New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 4 - LICENSING OF INSURANCE PROFESSIONALS › Part 2 - RESIDENT PRODUCERS AND OTHER RESIDENT LICENSES › Section 13.4.2.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
For the purposes of this rule:
A.
"affiliate"
means a person
				that controls, is controlled by or is under common control with an insurance
				producer;
B.
"appointment"
means official authorization by an insurer of a
				licensed producer to transact insurance on the insurer's behalf upon
				application and the payment of required fees by the insurer to the
				superintendent;
C.
"broker"
means a type of insurance producer who, not being an
				agent of the insurer, but as an independent contractor and on behalf of the
				insured, solicits, negotiates or procures insurance or annuity contracts or the
				renewal or continuation thereof for insureds or prospective insureds other than
				the broker. In any controversy between an insured or an insured's beneficiary
				and the insurer issuing the insurance through its licensed insurance producer
				at the request of a broker, the broker shall be held to be the agent of the
				insured unless under particular circumstances it is found that the broker is
				representing the insurer or in instances of fraud or attempted fraud by the
				insured. "Broker" does not include a surplus lines broker as defined in Chapter
				59A, Article 14 NMSA 1978;
D.
"business entity"
means a corporation, association, partnership,
				limited liability company, limited liability partnership or other legal
				entity;
E.
"compensation"
means payments, commissions, fees, awards,
				overrides, bonuses, contingent commissions, loans, stock options, gifts, prizes
				or any other form of valuable consideration, whether or not payable pursuant to
				a written agreement;
F.
"designated home state"
means a state in which an insurance
				producer is licensed and which the producer designates for purposes of
				compliance with licensing regulations;
G.
"designated responsible licensed
				producer"
or
"DRLP"
is as defined in Subsection B of
				13.4.2.10
				NMAC;
H.
"errors and
				omissions policy"
or
"professional indemnity insurance"
means a form of casualty insurance that helps to protect individuals and
				companies from costs of defending against a negligence claim based on
				allegations of loss caused by an error or omission in the service
				sold;
I.
"escrow"
means a transaction in which funds are delivered or given to a person not
				otherwise having any right, title or interest in them, to be held by that
				person for delivery or disbursement to another person upon the occurrence of a
				specified event or the performance of a specified condition;
J.
"home state"
means the
				District of Columbia or any state or territory of the United States which is
				the principal place of residence or principal place of business for an
				insurance producer and in which the producer is licensed to transact
				insurance;
K.
"insurance"
has the meaning set forth in Section
				59A-1-5
				NMSA 1978;
L.
"insurance
				consultant"
means a person who, under an agreement with an insured or
				potential insured, provides professional advice regarding a policy, annuity or
				other instrument of insurance in exchange for a fee, as set forth in Section
				59A-11A-1
				NMSA 1978.
M.
"insurance
				producer"
means a person required to be licensed in this state to sell,
				solicit or negotiate insurance. A licensed insurance producer appointed by an
				insurer shall, in any controversy between an insured or an insured's
				beneficiary and the insurer, be held to be the agent of the insurer that issued
				the insurance solicited or applied for;
N.
"insurer"
has the meaning set
				forth in Section
				59A-1-8
				NMSA 1978;
O.
"license"
means a document issued by the superintendent of
				insurance authorizing a person to act as an insurance producer for the lines of
				authority specified in the document or to engage in other insurance
				transactions based on the type of license;
P.
"limited lines insurance"
means those lines of insurance as set forth in Sections
				59A-12-18,
				59A-12-18.1
				and
				59A-60-1 et seq. NMSA
				1978, or any other line of insurance that the superintendent deems
				necessary;
Q.
"limited lines
				insurance producer"
means a licensed insurance producer who is qualified
				to solicit and sell limited lines insurance;
R.
"managing general agent"
means a specialized type of licensed insurance producer as defined in
				Subsection C of Section
				59A-12B-2 NMSA
				1978;
S.
"NAIC"
means
				the national association of insurance commissioners;
T.
