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HOUSE BILL 369
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Joshua N. Hernandez
AN ACT
RELATING TO INSURANCE; MODIFYING CERTAIN TIME FRAMES AND FEES
FOR LICENSING.
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, 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
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(2) annual continuation of certificate of
authority, per kind of insurance. . . . . . . . . . . . 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. . . . . . . . . . 10.00
E. producer licenses and appointments -
(1) filing application for original producer
license and issuance of license . . . . . . . . . . . . . 30.00
(2) biennial continuation of license . . 60.00
(3) appointment of producer -
(a) filing appointment, per kind of
insurance, each insurer . . . . . . . . . . . . . . . . . 20.00
(b) annual continuation of appointment,
per kind of insurance, each insurer . . . . . . . . . . . 20.00
(4) temporary license filing
application . . . . . . . . . . . . . . . . . . . . . . . 30.00
F. agency business entity license and
affiliations -
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(1) filing application for original agency
business entity license and issuance of license . . . . . 30.00
(2) biennial continuation of license . . 60.00
(3) filing of individual affiliation . 20.00
(4) annual continuation of individual
affiliation . . . . . . . . . . . . . . . . . . . . . . . 20.00
G. insurance vending machine license -
(1) filing application for original license
and issuance of license, each machine . . . . . . . . . . 25.00
(2) biennial continuation of license, each
machine . . . . . . . . . . . . . . . . . . . . . . . . . 50.00
H. examination for license, application for
examination conducted directly by the 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. . . . . . . . . . . . . . . 75.00
I. surplus lines insurer - filing application for
qualification as eligible surplus lines insurer . . . 1,000.00
J. surplus lines broker license -
(1) filing application for original license
and issuance of license . . . . . . . . . . . . . . . . 100.00
(2) biennial continuation of license . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . 200.00
K. surplus lines brokerage business entity license
and affiliations -
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(1) filing application for original surplus
lines brokerage business entity license and issuance of license
. . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00
(2) filing of individual affiliation . . 20.00
(3) annual continuation of individual
affiliation . . . . . . . . . . . . . . . . . . . . . . . 20.00
L. adjuster license -
(1) filing application for original license
and issuance of license . . . . . . . . . . . . . . . . . 30.00
(2) biennial continuation of
license . . . . . . . . . . . . . . . . . . . . . . . . . 60.00
M. insurance consultant license -
(1) filing application for original license
and issuance of license . . . . . . . . . . . . . . . . . 50.00
(2) application examination . . . . . . 75.00
(3) biennial continuation of license . 100.00
N. viatical settlements license -
(1) providers -
(a) filing application for original
license and issuance of license . . . . . . . . . . . 1,000.00
(b) biennial continuation of
license . . . . . . . . . . . . . . . . . . . . . . . . 400.00
(2) brokers -
(a) filing application for original
license and issuance of license . . . . . . . . . . . . 100.00
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(b) biennial continuation of
license . . . . . . . . . . . . . . . . . . . . . . . . 200.00
(3) brokerages -
(a) filing application for original
business entity license and issuance of license . . . . 100.00
(b) biennial continuation of
license . . . . . . . . . . . . . . . . . . . . . . . . 200.00
(c) filing of individual
affiliation . . . . . . . . . . . . . . . . . . . . . . . 20.00
(d) annual continuation of individual
affiliation . . . . . . . . . . . . . . . . . . . . . . . 20.00
O. advisory organization license -
(1) filing application for license and
issuance of license . . . . . . . . . . . . . . . . . . 100.00
(2) annual continuation of
license . . . . . . . . . . . . . . . . . . . . . . . . 100.00
P. nonprofit health care plans -
(1) filing application for preliminary permit
and issuance of permit. . . . . . . . . . . . . . . . . 100.00
