Senate Bill text for SB0483

SENATE BILL 483

48th legislature - STATE OF NEW MEXICO - first session, 2007

INTRODUCED BY

Carroll H. Leavell

AN ACT

RELATING TO INSURANCE; AMENDING THE NEW MEXICO INSURANCE CODE TO MODERNIZE THE REGULATION OF PROPERTY AND CASUALTY RATES AND FORMS; INCREASING PENALTIES.

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

Section 1. Section 59A-17-1 NMSA 1978 (being Laws 1984, Chapter 127, Section 299) is amended to read:

"59A-17-1. SHORT TITLE.--[This article] Chapter 59A, Article 17 NMSA 1978 may be cited as the "Insurance Rate Regulation Law"."

Section 2. Section 59A-17-2 NMSA 1978 (being Laws 1984, Chapter 127, Section 297) is amended to read:

"59A-17-2. SCOPE OF ARTICLE--EXEMPTIONS.--

A. [This article] The Insurance Rate Regulation Law applies to all kinds and lines of direct insurance written on risks or operations in this state by any authorized insurer, except:

(1) wet marine and transportation insurance, as defined in Section [111 of the Insurance Code] 59A-7-5 NMSA 1978;

(2) life insurance;

(3) variable and fixed annuities; and

(4) health insurance.

B. [As to workmen's compensation insurance, this article shall apply except as otherwise expressly provided.] For purposes of [this article "workmen's] the Insurance Rate Regulation Law, "workers' compensation" insurance includes [also] employer's liability insurance.

C. The superintendent may by order exempt any person or class of persons or any market segment from any or all of the provisions of [this article] the Insurance Rate Regulation Law to the extent that the superintendent finds [such] the provision or provisions unnecessary to achieve the purposes of [this article] that law."

Section 3. Section 59A-17-4 NMSA 1978 (being Laws 1984, Chapter 127, Section 300) is amended to read:

"59A-17-4. DEFINITIONS.--As used in [this article] the Insurance Rate Regulation Law:

[A. "market" means any line or kind of insurance or, if described in general terms, any subdivision thereof or any class of risks or combination of classes;

B. "rate service organization" means any person, other than a joint underwriting organization or employee of an insurer or of a manager of insurers under common control or management, who or which:

(1) collects, compiles and furnishes loss or expense statistics;

(2) recommends, makes or files rates or supplementary rate information; or

(3) advises about rate matters, except as an attorney giving legal advice;

C. "supplementary rate information" includes any manual or plan of rates, statistical plan, classification, rating schedule, minimum premium, policy fee, rating rule, rate-related underwriting rule and any other information prescribed by rule of the superintendent.]

A. "advisory organization" means an entity, including its affiliates or subsidiaries, that either has two or more member insurers or is controlled either directly or indirectly by two or more insurers, and that assists insurers in the promulgation of policy forms; in ratemaking activities, such as the collection, compilation and furnishing of loss or expense statistics; or in the recommendation, making or filing of rates, prospective loss costs, supplementary rate information, policy forms or endorsements. Two or more insurers having a common ownership or operating in New Mexico under common management or control constitute a single insurer for purposes of this definition;

B. "commercial insurance" means any line or kind of property or casualty insurance not for personal, family or household needs;

C. "market" means any line or kind of insurance or any subdivision thereof or any class of risks or combination of classes;

D. "residual market mechanism" means an arrangement, either voluntary or mandated by law, involving participation by insurers in the equitable apportionment among them of insurance that may be afforded applicants who are unable to obtain insurance through ordinary methods;

E. "reverse competition" means a marketplace situation where the placement of a line, kind or class of insurance with insurers is determined primarily or exclusively by parties other than the policyholders;

F. "supplementary rate information" includes any manual or plan of rates, classification, rating schedule, minimum premium, policy fee, rating rule, underwriting rule and any other information needed to determine the applicable rate in effect or to be in effect; and

G. "supporting information" means:

(1) the experience and judgment of the filer and the experience or data of other insurers or advisory organizations relied upon by the filer;

(2) the interpretation of any other data relied upon by the filer;

(3) descriptions of methods used in making the rates; and

(4) any other information required by the superintendent to be filed."

