXES OR ASSESSMENTS BY TITLE INSURERS

Current through Register Vol. 35, No. 13, July 16, 2024
An agreement between a title insurance agency or agent and a
				  title insurer shall require that the title insurer pay all premium taxes or
				  assessments and all maintenance taxes or assessments as the same may come due
				  and payable, and shall require that the title insurer report all premiums
				  received by it directly or by any of its title insurance agencies or agents on
				  a one hundred percent gross basis for the purposes of reporting said taxes and
				  assessments.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 3 - AGENCY AGREEMENTS › Section 13.14.3.10 - PREMIUM DIVISION WITH TITLE INSURANCE AGENTS - OTHER CHARGES

Current through Register Vol. 35, No. 13, July 16, 2024
A.A title insurance
				agency or agent or title insurer shall not pay or receive any compensation for
				title insurance business or for referral of business, other than the division
				of premiums established in a title rate case. A title insurer shall not reward
				or otherwise compensate a title insurance agency or agent (or vice versa)
				directly or indirectly for business other than as established in a title rate
				case.
B. A title insurance agency
				or agent shall not be required to contribute or pay any amount to an insurer
				for reinsurance or otherwise, and any contractual provision to the contrary
				shall be void and unenforceable.
C.
				A title insurer may pay on behalf of, or reimburse, a title insurance agency or
				agent for expenses associated with instruction, lectures or seminars conducted
				by that title insurer for title insurance agencies or agents, if such
				instruction, lectures or seminars have been approved in advance by OSI for
				continuing education credit. A title insurer conducting such instruction,
				lectures or seminars shall submit to the superintendent for approval, in
				advance, an agenda and detailed budget for such instruction, lectures or
				seminars. Such courses of instruction, lectures or seminars shall be offered by
				a title insurer to all of its appointed title insurance agents on a
				non-discriminatory basis.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 3 - AGENCY AGREEMENTS › Section 13.14.3.11 - ASSUMPTION OF RISK BY A TITLE INSURANCE AGENCY OR AGENT

Current through Register Vol. 35, No. 13, July 16, 2024
No agreement between a title insurance agency or agent and a
				  title insurer shall directly or indirectly require a title insurance agency or
				  agent to assume either partial or total liability for an insured risk, except
				  as follows:
A.if a title insurance
				agency or agent, or any person employed by a title insurance agency, commits
				gross negligence, fraud, deceit, or theft in connection with a title
				transaction, and if such act causes loss to the title insurer;
B.if a title insurance agency or agent, or
				any person employed by a title insurance agency, disregards lawful written
				instructions of a title insurer or other party to a title transaction, and if
				such act causes loss to the title insurer; or
C.if the title insurance agency or agent, or
				any person employed by the agency, shall do or fail to do any act which results
				in the insurer paying a claim to any person pursuant to a New Mexico closing
				protection letter issued by the title insurer.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 3 - AGENCY AGREEMENTS › Section 13.14.3.12 - PROHIBITED CONDUCT

Current through Register Vol. 35, No. 13, July 16, 2024
A title insurance agency or agent or title insurer shall not
				  provide, either directly or indirectly, any goods or services to a referrer
				  without receiving fair market value therefor. This includes, but is not limited
				  to, the following activities:
A.making
				any monetary payment to any producer, unless the payment is for the actual cost
				of bona fide supplies or services received by the title insurer or title
				insurance agency or agent;
B.making
				any in kind payment to any producer or provide any free products or services,
				including but not limited to postage, postage machines, facsimile machines,
				computer hardware or software, copy machines, telephones, or office space to
				any producer;
C.engaging in joint
				advertising by any means of communication or media that names a specific
				producer unless the producer pays its share of the advertising cost in direct
				proportion to its prominence in the advertisement;
D.providing video equipment or any other type
				of electronic or cyber equipment or services, such as "virtual tours" unless
				the producer pays at least the actual cost for the equipment or
				services;
E.providing advertising
				by any means of communication or media for a producer unless the producer pays
				at least the actual cost for the advertisement to the title insurer or title
				insurance agency or agent;
F.sponsoring, co-sponsoring, or providing
				free door prizes, refreshments or meals at any producer's open house, tour of
				open houses, awards banquet, or company party unless a representative of the
				title insurer or agency is present and educational or marketing materials and
				signage are on-site for the function; at no time shall the cost of any
				sponsorship exceed the commensurate advertising benefit of the educational or
				marketing materials and signage provided;
G.providing free meals to any producer unless
				a representative of the title insurer or title insurance agency is present,
				title insurance business is discussed and the meals are not a regular
				occurrence; a title insurer or title insurance agency or agent shall not
				provide free recreational activities or entertainment to any producer under any
				circumstance;
H.entering into any
				lease or rental agreement for office space with a producer unless:
(1)the lease or rental agreement is for
				commercially reasonable terms and at least the fair market rental rate of the
				property; and
(2)the property is
				physically occupied by at least one bona fide full time employee of the title
				insurer or title insurance agency if the producer is the lessor or by one bona
				fide full time employee of the producer if the title insurer or title insurance
				agency or agent is the lessor; or
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 3 - AGENCY AGREEMENTS › Section 13.14.3.13 - CHARGE TO BE MADE FOR ALL SERVICES

