0001|                            HOUSE BILL 346
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0002|     43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003|                            INTRODUCED BY
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0004|                             MIMI STEWART
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0005|     
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0006|                                   
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0007|     
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0008| FOR THE COURTS, CORRECTIONS AND CRIMINAL JUSTICE COMMITTEE
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0009|                              
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0010|                           AN ACT
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0011|     RELATING TO INSURANCE; ENACTING THE DOMESTIC ABUSE INSURANCE
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0012|     PROTECTION ACT; PROHIBITING INSURERS FROM DISCRIMINATING
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0013|     AGAINST PERSONS ON THE BASIS OF DOMESTIC ABUSE; PROVIDING
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0014|     PENALTIES; AMENDING AND ENACTING SECTIONS OF THE NMSA 1978.
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0015|     
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0016|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0017|          Section 1.  A new section of the New Mexico Insurance Code
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0018|     is enacted to read:
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0019|          "[<u>NEW MATERIAL</u>]  SHORT TITLE.--Sections 1 through 10 of
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0020|     this act may be cited as the "Domestic Abuse Insurance
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0021|     Protection Act"."
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0022|          Section 2.  A new section of the New Mexico Insurance Code
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0023|     is enacted to read:
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0024|          "[<u>NEW MATERIAL</u>]  PURPOSE OF ACT.--The purpose of the
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0025|     Domestic Abuse Insurance Protection Act is to prohibit insurers
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0001|     from unlawfully discriminating on the basis of domestic abuse
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0002|     by using the fact of domestic abuse or a person's perceived
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0003|     abuse status as an insurance criterion or rating factor.  The
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0004|     Domestic Abuse Insurance Protection Act protects victims of
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0005|     domestic abuse, domestic abuse shelters and others from being
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0006|     unlawfully discriminated against in insurance matters."
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0007|          Section 3.  A new section of the New Mexico Insurance Code

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0008|     is enacted to read:
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0009|          "[<u>NEW MATERIAL</u>]  DEFINITIONS.--As used in the Domestic
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0010|     Abuse Insurance Protection Act:
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0011|               A.  "abuse-related medical condition" means a
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0012|     medical condition sustained by a victim of domestic abuse that
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0013|     arises in whole or in part out of an act or pattern of abuse;
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0014|               B.  "abuse status" means the fact or perception that
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0015|     a person is a victim of domestic abuse, irrespective of whether
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0016|     the person has sustained abuse-related medical conditions; 
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0017|               C.  "domestic abuse" means an act of abuse against a
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0018|     person, an abuse-related medical condition suffered by a person
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0019|     or the abuse status of a person, including a minor, that was
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0020|     caused by a family member or a current or former household
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0021|     member, intimate partner or caretaker, including the following:
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0022|                    (1)  attempting to cause or intentionally,
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0023|     knowingly or recklessly causing bodily injury to, physical harm
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0024|     to, severe emotional distress to, psychological trauma to or
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0025|     sexual assault on or attempting to rape or raping another
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0001|     person;
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0002|                    (2)  knowingly engaging in a course of conduct
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0003|     or repeatedly committing acts, including harassment or
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0004|     stalking, that are intended to or would cause a reasonable
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0005|     person, or do cause a person, to feel terrorized or seriously
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0006|     threatened that death, bodily harm, sexual assault, confinement
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0007|     or restraint may result;
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0008|                    (3)  subjecting another person to false
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0009|     imprisonment; or
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0010|                    (4)  attempting to cause or intentionally,
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0011|     knowingly or recklessly causing damage to property for the
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0012|     purpose of intimidating or attempting to control the behavior
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0013|     of another person;
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0014|               D.  "insured" means an individual named on a policy
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0015|     as the one with legal rights to the benefits provided by the
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0016|     policy.  For group insurance, "insured" includes an individual
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0017|     who is a beneficiary covered by a group policy.  For any
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0018|     insurance policy, "insured" does not include a person who
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0019|     commits an act of domestic abuse;
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0020|               E.  "insurer" means every person engaged as
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0021|     principal or indemnitor, surety or contractor in the business
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0022|     of entering into contracts of insurance, including life
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0023|     insurance, health insurance, automobile insurance, disability
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0024|     insurance and property and casualty insurance, and includes the
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0025|     insurance services offered by fraternal benefit societies,
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0001|     nonprofit health care plans, health maintenance organizations,
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0002|     prepaid dental services organizations, motor clubs, agents,
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0003|     brokers, solicitors, adjusters and all other persons engaged in
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0004|     a business that is now or later becomes subject to the
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0005|     superintendent's supervision pursuant to the Insurance Code, as
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0006|     well as all alien and foreign insurers delivering or issuing
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0007|     for delivery in New Mexico a certificate or other evidence of
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0008|     insurance coverage;
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0009|               F.  "person" means an individual or entity; 
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0010|               G.  "policy" means a contract of insurance,
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0011|     certificate, indemnity, suretyship or annuity issued by an
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0012|     insurer, including endorsements or riders to an insurance
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0013|     policy or contract, and includes a contract, certificate or
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0014|     agreement offered by an insurer to provide, deliver, arrange
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0015|     for, pay for or reimburse any of the costs of insurance
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0016|     services.  As applied to a health plan, "policy" includes a
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0017|     plan that is accident only, credit health, dental, vision,
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0018|     medicare supplement or long-term care insurance, coverage
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0019|     issued as a supplement to liability insurance, short-term or
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0020|     catastrophic health insurance plan and a plan that pays on a
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0021|     cost-incurred basis; and 
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0022|               H.  "victim of domestic abuse" means a person
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0023|     against whom domestic abuse is directed."  
