AN ACT
RELATING TO INSURANCE; AMENDING THE NEW MEXICO INSURANCE
CODE TO CHANGE CERTAIN LICENSE FEES AND TO PROVIDE FOR NOTICE OF CHANGE OF
ADDRESS; PERMITTING SURCHARGE PROCEEDS TO BE APPROPRIATED FOR CERTAIN
ACTIVITIES; PROVIDING PENALTIES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 59A-6-1 NMSA 1978 (being Laws 1984,
Chapter 127, Section 101, as amended) is amended to read:
"59A-6-1. FEE SCHEDULE.--The superintendent shall
collect the following fees:
A. insurer's certificate of authority -
(1) filing application for certificate of
authority, and issuance of certificate of authority, if issued, including
filing of all charter documents, financial statements, service of process,
power of attorney, examination reports and other documents included with and
part of the application.......... $1,000.00
(2) annual continuation of certificate of
authority, per kind of insurance, each year
continued............................................................................................................. 200.00
(3) reinstatement of certificate of authority
(Section 59A-5-23 NMSA 1978) 150.00
(4) amendment to certificate of
authority............................................................................................................... 200.00
B. charter documents - filing amendment to any
charter document (as defined in Section 59A-5-3
NMSA 1978)........................................................................................................... 10.00
C. annual statement of insurer,
filing..................................................................................................................... 200.00
D. service of process, acceptance by
superintendent and issuance of certificate of service, where issued.................................................................................................................... 10.00
E. agents' licenses and appointments -
(1) filing application for original agent license
and issuance of license, if issued 30.00
(2) appointment of agent -
(a) filing appointment, per kind of insurance,
each insurer 20.00
(b) continuation of appointment, each insurer,
each year continued 20.00
(3) variable annuity agent's license -
(a) filing application for license and issuance
of license, if issued 30.00
(b) continuation of appointment each year........... 20.00
(4) temporary license as to life and health
insurance or both 30.00
(a) as to property insurance................................. 30.00
(b) as to casualty/surety
insurance............................................................................................................... 30.00
(c) as to vehicle insurance.................................... 30.00
F. solicitor license -
(1) filing application for original license and
issuance of license, if issued 30.00
(2) continuation of appointment, per kind of
insurance, each year 20.00
G. broker license -
(1) filing application for license and issuance
of original license, if issued 30.00
(2) annual continuation of
license................................................................................................................... 30.00
H. insurance vending machine license -
(1) filing application for original license and
issuance of license, if issued, each machine.............................................................................................................................. 25.00
(2) annual continuation of license, each
machine................................................................................................................. 25.00
I. examination for license, application for
examination conducted directly by superintendent, each grouping of kinds of
insurance to be covered by the examination as provided by the superintendent's
rules, and payable as to each instance of examination.......................................................... 50.00
J. surplus line insurer - filing application for
qualification as eligible surplus lines insurer 1,000.00
K. surplus line broker license -
(1) filing application for original license and
issuance of license, if issued 100.00
(2) annual continuation of
license................................................................................................................. 100.00
L. adjuster license -
(1) filing application for original license and
issuance of license, if issued 30.00
(2) annual continuation of
license................................................................................................................... 30.00
M. rating organization or rating advisory
organization license -
(1) filing application for license and issuance
of license, if issued 100.00
(2) annual continuation of
license................................................................................................................. 100.00
N. nonprofit health care plans -
(1) filing application for preliminary permit and
issuance of permit, if issued 100.00
(2) certificate of authority, application,
issuance, continuation, reinstatement, charter documents - same as for insurers
(3) annual statement, filing............................................. 200.00
(4) agents and solicitors -
(a) filing application for original license and
issuance of license, if issued 30.00
(b) examination for license conducted directly by
superintendent, each instance of
examination............................................................................................................ 50.00
(c) annual continuation of
appointment........................................................................................................... 20.00
O. prepaid dental plans -
(1) certificate of authority, application,
issuance, continuation, reinstatement, charter documents - same as for insurers
(2) annual report, filing................................................... 200.00
(3) agents and solicitors -
(a) filing application for original license and