Current through Register Vol. 35, No. 13, July 16, 2024
A. A title insurance agency or agent or title
				insurer shall not furnish services, information, subdivision ownership lists,
				farm packages, estimates or income production potential, pre-search or listing
				packages, information kits or similar packages containing information about one
				or more parcels of real property without making a charge for the
				same.
B. A title insurance agency
				or agent or title insurer shall collect charges in the ordinary course of their
				business operations. A title insurance agency or agent or title insurer shall
				not provide additional or new services to an individual who has failed to pay
				charges for prior services.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 3 - AGENCY AGREEMENTS › Section 13.14.3.14 - DUTIES OF TITLE INSURERS WITH RESPECT TO AGENCIES

Current through Register Vol. 35, No. 13, July 16, 2024
A. A title insurer shall not accept title
				insurance business from an agency unless there is in force a written agreement
				between the title insurer and the agency.
B. For each agency, the title insurer shall
				have on file a statement of financial condition. The statement shall include an
				income statement of title insurance business done during the preceding year and
				a balance sheet showing the condition of affairs as of the prior December 31.
				The agency shall certify the statement is true and correct.
C. A title insurer shall, at least annually,
				conduct a review of the underwriting, claims, and escrow practices of the
				agency which shall include a review of the title insurance policy form
				inventory and processing operations. If the agency does not maintain separate
				financial institution or trust accounts for each title insurer it represents,
				the title insurer shall verify that the funds held on its behalf are reasonably
				ascertainable from the books of account and records of the agency.
D. Within 30 days after executing or
				terminating an agreement with an agency, a title insurer shall provide written
				notification of the appointment or termination and the reason for the
				termination to OSI. The notice of appointment of an agency shall be made on a
				form prescribed or approved by OSI.
E. A title insurer shall maintain an
				inventory of all title insurance policy forms or title insurance policy numbers
				allocated to each agency.
F. Before
				entering into an agreement with an agency, a title insurer shall confirm that
				the agency has a current and appropriate license to transact title insurance
				business.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 4 - ESCROW SERVICES › Section 13.14.4.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This rule applies to title insurers, title insurance
				  agencies, title insurance agents, and their owners, officers, directors,
				  partners or employees whose duties include or relate to the provision of escrow
				  services.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 4 - ESCROW SERVICES › Section 13.14.4.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Sections
				  59A-2-8,
				  59A-2-9,
				  59A-30-4,
				  59A-30-6,
				  59A-30-6.1,
				  59A-30-6.2
				  and
				  59A-30-8 NMSA
				  1978.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 4 - ESCROW SERVICES › Section 13.14.4.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The purpose of this rule is to establish requirements for
				  title insurers and title insurance agencies and agents who provide escrow
				  services and to protect parties to transactions who deposit funds with title
				  insurers or agents.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 4 - ESCROW SERVICES › Section 13.14.4.8 - REQUIREMENTS FOR PROVIDING ESCROW SERVICES

Current through Register Vol. 35, No. 13, July 16, 2024
A title insurer or title insurance agency providing escrow
				  services shall:
A. only accept funds
				pursuant to escrow instructions;
B.
				not make changes to escrow instructions without the consent of all parties in
				the manner specified by the escrow instructions;
C. receive and handle all funds pursuant to
				the requirements of Sections
				58-28-1 et
				seq. and 59A-12-22 NMSA 1978;
(1) an escrow
				account shall be separate from all operating accounts, and shall be designated
				as an escrow, trust or custodial account by the financial institution and in
				the books and records of the title insurer or title insurance agency;
				and
(2) title insurers and title
				insurance agencies are prohibited from receiving for their own use any interest
				from escrow accounts or money accepted for escrow, except that nothing herein
				shall preclude participation in the Land Title Trust Fund Act pursuant to the
				Mortgage Loan Company Act, Section
				58-28-1
				NMSA 1978 et seq.;
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 4 - ESCROW SERVICES › Section 13.14.4.9 - BOOKS AND RECORDS

