0001| SENATE BILL 504
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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| JOSEPH A. FIDEL
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0005|
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0006|
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0007|
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0008|
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0009|
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0010| AN ACT
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0011| RELATING TO INSURANCE; AMENDING CERTAIN SECTIONS OF THE NEW
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0012| MEXICO INSURANCE CODE.
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0013|
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0014| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0015| Section 1. Section 59A-2-9 NMSA 1978 (being Laws 1984,
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0016| Chapter 127, Section 27) is amended to read:
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0017| "59A-2-9. RULES AND REGULATIONS--PROMULGATION--
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0018| VIOLATION.--
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0019| A. The superintendent, after a hearing thereon, may
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0020| make reasonable rules and regulations necessary for or as an
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0021| aid to administration or effectuation of any provision of the
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0022| Insurance Code administered by the superintendent, and from
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0023| time to time withdraw, modify or amend any such rule or
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0024| regulation.
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0025| B. No such rule or regulation shall extend, modify
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0001| or conflict with any such provision or other laws of New
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0002| Mexico.
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0003| C. [Not less than thirty (30) nor more than forty
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(40) days before the effective date of any such rule or
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regulation, or withdrawal, modification or amendment thereof,
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the superintendent shall file the rule or regulation in
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accordance with the State Rules Act.] The superintendent
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0008| shall file all new rules, amendments of rules or repeals of
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0009| rules in accordance with the State Rules Act not later than the
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0010| submittal deadline for publication in the New Mexico register
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0011| on or before the effective date of any such rule, amendment or
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0012| repeal.
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0013| D. [Wilful] Willful violation of any such rule
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0014| or regulation shall subject the violator to such penalty as may
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0015| be applicable under the Insurance Code for violation of the
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0016| provision to which the rule or regulation relates; but no
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0017| penalty shall apply to any act done or omitted in good faith in
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0018| conformity with any such rule or regulation, notwithstanding
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0019| that the rule or regulation may, after such act or omission, be
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0020| amended or rescinded or determined by judicial or other
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0021| authority to be invalid for any reason."
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0022| Section 2. Section 59A-4-16 NMSA 1978 (being Laws 1984,
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0023| Chapter 127, Section 60) is amended to read:
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0024| "59A-4-16. NOTICE OF HEARING.--
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0025| A. Except where a different period is expressly
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0001| provided, the superintendent shall give written notice of the
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0002| hearing not less than twenty [(20)] days in advance. The
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0003| notice shall state the date, time and place of the hearing and
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0004| specify the matters to be considered thereat. [If the persons
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to be given notice are not specified in the provision pursuant
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to which the hearing is held, the superintendent shall give the
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notice to all persons whose pecuniary interests, to the
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superintendent's knowledge or belief, are to be directly and
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immediately affected by the hearing.]
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0010| B. If any person is entitled to a hearing by any
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0011| provision of the Insurance Code before any proposed action is
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0012| taken, or if the superintendent otherwise deems advisable,
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0013| notice of the hearing may be in the form of a notice to show
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0014| cause, stating that proposed action may be taken unless such
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0015| person shows cause at a hearing to be held as specified in the
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0016| notice why the action should not be taken, and stating the
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0017| basis of the proposed action.
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0018| C. If a hearing is to be held for consideration of
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0019| rules [and regulations] of the superintendent, [or of other
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matters which, under Subsection A above, would otherwise
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require separate notices to each of more than thirty (30)
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persons, in lieu of other notice] the superintendent may give
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0023| notice of the hearing by publication thereof in a newspaper of
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0024| general circulation in this state, [at least once each week
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during the fourth and second weeks next preceding the week
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during which the hearing is to be held] and once in the New
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0002| Mexico register; and the superintendent shall mail the notice
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0003| to all persons who had requested the same in writing in advance
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0004| and shall have paid to the superintendent the reasonable costs
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0005| of such mailing as fixed by the superintendent.
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0006| D. If the hearing is for a purpose other than the
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0007| consideration of rules of the superintendent, and if the
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0008| persons to be given notice are not specified in the provision
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0009| pursuant to which the hearing is held, the superintendent shall
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0010| give the notice to all persons whose pecuniary interests, to
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0011| the superintendent's knowledge or belief, are to be directly
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0012| and immediately affected by the hearing.
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0013| [D.] E. All such notices, except published
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0014| notice, shall be given as provided for in [Subsection C of
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Section 28 of the Insurance Code] 59A-2-10 NMSA 1978.
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0016| [E.] F. The superintendent shall specify in the
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0017| notice of hearing whether [its] the hearing is to be an
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0018| administrative hearing pursuant to Section [61 of the
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Insurance Code] 59A-4-17 NMSA 1978 or an informal hearing
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0020| pursuant to Section [62 of that act] 59A-4-18 NMSA 1978."