issuance of license, if issued 30.00
(b) examination for license conducted directly by
superintendent, each instance of
examination............................................................................................................ 50.00
(c) continuation of license, each
year....................................................................................................................... 20.00
P. prearranged funeral insurance - application
for certificate of authority, issuance, continuation, reinstatement, charter
documents, filing annual statement, licensing of sales representatives - same
as for insurers
Q. premium finance companies -
(1) filing application for original license and
issuance of license, if issued 100.00
(2) annual renewal of license.......................................... 100.00
R. motor clubs -
(1) certificate of authority -
(a) filing application for original certificate
of authority and issuance of certificate of authority, if issued................................................................................................ 200.00
(b) annual continuation of certificate of authority 100.00
(2) sales representatives -
(a) filing application for registration or
license and issuance of registration or license, if issued, each representative................................................................................... 20.00
(b) annual continuation of registration or
license, each representative 20.00
S. bail bondsmen -
(1) filing application for original license as
bail bondsman or solicitor, and issuance of license, if issued.................................................................................................................... 30.00
(2) examination for license conducted directly by
superintendent, each instance of
examination............................................................................................................ 50.00
(3) continuation of appointment, each
year....................................................................................................................... 20.00
T. securities salesperson license -
(1) filing application for license and issuance
of license, if issued 25.00
(2) renewal of license, each year...................................... 25.00
U. for each signature and seal of the
superintendent affixed to any instrument 10.00
V. required filing of forms or rates - by all
lines of business other than property or casualty
(1) rates............................................................................ 50.00
(2) major form - each new policy and each package
submission, which can include multiple policy forms, application forms, rider
forms, endorsement forms or amendment forms 30.00
(3) incidental forms and rates - forms filed for
informational purposes; riders, applications, endorsements and amendments filed
individually; rate service organization reference filings; rates filed for
informational purposes.......................................................................................... 15.00
W. health maintenance organizations -
(1) filing an application for a certificate of
authority..... 1,000.00
(2) annual continuation of certificate of
authority, each year continued 200.00
(3) filing each annual report . . . . 200.00
(4) filing an amendment to organizational documents
requiring approval 200.00
(5) filing informational
amendments.......................................................................................................... 50.00
(6) agents and solicitors -
(a) filing application for original license and
issuance of license, if issued 30.00
(b) examination for license, each instance of
examination 50.00
(c) annual continuation of
appointment .......................................................................................................... 20.00
X. purchasing groups and foreign risk retention
groups -
(1) original registration.................................................... 500.00
(2) annual continuation of
registration........................................................................................................... 200.00
(3) agent or broker fees same as for authorized
insurers
Y. third party administrators -
(1) filing
application for original individual insurance administrator license 30.00
(2) filing application for original officer,
manager or partner insurance administrator
license..................................................................................................................... 30.00
(3) continuation or renewal of annual
license..................................................................................................................... 30.00
(4) examination for
license conducted directly by the superintendent, each examination................................................................................................................................ 75.00
(5) each request for
a duplicate license or for each name change 30.00
(6) filing of annual
report..................................................... 50.00.
An insurer shall be subject to additional fees
or charges, termed retaliatory or reciprocal requirements, whenever form or
rate-filing fees in excess of those imposed by state law are charged to
insurers in New Mexico doing business in another state or whenever a condition
precedent to the right to issue policies in another state is imposed by the
laws of that state over and above the conditions imposed upon insurers by the
laws of New Mexico; in those cases, the same form or rate-filing fees may be
imposed upon an insurer from another state transacting or applying to transact
business in New Mexico so long as the higher fees remain in force in the other
state. If an insurer does not comply
with the additional retaliatory or reciprocal requirement charges imposed under
this subsection, the superintendent may refuse to grant or may withdraw
approval of the tendered form or rate filing.