(2) certificate of authority, application,
issuance, continuation, reinstatement, charter documents - same
as for insurers
(3) annual statement, filing . . . . . 200.00
Q. prepaid dental plans -
(1) certificate of authority, application,
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issuance, continuation, reinstatement, charter documents - same
as for insurers
(2) annual report, filing . . . . . . 200.00
R. prearranged funeral insurance - application for
certificate of authority, issuance, continuation,
reinstatement, charter documents, filing annual statement,
licensing of sales representatives - same as for insurers
S. premium finance companies -
(1) filing application for original license
and issuance of license . . . . . . . . . . . . . . . . 100.00
(2) annual renewal of license . . . . 100.00
T. motor clubs -
(1) certificate of authority -
(a) filing application for original
certificate of authority and issuance of certificate of
authority . . . . . . . . . . . . . . . . . . . . . . . 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, each
representative. . . . . . . . . . . . . . . . . . . . . . 30.00
(b) biennial continuation of
registration or license, each representative. . . . . . . 60.00
U. bail bondsmen -
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(1) filing application for original license as
bail bondsman or solicitor, and issuance of license
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.00
(2) examination for license, each instance of
examination . . . . . . . . . . . . . . . . . . . . . . . 50.00
(3) biennial continuation of
license . . . . . . . . . . . . . . . . . . . . . . . . . 60.00
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 . . . . . . . . . . . . . . . . . . . . . . . 200.00
(3) filing each annual report . . . . 200.00
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(4) filing an amendment to organizational
documents requiring approval. . . . . . . . . . . . . . 200.00
(5) filing informational amendments . . 50.00
X. purchasing groups and foreign risk retention
groups -
(1) original registration . . . . . . 500.00
(2) annual continuation of
registration. . . . . . . . . . . . . . . . . . . . . . 200.00
(3) producer fees - same as for authorized
insurers
Y. third party administrators -
(1) filing application for original business
entity insurance administrator license. . . . . . . . . 100.00
(2) biennial continuation or renewal
of license. . . . . . . . . . . . . . . . . . . . . . . 200.00
(3) examination for license, each
examination . . . . . . . . . . . . . . . . . . . . . . . 75.00
(4) filing of annual report . . . . . . 50.00
Z. miscellaneous fees -
(1) duplicate license . . . . . . . . . 30.00
(2) name change . . . . . . . . . . . . 30.00
(3) for each signature and seal of
superintendent affixed to any instrument. . . . . . . . . 10.00
AA. pharmacy benefits managers -
(1) filing an application for a
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license . . . . . . . . . . . . . . . . . . . . . . . 1,000.00
(2) annual continuation of license, each
year continued. . . . . . . . . . . . . . . . . . . . . 500.00
(3) filing each annual report . . . . 200.00
(4) filing an amendment to organizational
documents requiring approval. . . . . . . . . . . . . . 200.00
(5) filing informational amendments . 100.00
BB. independent review organizations
(1) filing an application for a
license . . . . . . . . . . . . . . . . . . . . . . . . 250.00
(2) biennial continuation of license . 100.00
CC. continuing education providers
(1) filing an application for a course of
instruction . . . . . . . . . . . . . . . . . . . . . . . 80.00
(2) biennial continuation of course of
instruction . . . . . . . . . . . . . . . . . . . . . . . 40.00
DD. multiple employer welfare arrangements,
employee leasing contractors and professional employer
organizations
(1) initial registration . . . . . . 1,000.00
(2) annual renewal fee . . . . . . . . 200.00.
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
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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-11-10 NMSA 1978 (being Laws 1984,
Chapter 127, Section 189, as amended) is amended to read:
"59A-11-10. CONTINUATION, EXPIRATION OF LICENSE.--
A. The term of the license shall be perpetual,
contingent upon payment of fees and completion of any
continuing education requirements.