Section 4. A new section of the Insurance Rate Regulation Law is enacted to read:

"[NEW MATERIAL] COMPETITIVE MARKET.--A competitive market is presumed to exist unless the superintendent, after notice and hearing, determines that a reasonable degree of competition does not exist within a market and issues a ruling to that effect. The ruling shall expire three years after issue unless rescinded earlier by the superintendent or unless the superintendent renews the ruling after a hearing and a finding as to the continued lack of a reasonable degree of competition. Any ruling that finds that competition does not exist shall identify the factors that cause the market not to be competitive and may also include a plan for enhancing competition. The superintendent shall monitor the degree and continued existence of competition in New Mexico on an ongoing basis. An interested party may petition the superintendent to initiate a hearing to examine whether a particular market is competitive or whether a particular market is no longer noncompetitive."

Section 5. A new section of the Insurance Rate Regulation Law is enacted to read:

"[NEW MATERIAL] REVERSE COMPETITIVE MARKET.--A reverse competitive market for a line, kind or class of insurance is presumed to exist wherever the placement of a line, kind or class of insurance with insurers is determined primarily or exclusively by parties other than the policyholders. The superintendent may, by notice and hearing, establish rules for determining the specific lines, kinds or classes of insurance that, for the purposes of the Insurance Rate Regulation Law, are reversely competitive."

Section 6. A new section of the Insurance Rate Regulation Law is enacted to read:

"[NEW MATERIAL] CONSUMER INFORMATION.--

A. The superintendent shall use, develop or cause to be developed a consumer information system that will provide and disseminate price and other relevant information on a readily available basis to purchasers of homeowners, private passenger non-fleet automobile or property insurance for personal, family or household needs as well as for any other types of personal or commercial insurance designated by the superintendent. To the extent deemed necessary and appropriate by the superintendent, insurers, advisory organizations and other persons or organizations involved in conducting the business of insurance in New Mexico, to which this section applies, shall cooperate in the development and utilization of a consumer information system.

B. An insurer writing homeowners insurance or private passenger non-fleet automobile insurance in New Mexico shall, upon renewal or upon the transfer of a policy to another insurer under the same ownership or management as the transferring insurer, provide its policyholders with written notification of their right to obtain from the insurer a detailed written explanation of the reasons why their policy premium has changed or is about to change."

Section 7. A new section of the Insurance Rate Regulation Law is enacted to read:

"[NEW MATERIAL] UNDERWRITING GUIDELINES.--

A. The superintendent may direct an insurer writing homeowners insurance, private passenger non-fleet automobile insurance or other lines, kinds or classes of noncommercial insurance in New Mexico to file with the superintendent underwriting guidelines that determine the acceptance of applicants and tiering guidelines that determine the placement of applicants and insureds into rating tiers, regardless of whether such tiers exist within the insurer or within a group of insurers under common ownership or management.

B. The superintendent, after notice and hearing, may order an insurer to cease using underwriting or tiering guidelines that are unfairly discriminatory or that fail to place applicants and insureds into tiers in a clear, objective, risk-based and mutually exclusive manner.

C. Filings made pursuant to this section shall be considered confidential trade secrets under the Uniform Trade Secrets Act."

Section 8. Section 59A-17-6 NMSA 1978 (being Laws 1984, Chapter 127, Section 302) is amended to read:

"59A-17-6. RATE STANDARDS.--

A. Rates shall not be excessive, inadequate or unfairly discriminatory, nor shall an insurer charge any rate [which] that, if continued, will have or tend to have the effect of destroying competition or creating a monopoly.

