reglab/statecodes huggingface dataset:
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 11 - CASUALTY INSURANCE › Part 2 - DEFENSE COSTS AND DEDUCTIBLES WITHIN LIMITS › Section 13.11.2.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This rule applies to all liability insurance policies as
				  defined herein and supersedes all policies now in effect which contain defense
				  cost offsets within the policy limits or, deductibles.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 11 - CASUALTY INSURANCE › Part 2 - DEFENSE COSTS AND DEDUCTIBLES WITHIN LIMITS › Section 13.11.2.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Section 59A-2-9 and 59A-16-3 NMSA 1978.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 11 - CASUALTY INSURANCE › Part 2 - DEFENSE COSTS AND DEDUCTIBLES WITHIN LIMITS › Section 13.11.2.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
October 13, 1988, unless a later date is cited at the end of
				  a section .
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 11 - CASUALTY INSURANCE › Part 2 - DEFENSE COSTS AND DEDUCTIBLES WITHIN LIMITS › Section 13.11.2.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The purpose of this rule is to prohibit the across-the-board
				  use of legal defense cost offset provisions except for those exceptions found
				  in
				  13.11.2.8
				  NMAC and
				  13.11.2.9
				  NMAC.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 11 - CASUALTY INSURANCE › Part 2 - DEFENSE COSTS AND DEDUCTIBLES WITHIN LIMITS › Section 13.11.2.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
For the purpose of this rule, the following definitions
				  apply.
A.
"Legal defense
				costs"
mean allocated attorney and all other litigation expenses that
				can be separately identified as arising from the defense of a specific
				claim.
B.
"Liability
				insurance policy"
means any insurance policy covering liability, even if
				it also contains other types of coverage.
C.
"Self insured retention"
for
				the purposes of this rule is an insurance program whereby the insured retains a
				deductible of at least $100,000 per claim for his liability
				exposures.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 11 - CASUALTY INSURANCE › Part 2 - DEFENSE COSTS AND DEDUCTIBLES WITHIN LIMITS › Section 13.11.2.8 - GENERAL PROHIBITION OF DEFENSE COSTS WITHIN LIMITS

Current through Register Vol. 35, No. 13, July 16, 2024
No liability insurance policy, unless specified in
				  13.11.2.9
				  NMAC, shall be issued in this state which contain provisions that:
A. reduce the limits of liability in the
				policy by the amount of legal defense costs; or
B. permit legal defense costs to be applied
				against the deductible, if any.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 11 - CASUALTY INSURANCE › Part 2 - DEFENSE COSTS AND DEDUCTIBLES WITHIN LIMITS › Section 13.11.2.9 - EXCEPTIONS TO GENERAL PROHIBITION

Current through Register Vol. 35, No. 13, July 16, 2024
A. This prohibition shall not apply to
				aircraft liability policies, fidelity and surety policies, nuclear liability
				policies, marine protection and indemnity policies, or prepaid legal service
				plans, reinsurance policies, or self-insured retentions.
B. A legal defense offset provision otherwise
				prohibited in 13.11.2.8 NMAC may be included in a liability insurance policy
				only for the following types of risks or coverages, and only where liability
				limits for all liability risks and coverages under the policy are at least:
(1) $500,000:
(a) pollution and environmental impairment
				liability;
(b) directors and
				officers liability;
(c)
				governmental entity liability;
(d)
				employee benefit liability;
(e)
				fiduciary liability;
(f) media,
				publishing and advertising liability;
(g) errors and omissions liability;
				and
(h) professional liability,
				other than medical malpractice liability; or
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 11 - CASUALTY INSURANCE › Part 2 - DEFENSE COSTS AND DEDUCTIBLES WITHIN LIMITS › Section 13.11.2.10 - REQUIREMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
A liability insurance policy as specified in Subsection B of
				  13.11.2.9
				  NMAC which contains a provision limiting legal defense costs shall be issued or
				  renewed in this state only if the requirements of Subsections A and B of
				  13.11.2.10 NMAC are met, or if the requirement of Subsection C of 13.11.2.10
				  NMAC is met.
A. Legal defense costs
				charged against the stated limit of liability shall not exceed fifty percent
				(50%) of such limits and, except as authorized by Subsection B of 13.11.2.10
				NMAC, the insurer shall assume any legal defense cost over the amount of
				percentage specified in the policy.
B. Legal defense costs charged against the
				deductible shall not exceed fifty percent (50%) of such deductible and, except
				as authorized by Subsection A of 13.11.2.10 NMAC, the insurer shall assume any
				legal defense cost over the amount or percentage specified in the policy in
				regard to such deductible.
C. The
				limitation specified in Subsections A and B of 13.11.2.10 NMAC may be omitted
				if the policy provides that the insured shall have the option to:
(1) select the defense attorney or to consent
				to the insurer's choice of defense attorney, which consent shall not be
				unreasonably withheld;
(2)
				participate in, and assist in the direction of the defense of any claim with
				such participation and assistance not limiting the insurer's right to control
				the defense; and
(3) consent to a
				settlement, which consent shall not be unreasonably withheld.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 11 - CASUALTY INSURANCE › Part 2 - DEFENSE COSTS AND DEDUCTIBLES WITHIN LIMITS › Section 13.11.2.11 - REQUIRED NOTIFICATION