B. Individual licenses shall renew and continue on
a biennial basis on the last day of the licensee's month of
birth. Business entity licenses shall renew and continue on a
biennial basis on March 1 of the biennial year; except for
those types of business entity licenses that, pursuant to
Section 59A-6-1 NMSA 1978, renew and continue on an annual
basis, in which case those licenses shall renew and continue on
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March 1 of every year. Business entity affiliations shall
renew and continue on an annual basis on March 1 of every year.
C. Any license referred to in this section that is
not so continued shall be deemed to have terminated as of
midnight on the last day of the licensee's month of birth if an
individual license and as of midnight of March 1 if a business
entity license; except that the superintendent may effectuate a
request for continuation received within [thirty days ] one year
thereafter if accompanied by a continuation fee equal to one
hundred fifty percent of the continuation fee otherwise
required.
D. If the superintendent has reason to believe that
the competence of any licensee, or individual designated to
exercise license powers, is questionable, the superintendent
may require as condition of continuation of the license or
license powers that the licensee or individual take and pass a
written examination as required under the Insurance Code of new
individual applicants for the same license.
E. This section shall not apply as to temporary
licenses, which shall be for such duration and subject to
extension as provided in the respective sections of the
Insurance Code by which such licenses are authorized.
F. All licenses and appointments of an insurer or
other principal that ceases to be authorized to transact
business in this state shall automatically terminate without
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notice [as of date of such cessation ] at midnight on March 1
each year.
G. A license shall terminate upon death of the
licensee, if an individual, or dissolution, if a corporation,
or change in partners, if a partnership; provided that, in the
case of a partnership, the license may be continued for a
reasonable period while application for new license is being
made or pending, as provided by rule."
SECTION 3. Section 59A-11-12 NMSA 1978 (being Laws 1984,
Chapter 127, Section 191, as amended) is amended to read:
"59A-11-12. APPOINTMENT OF INSURANCE PRODUCER--
CONTINUATION.--
A. An insurance producer shall not act as an agent
of an insurer unless the insurance producer becomes an
appointed insurance producer of that insurer. An insurance
producer who is not acting as an agent of an insurer is not
required to become appointed.
B. To appoint an insurance producer as its agent,
the appointing insurer shall file in a format approved by the
superintendent a notice of appointment within fifteen days from
the date the agency contract is executed or the first insurance
application is submitted. An insurer may also elect to appoint
an insurance producer to all or some insurers within the
insurer's holding company system or group by the filing of a
single appointment request.
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C. Upon receipt of the notice of appointment, the
superintendent shall verify within a reasonable time not to
exceed thirty days that the insurance producer is eligible for
appointment. If the insurance producer is determined to be
ineligible for appointment, the superintendent shall notify the
insurer within five days of its determination.
D. An insurer shall pay a filing appointment fee in
the amount and method of payment set forth in Section 59A-6-1
NMSA 1978 for each insurance producer appointed by the insurer.
E. An insurer shall remit in a manner prescribed by
the superintendent a continuation of appointment fee in the
amount set forth in Section 59A-6-1 NMSA 1978.
F. Appointments shall be continuous subject to
payment of any applicable fees, annually, by midnight March 1
each year. Fees shall be calculated as of a date certain."
SECTION 4. Section 59A-12-17 NMSA 1978 (being Laws 1984,
Chapter 127, Section 218, as amended) is amended to read:
"59A-12-17. SCOPE OF LICENSE.--
A. Unless denied licensure pursuant to Sections
59A-11-8 and 59A-11-14 NMSA 1978, a person who has met the
requirements of Sections 59A-12-12 and 59A-12-15 NMSA 1978
shall be issued an insurance producer license. An insurance
producer may receive qualification for a license in one or more
of the following lines of authority:
(1) life insurance coverage on human lives,
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including benefits of endowment and annuities, and may include
benefits in the event of death or dismemberment by accident and
benefits for disability income;
(2) accident and health or sickness insurance
coverage for sickness, bodily injury or accidental death and
may include benefits for disability income;
(3) property insurance coverage for the direct
or consequential loss or damage to property of every kind;
(4) casualty insurance coverage against legal
liability, including that for death, injury or disability or
damage to real or personal property;
(5) variable life and variable annuity
products insurance coverage provided under variable life
insurance contracts and variable annuities;
(6) personal lines property and casualty
insurance coverage sold to individuals and families for
primarily noncommercial purposes;
(7) limited line credit insurance; and
(8) any other line of insurance permitted
under state laws.