Current through Register Vol. 35, No. 13, July 16, 2024
A title insurer or agency shall, on a current basis:
A. establish and maintain a separate
				subsidiary ledger for each escrow transaction;
B. post all receipts and disbursements from
				each subsidiary ledger to a control ledger daily and at least monthly, prepare
				a trial balance of all subsidiary ledgers. The monthly trial balance
				reconciliation shall be performed by a person who did not perform the receipt
				and disbursement function; and
C.
				on a daily basis, reconcile the book balance and escrow account
				balance.
D. At least once each
				calendar month, prepare a three-way reconciliation for each escrow account.
				Each three-way reconciliation is required to be prepared within 10 business
				days of the closing date of the bank statement and to be approved by a title
				insurance agent who did not perform the reconciliation. The reconciliation
				shall include at a minimum as of the reconcile date:
(1) the bank statement;
(2) reconciliation sheet or summary page with
				book balance;
(3) outstanding
				deposits list and list of deposits in transit;
(4) open escrow file listing or trial
				balance; and
(5) outstanding
				disbursements list, all as of the reconciliation date.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 4 - ESCROW SERVICES › Section 13.14.4.10 - ACCOUNTING PROCEDURES AND INTERNAL CONTROLS

Current through Register Vol. 35, No. 13, July 16, 2024
A title insurer or agency shall:
A. require two signatures on all escrow
				checks; one signature of which shall be a title insurance agent;
B. assign each escrow file a unique number;
				name identification is not acceptable;
C. on a monthly basis, an owner, officer or
				director shall review and approve the reconciliation for escrow accounts open
				for longer than six months;
D.
				remove the signature blocks from voided checks or otherwise render them
				ineffective;
E. require management
				approval for any transfers of funds between escrow accounts;
F. notify the seller within one day after
				receiving notice an earnest money check deposited in the account is returned by
				the financial institution to the title insurer or agency due to insufficient
				funds, unless the check is replaced by available funds within the one day time
				period; the insurer or agency shall retain a copy of written notices;
G. display related escrow file numbers
				directly on all escrow checks and deposit slips to provide a clear and direct
				connection between the document and the related escrow file;
H. maintain in each escrow file a complete,
				current disbursement sheet that lists the date, source and type of all
				receipts; date, check number, item description, payee and amount of any other
				disbursements and any remaining balance; voided checks that have been canceled
				where funds have been credited back to the account shall be shown on the
				disbursement sheet;
I. keep
				invoices substantiating, or sufficient evidence to support, all disbursements
				in the escrow files;
J. require
				reimbursement of all shortages from the title insurer's or agency's operating
				account within three days that reflects the transaction creating the escrow
				receivable or shortage, unless the shortage is the result of fraud or suspected
				fraud, in which case the shortage shall be cured within 45 days, unless
				otherwise ordered by the superintendent;
K. if a settlement statement requires
				changes, prepare a new statement or have all parties affected by the changes
				initial pen and ink changes;
L.
				issue a signed, pre-numbered receipt for any escrow funds received in
				cash;
M. if a bank does not return
				actual cancelled checks with bank statements, the agency shall either acquire
				and retain clearly legible copies of the front and back of each check, or have
				on file in the office an agreement with the depositor bank that ensures readily
				available access to such copies for at least four years;
N. an escrow account shall have the
				designation of "escrow" or "trust" on the bank account, checks and deposit
				slips; and
O. preserve for at least
				15 years all escrow transaction records. This 15 year requirement for escrow
				records shall apply with respect to title policies issued on or after June 1,
				2010.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 4 - ESCROW SERVICES › Section 13.14.4.11 - ANNUAL ESCROW COMPLIANCE PROCEDURES

Current through Register Vol. 35, No. 13, July 16, 2024
A. Title insurers and agencies shall, at
				their own expense, engage an independent certified public accountant to certify
				the procedures required by OSI. Title insurers and agencies shall require the
				certified public accountant to follow and comply with all requirements of any
				order of OSI relating to the performances of escrow duties as set out in these
				rules.
B. The certified public
				accountant shall be licensed and in good standing.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 4 - ESCROW SERVICES › Section 13.14.4.12 - NOTICE TO OSI