Current through Register Vol. 35, No. 13, July 16, 2024
A. Any
				policy issued or renewed in this state containing legal defense cost offset
				provisions must print such provisions in bold type on the face of the
				application for insurance and on the face of the policy.
B. Any policy containing legal defense cost
				offset provisions specified in Subsection A of 13.11.2.10 NMAC must contain a
				statement signed by the insured acknowledging that the insured is aware that
				the limits of liability contained in the policy shall be reduced up to the
				amount or percentage stated in the policy by legal defense costs and, in such
				event, the insurer shall be liable for legal defense costs (except those due to
				any offset against the deductible) exceeding that amount of
				percentage.
C. Any policy
				containing legal defense cost offset provisions specified in Subsection B of
				13.11.2.10 NMAC must contain a statement signed by the insured acknowledging
				that the insured is aware that legal defense costs that are incurred shall be
				applied against the deductible up to the amount or percentage stated in the
				policy and, in such event, the insurer shall be liable for legal defense costs
				(except those due to any offset against policy limits) exceeding that amount or
				percentage.
D. Any policy
				containing legal defense cost offset provisions specified in Subsection C of
				13.11.2.10 NMAC must contain a statement signed by the insured acknowledging
				that the insured is aware that the limits of liability contained in the policy
				shall be reduced, and may be completely exhausted by legal defense costs, and
				to the extent that policy limits are thereby exceeded, the insurer shall not be
				liable for legal defense costs or for any judgment or settlement.
E. Any signed statement required by
				Subsection B of 13.11.2.11 NMAC shall be attached to and made a part of the
				policy.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 11 - CASUALTY INSURANCE › Part 2 - DEFENSE COSTS AND DEDUCTIBLES WITHIN LIMITS › Section 13.11.2.12 - ACCOUNTING

Current through Register Vol. 35, No. 13, July 16, 2024
Where the liability limits of the policy are reduced by legal
				  defense costs or where legal defense cost are applied against the deductible,
				  the insurer shall notify the insured of the insured's right, upon written
				  request, to an accounting of legal defense costs actually
				  expended.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 11 - CASUALTY INSURANCE › Part 2 - DEFENSE COSTS AND DEDUCTIBLES WITHIN LIMITS › Section 13.11.2.13 - COST OFFSET

Current through Register Vol. 35, No. 13, July 16, 2024
The premium and rate for any policy issued or renewed in this
				  state containing legal defense cost offset provisions shall be commensurate
				  with the coverage provided.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 11 - CASUALTY INSURANCE › Part 2 - DEFENSE COSTS AND DEDUCTIBLES WITHIN LIMITS › Section 13.11.2.14 - EXCEPTIONS TO THIS RULE

Current through Register Vol. 35, No. 13, July 16, 2024
If the superintendent finds that application of this rule
				  unduly hinders the availability of insurance or does not significantly benefit
				  the consumers, he may grant such exemptions as he sees fit.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 3 - UNINSURED AND UNKNOWN MOTORISTS COVERAGE › Section 13.12.3.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This rule shall govern the delivery or the issuance for
				  delivery of any motor vehicle or automobile policy in this state, insuring
				  against loss resulting from liability imposed by law for bodily injury or death
				  suffered by any person or for injury to or destruction of property of others
				  arising out of the ownership, maintenance or use of a motor vehicle or
				  automobile registered or principally garaged in this state, by providing in or
				  supplemental to, uninsured and unknown motorist coverage in limits for bodily
				  injury or death and for injury to or destruction of property as provided in
				  this rule.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 3 - UNINSURED AND UNKNOWN MOTORISTS COVERAGE › Section 13.12.3.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
July 1, 1997, unless a later date is cited at the end of a
				  section.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 3 - UNINSURED AND UNKNOWN MOTORISTS COVERAGE › Section 13.12.3.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The purpose of this rule is to specify the requirements for
				  uninsured and unknown motorists endorsements in accordance with Section
				  66-5-301
				  NMSA 1978.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 3 - UNINSURED AND UNKNOWN MOTORISTS COVERAGE › Section 13.12.3.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
For the purposes of this rule:
A.
[*]
(a single asterisk in
				brackets) means either the first named insured, named insured or principal
				named insured, as appropriate for the context of the rule.
B.
[**]
(a double asterisk in
				brackets) means either "notice," "notice of accident," or "notice of accident,
				occurrence or loss," as appropriate for the context of the rule.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 3 - UNINSURED AND UNKNOWN MOTORISTS COVERAGE › Section 13.12.3.8 - OPTIONAL UNINSURED MOTORIST ENDORSEMENT