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0021| Section 3. Section 59A-5-26 NMSA 1978 (being Laws 1984,
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0022| Chapter 127, Section 93) is amended to read:
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0023| "59A-5-26. SUSPENSION, LIMITATION OR REVOCATION OF
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0024| AUTHORITY--DISCRETIONARY AND SPECIAL GROUNDS.--
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0025| A. The superintendent may, at his discretion,
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0001| suspend, limit or revoke an insurer's certificate of authority
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0002| if he finds after a hearing thereon, or upon waiver of hearing
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0003| by the insurer, that the insurer has:
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0004| (1) violated or failed to comply with any
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0005| lawful order of the superintendent; [or]
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0006| (2) [wilfully] willfully violated or
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0007| [wilfully] willfully failed to comply with any lawful
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0008| regulation of the superintendent; [or]
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0009| (3) violated any provision of the Insurance
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0010| Code other than those for violation of which suspension or
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0011| revocation is mandatory; or
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0012| (4) has reinsured all or substantially all of
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0013| its risks, or all or substantially all of its risks in a
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0014| particular kind of insurance, in another insurer.
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0015| B. In lieu of suspension or revocation of
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0016| certificate of authority as provided in Subsection A [above]
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0017| of this section, the superintendent may, at his discretion,
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0018| levy upon the insurer and the insurer shall forthwith pay to
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0019| the superintendent, an administrative fine of not more than
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0020| five thousand dollars ($5,000). The superintendent shall
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0021| promptly deposit with the state treasurer to the credit of the
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0022| general fund all [monies] money received under this
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0023| subsection.
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0024| C. The superintendent shall suspend or revoke an
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0025| insurer's certificate of authority on any of the following
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0001| grounds, if found after a hearing thereon that the insurer:
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0002| (1) is in unsound condition, or being
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0003| fraudulently conducted, or in such condition or using such
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0004| methods and practices in conduct of its business as to render
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0005| its further transaction of insurance in this state currently or
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0006| prospectively hazardous or injurious to policyholders or the
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0007| public;
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0008| (2) with such frequency as to indicate its
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0009| general business practice in this state:
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0010| (a) has without just cause failed to
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0011| pay, or delayed payment of, claims arising under its policies,
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0012| whether the claim is in favor of an insured or in favor of a
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0013| third person with respect to the liability of an insured to
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0014| such third person; or
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0015| (b) without just cause compels insureds
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0016| or claimants to accept less than amount due them or to employ
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0017| attorney or to bring suit against the insurer or such an
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0018| insured to secure full payment or settlement of a claim;
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0019| (3) refuses to be examined, or if its
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0020| directors, officers, employees or representatives refuse to
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0021| submit to examination relative to its affairs, or to produce
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0022| books, papers, records, contracts, correspondence or other
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0023| documents for examination by the superintendent when required,
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0024| or refuses or fails to pay expenses of the examination or to
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0025| perform any other legal obligation relative to the examination;
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0001| or
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0002| (4) has reinsured all its risks in their
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0003| entirety in another insurer; or
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0004| (5) (4) has failed to pay any final judgment
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0005| rendered against it in this state upon any policy, bond,
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0006| recognizance or undertaking as issued or guaranteed by it,
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0007| within thirty [(30)] days after the judgment becomes final.
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0008| D. The superintendent may, at his discretion and
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0009| without advance notice or hearing thereon, immediately suspend
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0010| the certificate of authority of an insurer as to which
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0011| proceedings for receivership, conservation, rehabilitation or
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0012| other delinquency proceedings have been commenced in any state
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0013| by the public insurance supervisory officer of that state."
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0014| Section 4. Section 59A-8-9 NMSA 1978 (being Laws 1984,
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0015| Chapter 127, Section 126) is amended to read:
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0016| "59A-8-9. UNEARNED PREMIUM RESERVE, CASUALTY, VEHICLE,
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0017| PROPERTY, MARINE AND SURETY INSURANCES.--As to property,
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0018| casualty, vehicle and surety insurance, and marine and
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0019| transportation insurance other than as provided in Section
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0020| [127 of this article] 59A-8-10 NMSA 1978, the insurer shall
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0021| maintain as a liability an unearned premium reserve on policies
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0022| in force computed as follows: fifty percent of the gross pre-
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0023|
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0024| mium in force on policies having one year or less to run and
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0025| pro rata on those for longer periods, or pro rata for all
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0001| premiums in force. [As to surety risks the minimum unearned
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premium reserve shall be the aggregate of the net premiums for
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the entire term instead of the unexpired portion thereof.]"