B. In a competitive market, rates are presumed not to be excessive [if a reasonable degree of price competition exists at the consumer level with respect to the class of business to which they apply. In determining whether a reasonable degree of price competition exists, the superintendent shall consider all relevant tests including:

(1) the number of insurers actively engaged in the class of business;

(2) the existence of rate differentials in that class of business; and

(3) whether profitability for insurers generally of the class of business is unreasonably high in relation to its riskiness].

C. In a noncompetitive market [where such rate competition does not exist], rates are excessive if they are likely to produce a profit that is unreasonably high in relation to the riskiness of the line, kind or class of business, or if expenses are unreasonably high in relation to the services rendered.

D. Rates are inadequate if they are clearly insufficient, together with the investment income attributable to them, to sustain projected losses and expenses in the line, kind or class of business to which they apply.

E. There is unfair discrimination if one rate is unfairly discriminatory in relation to another in the same line, kind or class if it clearly fails to reflect equitably the differences in expected losses and expenses. Rates are not unfairly discriminatory because different premiums result for policyholders with like loss exposures but different expense factors, or like expense factors but different loss exposures, so long as the rates reflect the differences with reasonable accuracy. Rates are not unfairly discriminatory if they are averaged broadly among persons insured under a group, franchise or blanket policy or a mass marketing plan.

[F. This section shall not apply as to workmen's compensation insurance.]"

Section 9. Section 59A-17-7 NMSA 1978 (being Laws 1984, Chapter 127, Section 303) is amended to read:

"59A-17-7. RATING METHODS.--[A.] In determining whether rates comply with the rate standards, the following criteria shall be applied:

[(1)] A. due consideration shall be given to past and prospective loss and expense experience within and without this state, to catastrophic hazards and contingencies, to trends within and without this state, to loadings for leveling premium rates over time or for dividends or savings to be allowed or returned by insurers to their policyholders, members or subscribers and to all other relevant factors, including the judgment of technical personnel;

[(2)] B. risks may be classified in any reasonable way for the establishment of rates and minimum premiums, except that classifications may not be based on race, color, creed or national origin;

[(3)] C. the expense provisions included in the rates to be used by an insurer may reflect the operating methods of the insurer and, so far as it is credible, its own expense experience; and

[(4)] D. the rates may contain an allowance permitting a profit that is not unreasonable in relation to the riskiness of the line, kind or class of business. Profit shall include investment income attributable to such rates.

[B. This section shall not apply as to workmen's compensation insurance.]"

Section 10. Section 59A-17-7.1 NMSA 1978 (being Laws 1987, Chapter 80, Section 1) is amended to read:

"59A-17-7.1. [RATES--COVERAGE] MOTOR VEHICLE LIABILITY--NOT-AT-FAULT ACCIDENTS.--

A. The rates of a motor vehicle liability insurer shall not provide for an increase in the premium if based upon an accident in which the insured is not at fault in any manner as determined by either the accident report or the insurer. If the insurer determines that its insured is at fault contrary to the specific finding of an accident report that the insured is not at fault, the insurer shall reach its conclusion only after an investigation.

B. A motor vehicle liability insurer shall not cancel, or use as a basis for nonrenewal, an insurance policy if such cancellation or nonrenewal is based upon an accident in which the insured is not at fault in any manner as determined by either the accident report or the insurer. If the insurer determines that its insured is at fault contrary to the specific finding of an accident report that the insured is not at fault, the insurer shall reach its conclusion only after an investigation.

C. As used in this section, "motor vehicle liability insurer" means an insurer authorized to transact in this state the business of automobile and motor vehicle bodily injury, property damage liability and physical damage insurance.

D. This section shall not apply if other factors exist, exclusive of the accident in which the insured is not at fault, [which] that allow for a premium increase, cancellation or nonrenewal of an insurance policy under the Insurance Code or [regulations] rules pursuant to the Insurance Code."