Current through Register Vol. 35, No. 13, July 16, 2024
Nothing contained in this rule shall prohibit any insurance
				  company from filing an endorsement providing benefits for uninsured and unknown
				  motorists which, in the opinion of the superintendent of insurance, is more
				  favorable to the policyholder than the provisions permitted by the endorsement
				  prescribed in this rule.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 3 - UNINSURED AND UNKNOWN MOTORISTS COVERAGE › Section 13.12.3.9 - REJECTION OF UNINSURED MOTORIST COVERAGE

Current through Register Vol. 35, No. 13, July 16, 2024
The rejection of the provisions covering damage caused by an
				  uninsured or unknown motor vehicle as required in writing by the provisions of
				  Section
				  66-5-301
				  NMSA 1978 must be endorsed, attached, stamped or otherwise made a part of the
				  policy of bodily injury and property damage insurance.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 3 - UNINSURED AND UNKNOWN MOTORISTS COVERAGE › Section 13.12.3.10 - REQUIREMENTS FOR AN ENDORSEMENT FOR UNINSURED AND UNKNOWN MOTORIST COVERAGE

Current through Register Vol. 35, No. 13, July 16, 2024
All forms of endorsement for uninsured and unknown motorists
				  coverage shall contain the provisions in
				  13.12.3.11
				  through
				  13.12.3.17
				  nmac.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 3 - UNINSURED AND UNKNOWN MOTORISTS COVERAGE › Section 13.12.3.11 - FIRST PAGE OF UNINSURED AND UNKNOWN MOTORIST COVERAGE ENDORSEMENT

Current through Register Vol. 35, No. 13, July 16, 2024
The first page of the endorsement must contain:
A. Space for insertion of name of company or
				companies issuing the endorsement and other matter permitted to be stated at
				the head of this endorsement.
B.
				Space for description of insured motor vehicle or automobile, listing of rates
				and premiums for the basic limits coverage insured under the endorsement and
				for additional excess limits of coverage under the endorsement.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 3 - UNINSURED AND UNKNOWN MOTORISTS COVERAGE › Section 13.12.3.12 - INSURING AGREEMENTS FOR UNINSURED AND UNKNOWN MOTORISTS COVERAGE ENDORSEMENT

Current through Register Vol. 35, No. 13, July 16, 2024
In consideration of the payment of the premium for this
				  endorsement and subject to all of the terms of this endorsement, the company
				  agrees with the [*] as to the insuring agreements in
				  13.12.3.13
				  through
				  13.12.3.17
				  NMAC.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 3 - UNINSURED AND UNKNOWN MOTORISTS COVERAGE › Section 13.12.3.13 - DAMAGES FOR BODILY INJURY AND PROPERTY DAMAGE CAUSED BY UNINSURED MOTOR VEHICLES

Current through Register Vol. 35, No. 13, July 16, 2024
To pay all sums which the insured or his legal representative
				  shall be legally entitled to recover as damages from the owner or operator of
				  an uninsured motor vehicle because of:
A. bodily injury, sickness or disease,
				including death resulting therefrom, hereinafter called "bodily injury",
				sustained by the insured; or
B.
				injury to or destruction of:
(1) motor
				vehicle registered in New Mexico which is owned by the [*] or by his spouse if
				a resident of the same household, and to which the liability coverage of the
				policy applies; and
(2) property
				owned by the insured which is contained therein, hereinafter called "property
				damage";
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 3 - UNINSURED AND UNKNOWN MOTORISTS COVERAGE › Section 13.12.3.14 - REQUIRED POLICY DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Insured means:
(1) the [*] as
				stated in the policy and, while residents of the same household, the spouse of
				any such [*] and relatives of either;
(2) any other person while occupying an
				insured motor vehicle; and
(3) any
				person with respect to damages he is entitled to recover because of bodily
				injury to which this endorsement applies sustained by an insured under
				Paragraphs (1) and (2) of Subsection A of 13.12.3.14 NMAC.
(4) The insurance applies separately with
				respect to each insured, but the application of the insurance to more than one
				insured shall not operate to increase the limits of the company's
				liability.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 3 - UNINSURED AND UNKNOWN MOTORISTS COVERAGE › Section 13.12.3.15 - POLICY PERIOD AND TERRITORY

Current through Register Vol. 35, No. 13, July 16, 2024
This endorsement applies only to accidents which occur on and
				  after the effective date of the endorsement, during the policy period and
				  within the United States of America, its territories or possessions, or
				  Canada.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 3 - UNINSURED AND UNKNOWN MOTORISTS COVERAGE › Section 13.12.3.16 - EXCLUSIONS