"negotiate"
means the act of
				conferring directly with or offering advice directly to a purchaser or
				prospective purchaser of a particular contract of insurance concerning any of
				the substantive benefits, terms or conditions of the contract, provided that
				the person engaged in that act either sells insurance or obtains insurance from
				insurers for purchasers;
U.
"offer and disseminate"
means providing general information, such
				as a description of coverage and price, processing applications, collecting
				premiums and performing other insurance-related activities for which a license
				is not required by this state;
V.
"pharmacy benefits manager"
means a person or its subsidiary that
				provides claims administration, benefit design and management, pharmacy network
				management, negotiation and administration of product discounts, rebates and
				other benefits or other prescription drug or device services to third parties,
				as further described in Subsection G of Section
				59A-61-2 NMSA
				1978;
W.
"prearranged funeral
				plan"
means a contract for future delivery of a funeral plan as defined
				in Subsections A, B and C of Section
				59A-49-4 NMSA
				1978;
X.
"prepaid dental
				plan"
means a contractual arrangement whereby a prepaid dental plan
				organization undertakes to directly provide or to arrange for the provision of
				prepaid dental services and to pay or make reimbursement for any remaining
				portion of such prepaid dental services on a prepaid basis through insurance or
				otherwise;
Y.
"principal"
means a person who gives authority to another to act
				on the person's behalf;
Z.
"rental car endorsee"
means a rental car agent's employee who
				offers, sells, binds, effects, solicits or negotiates rental car insurance and
				who satisfies the requirements of Subsection C of
				13.4.2.15
				NMAC;
AA.
"rental car
				insurance"
means insurance sold in connection with and incidental to the
				rental of a vehicle and that applies only to the vehicle that is the subject of
				the rental agreement, and as further defined in Subsection E of Section
				59A-32A-2 NMSA
				1978;
BB.
"rental car
				producer"
means a person or entity in the business of renting rental
				cars to the public and that is licensed to offer, sell, bind, effect, solicit
				or negotiate rental car insurance;
CC.
"resident of the state"
means an individual who maintains a principal home in New Mexico and holds no
				active resident insurance license in another state;
DD.
"sell"
means to exchange a
				contract of insurance by any means, for money or its equivalent, on behalf of
				an insurer;
EE.
"service
				representative"
means an individual regularly employed and salaried by
				an insurer, group of insurers or managing general agent who assists insurance
				producers in soliciting, negotiating and effectuating insurance for the
				insurer, group or managing general agent and who, in the conduct of their
				business, receives no part of the commission on insurance written. A service
				representative is not required to be licensed, nor shall the service
				representative independently solicit or negotiate insurance or annuity
				contracts;
FF.
"solicit"
means to attempt to sell insurance or ask or urge a
				person to apply for a particular kind of insurance from a particular
				insurer;
GG.
"superintendent"
means the superintendent of insurance, the office
				of superintendent of insurance or employees of the office of superintendent of
				insurance acting within the scope of the superintendent's official duties and
				with the superintendent's authorization;
HH.
"terminate"
means to cancel
				the relationship between an insurance producer and the insurer or to terminate
				a licensed insurance professional's authority to transact insurance;
II.
"title abstract plant"
is as
				defined in Section
				59A-12-13
				NMSA 1978;
JJ.
"title
				insurance policy"
means an insurance contract indemnifying against loss
				or damages, as set forth in Subsection H of Section
				59A-30-3 NMSA
				1978;
KK.
"title insurance
				business"
means the types of business set forth in Subsection C of
				Section
				59A-30-3 NMSA
				1978;
LL.
"title insurance
				producer"
is a person licensed in this state to engage in the business
				of title insurance and who has been appointed to perform escrow, closing and
				settlement functions of a real estate transaction by a title insurer;
MM.
"travel insurance policy"
means insurance coverage for personal risks incident to planned travel as
				defined in Paragraph (3) of Subsection H of Section
				59A-12-18.1
				NMSA 1978; and
NN.
"travel
				retailer"
means a business entity that makes, arranges or offers travel
				services.