Section 11. Section 59A-17-8 NMSA 1978 (being Laws 1984, Chapter 127, Section 304, as amended) is amended to read:

"59A-17-8. MAKING OF RATES--WORKERS' COMPENSATION--RATE CALCULATIONS--RATE CLASSIFICATIONS.--

[A. All rates for workers' compensation shall be made in accordance with the following provisions:

(1) due consideration shall be given to past and prospective loss experience within this state, to catastrophe hazards, if any, to a reasonable margin for profit and contingencies, taking into account investment income attributable to such rates and to that portion of capital and surplus acquired after July 1, 1987, to dividends, savings or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members or subscribers, past and prospective expenses applicable to this state and to all other relevant factors within this state; provided that a rate filer may rely on non-New Mexico experience upon demonstrating, to the superintendent's satisfaction, both the necessity for and appropriateness of the use of that experience;

(2) the systems of expense provisions included in the rates for use by any insurer or group of insurers may differ from those of other insurers or groups of insurers to reflect the requirements of the operating methods of any such insurer or group with respect to any kind of insurance or with respect to any subdivision or combination thereof for which subdivision or combination separate expense provisions are applicable;

(3) risks may be grouped by classifications for the establishment of rates and minimum premiums. Classification rates may be modified to produce rates for individual risks in accordance with rating plans that establish standards for measuring variations in hazards or expense provisions, or both. Such standards may measure any differences among risks that can be demonstrated to have a probable effect upon losses or expenses; and

(4) rates shall not be excessive, inadequate or unfairly discriminatory.

B. Except to the extent necessary to meet the provisions of Paragraph (4) of Subsection A of this section, Subsection C of this section and Subsection E of Section 59A-17-17 NMSA 1978, uniformity among insurers in any matters within the scope of Chapter 59A, Article 17 NMSA 1978 is neither required nor prohibited.]

A. A workers' compensation insurer shall adhere to a uniform classification system and uniform experience rating system filed with the superintendent by an advisory organization designated by the superintendent.

B. A workers' compensation insurer shall report its experience in accordance with the statistical plans and other reporting requirements in use by the advisory organization designated by the superintendent.

C. Workers' compensation premium rates shall be equalized and calculated on a basis that does not discriminate against or penalize employers who pay higher wages than other employers to workers in the same job classification. The legislature finds that calculating workers' compensation premium rates strictly on the basis of an employer's wages paid discriminates against and penalizes higher-paying employers. The legislature accordingly directs that the superintendent shall:

(1) investigate alternatives to the current method of computing workers' compensation premiums, including but not limited to:

(a) split classification;

(b) payroll cap;

(d) premium credits;

(2) immediately conduct hearings on the issue, including consideration of other alternatives; and

(3) adopt regulations, to become effective no later than April 1, 1991, to equalize the workers' compensation premium rates employers must pay for workers who perform the same job.

Nothing in this subsection shall be construed to prohibit the use of experience rating or scheduled credits.

D. [Any rate classification system relied on for workers' compensation shall be updated and revised periodically to reflect changes in the workplace. The superintendent shall by regulation provide for periodic updating and revision.] A workers' compensation insurer may develop subclassifications of the uniform classification system upon which rates may be made. Such subclassifications and their filing shall be subject to all applicable provisions of the Insurance Rate Regulation Law. Data produced from such subclassifications shall be reported in accordance with the statistical plans, uniform classification system and experience rating system in use by the advisory organization designated by the superintendent.

E. Classification assignments may be changed within sixty days of the effective date or renewal date of the policy, provided the employer is given reasonable prior notice of the proposed change in order to object and provided further that the change is based upon an appropriate audit or investigation. The same provisions apply to initial classification assignments for new operations added by the employer so that they may be changed within sixty days of the date the classification assignments are initially established. No subsequent changes shall be made unless the insurer proves, after conducting an audit or investigation, that:

(1) there has been a substantial change in the nature of the work performed; or

(2) the initial assignment was in error due to withheld or inaccurate material information provided by the employer.