Current through Register Vol. 35, No. 13, July 16, 2024
This endorsement does not apply:
A. to bodily injury to an insured with
				respect to which such insured, his legal representative or any person entitled
				to payment under this endorsement shall, without written consent of the
				company, make any settlement with any person or organization who may be legally
				liable therefor;
B. to bodily
				injury to an insured while occupying a motor vehicle (other than an insured
				motor vehicle) owned by the [*] or any relative resident in the same
				household;
C. so as to inure
				directly or indirectly to the benefit of any workmen's compensation or
				disability benefits carrier or any person or organization qualifying as a
				self-insurer under any workmen's compensation or disability benefits law or any
				similar law;
D. so as to inure
				directly or indirectly to the benefit of any insurer of property;
E. to the first two hundred and fifty dollars
				of the total amount of all property damage as the result of any one
				accident.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 3 - UNINSURED AND UNKNOWN MOTORISTS COVERAGE › Section 13.12.3.17 - CONDITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Policy
				provisions:
None of the insuring agreements, exclusions or conditions of
				the policy shall apply to the insurance afforded by this endorsement except the
				conditions "[**]", "changes", "assignment", "cancellation" and
				"declarations".
B.
Premium:
If during the policy period the number of insured motor
				vehicles owned by the [*] or spouse or the number of dealer's license plates
				issued to the [*] changes, the insured shall notify the company during the
				policy period of any change and the premium shall be adjusted in accordance
				with the manuals in use by the company. If the earned premium thus computed
				exceeds the advance premium paid, the insured shall pay the excess to the
				company; if less, the company shall return to the insured the unearned portion
				paid by the insured.
C.
Proof of claim:
(1) As soon as
				practicable, the insured or other person making claim shall give to the company
				written proof of claim, under oath if required, including full particulars of
				the nature and extent of the injuries, treatment, and other details entering
				into the determination of the amount payable under the endorsement. The insured
				and every other person making a claim under the endorsement shall submit to
				examinations under oath by any person named by the company and subscribe the
				same, as often as may reasonably be required. Proof of claim shall be made upon
				forms furnished by the company unless the company shall have failed to furnish
				the forms within 15 days after receiving notice of claim.
(2) The injured person shall submit to
				physical examination by physicians selected by the company when and as often as
				the company may reasonably require and he, or in the event of his incapacity
				his legal representative, or in the event of his death his legal representative
				or the person or persons entitled to sue on his behalf, shall upon request from
				the company execute authorization to enable the company to obtain medical
				reports and copies of records.
(3)
				The insured or other person making claim for damage to property shall file
				proof of loss with the company within sixty days after the occurrence of loss,
				unless such time is extended in writing by the company, in the form of a sworn
				statement setting forth the interest of the insured and of all others in the
				property affected, any encumbrances thereon, the actual cash value thereof at
				time of loss, the amount, place, time and cause of such loss, and the
				description and amounts of all other insurance covering such property. Upon the
				company's request, the insured shall exhibit the damaged property to the
				company.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 4 - AUTOMOBILE SELF-INSURANCE › Section 13.12.4.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
New Mexico Public Regulation Commission, Insurance Division,
				  Post Office Box 1269, Santa Fe, NM 87504-1269.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 4 - AUTOMOBILE SELF-INSURANCE › Section 13.12.4.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Sections 59A-2-9,
				  66-5-207,
				  and
				  66-5-207.1 NMSA
				  1978
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 4 - AUTOMOBILE SELF-INSURANCE › Section 13.12.4.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
April 1, 1999, unless a later date is cited at the end of a
				  section or paragraph.
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 12 - MOTOR VEHICLE INSURANCE › Part 4 - AUTOMOBILE SELF-INSURANCE › Section 13.12.4.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The purpose of this rule is to provide criteria and
				  procedures for the issuance of certificates of self-insurance to persons who
				  qualify for exemption from the Mandatory Financial Responsibility
				  Act.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 4 - AUTOMOBILE SELF-INSURANCE › Section 13.12.4.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
As used in this rule:
A.
"Act"
means the Mandatory
				Financial Responsibility Act, Sections
				66-5-201
				NMSA 1978 et seq.
B.
"Applicant"
means any person subject to the act who seeks to
				qualify for exemption from the act by obtaining a certificate of self-insurance
				from the superintendent.
C.
"Change of ownership"
means the occurrence of any change in:
(1) the officers, directors, or holders of
				more than ten percent of the voting stock of the corporation, if the
				self-insured is a corporation;
(2)
				general partners or limited partners contributing ten percent or more of the
				total value of contributions made to the limited partnership, or entitled to
				ten percent or more of the profits earned, or other compensation by way of
				income paid, by the limited partnership, if the self-insured is a limited
				partnership; or
(3) the trustees or
				partners or owners of more than ten percent interest in the entity, if the
				self-insured is a legal entity which is not a corporation or limited
				partnership.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 4 - AUTOMOBILE SELF-INSURANCE › Section 13.12.4.8 - SCOPE OF SELF-INSURANCE