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0024|          Section 4.  A new section of the New Mexico Insurance Code
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0025|     is enacted to read:
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0001|          "[<u>NEW MATERIAL</u>]  UNFAIR DISCRIMINATION ON THE BASIS OF
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0002|     DOMESTIC ABUSE PROHIBITED.--
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0003|               A.  An insurer or any person employed or contracting
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0004|     with an insurer shall not engage, directly or indirectly, in an
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0005|     unfair discriminatory act or practice against a person on the
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0006|     basis of domestic abuse, including:
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0007|                    (1)  denying, refusing to issue, renew or
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0008|     reissue or canceling or otherwise terminating a policy,
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0009|     restricting or excluding coverage of a policy or charging a
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0010|     higher premium for a policy on the basis of domestic abuse;
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0011|                    (2)  excluding or limiting coverage for losses
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0012|     or denying a claim for insurance resulting from or on the basis
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0013|     of domestic abuse;
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0014|                    (3)  terminating group health coverage for a
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0015|     victim of domestic abuse because coverage was originally issued
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0016|     in the name of an alleged abuser who has divorced, separated
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0017|     from or lost custody of a victim of domestic abuse or because
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0018|     the alleged abuser's coverage has terminated voluntarily or
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0019|     involuntarily.  Nothing in this paragraph prohibits an insurer
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0020|     from requiring a victim of domestic abuse to pay the full
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0021|     premium for health insurance coverage or from requiring as a
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0022|     condition of coverage that a victim of domestic abuse reside or
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0023|     work within the insurer's service area, if the requirements are
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0024|     applied to all insureds.  The insurer may terminate group
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0025|     health coverage for a victim of domestic abuse after the
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0001|     continuation coverage required by this subsection has been in
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0002|     force for eighteen months if the insurer offers conversion to
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0003|     an equivalent individual plan.  The continuation coverage
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0004|     required in this subsection may be satisfied by coverage that
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0005|     is provided under the Consolidated Omnibus Budget
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0006|     Reconciliation Act of 1985 to a victim of domestic abuse and is
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0007|     not intended to be in addition to coverage provided under that
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0008|     act; 
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0009|                    (4)  disclosing or transferring information
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0010|     relating to an applicant's or insured's abuse status or abuse-
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0011|     related medical condition, the applicant's or insured's address
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0012|     or location, or the applicant's or insured's family, household,
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0013|     social or employment relationship with a victim of domestic
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0014|     abuse, unless the information is disclosed for a purpose
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0015|     related to the direct provision of health care services or for
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0016|     the purpose of complying with an order of the superintendent or
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0017|     a court of competent jurisdiction.  The provisions of this
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0018|     paragraph shall not preclude a victim of domestic abuse from
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0019|     obtaining the victim's own insurance records; or
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0020|                    (5)  requesting information relating to
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0021|     domestic  abuse or an applicant's or insured's abuse status, or
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0022|     making use of this information, however obtained, except:
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0023|                         (a)  for the limited purpose of complying
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0024|     with legal obligations;
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0025|                         (b)  when verifying a person's claim to
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0001|     be a victim of domestic abuse or to be suffering from an abuse-
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0002|     related medical condition; or
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0003|                         (c)  when cooperating with a victim of
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0004|     domestic abuse in seeking protection from abuse or facilitating
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0005|     the treatment of an abuse-related medical condition.
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0006|               B.  The provisions of this section apply to and
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0007|     protect the following persons, excluding a person who commits
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0008|     an act of domestic abuse, from an unfair discriminatory act or
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0009|     practice on the basis of domestic abuse:
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0010|                    (1)  a victim of domestic abuse;
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0011|                    (2)  an applicant for insurance or an insured;
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0012|                    (3)  a person that provides shelter, counseling
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0013|     or protection to victims of domestic abuse;
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0014|                    (4)  a person who employs or is employed by a
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0015|     victim of domestic abuse;
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0016|                    (5)  a person with whom an applicant or insured
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0017|     is known to have a direct, close personal, family or abuse-
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0018|     related counseling relationship;
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0019|                    (6)  a beneficiary of an insurance contract; or
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0020|                    (7)  a participant in an insurance plan."    
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0021|          Section 5.  A new section of the New Mexico Insurance Code
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0022|     is enacted to read:
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0023|          "[<u>NEW MATERIAL</u>]  INSURANCE COMPANY PROCEDURES TO PROTECT
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0024|     THE SAFETY AND PRIVACY OF VICTIMS OF DOMESTIC ABUSE.--Insurers
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0025|     shall develop, file with the superintendent and adhere to
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0001|     procedures that specify how the insurer's employees,
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0002|     contractors, agents and brokers shall ensure that their actions
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0003|     do not endanger the safety of victims of domestic abuse or
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0004|     breach the confidentiality needs of victims of domestic abuse
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0005|     involved in an insurance action, including claims investigation
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0006|     and subrogation.  These procedures shall be developed in
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0007|     consultation with public safety officials who specialize in
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0008|     domestic abuse matters or with a recognized domestic abuse
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0009|     advocacy group."  