F. A workers' compensation insurer may develop rating plans that identify loss experience as a factor to be used. The rating plans and their filing shall be subject to all applicable provisions of the Insurance Rate Regulation Law.

G. The superintendent shall disapprove subclassifications, rating plans or other variations from supplementary rate information filed by a workers' compensation insurer if the insurer fails to demonstrate that the data produced can be reported consistent with the uniform classification system and experience rating system and in such a fashion so as to allow for the application of experience rating filed by the advisory organization designated by the superintendent."

Section 12. Section 59A-17-9 NMSA 1978 (being Laws 1984, Chapter 127, Section 305, as amended) is amended to read:

"59A-17-9. FILING OF RATES [(OTHER THAN WORKERS' COMPENSATION)].--[As to insurance subject to Chapter 59A, Article 17 NMSA 1978, other than workers' compensation insurance, every insurer shall file with the superintendent all rates and supplementary rate information and all changes and amendments thereof made by it for use in this state at least sixty days before their proposed effective date. No filing made pursuant to this section shall become effective nor shall it be used until approved or deemed approved by the superintendent in accordance with Section 59A-17-13 NMSA 1978, at which time it may be used.]

A. In regard to filings in competitive markets:

(1) for purposes of this section, reverse competitive markets and residual markets are not competitive markets;

(2) for filings by insurers:

(a) an insurer shall file with the superintendent rates and supplementary rate information prior to their use in New Mexico;

(b) rates to be used in a competitive market for commercial insurance other than workers' compensation and medical professional liability need not be filed; and

(c) insurers that wish to use workers' compensation subclassifications, rating plans, loss costs or other supplementary rate information that differs from items filed by the advisory organization designated by the superintendent shall file with the superintendent relevant subclassifications, rating plans, rates, loss costs, other supplementary rate information and supporting information in accordance with the requirements and provisions of Subsection B of this section; and

(3) for filings by advisory organizations:

(a) with the exception of workers' compensation filings, an advisory organization shall file with the superintendent rates, supplementary rate information and supporting information prior to their use in New Mexico; and

(b) regarding workers' compensation filings, the advisory organization designated by the superintendent shall file with the superintendent rates, supplementary rate information and supporting information in accordance with the requirements and provisions of Subsection B of this section.

B. In regard to filings in noncompetitive, reverse competitive and residual markets:

(1) an insurer or advisory organization shall file with the superintendent rates, supplementary rate information and supporting information for noncompetitive, reverse competitive and residual markets at least thirty days before the proposed effective date;

(2) the superintendent may give written or electronic notice, within thirty days of receipt of the filing, that the superintendent needs additional time, not to exceed thirty days from the date of such notice, to consider the filing;

(3) upon written or electronic application of the insurer or advisory organization, the superintendent may authorize rates to be effective before the expiration of the waiting period or an extension of the waiting period;

(4) a filing shall be deemed to meet the requirements of this section and to become effective unless disapproved pursuant to Section 59A-17-13 NMSA 1978 by the superintendent before the expiration of the waiting period or an extension of the waiting period;

(5) the operation of the deemer provision shall be suspended during a period of not more than sixty days upon written or electronic notice to the insurer or advisory organization that made the filing that additional information is needed to complete the review of the filing. The suspension of the deemer provision may occur only once for a filing. Failure of the insurer or advisory organization to provide the requested information within sixty days shall be deemed a request to withdraw the filing from further consideration. The superintendent shall either approve or disapprove the filing within thirty days of receipt of the requested additional information. Failure of the superintendent to act within the thirty-day period shall result in the filing being deemed to meet the requirements of the Insurance Rate Regulation Law. Neither the insurer nor the superintendent may waive the timeliness requirements of the deemer provisions of this section; and

(6) residual market mechanisms or advisory organizations may file residual market rates.