Current through Register Vol. 35, No. 13, July 16, 2024
A. A
				motor vehicle owner may self-insure only its own liability, including its
				vicarious liability as an employer for an operator who is an employee, in
				accordance with this rule.
B.
				Self-insurance does not include uninsured or underinsured motorists
				coverage.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 4 - AUTOMOBILE SELF-INSURANCE › Section 13.12.4.9 - CONTENTS OF APPLICATION

Current through Register Vol. 35, No. 13, July 16, 2024
A. An
				application for a certificate of self-insurance shall be made on the form
				prescribed by the superintendent. The application shall contain full and
				specific answers to all questions.
B. The application shall be signed, under
				oath, by:
(1) the applicant if the applicant
				is an individual or a sole proprietorship;
(2) a general partner if the applicant is a
				partnership;
(3) an officer of the
				applicant if the applicant is a corporation.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 4 - AUTOMOBILE SELF-INSURANCE › Section 13.12.4.10 - OTHER REQUIRED DOCUMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
The application shall be accompanied by the following
				  documents:
A. a certified copy of the
				applicant's most recent audited financial statement; If the last audited
				statement is more than six months old, there shall be included an affidavit
				signed by the applicant's treasurer stating that there has been no material
				lessening of the tangible net worth or other adverse change since the date of
				the statement. If there has been such a material or adverse change since the
				date of the statement, an explanation shall be attached or a new statement
				prepared;
B. if the applicant is a
				corporation, a resolution adopted by the board of directors, in a form approved
				by the superintendent, authorizing and directing the corporation to undertake
				to self-insure itself and to comply with the rules of the
				superintendent;
C. if the applicant
				is a subsidiary corporation, a parental guarantee from the subsidiary's
				upper-most parent in a form acceptable to the superintendent. If the applicant
				is a brother-sister corporation applying as one self-insurer, mutual guarantees
				from each corporation in a form acceptable to the superintendent;
D. a plan of operation for the self-insurance
				program, as provided in this rule;
E. detailed resumes, on biographical
				affidavit forms prescribed by the superintendent, of all the principals of the
				applicant;
F. a binder from an
				insurance company authorized to transact insurance business in New Mexico
				specifying the limits and the terms and conditions of excess insurance coverage
				to be obtained if the application is approved;
G. if the applicant is a corporation, a
				certificate of good standing from the corporations bureau;
H. if automobiles are leased or rented to
				others, a copy of the lease or rental agreement containing the terms under
				which automobiles are leased or rented.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 4 - AUTOMOBILE SELF-INSURANCE › Section 13.12.4.11 - EVALUATION FACTORS

Current through Register Vol. 35, No. 13, July 16, 2024
In determining if an applicant will be able to meet its
				  obligations as a self-insured, both at the time of application and continuously
				  thereafter if applicant is granted a certificate of self-insurance, the factors
				  to be considered by the superintendent shall include, but not be limited to,
				  the following:
A. whether the
				applicant has a tangible net worth of at least two million dollars
				($2,000,000.00);
B. whether the
				applicant is financially solvent;
C. whether the applicant has a risk
				management system;
D. whether the
				applicant has an adequate claims management system;
(1) If a third party administrator or claims
				administration service is to be used, it must be licensed in New
				Mexico.
(2) If claims are handled
				in-house, the self-insured must employ a New Mexico-licensed
				adjuster.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 4 - AUTOMOBILE SELF-INSURANCE › Section 13.12.4.12 - PLAN OF OPERATIONS FOR SELF-INSURANCE PROGRAMS

Current through Register Vol. 35, No. 13, July 16, 2024
Aicant shall prepare and maintain an up-to-date, detailed
				  plan of operations for its self-insurance program. At a minimum, such plan
				  shall include:
A. an overview and
				narrative description of the proposed plan, with comments on all major aspects
				of operations, including administration, data and record keeping, claims,
				investment, reinsurance, and any other important topic;
B. a description of the structure and
				organization of the company, the type of company (stock, mutual, etc.), holding
				company, affiliates, and subsidiaries;
C. the qualifications and experience of
				management personnel;
D. a
				description of the self-insured's claims management program;
E. an explanation of the use of any
				management agreements, or agreements with claims adjusters or third party
				administrators, and any other significant contractual arrangements;
F. the names of any reinsurer(s) and
				descriptions of the types, terms and conditions, and cost of coverage, and the
				maximum retained exposure;
G. a
				detailed summary of the applicant's automobile premium, exposure and loss
				history for at least the last three (3) years;
H. an explanation of the applicant's safety
				and loss control program and a copy of the safety manual, if one exists;
				include the name of the person in charge of the safety program and vehicle
				inspection schedule;
I. an
				actuarial evaluation of the applicant's projected loss for the coming
				year.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 4 - AUTOMOBILE SELF-INSURANCE › Section 13.12.4.13 - CERTIFICATION PROCEDURE