All fees
are earned when paid and are not refundable."
Section
2. Section 59A-11-8 NMSA 1978 (being
Laws 1984, Chapter 127, Section 187) is amended to read:
"59A-11-8. ISSUANCE, REFUSAL OF LICENSE.--If the
superintendent finds that the application is complete, that the applicant has
passed all required examinations and is otherwise qualified for the license
applied for, the superintendent shall promptly issue the license. Otherwise, the superintendent shall refuse to
issue the license and promptly notify the applicant and the appointing insurer,
employer or principal, where applicable, of the refusal and state the grounds
for refusal."
Section
3. Section 59A-12-20 NMSA 1978 (being
Laws 1984, Chapter 127, Section 221, as amended by Laws 1999, Chapter 272,
Section 12 and also by Laws 1999, Chapter 289, Section 13) is amended to read:
"59A-12-20. PLACE OF BUSINESS--DISPLAY OF LICENSE.--
A. A general lines agent shall have and maintain
a place of business accessible to the public, where the licensee conducts
transactions under the license. Nothing
in this section shall prohibit maintenance of the place of business in the licensee's
residence.
B. The licenses of the licensee and of
solicitors employed by the licensee shall be conspicuously displayed in the
place of business in a part customarily open to the public.
C. This section does not apply to life
insurance, annuity contracts or health insurance."
Section
4. Section 59A-12-26 NMSA 1978 (being
Laws 1984, Chapter 127, Section 227, as amended by Laws 1999, Chapter 272,
Section 16 and also by Laws 1999, Chapter 289, Section 17) is amended to read:
"59A-12-26. CONTINUED EDUCATION.--
A. For protection of the public and to preserve
and improve competence of licensees, the superintendent may in his sole
discretion require as a condition to continuation of license as agent,
solicitor or broker under this article that during the twelve months next
preceding expiration of the current license period the licensee has attended
the minimum number of hours of formal class instruction, lectures or seminars
required and approved by the superintendent covering the kinds of insurance for
which licensed.
B. Instruction shall be designed to refresh the
licensee's understanding of basic principles and coverages involved, recent and
prospective changes, applicable laws and rules of the superintendent, proper
conduct of the licensee's business and duties and responsibilities of the
licensee.
C. The superintendent may permit licensees who
because of remoteness of residence or business cannot with reasonable
convenience attend formal instruction sessions and successfully complete an
equivalent course of study and instruction by mail.
D. The superintendent shall promulgate rules for
the purposes and requirements of this section and may impose a penalty not to
exceed fifty dollars ($50.00) for a licensee's failure to timely report
continuing education credits.
E. For the purposes of this section, the
superintendent shall charge, at the time of certifying each licensee's
continuing education credits as a condition of continuation of license, a fee
of one dollar ($1.00) per credit hour of continuing education; provided that
the superintendent may contract with an established and experienced independent
agency to receive and review continuing education compliance reports and, in
such a case, the fee shall be a reasonable amount fixed by the superintendent
and payable to the contracting agency.
F. This section shall not apply to holders of
limited license issued under Section 59A-12-18 NMSA 1978."
Section
5. A new section of the New Mexico
Insurance Code, Section 59A‑12-20.1 NMSA 1978, is enacted to read:
"CHANGE
OF ADDRESS--NOTICE REQUIRED--PENALTY.--The address of the licensee's place of
business shall appear on the application for the license and on the
license. The licensee shall promptly
notify the superintendent in writing of a change of address. Failure to notify the superintendent of a
change of address within twenty days shall subject the licensee to a penalty of
fifty dollars ($50.00)."