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0010|          Section 6.  A new section of the New Mexico Insurance Code
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0011|     is enacted to read:
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0012|          "[<u>NEW MATERIAL</u>]  RULES AND REGULATIONS.--The
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0013|     superintendent may adopt, in accordance with Section 59A-2-9
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0014|     NMSA 1978, rules and regulations necessary to administer
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0015|     provisions of the Domestic Abuse Insurance Protection Act."
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0016|          Section 7.  A new section of the New Mexico Insurance Code
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0017|     is enacted to read:
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0018|          "[<u>NEW MATERIAL</u>]  ENFORCEMENT BY SUPERINTENDENT.--The
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0019|     superintendent shall enforce provisions of the Domestic Abuse
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0020|     Insurance Protection Act pursuant to the provisions of Section
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0021|     59A-2-11 NMSA 1978."
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0022|          Section 8.  A new section of the New Mexico Insurance Code
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0023|     is enacted to read:
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0024|          "[<u>NEW MATERIAL</u>]  PRIVATE REMEDIES.--
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0025|               A.  A person likely to be damaged by an unfair
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0001|     discriminatory act under the Domestic Abuse Insurance
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0002|     Protection Act may be granted an injunction against it under
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0003|     the principles of equity and on terms that the court considers
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0004|     reasonable.  Proof of monetary damage or intent to take unfair
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0005|     advantage of any person is not required.
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0006|               B.  A person who suffers a loss of insurance, money
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0007|     or property, real or personal, or any other injury as a result
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0008|     of employment by another person of a method, act or practice
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0009|     declared unlawful by the Domestic Abuse Insurance Protection
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0010|     Act may bring an action to recover actual damages or the sum of
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0011|     one hundred dollars ($100), whichever is greater.  When the
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0012|     trier of fact finds that the party charged with an unfair
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0013|     discriminatory practice in violation of the Domestic Abuse
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0014|     Insurance Protection Act has willfully engaged in the practice,
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0015|     the court may award up to three times actual damages or three
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0016|     hundred dollars ($300), whichever is greater, to the party
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0017|     complaining of the practice.
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0018|               C.  The court shall award attorney fees and costs to
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0019|     the party complaining of an unfair discriminatory practice in
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0020|     violation of the Domestic Abuse Insurance Protection Act if he
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0021|     prevails. 
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0022|               D.  The relief provided in this section is in
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0023|     addition to remedies otherwise available against the same
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0024|     conduct under the common law or other statutes of this state.
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0025|               E.  In any class action filed under this section,
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0001|     the court may award damages to the named plaintiffs as provided
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0002|     in Subsection B of this section and may award members of the
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0003|     class the actual damages suffered by each member of the class
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0004|     as a result of the unlawful practice."
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0005|          Section 9.  A new section of the New Mexico Insurance Code
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0006|     is enacted to read:
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0007|          "[<u>NEW MATERIAL</u>]  CRIMINAL PENALTY.--Any person who
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0008|     willfully and intentionally violates a provision of the
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0009|     Domestic Abuse Insurance Protection Act is guilty of a
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0010|     misdemeanor and shall be punished for each violation by a fine
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0011|     of not more than one thousand dollars ($1,000) or by
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0012|     imprisonment for a definite term not to exceed one year or
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0013|     both."
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0014|          Section 10.  A new section of the New Mexico Insurance
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0015|     Code is enacted to read:
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0016|          "[<u>NEW MATERIAL</u>]  CIVIL PENALTIES.--
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0017|               A.  Any person who violates any provision of the
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0018|     Domestic Abuse Insurance Protection Act may be assessed a civil
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0019|     penalty of not more than five thousand dollars ($5,000) for
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0020|     each violation, except that if the violation is found to be
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0021|     willful and intentional, the civil penalty may be up to ten
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0022|     thousand dollars ($10,000) for each violation.  Every civil
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0023|     penalty shall be imposed by written order of the superintendent
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0024|     made after a hearing held under and in accordance with the
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0025|     provisions of Chapter 59A, Article 4 NMSA 1978.
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0001|               B.  A monetary civil penalty imposed may be in
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0002|     addition to an applicable suspension, revocation or denial of a
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0003|     license or certificate of authority.
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0004|               C.  In addition to the authority of the insurance
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0005|     department to bring an action to recover statutory fines and
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0006|     assessments, the insurance department may bring civil actions
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0007|     for penalties in sums not to exceed the criminal fine for each
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0008|     violation of the Domestic Abuse Insurance Protection Act, in
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0009|     lieu of criminal prosecution.
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0010|               D.  The penalties contained in this section shall be
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0011|     in addition to any other penalty provided by law."
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0012|          Section 11.  Section 59A-1-18 NMSA 1978 (being Laws 1984,
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0013|     Chapter 127, Section 18, as amended) is amended to read:
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0014|          "59A-1-18.  GENERAL PENALTY.--
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0015|               A.  Unless the same is defined as a felony <u>or
</u>    |
<u></u>0016| <u>    misdemeanor</u> under any other law of this state or punishment
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0017|     therefor classifies it otherwise, every violation of the
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0018|     Insurance Code is a petty misdemeanor punishable by a fine not
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0019|     to exceed five hundred dollars ($500).