Current through Register Vol. 35, No. 13, July 16, 2024
A. Upon
				receipt of the completed application, filing fee and other required documents,
				the superintendent shall approve or disapprove the application or shall advise
				the applicant of the requirements to be met before approval will be
				granted.
B. Upon the
				superintendent's approval of the application, and receipt of proof that all
				requirements have been met, the superintendent shall issue a certificate of
				self-insurance. A certificate of self-insurance shall be continuous until
				terminated or revoked as provided in this rule.
C. The superintendent shall deny an
				application for self-insurance if the applicant has failed to demonstrate to
				the superintendent's satisfaction that it has met, and will be able to continue
				to meet, all requirements of this rule.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 4 - AUTOMOBILE SELF-INSURANCE › Section 13.12.4.14 - FINANCIAL RESPONSIBILITY REQUIREMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
Prior to issuance of a certificate of self-insurance, and
				  continuously thereafter if applicant is granted a certificate of
				  self-insurance, the applicant must comply with each of the following
				  requirements:
A.
Security:
The applicant shall furnish security for payment of
				claims, in one of the following forms:
(1) by
				depositing securities specified in Section 59A-10-3 NMSA 1978 as eligible for
				deposit, in the amount of two hundred thousand dollars ($200,000.00), or
				twenty-five percent (25%) of projected losses and loss adjustment expenses,
				whichever is greater;
(2) by a
				financial guaranty bond in favor of the superintendent in the amount of one
				hundred thousand dollars ($100,000.00) or twenty-five percent (25%) of
				projected losses and loss adjustment expenses, whichever is greater,
				guaranteeing automobile loss payments in New Mexico, on a form prescribed or
				approved by the superintendent; or
(3) by other security prescribed by the
				superintendent, provided, however, that the superintendent shall approve the
				amount and form of the proposed security prior to the applicant being issued a
				certificate of self-insurance.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 4 - AUTOMOBILE SELF-INSURANCE › Section 13.12.4.15 - MINIMUM LIMITS OF SELF-INSURANCE COVERAGE

Current through Register Vol. 35, No. 13, July 16, 2024
A. For motor carriers required to obtain an
				operating authority from the motor transportation division of the public
				regulation commission, the minimum limits of self-insurance coverage per
				vehicle owned by the applicant shall be the same as the minimum limits of
				insurance coverage required by Section 232.03 of SCC Rule 232, Insurance
				Requirements, or its successor provision.
B. For motor carriers not required to obtain
				an operating authority from the motor transportation division of the public
				regulation commission, the minimum limits of self-insurance coverage shall be
				one hundred thousand dollars ($100,000) combined single limit per vehicle owned
				by the applicant.
C. For rental
				cars and other private passenger vehicles, the minimum limits of self-insurance
				coverage shall be twenty-five thousand dollars ($25,000)/fifty thousand dollars
				($50,000) bodily injury liability and ten thousand dollars ($10,000) property
				damage liability per vehicle owned by the applicant.
D. The superintendent may require higher
				limits of coverage than specified in this section based on evidence of the need
				to protect the public from a higher exposure than the norm or other existing or
				anticipated circumstances requiring higher limits of liability coverage. The
				superintendent may take into account:
(1) the
				financial stability of the applicant;
(2) the previous loss history of the
				applicant;
(3) the safety record of
				the applicant;
(4) the size, nature
				of operations, and other characteristics of the applicant.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 4 - AUTOMOBILE SELF-INSURANCE › Section 13.12.4.16 - DISCLOSURE BY SELF-INSURED CAR RENTAL COMPANIES

Current through Register Vol. 35, No. 13, July 16, 2024
If a self-insured car rental company takes the position that
				  the insurance coverage of a lessee or other authorized driver is primary for
				  the purpose of meeting the minimum financial responsibility requirements of the
				  act, then this position must be prominently disclosed on the front of the car
				  rental contract.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 4 - AUTOMOBILE SELF-INSURANCE › Section 13.12.4.17 - COMPLIANCE AND REPORTING REQUIREMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
By accepting a certificate of self-insurance, a self-insured
				  agrees to:
A. promptly discharge all
				of its liabilities and responsibilities in accordance with the requirements of
				this rule;
B. notify the
				superintendent within fifteen (15) calendar days in case of contemplated
				liquidation, sale or transfer of ownership, or material reduction in New Mexico
				operations; and arrange for the payment of all existing liability and any
				disability or liability arising thereafter by guaranty bond, deposit of
				securities, or otherwise, as required by the superintendent;
C. notify the superintendent within fifteen
				(15) calendar days prior to making any material change in any excess insurance
				policy or surety bond or other security required by the superintendent as a
				condition of self-insurance;
D.
				notify the superintendent within fifteen (15) calendar days of any change in
				the kind or amount of services provided by any service company named in the
				application;
E. promptly notify the
				superintendent of any material, adverse change in its financial
				condition;
F. provide full
				disclosure to the superintendent, or the superintendent's agents and staff, of
				all matters required to be disclosed, and to cooperate fully in any lawful
				review, evaluation, examination, or audit of any matter pertaining to the
				applicant's compliance with this rule or any lawful order or communication of
				the superintendent;
G. notify the
				superintendent within thirty (30) calendar days if there is a change of
				ownership of a self-insured, and submit biographical affidavits for the new
				owners;
H. meet any other
				reasonable criteria deemed necessary by the superintendent to guarantee payment
				of automobile claims
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 4 - AUTOMOBILE SELF-INSURANCE › Section 13.12.4.18 - ANNUAL REPORTS