Section
6. Section 59A-13-2 NMSA 1978 (being
Laws 1984, Chapter 127, Section 230, as amended) is amended to read:
"59A-13-2. DEFINITIONS.--
A. For the purposes of the Insurance Code:
(1) "adjuster" is a person that:
(a)
investigates, negotiates, settles or adjusts a loss or claim arising under an
insurance contract on behalf of an insurer, insured or self-insurer, for a fee,
commission or other compensation; however, an adjuster acting on behalf of an
insured shall not investigate, negotiate, settle or adjust a claim involving
personal injury to the insured; and
(b) advises the insured of his rights to
settlement and his rights to settle, arbitrate and litigate the dispute;
(2) "staff adjuster" is an adjuster
individual who is a salaried employee of an insurer, representing and adjusting
claims solely under policies of the employer insurer; and
(3) "independent adjuster" is an
adjuster who is not a staff adjuster and includes a representative and an employee
of an independent adjuster.
B. Except as otherwise provided,
"adjuster" does not include:
(1) an attorney-at-law who adjusts insurance
losses or claims from time to time incidental to practice of law and who does
not advertise or represent as an adjuster;
(2) a licensed agent or general agent of an
authorized insurer or an employee of an agent or general agent who adjusts
claims or losses under specific authority from the insurer and solely under
policies issued by the insurer;
(3) an agent or employee of a life or health
insurer who adjusts claims or losses under the insurer's policies or contracts
to administer policies or benefits of that type; or
(4) a salaried or part-time claims agent or
investigator employed by a self-insured person."
Section
7. Section 59A-13-9 NMSA 1978 (being
Laws 1984, Chapter 127, Section 237) is amended to read:
"59A-13-9. PLACE OF BUSINESS.--A licensed adjuster shall
have and maintain a principal place of business in the state that is easily
accessible to the public and is the place where the adjuster principally
conducts transactions under the license.
The address of the principal place of business shall appear on the
application for license and on the license.
The licensee shall promptly notify the superintendent of a change of
address of the principal place of business.
Failure to notify the superintendent of a change of address within
twenty days shall subject the licensee to a penalty in the amount of fifty
dollars ($50.00)."
Section
8. Laws 1996, Chapter 6, Section 3 is
amended to read:
"NEW
MEXICO FINANCE AUTHORITY REVENUE BONDS--PURPOSE--APPROPRIATION.--
A. The New Mexico finance authority may issue
and sell revenue bonds in compliance with the New Mexico Finance Authority Act
in installments or at one time in an amount not exceeding one million dollars
($1,000,000) for the purpose of financing information and communication
equipment, including computer hardware and software, for the insurance division
of the public regulation commission.
B. The New Mexico finance authority may issue and
sell revenue bonds authorized by this section when the superintendent of
insurance certifies the need to issue the bonds. The net proceeds from the sale of the bonds
are appropriated to the insurance division for the purposes described in
Subsection A of this section.
C. The proceeds from the surcharge imposed
pursuant to Section 59A-6-1.1 NMSA 1978 shall be distributed monthly to the New
Mexico finance authority to be pledged irrevocably for the payment of the
principal, interest and any other expenses or obligations related to the
bonds.
D. The surcharge proceeds distributed to the New
Mexico finance authority shall be deposited in a separate fund or account of
the authority. At the end of each fiscal
year, any money remaining in the separate fund or account from distributions
made to the authority during that fiscal year, after all principal, interest
and any other expenses or obligations related to the bonds in that fiscal year
are fully paid, may be appropriated by the legislature to the insurance
division for acquisition, maintenance and operation of information and
communication equipment, including computer hardware, software, systems
planning, deployment and training. Upon
payment of all principal, interest and any other expenses or obligations
related to the bonds, the authority shall certify to the insurance division
that all obligations for the bonds issued pursuant to this section have been
fully discharged and direct the division to cease distributing money pursuant
to Section 59A-6-1.1 NMSA 1978 to the authority.
E. Any law authorizing the imposition or
distribution of the surcharge or that affects the surcharge shall not be
amended, repealed or otherwise directly or indirectly modified to impair any
outstanding revenue bonds that may be secured by a pledge of the surcharge collections,
unless the revenue bonds have been discharged in full or provisions have been
made for a full discharge."