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0020|               B.  Where other monetary penalty is not expressly
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0021|     provided for, an administrative penalty may be assessed for
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0022|     violations of the Insurance Code.  The administrative penalty
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0023|     shall be not over five thousand dollars ($5,000) for each
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0024|     violation, except that if the violation is to be found willful
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0025|     and intentional, the penalty may be up to ten thousand dollars
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0001|     ($10,000) for each violation.  Every administrative penalty
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0002|     shall be imposed by written order of the superintendent made
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0003|     after hearing held as provided in Chapter 59A, Article 4 NMSA
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0004|     1978.
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0005|               C.  A monetary penalty imposed may be additional to
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0006|     any applicable suspension, revocation or denial of a license or
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0007|     certificate of authority.
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0008|               D.  In addition to the authority of the insurance
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0009|     department to bring an action to recover statutory fines and
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0010|     assessments, the insurance department may bring civil actions
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0011|     for penalties in sums not to exceed the criminal fine for each
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0012|     violation of the Insurance Code, in lieu of criminal
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0013|     prosecution.
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0014|               E.  The penalties contained in Subsections A through
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0015|     D of this section shall be in addition to any other penalty
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0016|     provided by law."
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0017|          Section 12.  Section 59A-44-41 NMSA 1978 (being Laws 1989,
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0018|     Chapter 388, Section 41) is amended to read:
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0019|          "59A-44-41.  APPLICABILITY OF INSURANCE CODE.--To the
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0020|     extent not in conflict with the express provisions of Chapter
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0021|     59A, Article 44 NMSA 1978 and the reasonable implications
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0022|     thereof, the following provisions of the Insurance Code shall
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0023|     also apply as to fraternal benefit societies, and for such
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0024|     purpose a society may therein be referred to as an "insurer":
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0025|               A.  Chapter 59A, Article 1 NMSA 1978;
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0001|               B.  Chapter 59A, Article 2 NMSA 1978;
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0002|               C.  Chapter 59A, Article 4 NMSA 1978;
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0003|               D.  Sections 59A-8-1 and 59A-8-2 NMSA 1978;
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0004|               E.  Section 59A-12-22 NMSA 1978;
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0005|               F.  Chapter 59A, Article 18 NMSA 1978;
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0006|               G.  Chapter 59A, Article 19 NMSA 1978;
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0007|               H.  Chapter 59A, Article <s>[24]</s> <u>24A</u> NMSA 1978;
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0008|               I.  Chapter 59A, Articles 20 and 22 NMSA 1978;
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0009|     <s>[and]</s>
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0010|               J.  Chapter 59A, Article 41 NMSA 1978; <u>and
</u>    |
<u></u>0011| <u>              K.  the Domestic Abuse Insurance Protection Act</u>."
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0012|          Section 13.  Section 59A-46-30 NMSA 1978 (being Laws 1993,
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0013|     Chapter 266, Section 29) is amended to read:
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0014|          "59A-46-30.  STATUTORY CONSTRUCTION AND RELATIONSHIP TO
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0015|     OTHER LAWS.--
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0016|               A.  The provisions of the Insurance Code other than
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0017|     Chapter 59A, Article 46 NMSA 1978 shall not apply to health
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0018|     maintenance organizations except as expressly provided in the
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0019|     Insurance Code and that article.  To the extent reasonable and
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0020|     not inconsistent with the provisions of that article, the
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0021|     following articles and provisions of the Insurance Code shall
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0022|     also apply to health maintenance organizations <u>and</u> their
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0023|     promoters, sponsors, directors, officers, employees, agents,
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0024|     solicitors and other representatives <s>[and]</s>.  For the purposes
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0025|     of such applicability, a health maintenance organization may
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0001|     therein be referred to as an "insurer": 
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0002|                    (1)  Chapter 59A, Article 1 NMSA 1978; 
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0003|                    (2)  Chapter 59A, Article 2 NMSA 1978;
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0004|                    (3)  Chapter 59A, Article 3 NMSA 1978;
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0005|                    (4)  Chapter 59A, Article 4 NMSA 1978; 
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0006|                    (5)  Subsection C of Section 59A-5-22 NMSA
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0007|     1978;
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0008|                    (6)  Sections 59A-6-2 through 59A-6-4 and
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0009|     59A-6-6 NMSA 1978;
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0010|                    (7)  Chapter 59A, Article 8 NMSA 1978; 
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0011|                    (8)  Chapter 59A, Article 10 NMSA 1978; 
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0012|                    (9)  Section 59A-12-22 NMSA 1978; 
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0013|                    (10)  Chapter 59A, Article 16 NMSA 1978;
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0014|                    (11)  Chapter 59A, Article 18 NMSA 1978; 
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0015|                    (12)  Chapter 59A, Article 19 NMSA 1978; 
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0016|                    (13)  Chapter 59A, Article 23B NMSA 1978;
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0017|                    (14)  Sections 59A-34-9 through 59A-34-13,
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0018|     59A-34-23, 59A-34-36 and 59A-34-37 NMSA 1978; <s>[and]</s>
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0019|                    (15)  Chapter 59A, Article 37 NMSA 1978; <u>and
</u>    |
<u></u>0020| <u>                   (16)  the Domestic Abuse Insurance Protection
</u>    |
<u></u>0021| <u>    Act</u>.