Current through Register Vol. 35, No. 13, July 16, 2024
Each self-insured shall prepare an annual report on the form
				  provided by the superintendent. The report shall be filed within ninety (90)
				  days after the end of the self-insured's fiscal year and shall be accompanied
				  by the following documents:
A. a
				certified annual financial statement;
B. actuarial reports, unless waived by the
				superintendent, attesting to the loss reserve requirements and projected losses
				and loss adjustments expense for the coming year;
C. a report of automobile claims
				activity;
D. a copy of its current
				plan of operations; and
E. a copy
				of the current declarations page and all endorsements providing or limiting
				excess insurance coverage in New Mexico.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 4 - AUTOMOBILE SELF-INSURANCE › Section 13.12.4.19 - EXAMINATIONS AND REVIEWS

Current through Register Vol. 35, No. 13, July 16, 2024
A. The
				superintendent may direct at any time that an applicant or a self-insured be
				reviewed or evaluated by a qualified person approved by the superintendent. As
				part of such review or evaluation, the superintendent reserves the right at any
				time to direct such qualified person:
(1) to
				audit or review the applicant's or self-insured's records regarding any
				representation made on its financial statement;
(2) to audit or review or take the testimony
				under oath of the applicant or self-insured, or any of its agents or employees,
				regarding any matter within their knowledge and pertaining to the obligations
				of the applicant or self-ins ured under this rule; and
(3) to review the application form and all
				supporting documents submitted by an applicant or self-insured.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 4 - AUTOMOBILE SELF-INSURANCE › Section 13.12.4.20 - TERMINATION OR REVOCATION OF A CERTIFICATE

Current through Register Vol. 35, No. 13, July 16, 2024
A. A certificate of self-insurance may be
				terminated at the request of the self-insured. The superintendent shall not
				grant the request of a self-insured to terminate its certificate unless the
				self-insured makes arrangements to otherwise guarantee payment of any known or
				unknown obligations covered by the certificate. The self-insured shall file
				proof of such arrangements with the superintendent, subject to the
				superintendent's prior written approval.
B. A certificate may be revoked by the
				superintendent for the grounds specified in Section
				66-5-207.1 NMSA
				1978 , or for any of the following reasons:
(1) failure of a self-insured to comply with
				any provisions or requirements of this rule, or with any lawful order or
				communication of the superintendent;
(2) insolvency or bankruptcy of the
				self-insured or any surety or guarantor;
(3) impairment of any aspect of the
				self-insured's financial responsibility requirements; or
(4) failure to abide by the provisions of
				Section 59A-16-20 NMSA 1978 regarding unfair claims practices.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 4 - AUTOMOBILE SELF-INSURANCE › Section 13.12.4.21 - REINSTATEMENT

Current through Register Vol. 35, No. 13, July 16, 2024
Any person who seeks reinstatement of a revoked certificate
				  of self-insurance shall apply to the superintendent on the form prescribed by
				  the superintendent. Such person shall demonstrate compliance with all
				  requirements of this rule as if the person were a new applicant, except that in
				  lieu of providing all the specific information required by the application
				  form, an applicant for recertification may incorporate by reference any
				  responsive and still-current information which was filed with the
				  superintendent on the original application form. A non-refundable filing fee of
				  one hundred fifty dollars ($150.00) must accompany an application for
				  reinstatement of a revoked certificate.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 12 - MOTOR VEHICLE INSURANCE › Part 4 - AUTOMOBILE SELF-INSURANCE › Section 13.12.4.22 - HEARINGS

