HOUSE BILL 234

54th legislature - STATE OF NEW MEXICO - second session, 2020

INTRODUCED BY

Daymon Ely

 

 

 

 

 

AN ACT

RELATING TO INSURANCE; REVISING THE DUTIES OF THE INSURANCE NOMINATING COMMITTEE; PROVIDING FOR AN INTERIM SUPERINTENDENT OF INSURANCE; REVISING QUALIFICATIONS FOR SUPERINTENDENT OF INSURANCE.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 59A-2-2 NMSA 1978 (being Laws 1984, Chapter 127, Section 20, as amended) is amended to read:

     "59A-2-2. SUPERINTENDENT--APPOINTMENT--TERM--COMPENSATION--REMOVAL.--

          A. The position of superintendent of insurance shall be the chief officer of the office of superintendent of insurance.

          B. The superintendent shall be appointed by the insurance nominating committee.

          C. The superintendent shall serve for a term of four years, except that the initial term beginning July 1, 2013 shall end on December 31, 2015. [If the position of superintendent becomes vacant, the successor shall serve for the remainder of the term] An incumbent superintendent may apply to the insurance nominating committee for appointment to additional terms.

          D. The superintendent's annual compensation shall be subject to legislative appropriation and established by the insurance nominating committee at the start of each term and annually thereafter. The superintendent's annual compensation shall be no lower than that of the lowest-compensated cabinet secretary and no higher than that of the highest-compensated cabinet secretary.

          E. The superintendent shall not be removed except for incompetence, willful neglect of duty or malfeasance in office. The insurance nominating committee may remove the superintendent after providing the superintendent with notice and a hearing."

     SECTION 2. Section 59A-2-2.1 NMSA 1978 (being Laws 2013, Chapter 74, Section 15, as amended) is amended to read:

     "59A-2-2.1. INSURANCE NOMINATING COMMITTEE--DUTIES--ADMINISTRATIVE ATTACHMENT.--

          A. The "insurance nominating committee" is created and consists of nine members, including:

                (1) four members who are selected by the New Mexico legislative council as follows:

                     (a) two members who shall represent the interests of the insurance industry;

                     (b) two members who shall represent the interests of insurance consumers and who have experience advocating on behalf of consumers or the public interest on insurance issues. These consumer members shall not be employed by or on behalf of or have a contract with an employer that is regulated by the office of superintendent of insurance; and

                     (c) no more than two of the four members shall be from the same political party;

                (2) four members who are selected by the governor as follows:

                     (a) two members who shall represent the interests of the insurance industry;

                     (b) two members who shall represent the interests of insurance consumers and who have experience advocating on behalf of consumers or the public interest on insurance issues. These consumer members shall not be employed by or on behalf of or have a contract with an employer that is regulated by the office of superintendent of insurance; and

                     (c) no more than two of the four members shall be from the same political party; and

                (3) a ninth member who shall be chair of the committee and who shall be selected by a majority of the other eight members; provided that the member shall:

                     (a) not be a candidate for the position of superintendent of insurance; and

                     (b) be either a former New Mexico superintendent of insurance or another person with extensive knowledge of insurance regulation in New Mexico, but does not have, nor have a spouse or child who has, any direct financial interest in an insurer, insurance agency or insurance transaction except as a policyholder or a claimant under a policy or as an owner of less than one percent of the shares of an insurer that is a publicly traded corporation.

          B. A vacancy on the committee shall be filled by the original appointing authority for the remainder of the term.

          C. A committee member shall:

                (1) be a resident of New Mexico;

                (2) serve a four-year term; except that a member of the first committee appointed shall serve for a term that ends on June 30, 2015; and

                (3) serve without compensation, but shall be eligible to receive per diem and mileage pursuant to the

Per Diem and Mileage Act.

          D. The committee is subject to the Inspection of Public Records Act and the Open Meetings Act. Individual members of the committee are subject to the Governmental Conduct Act and the Financial Disclosure Act.

          E. The committee shall convene within ninety days [prior to the date on which the term of a superintendent ends and shall appoint a superintendent within sixty days of convening] in anticipation of the occurrence of a vacancy in the superintendent position or the expiration of a superintendent's term of office.

          F. Upon the occurrence of a vacancy in the superintendent position, [the committee shall convene within thirty days of the date of the vacancy and shall appoint a successor to fill the remainder of the superintendent's term within sixty days of convening] or after the conclusion of the superintendent's term, the chair of the committee may appoint an interim superintendent who shall serve until a successor is duly qualified.

          G. The committee shall actively solicit, accept and evaluate applications from qualified individuals for the position of superintendent and may require an applicant to submit any information it deems relevant to the consideration of the individual's application.

          H. The committee shall appoint the superintendent by a vote of a majority of all members of the committee.

          I. The committee shall meet no less often than annually.

          J. The committee is administratively attached to the office of superintendent of insurance. The office of superintendent of insurance shall provide staff for the committee.

          K. An employee of the office of superintendent of insurance who serves as staff for the committee shall not reveal to any person, except another committee staff person, any requests or statements disclosed in confidence by a committee member, except that this restriction shall not apply to any disclosure that is:

                (1) protected under the Whistleblower Protection Act; or

                (2) required by law."

     SECTION 3. Section 59A-2-3 NMSA 1978 (being Laws 1984, Chapter 127, Section 21, as amended) is amended to read:

     "59A-2-3. SUPERINTENDENT--QUALIFICATIONS AND BOND.--The superintendent shall:

          [A. be a resident of New Mexico at the time of appointment;

          B.] A. be bonded as provided in the Surety Bond Act;

          [C.] B. not have a direct financial interest in an insurer, insurance agency or insurance transaction except as a policyholder or a claimant under a policy or as an owner of less than one percent of the shares of an insurer that is a publicly traded corporation; and

          [D.] C. not have a spouse who:

                (1) has a direct financial interest in an insurer or insurance agency regulated by the office of superintendent of insurance, except as an owner of less than one percent of the shares of an insurer that is a publicly traded corporation; or

                (2) is licensed as an individual by the office of superintendent of insurance."

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