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0022|               B.  Solicitation of enrollees by a health
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0023|     maintenance organization granted a certificate of authority, or
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0024|     its representatives, shall not be construed as violating any
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0025|     provision of law relating to solicitation or advertising by
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0001|     health professionals, but health professionals shall be
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0002|     individually subject to the laws, rules, regulations and
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0003|     ethical provisions governing their individual professions. 
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0004|               C.  Any health maintenance organization authorized
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0005|     under the provisions of the Health Maintenance Organization Law
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0006|     shall not be deemed to be practicing medicine and shall be
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0007|     exempt from the provisions of laws relating to the practice of
    |
0008|     medicine."
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0009|          Section 14.  Section 59A-47-33 NMSA 1978 (being Laws 1984,
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0010|     Chapter 127, Section 879.32, as amended by Laws 1994, Chapter
    |
0011|     64, Section 10 and also by Laws 1994, Chapter 75, Section 34)
    |
0012|     is amended to read:
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0013|          "59A-47-33.  OTHER PROVISIONS APPLICABLE.--The provisions
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0014|     of the Insurance Code other than Chapter 59A, Article 47 NMSA
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0015|     1978 shall not apply to health care plans except as expressly
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0016|     provided in the Insurance Code and that article.  To the extent
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0017|     reasonable and not inconsistent with the provisions of that
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0018|     article, the following articles and provisions of the Insurance
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0019|     Code shall also apply to health care plans, their promoters,
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0020|     sponsors, directors, officers, employees, agents, solicitors
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0021|     and other representatives; and, for the purposes of such
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0022|     applicability, a health care plan may therein be referred to as
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0023|     an "insurer":
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0024|               A.  Chapter 59A, Article 1 NMSA 1978;
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0025|               B.  Chapter 59A, Article 2 NMSA 1978;
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0001|               C.  Chapter 59A, Article 4 NMSA 1978;
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0002|               D.  Subsection C of Section 59A-5-22 NMSA 1978;
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0003|               E.  Sections 59A-6-2 through 59A-6-4 and 
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0004|     59A-6-6 NMSA 1978;
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0005|               F.  Section 59A-7-11 NMSA 1978;
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0006|               G.  Chapter 59A, Article 8 NMSA 1978;
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0007|               H.  Chapter 59A, Article 10 NMSA 1978;
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0008|               I.  Section 59A-12-22 NMSA 1978;
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0009|               J.  Chapter 59A, Article 16 NMSA 1978;
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0010|               K.  Chapter 59A, Article 18 NMSA 1978;
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0011|               L.  Chapter 59A, Article 19 NMSA 1978;
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0012|               M.  Subsections B through E of Section 
    |
0013|     59A-22-5 NMSA 1978;
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0014|               N.  Section 59A-22-34.1 NMSA 1978; 
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0015|               O.  Section 59A-22-39 NMSA 1978;
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0016|               P.  Section 59A-22-40 NMSA 1978;
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0017|               Q.  Sections 59A-34-9 through 59A-34-13 <s>[NMSA
</s>    |
<s></s>0018| <s>    1978]</s> and <s>[Section]</s> 59A-34-23 NMSA 1978;
    |
0019|               R.  Chapter 59A, Article 37 NMSA 1978, except
    |
0020|     Section 59A-37-7 NMSA 1978; <s>[and]</s>
    |
0021|               S.  Section 59A-46-15 NMSA 1978; <u>and
</u>    |
<u></u>0022| <u>              T.  the Domestic Abuse Insurance Protection Act</u>."
    |
0023|          Section 15.  Section 59A-48-19 NMSA 1978 (being Laws 1984,
    |