Current through Register Vol. 35, No. 13, July 16, 2024
A. A title
				insurer, agency or title insurance agent, who discovers any of the following,
				shall provide notice to OSI within five days of:
(1) notice of suit in any civil or criminal
				action against the title insurer, title insurance agency, or title insurance
				agent involving any alleged misconduct or liability of the title insurer, title
				insurance agency, or title insurance agent concerning a New Mexico escrow;
				or
(2) any disciplinary action
				taken by the disciplinary board or by the supreme court of New Mexico involving
				misconduct concerning an escrow by a title insurer or title insurance agent who
				is a licensed attorney.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 5 - COMMITMENTS OR BINDERS › Section 13.14.5.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This rule applies to all title insurers, title insurance
				  agencies, and title insurance agents conducting title insurance business in New
				  Mexico.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 5 - COMMITMENTS OR BINDERS › Section 13.14.5.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Sections
				  59A-2-8,
				  59A-2-9,
				  59A-30-4,
				  59A-30-6,
				  59A-30-6.1,
				  59A-30-6.2
				  and
				  59A-30-8 NMSA
				  1978.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 5 - COMMITMENTS OR BINDERS › Section 13.14.5.8 - ISSUANCE OF A COMMITMENT

Current through Register Vol. 35, No. 13, July 16, 2024
A. Upon
				acceptance of an order for any type of title insurance, a title insurer or
				title insurance agency shall deliver to the proposed insured, a commitment
				showing the exceptions which will appear in the proposed policy as of the date
				of the commitment and requirements to insure the title in accordance with the
				order. Such commitment shall be delivered as soon as practical, using the title
				insurer's or title insurance agency's best efforts, allowing reasonably
				sufficient time to review prior to the completion of the transaction.
B. When a commitment is for a one to four
				family residential property, it shall be delivered with NM form 35, as the
				cover page. The NM form 35, when required, shall be signed by purchaser(s) at
				or before the time of settlement and retained in the agency's file. The NM form
				35 is not required if, prior to the delivery of the commitment, the proposed
				insured(s) signs a contract for sale of the insured land that includes
				substantially identical language to that included in NM form 35 and that is
				completed by checking all appropriate blanks.
C. When requested by a proposed insured
				lender the following language may be added to a title commitment "note for
				information only: according to the public records, there have been no deeds
				conveying the property in this commitment within a period of (six to 24) months
				prior to the date of this commitment, except as follows:" The inclusion of such
				language in the commitment does not increase or otherwise modify coverage under
				the commitment or policy.
D. When a
				to-be-determined title commitment is issued, the following language shall be
				included: "This title commitment is not effective until schedule A is completed
				and the company reserves the right to amend and supplement this commitment with
				additional information, requirements and exceptions based upon the provision of
				additional information."
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 5 - COMMITMENTS OR BINDERS › Section 13.14.5.9 - DURATION OF COMMITMENT

Current through Register Vol. 35, No. 13, July 16, 2024
A commitment shall be valid for a period of six months. A
				  commitment may be extended or renewed by endorsement for up to three additional
				  six month periods when the pending order for title insurance remains active and
				  the required additional premiums are paid. Whenever an insured under a loan
				  policy on property taken by foreclosure or deed in lieu of foreclosure, or by a
				  state or federal agency, requests a commitment, the commitment may be initially
				  endorsed to be valid for no more than two years upon payment of the required
				  premiums for both issuance and extensions.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 5 - COMMITMENTS OR BINDERS › Section 13.14.5.10 - STANDARD EXCEPTIONS IN SCHEDULE B

Current through Register Vol. 35, No. 13, July 16, 2024
A. All commitments shall contain each of the following exceptions in the order stated herein.
(1) Rights or claims of parties in possession not shown by the public records.
(2) Easements, or claims of easements, not shown by the public records.
(3) Encroachments, overlaps, conflicts in boundary lines, or other matter which would be disclosed by an accurate survey and inspection of the premises.
(4) Any lien, claim or right to a lien, for services, labor or materiel heretofore or hereafter furnished, imposed by law and not shown by the public records.
(5) Community property, survivorship, or homestead rights, if any, of any spouse of the insured (or vestee in a leasehold or loan policy).
(6) Water rights, claims or title to water.
(7) Taxes for the year _____, and thereafter. (See 13.14.5.12 NMAC)
(8) Defects, liens, encumbrances, adverse claims or other matters, if any, created first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date the proposed insured acquires for value of record the estate or interest or mortgage thereon covered by this commitment.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 5 - COMMITMENTS OR BINDERS › Section 13.14.5.11 - ADDITIONAL TAX EXCEPTION