Current through Register Vol. 35, No. 13, July 16, 2024
Any person aggrieved by a decision of the superintendent made
				  pursuant to this rule may request a hearing before the superintendent in
				  accordance with the provisions of Chapter 59A, Article 4 NMSA
				  1978.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 13 - PROPERTY INSURANCE › Part 2 - RESIDENTIAL PROPERTY INSURANCE COVERAGE REQUIREMENTS › Section 13.13.2.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
New Mexico State Corporation Commission [Public Regulation
				  Commission], Department of Insurance, Post Office Box 1269, Santa Fe, NM
				  87504-1269.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 13 - PROPERTY INSURANCE › Part 2 - RESIDENTIAL PROPERTY INSURANCE COVERAGE REQUIREMENTS › Section 13.13.2.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Sections 59A-2-9, 59A-3-6 and 59A-18-17 NMSA
				  1978.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 13 - PROPERTY INSURANCE › Part 2 - RESIDENTIAL PROPERTY INSURANCE COVERAGE REQUIREMENTS › Section 13.13.2.5 - 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 2 - RESIDENTIAL PROPERTY INSURANCE COVERAGE REQUIREMENTS › Section 13.13.2.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
This rule establishes definitions and uniform coverage
				  provisions for claims settlement practices required by Subsection 59A-18-17 C
				  NMSA 1978.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 13 - PROPERTY INSURANCE › Part 2 - RESIDENTIAL PROPERTY INSURANCE COVERAGE REQUIREMENTS › Section 13.13.2.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
"Authorized insurer"
has the meaning given in Section 59A-1-8 NMSA
				1978. For purposes of this rule, the FAIR plan established pursuant to Chapter
				59A, Article 29 NMSA 1978, is not an authorized insurer.
B.
"Claims settlement"
means an
				agreement between an authorized insurer and claimant as to the amount of money
				owed to the claimant on a particular claim.
C.
"Coinsurance requirement"
means a provision in an insurance policy that requires that the limit of
				liability be within a specified percentage of the replacement cost of the
				covered property.
D.
"Extended coverage peril"
means: windstorm, hail, smoke,
				explosion, riot or civil commotion, aircraft damage, vehicle damage, or
				volcanic eruption.
E.
"Fire"
means a rapid oxidation with a flame or glow that is
				hostile, or goes beyond intended confines.
F.
"Replacement cost"
means
				material and labor expenses plus all other reasonable and necessary expenses
				involved in the repair or replacement of damaged property.
G.
"Residence"
means a structure
				used solely as a place for people to live and having not more than four
				apartments or units; or, a residence means an individually owned condominium,
				rowhouse, or townhouse used solely as a place for people to live. A residence
				is not an out-building, shed, barn, detached garage or similar structure,
				vacant structure, motel, hotel, licensed health care facility, homeless
				shelter, shelter for battered women and/or children, jail, camp, a vehicle
				licensed by a governmental agency, barracks, orphanage, dormitory or any other
				structure where people live on a transient basis. Personal property contained
				within a residence is not part of a residence.
H.
"Residential property
				insurance"
means insurance of a residence against direct loss or damage
				from fire or extended coverage peril. Residential property insurance does not
				include insurance against the liability of the insured for loss or damage to
				the property or property interest of another, title insurance as defined by
				Section 59A-7-9 NMSA 1978, or other consequential loss or damage resulting from
				fire or extended coverage peril.
I.
"Vacant structure"
means a structure in which no person has lived
				for at least thirty consecutive days.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 13 - PROPERTY INSURANCE › Part 2 - RESIDENTIAL PROPERTY INSURANCE COVERAGE REQUIREMENTS › Section 13.13.2.8 - RESIDENTIAL PROPERTY INSURANCE COVERAGE REQUIREMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Residential property insurance policies
				shall be provided on a replacement cost basis.
B. Residential property insurance policy
				provisions may limit an authorized insurer's liability for loss due to a single
				occurrence to less than replacement cost of a residence, provided the
				authorized insurer's liability shall not be reduced pursuant to a coinsurance
				requirement. A residential property insurance policy that limits an authorized
				insurer's liability for loss due to a single occurrence to less than
				replacement cost of a residence, but does not reduce the authorized insurer's
				liability pursuant to a coinsurance requirement does not violate the provisions
				of Section 59A-18-17C NMSA 1978, and shall not be construed to require that
				losses be paid in excess of stated policy limits.
C. An insured may elect to effectuate repairs
				to a residence himself or herself under a residential property insurance
				policy. In such a case, claims settlement shall provide for replacement
				cost.
D. This rule does not
				supersede other loss settlement limitations, conditions, exclusions or other
				provisions contained in the residential property insurance policy.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 13 - PROPERTY INSURANCE › Part 2 - RESIDENTIAL PROPERTY INSURANCE COVERAGE REQUIREMENTS › Section 13.13.2.9 - 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.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 13 - PROPERTY INSURANCE › Part 3 - THE NEW MEXICO FAIR PLAN › Section 13.13.3.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
New Mexico State Corporation Commission [Public Regulation
				  Commission], Department of Insurance, Post Office Box 1269, Santa Fe, NM
				  87504-1269.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 13 - PROPERTY INSURANCE › Part 3 - THE NEW MEXICO FAIR PLAN › Section 13.13.3.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This rule applies to all insurers providing essential
				  property insurance pursuant to the FAIR Plan Act, Chapter 59A, Article 29 NMSA
				  1978.