46th legislature - STATE OF NEW MEXICO - first session, 2003

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 [and receipt for, and persons so served shall pay to the superintendent, fees, licenses and miscellaneous charges as follows] 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 regulations], 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

(7) each seal or signature affixed to an instrument . . . . . . . . . . . . . . . . . . . . . . 10.00.

[Notwithstanding the fees required in this subsection] An insurer shall be subject to additional fees or charges, termed retaliatory or reciprocal requirements, [or both] whenever [any] form or rate-filing fees in excess of those imposed by [the laws of this] state law are charged to insurers in New Mexico doing business in another state or whenever [any] 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 [shall] may be imposed upon [every] an insurer from [every other] 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 [fails to] does not comply with the additional retaliatory or reciprocal requirement charges imposed under this subsection, the superintendent [shall] may refuse to grant or [shall] may withdraw approval of the tendered form or rate filing.

[Except as to certain appointment fees as specified in Section 59A-11-8 NMSA 1978] All fees are [deemed] 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 [REFUNDABILITY OF FEES].--[A.] 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, [he] 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 [such] the refusal and [stating] state the grounds [therefor] for refusal.

[B. If the license is refused, the superintendent shall refund any applicable appointment fee tendered with the application for license. The fee for filing application for license or for examination shall be deemed earned when paid and shall not be refundable.]"

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. [Every] A general lines agent shall have and maintain a place of business accessible to the public, [wherein] where the licensee conducts transactions under the license. [The address of the place of business shall appear upon the application for license when issued, and the licensee shall promptly notify the superintendent in writing of any change of address.] Nothing in this section shall prohibit maintenance of the place of business in the licensee's residence.

B. The licenses of the licensee and [those] of solicitors employed by [him] 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. [Such] Instruction shall be designed to refresh the licensee's understanding of basic principles and coverages involved, recent and prospective changes [therein], applicable laws and rules [and regulations] 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 [such] formal instruction sessions [to take] and successfully complete an equivalent course of study and instruction by mail.

D. The superintendent shall promulgate rules [and regulations] for [effectuation of] 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 [five dollars ($5.00)] 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 Chapter 59A, Article 12 NMSA 1978 is enacted to read:

"[NEW MATERIAL] 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 [any] a person:

(a) who or [which] that investigates, negotiates, settles or adjusts [losses or claims] a loss or claim arising under an insurance [contracts] 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 [any claims] a claim involving personal injury to the insured; and

(b) who [shall advise] 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 [every] an adjuster who is not a staff adjuster and includes [representatives] a representative and [employees] an employee of [such] an independent adjuster.

B. Except as [provided hereafter] 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 [himself to be] as an adjuster;

(2) a licensed agent or general agent of an authorized insurer or an employee of [such] an agent or general agent who adjusts claims or losses under specific authority from [such] the insurer and solely under policies issued by [such] the insurer;

(3) an agent or employee of a life or health insurer who adjusts claims or losses under [such] the insurer's policies or who contracts to administer policies or benefits of that type; or

(4) a salaried or part-time claims [agents] agent or [investigators] investigator employed by a self-insured [persons subject to regulation pursuant to Section 7, Article ll of the constitution of New Mexico] 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.--[Every] A licensed adjuster shall have [in this state and while so licensed shall] and maintain a principal place of business in the state that is easily accessible to the public and [from which] 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 [any] 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 [department of] 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 [for issuance of] to issue the bonds. The net proceeds from the sale of the bonds are appropriated to the [department of] 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 [pursuant to Section 59A-6-1.1 NMSA 1978] 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 [department of] insurance division for acquisition, maintenance and operation of information and communication equipment, including computer hardware, [and] 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 [department of] insurance division that all obligations for the bonds issued pursuant to this section have been fully discharged and direct the [department] 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 [so as] 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."