B. A licensee as to variable annuities or similar
contracts deemed to constitute securities shall also possess
license as a security salesman under other applicable state
laws.
C. An insurance producer license shall remain in
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effect unless revoked or suspended as long as the fee set forth
in Section 59A-6-1 NMSA 1978 is paid, the resident insurance
producer maintains a current residential, business or email
address with the superintendent and education requirements for
resident insurance producers are met by the due date.
D. An insurance producer who allows the insurance
producer's license to lapse may, within twelve months from the
due date of the renewal fee, reinstate the same license without
the necessity of passing a written examination. However, a
penalty in the amount of [double ] the unpaid renewal fee shall
be required for any renewal fee received after the due date.
E. A licensed insurance producer who is unable to
comply with license renewal procedures due to military service
or some other extenuating circumstance may request a waiver of
those procedures. The insurance producer may also request a
waiver of any examination requirement or any other fine or
sanction imposed for failure to comply with renewal procedures.
F. The license shall contain the licensee's name,
residential, business or email address and personal
identification number, the date of issuance, the lines of
authority, the expiration date and any other information the
superintendent deems necessary.
G. Licensees shall inform the superintendent in the
format prescribed by the superintendent of a change of
residential, business or email address within thirty days of
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the change. Failure to timely inform the superintendent of a
change in legal name or residential, business or email address
shall result in a penalty of fifty dollars ($50.00).
H. The superintendent may contract with [non-
governmental] nongovernmental entities, including the national
association of insurance commissioners or any affiliates or
subsidiaries that the national association of insurance
commissioners oversees, to perform any ministerial functions,
including the collection of fees, related to insurance producer
licensing that the superintendent and the nongovernmental
entity may deem appropriate."
SECTION 5. Section 59A-13-9 NMSA 1978 (being Laws 1984,
Chapter 127, Section 237, as amended) is amended to read:
"59A-13-9. PLACE OF BUSINESS.--
A. A resident adjuster shall have and maintain a
principal place of business in this state that is easily
accessible to the public and that 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.
B. An adjuster shall promptly notify the
superintendent of a change of business, residential or email
address. Failure to notify the superintendent of a change of
address within [twenty ] thirty days shall subject the licensee
to a penalty in the amount of fifty dollars ($50.00)."
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SECTION 6. A new section of Chapter 59A, Article 5 NMSA
1978 is enacted to read:
"[NEW MATERIAL] STATUTORY DEPOSITS, FEES AND ASSESSMENTS--
CONTACT INFORMATION REQUIRED--PENALTY.--
A. An insurer shall file, on a form furnished and
prescribed by the superintendent:
(1) the contact name of the individual who is
responsible for statutory deposits, fees and assessments;
(2) the phone number of each contact person;
and
(3) the email address of each contact person.
B. An insurer shall update the contact information
within thirty days of any change to the information or upon a
request from the superintendent. An insurer that fails to
update contact information may be subject to an administrative
penalty."
SECTION 7. A new section of Chapter 59A, Article 5 NMSA
1978 is enacted to read:
"[NEW MATERIAL] CERTIFICATE OF AUTHORITY--DOCUMENTATION
REQUIRED--PENALTY.--
A. An insurer that amends a certificate of
authority, including a form A filing or corporate amendment,
shall submit the required documentation to the superintendent
within thirty days of any change.
B. An insurer that fails to submit the
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documentation required pursuant to Subsection A of this section
may be subject to an administrative penalty."
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