0024|     Chapter 127, Section 898) is amended to read:
    |
0025|          "59A-48-19.  OTHER PROVISIONS APPLICABLE.--In addition to
    |
0001|     those referred to in <s>[this article]</s> <u>Chapter 59A, Article 48
</u>    |
<u></u>0002| <u>    NMSA 1978</u>, the following articles and provisions of the
    |
0003|     Insurance Code shall also apply, to <u>the</u> extent reasonably
    |
0004|     applicable and subject to the provisions of <s>[this]</s> <u>that</u>
    |
0005|     article, as to prepaid dental plan organizations, their
    |
0006|     sponsors, directors, officers, personnel and representatives
    |
0007|     and member contracts.  For the purposes of this provision such
    |
0008|     organizations may be referred to as "insurers" and such con-
    |
0009|     
    |
0010|     tracts as "policies":
    |
0011|               A. <u>Chapter 59A</u>, Article 1 <s>[(scope of code,
</s>    |
<s></s>0012| <s>    initial definitions, general penalty)]</s> <u>NMSA 1978</u>;
    |
0013|               B. <u>Chapter 59A</u>, Article 2 <s>[(department of
</s>    |
<s></s>0014| <s>    insurance)]</s> <u>NMSA 1978</u>;
    |
0015|               C. <u>Chapter 59A</u>, Article 4 <s>[(examinations,
</s>    |
<s></s>0016| <s>    hearings and appeals)]</s> <u>NMSA 1978</u>;
    |
0017|               D.  Subsection C of Section <s>[89 (certificate of
</s>    |
<s></s>0018| <s>    authority at all times property of the state)]</s> <u>59A-5-22 NMSA
</u>    |
<u></u>0019| <u>    1978</u>;
    |
0020|               E.  Section <s>[100 (reciprocity provision)]</s> <u>59A-5-
</u>    |
<u></u>0021| <u>    33 NMSA 1978</u>;
    |
0022|               F.  Sections <s>[101 (fee schedule), 103 (must pay tax
</s>    |
<s></s>0023| <s>    on withdrawal from state), 104 (penalty for failure to report
</s>    |
<s></s>0024| <s>    or pay tax or fees) and 106 (preemption and in lieu
</s>    |
<s></s>0025| <s>    provision)]</s> <u>59A-6-1, 59A-6-3, 59A-6-4 and 59A-6-6 NMSA 1978</u>;
    |
0001|               G.  Section <s>[117 (reinsurance)]</s> <u>59A-7-11 NMSA
</u>    |
<u></u>0002| <u>    1978</u>;
    |
0003|               H. <u>Chapter 59A</u>, Article 8 <s>[(assets and
</s>    |
<s></s>0004| <s>    liabilities)]</s> <u>NMSA 1978</u>;
    |
0005|               I. <u>Chapter 59A</u>, Article 10 <s>[(administration of
</s>    |
<s></s>0006| <s>    deposits)]</s> <u>NMSA 1978</u>;
    |
0007|               J.  Section <s>[223 (fiduciary funds - agents, etc.)]</s>
    |
0008|     <u>59A-12-22 NMSA 1978</u>;
    |
0009|               K. <u>Chapter 59A</u>, Article 18 <s>[(the insurance
</s>    |
<s></s>0010| <s>    contract)]</s> <u>NMSA 1978</u>;
    |
0011|               L. <u>Chapter 59A</u>, Article 19 <s>[(policy language
</s>    |
<s></s>0012| <s>    simplification)]</s> <u>NMSA 1978</u>; <s>[and]</s>
    |
0013|               M.  Section <s>[556 (records and accounts)]</s> <u>59A-34-
</u>    |
<u></u>0014| <u>    10 NMSA 1978</u>, as to domestic prepaid dental plans; and
    |
0015|               N. <s>[Article 53 (transitory provisions)]</s> <u>the
</u>    |
<u></u>0016| <u>    Domestic Abuse Insurance Protection Act</u>."
    |
0017|          Section 16.  Section 59A-50-21 NMSA 1978 (being Laws 1984,
    |
0018|     Chapter 127, Section 927) is amended to read:
    |
0019|          "59A-50-21.  OTHER PROVISIONS APPLICABLE.--In addition to
    |
0020|     those referred to in <s>[this article]</s> <u>Chapter 59A, Article 50
</u>    |
<u></u>0021| <u>    NMSA 1978</u> as to particular matters, the following articles and
    |
0022|     provisions of the Insurance Code shall also, to the extent
    |
0023|     reasonably applicable and not in conflict with the provisions
    |
0024|     of <s>[this article]</s> <u>Chapter 59A, Article 50 NMSA 1978</u> and the
    |
0025|     reasonable implications thereof, apply as to motor clubs, their
    |
0001|     sponsors, directors, officers, representatives, personnel and
    |
0002|     operations.  For the purposes of such applicability a motor
    |
0003|     club may be referred to in such articles and provisions as an

    |
0004|     "insurer":
    |
0005|               A. <u>Chapter 59A</u>, Article 1 <s>[(scope of code;
</s>    |
<s></s>0006| <s>    initial definitions; general penalty)]</s> <u>NMSA 1978</u>;
    |
0007|               B. <u>Chapter 59A</u>, Article 2 <s>[(department of
</s>    |
<s></s>0008| <s>    insurance)]</s> <u>NMSA 1978</u>;
    |
0009|               C. <u>Chapter 59A</u>, Article 4 <s>[(examinations,
</s>    |
<s></s>0010| <s>    hearings and appeals)]</s> <u>NMSA 1978</u>;
    |
0011|               D. <u>Chapter 59A</u>, Article 10 <s>[(administration of
</s>    |
<s></s>0012| <s>    deposits)]</s> <u>NMSA 1978</u>;
    |
0013|               E.  Section <s>[223 (fiduciary funds - agents, etc.)]</s>
    |
0014|     <u>59A-12-22 NMSA 1978</u>;
    |
0015|               F. <u>Chapter 59A</u>, Article 16 <s>[(trade practices and
</s>    |
<s></s>0016| <s>    frauds)]</s> <u>NMSA 1978</u>;
    |
0017|               G. <u>Chapter 59A</u>, Article 41 <s>[(conservation,
</s>    |
<s></s>0018| <s>    rehabilitation, liquidation); and
</s>    |
<s></s>0019| <s>              H.  Article 53 (transitory provisions)]</s> <u>NMSA 1978;
</u>    |
<u></u>0020| <u>    and
</u>    |
<u></u>0021| <u>              H.  the Domestic Abuse Insurance Protection Act</u>."
    |
0022|          Section 17.  EFFECTIVE DATE.--The effective date of the
    |
0023|     provisions of this act is July 1, 1997.