Current through Register Vol. 35, No. 13, July 16, 2024
In those areas of New Mexico where there are taxes or
				  assessments which may be a lien by law but are not filed for record with the
				  county clerk's office by local custom or practice, and upon approval of the
				  insurer, the following additional tax exception may be added to policies or
				  commitments: "Any possible taxes or assessments which may be a lien by law but
				  have not been filed for record in the office of the county clerk of
				  _____________ county."
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 5 - COMMITMENTS OR BINDERS › Section 13.14.5.12 - STANDARD EXCEPTIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A policy shall contain in schedule B the standard exceptions
				  1 through 7, except as otherwise provided by these rules. Said standard
				  exceptions may be preprinted in schedule B and, when specifically authorized,
				  may be deleted by stating, "exceptions _____________ are hereby deleted in
				  their entirety". Standard exception 5 shall refer to "spouse of the vestee" in
				  all owner's policies and in all situations where the vestee and insured are not
				  the same.
A. Parties in possession -
				Standard exception 1: Standard exception 1 may be deleted upon satisfactory
				proof that there are no parties in possession of the property being insured
				other than those claiming rights or possession in the property through matters
				of public record.
B. Unrecorded
				easements - Standard exception 2: Standard exception 2 may be deleted if a
				survey of the property being insured satisfactorily shows that there are no
				easements or claims of easements affecting the insured property other than
				those shown by the public records.
C. Survey coverage - Standard exception 3:
				Standard exception 3 may be deleted in its entirety if the insurer considers
				the risk acceptable. Any additional premium required by these rules must be
				paid and the title insurer or its title insurance agency must be furnished with
				a survey of the insured property meeting the insurer's underwriting standards
				prior to the deletion.
D.
				Mechanics' and Materialmen's Lien Coverage - Standard Exception 4:
(1) In an owner's policy, standard exception
				4 may be deleted in only one of two circumstances:
(a) the statutory period for filing
				mechanics' or materialmen's liens expires prior to the date of the
				policy;
(b) some or all of the
				improvements will be "new construction" (or recently completed), and the
				statutory period for the filing of said liens will not have expired;
				or
(c) in either circumstance the
				construction of all improvements on the insured property must have been fully
				completed and accepted by the insured owner and the appropriate additional
				premiums required by these rules must be paid.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 5 - COMMITMENTS OR BINDERS › Section 13.14.5.13 - PRO FORMA POLICIES

Current through Register Vol. 35, No. 13, July 16, 2024
A pro forma policy may be issued only if the land is not one
				  to four family residential property. In such case, schedule A shall
				  conspicuously state: "This is a pro forma policy furnished to or on behalf of
				  the party proposed to be insured for discussion only. It does not reflect the
				  present status of title and is not a commitment to insure the estate or
				  interest as shown herein, nor does it evidence the willingness of the company
				  to provide any coverage shown herein. Any such commitment must be an express
				  written undertaking issued on the appropriate forms of the
				  company."
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 6 - OWNER'S, LEASEHOLD OWNER'S, AND CONTRACT PURCHASER'S POLICIES › Section 13.14.6.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
Office of Superintendent of Insurance
				  ("OSI").
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 6 - OWNER'S, LEASEHOLD OWNER'S, AND CONTRACT PURCHASER'S POLICIES › Section 13.14.6.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This rule applies to all title insurers, title insurance
				  agencies, and title insurance agents conducting title insurance business in New
				  Mexico.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 6 - OWNER'S, LEASEHOLD OWNER'S, AND CONTRACT PURCHASER'S POLICIES › Section 13.14.6.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Sections
				  59A-2-8,
				  59A-2-9,
				  59A-30-4,
				  59A-30-6,
				  59A-30-6.1,
				  59A-30-6.2
				  and
				  59A-30-8 NMSA
				  1978.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 6 - OWNER'S, LEASEHOLD OWNER'S, AND CONTRACT PURCHASER'S POLICIES › Section 13.14.6.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
January 1, 2021, unless a later date is cited at the end of a
				  section.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 14 - TITLE INSURANCE › Part 6 - OWNER'S, LEASEHOLD OWNER'S, AND CONTRACT PURCHASER'S POLICIES › Section 13.14.6.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The purpose of this rule is to establish requirements for
				  title insurance policy provisions.