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0004|
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0005|
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0006| FORTY-THIRD LEGISLATURE
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0007| FIRST SESSION, 1997 SB 504/a
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0008|
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0009|
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0010| February 13, 1997
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0011|
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0012| Mr. President:
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0013|
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0014| Your CORPORATIONS & TRANSPORTATION COMMITTEE, to
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0015| whom has been referred
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0016|
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0017| SENATE BILL 504
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0018|
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0019| has had it under consideration and reports same with
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0020| recommendation that it DO PASS, amended as follows:
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0021|
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0022| 1. On page 6, strike lines 23 and 24.
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0023|
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0024| 2. On page 6, line 25, strike "(5)".
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0025|
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0001|
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0002| Respectfully submitted,
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0003|
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0004|
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0005|
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0006|
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0007| __________________________________
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0008| Roman M. Maes, III, Chairman
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0009|
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0010|
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0011|
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0012| Adopted_______________________ Not
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0013| Adopted_______________________
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0014| (Chief Clerk) (Chief Clerk)
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0015|
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0016|
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0017| Date ________________________
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0018|
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0019|
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0020| The roll call vote was 8 For 0 Against
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0021| Yes: 8
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0022| No: 0
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0023| Excused: Griego, Maes
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0024| Absent: None
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0025|
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0001|
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0002| S0504CT1 .116608.1
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0003|
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0004|
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0005|
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0006| FORTY-THIRD LEGISLATURE
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0007| FIRST SESSION, 1997 SB 504/a
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0008|
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0009|
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0010| February 13, 1997
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0011|
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0012| Mr. President:
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0013|
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0014| Your CORPORATIONS & TRANSPORTATION COMMITTEE, to
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0015| whom has been referred
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0016|
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0017| SENATE BILL 504
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0018|
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0019| has had it under consideration and reports same with
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0020| recommendation that it DO PASS, amended as follows:
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0021|
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0022| 1. On page 6, strike lines 23 and 24.
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0023|
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0024| 2. On page 6, line 25, strike "(5)".
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0025|
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0001|
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0002| Respectfully submitted,
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0003|
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0004|
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0005|
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0006|
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0007| __________________________________
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0008| Roman M. Maes, III, Chairman
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0009|
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0010|
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0011|
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0012| Adopted_______________________ Not
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0013| Adopted_______________________
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0014| (Chief Clerk) (Chief Clerk)
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0015|
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0016|
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0017| Date ________________________
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0018|
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0019|
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0020| The roll call vote was 8 For 0 Against
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0021| Yes: 8
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0022| No: 0
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0023| Excused: Griego, Maes
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0024| Absent: None
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0025|
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0001|
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0002| S0504CT1 .116608.1
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0003|
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0004| FORTY-THIRD LEGISLATURE
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0005| FIRST SESSION, 1997
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0006|
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0007|
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0008|
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0009| October 23, 1997
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0010|
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0011|
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0012| SENATE FLOOR AMENDMENT number to SENATE BILL 504, as
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0013| amended
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0014|
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0015| AMENDMENT sponsored by SENATOR FIDEL
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0016|
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0017|
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0018| 1.) On page 5, line 9, strike the underlined word "has".
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0023|
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0024|
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0025|
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0001|
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0002| Senator Fidel
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0003|
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0004|
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0005|
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0006| Adopted Not Adopted
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0007|
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0008| (Chief Clerk) (Chief Clerk)
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0009|
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0010|
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0011| Date
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0014|
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0015|
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0016|
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0017|
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0018| S0504FS1
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0019| State of New Mexico
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0020| House of Representatives
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0021|
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0022| FORTY-THIRD LEGISLATURE
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0023| FIRST SESSION, 1997
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0024|
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0025|
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0001| March 18, 1997
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0002|
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0003|
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0004| Mr. Speaker:
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0005|
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0006| Your BUSINESS AND INDUSTRY COMMITTEE, to whom has
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0007| been referred
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0008|
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0009| SENATE BILL 504, as amended
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0010|
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0011| has had it under consideration and reports same with
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0012| recommendation that it DO PASS.
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0013|
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0014| Respectfully submitted,
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0015|
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0016|
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0017|
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0018|
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0019| Fred Luna, Chairman
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0020|
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0021|
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0022| Adopted Not Adopted
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0023|
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0024| (Chief Clerk) (Chief Clerk)
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0025|
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0001| Date
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0002|
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0003| The roll call vote was 9 For 0 Against
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0004| Yes: 9
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0005| Excused: Alwin, Hobbs, Varela
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0006| Absent: Getty
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0007|
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0008|
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0009| G:\BILLTEXT\BILLW_97\S0504
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