    |
0024|                           - 19 -
    |
0025|                              
    |
0001|                              
    |
0002|                              
    |
0003|                              
    |
0004|                              
    |
0005|                              
    |
0006|                              
    |
0007|                              
    |
0008|                                                  State of New Mexico
    |
0009|                   House of Representatives
    |
0010|                               
    |

0011|                   FORTY-THIRD LEGISLATURE
    |
0012|                     FIRST SESSION, 1997
    |
0013|                               
    |
0014|                               
    |
0015|                      February 25, 1997
    |
0016|                               
    |
0017|                               
    |
0018|                         Mr. Speaker:
    |
0019|                               
    |
0020|      Your BUSINESS AND INDUSTRY COMMITTEE, to whom has
    |
0021|                        been referred
    |
0022|                               
    |
0023|                        HOUSE BILL 346
    |
0024|                               
    |
0025|     has had it under consideration and reports same with
    |
0001|         recommendation that it DO NOT PASS, but that
    |
0002|                               
    |
0003|       HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE
    |
0004|                      FOR HOUSE BILL 346
    |
0005|                               
    |
0006|        DO PASS, and thence referred to the JUDICIARY
    |
0007|                          COMMITTEE.
    |
0008|                               
    |
0009|                   Respectfully submitted,
    |
0010|                               
    |
0011|                               
    |
0012|                               
    |
0013|              <u>                                 
</u>    |
<u></u>0014| <u>                    </u>Fred Luna, Chairman
    |
0015|                               
    |
0016|                               
    |
0017| Adopted <u>                    </u>Not Adopted <u>                     
</u>    |
<u></u>0018| <u>                             </u>
    |
0019|                 (Chief Clerk) (Chief Clerk)
    |
0020|                               
    |
0021|                     Date <u>            </u>
    |
0022|                               
    |
0023|         The roll call vote was<u> 9 </u> For<u> 0 </u> Against
    |
0024|                            Yes:9
    |
0025|                Excused:Hobbs, Olguin, Varela
    |
0001|                         Absent:Getty
    |
0002|                               
    |
0003|                  G:\BILLTEXT\BILLW_97\H0346                    State of New Mexico
    |
0004|                   House of Representatives
    |
0005|                               
    |
0006|                   FORTY-THIRD LEGISLATURE
    |
0007|                     FIRST SESSION, 1997
    |
0008|                               
    |
0009|                               
    |
0010|                        March 7, 1997
    |
0011|                               
    |
0012|                               
    |
0013|                         Mr. Speaker:
    |
0014|                               
    |
0015|     Your JUDICIARY COMMITTEE, to whom has been referred
    |
0016|                               
    |
0017|       HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE
    |
0018|                      FOR HOUSE BILL 346
    |
0019|                               
    |
0020|     has had it under consideration and reports same with
    |
0021|     recommendation that it DO PASS, amended as follows:
    |
0022|                               
    |
0023| 1.  On page 1, line 19, after "through" strike "11" and insert in
    |
0024|                      lieu thereof "10".
    |
0025|                               
    |
0001| 2.  On page 2, line 2, after "insurer's" strike "perception" and
    |
0002|           insert in lieu thereof "determination".
    |
0003|                               
    |
0004| 3.  On page 2, line 15, after the second occurrence of "the"
    |
0005| strike "perception" and insert in lieu thereof "determination".
    |
0006|                               
    |
0007| 4.  On page 6, line 12, after "information" strike "about acts of
    |
0008|               domestic abuse or abuse status".
    |
0009|                               
    |
0010|  5.  On page 7, line 6, after "hardship" insert "or that is
    |
0011|               relevant to processing a claim".
    |
0012|                               
    |
0013| 6.  On page 7, line 6, after "has" strike the remainder of the
    |
0014|          line and insert in lieu thereof "agreed".
    |
0015|                               
    |
0016| 7.  On page 7, line 19, after "application" insert "or claim".
    |
0017|                               
    |
0018| 8.  On page 10, line 13, after "E." strike "A life" and insert in
    |
0019|                      lieu thereof "An".
    |
0020|                               
    |
0021| 9.  On page 10, line 17, after "this" strike "section" and insert
    |
0022|                in lieu thereof "subsection".
    |
0023|                               
    |
0024|   10.  On page 10, line 17, after "action" insert "by the
    |
0025|                       superintendent".
    |
0001|                               
    |
0002|    11.  On page 10, lines 17 and 18, strike "or enforce".
    |
0003|                               
    |
0004|  12.  On page 10, line 25, after "abuse-related" strike the
    |
0005|        semicolon and insert in lieu thereof a period.
    |
0006|                               
    |
0007|          13.  On page 11, strike lines 1 through 3.
    |
0008|                               
    |
0009|   14.  On page 11, line 16, before "shall" insert ", upon
    |
0010|                          request,".
    |
0011|                               
    |
0012| 15.  On page 12, line 1, after the comma insert "or related to
    |
0013|        actual or reasonably anticipated experience,".
    |
0014|                               
    |
0015| 16.  On page 12, strike lines 21 through 25 and on page 13,
    |
0016|                  strike lines 1 through 9.
    |
0017|                               
    |
0018|      17.  Renumber the succeeding sections accordingly.
    |
0019|                               
    |
0020|     18.  On page 14, line 17, after "PENALTY" insert "--
    |
0021|                  SUPERINTENDENT'S ORDERS".
    |
0022|                               
    |
0023| 19.  On page 14, line 19, after the comma insert "and except as
    |
0024|            otherwise provided in this section,".
    |
0025|                               
    |
0001| 20.  On page 14, line 20, strike "violations" and insert in lieu
    |
0002|         thereof "a second or subsequent violation".
    |
0003|                               
    |
0004|     21.  On page 15, line 5, strike the quotation mark.
    |
0005|                               
    |
0006| 22.  On page 15, between lines 5 and 6, insert the following new
    |
0007|                         subsection:
    |
0008|                               
    |
0009| "C.  The superintendent may issue any order he deems necessary or
    |
0010| appropriate to prevent or correct any violation, including a
    |
0011| first-time violation, of the Domestic Abuse Insurance Protection
    |
0012| Act, except the initial order on a first-time violation may not
    |
0013|  require a suspension, revocation or denial of a license or
    |
0014| certificate of authority.  If, however, that initial order of the
    |
0015| superintendent is violated, he may then impose the monetary
    |
0016| penalty authorized in this section in addition to any applicable
    |
0017| suspension, revocation or denial of a license or certificate of
    |
0018| authority or take any other action authorized in the Insurance
    |
0019|                          Code."".  
    |
0020|                               
    |
0021|                   Respectfully submitted,
    |
0022|                               
    |
0023|                               
    |
0024|                               
    |
0025|             <u>                                 </u>
    |
0001|                   Thomas P. Foy, Chairman
    |
0002|                               
    |
0003|                               
    |
0004| Adopted <u>                    </u>Not Adopted <u>                     
</u>    |
<u></u>0005| <u>                             </u>
    |
0006|                 (Chief Clerk) (Chief Clerk)
    |
0007|                               
    |
0008|                     Date <u>            </u>
    |
0009|                               
    |
0010|         The roll call vote was<u> 9 </u> For<u> 0 </u> Against
    |
0011|                            Yes:9
    |
0012|           Excused:Mallory, Rios, Sanchez, Stewart
    |
0013|                         Absent:None
    |
0014|                               
    |
0015|                               
    |
0016|                          .117904.3
    |
0017|                  G:\BILLTEXT\BILLW_97\H0346                              
    |
0018|                               
    |
0019|                      FORTY-THIRD LEGISLATURE
    |
0020|                        FIRST SESSION, 1997
    |
0021|                               
    |
0022|                               
    |
0023|                        March 14, 1997
    |
0024|                               
    |
0025|                        Mr. President:
    |
0001|                               
    |
0002|    Your CORPORATIONS & TRANSPORTATION COMMITTEE, to whom
    |
0003|                      has been referred
    |
0004|                               
    |
0005|               HOUSE BUSINESS AND INDUSTRY COMMITTEE
    |
0006|                        SUBSTITUTE FOR
    |
0007|                  HOUSE BILL 346, as amended
    |
0008|                               
    |
0009|     has had it under consideration and reports same with
    |
0010|  recommendation that it DO PASS, and thence referred to the
    |
0011|                     JUDICIARY COMMITTEE.
    |
0012|                               
    |
0013|                   Respectfully submitted,
    |
0014|                               
    |
0015|                               
    |
0016|                               
    |
0017|              __________________________________
    |
0018|                Roman M. Maes, III, Chairman 
    |
0019|                               
    |
0020|                               
    |
0021|                               
    |
0022| Adopted_______________________Not Adopted_______________________
    |
0023|           (Chief Clerk)                          (Chief Clerk)
    |
0024|                               
    |
0025|                               
    |
0001|                         Date ________________________
    |
0002|                               
    |
0003|                               
    |
0004|        The roll call vote was <u> 7 </u> For <u> 0 </u> Against
    |
0005|                            Yes:7
    |
0006|                             No:0
    |
0007|               Excused:Fidel, Griego, Robinson
    |
0008|                         Absent:None
    |
0009|                               
    |
0010|                               
    |
0011|                           H0346CT1
    |
0012|                               
    |
0013|                                                             
    |
0014|                               
    |
0015|                      FORTY-THIRD LEGISLATURE
    |
0016|                        FIRST SESSION, 1997
    |
0017|                               
    |
0018|                               
    |
0019|                        March 19, 1997
    |
0020|                               
    |
0021|                        Mr. President:
    |
0022|                               
    |
0023|     Your JUDICIARY COMMITTEE, to whom has been referred
    |
0024|                               
    |
0025|               HOUSE BUSINESS AND INDUSTRY COMMITTEE
    |
0001|                        SUBSTITUTE FOR
    |
0002|                  HOUSE BILL 346, as amended
    |
0003|                               
    |
0004|     has had it under consideration and reports same with
    |
0005|               recommendation that it DO PASS.
    |
0006|                               
    |
0007|                   Respectfully submitted,
    |
0008|                               
    |
0009|                               
    |
0010|                               
    |
0011|              __________________________________
    |
0012|                Fernando R. Macias, Chairman 
    |
0013|                               
    |
0014|                               
    |
0015|                               
    |
0016| Adopted_______________________Not Adopted_______________________
    |
0017|           (Chief Clerk)                          (Chief Clerk)
    |
0018|                               
    |
0019|                               
    |
0020|                               
    |
0021|                         Date ________________________
    |
0022|                               
    |
0023|                               
    |
0024|        The roll call vote was <u> 5 </u> For <u> 0 </u> Against
    |
0025|                            Yes:5
    |
0001|                             No:0
    |
0002|               Excused:Sanchez, Tsosie, Vernon
    |
0003|                         Absent:None
    |
0004|                               
    |
0005|                               
    |
0006|                           H0346JU1
    |