C. In regard to reference filings; an insurer may file its rates either by filing its final rates or by filing a multiplier and, if applicable, an expense constant adjustment to be applied to prospective loss costs that have been filed by an advisory organization on behalf of the insurer as permitted by Section 59A-17-17 NMSA 1978. Such reference filings shall be made prior to their use or by other methods the superintendent may allow by rule. An insurer that chooses to adopt the prospective loss costs or rates that have been filed by an advisory organization on its behalf for a competitive commercial line other than workers' compensation or medical professional liability need not file."

Section 13. Section 59A-17-11 NMSA 1978 (being Laws 1984, Chapter 127, Section 307, as amended) is amended to read:

"59A-17-11. FILINGS OPEN TO INSPECTION.--[Each] A filing and [any] supporting information filed under Sections 59A-17-9 and 59A-17-10 NMSA 1978 shall, as soon as filed, be open to public inspection at [any] a reasonable time. A copy of [any such] a filing and supporting information may be obtained by [any] a person on request to the superintendent and payment of a reasonable charge [therefor]. If the insurer or advisory organization believes that information contained in the filing contains material that it considers to be a trade secret, it shall include that information in a separate section of the filing and include a request for the superintendent to consider whether that information should be kept confidential."

Section 14. Section 59A-17-12 NMSA 1978 (being Laws 1984, Chapter 127, Section 308) is amended to read:

"59A-17-12. INSURER MUST ADHERE TO RATES--CONSENT TO RATE.--

A. No insurer shall make or issue a contract or policy of insurance except in accordance with filings or rates [which] that are lawfully in effect for the insurer as provided in [this article. This subsection shall not apply as to workmen's compensation insurance, which is governed by Subsection E of Section 306 of this article] the Insurance Rate Regulation Law.

B. Upon written application of the insured stating the underlying reasons [therefor] that is filed with and approved by the superintendent, a rate in excess of or below that otherwise applicable may be used as to a specific risk."

Section 15. Section 59A-17-13 NMSA 1978 (being Laws 1984, Chapter 127, Section 309, as amended) is amended to read:

"59A-17-13. [APPROVAL AND] GROUNDS AND PROCEDURES FOR DISAPPROVAL OF RATES [(OTHER THAN WORKMEN'S COMPENSATION)--INTERIM RATES].--

[A. The superintendent shall, within sixty days after the filing of a rate under Section 59A-17-9 NMSA 1978, approve any rate if he finds that it complies with the applicable requirements of Chapter 59A, Article 17 NMSA 1978 and he shall disapprove any rate if he finds that it does not comply with those provisions. If the superintendent does not approve or disapprove a rate within sixty days of filing, the rate shall be deemed approved. No insurer shall use or charge a rate that has not been approved or deemed approved by the superintendent or that is not in effect.

B. If the superintendent disapproves a rate filing pursuant to Subsection A of this section, he shall send written notice of disapproval to the insurer or rate service organization that made the filing. The notice shall specify the reasons for the disapproval and state that the filing shall not become effective.

C. At any time after a rate becomes effective, the superintendent may, after a hearing held not less than twenty days after the mailing of written notice to the insurer or rate service organization which made the filing, withdraw approval of any rate if he finds that such rate fails to meet the applicable requirements of Chapter 59A, Article 17 NMSA 1978. The order withdrawing approval shall specify the respects in which the filing fails to meet such requirements and the date on which the filing shall be deemed no longer effective.

D. Any person aggrieved with respect to any filing subject to this section, other than the insurer or rate service organization which made the filing, may make written application for a hearing thereon in the same manner as provided in Subsection C of Section 59A-17-14 NMSA 1978.

E. Whenever an insurer has no legally effective rates as a result of the superintendent's disapproval of rates or other act, the superintendent shall on request specify interim rates for the insurer which are high enough to protect the interest of all parties and may order that a specified portion of the premium be placed in an escrow account approved by him. When new rates become legally effective, the superintendent shall order the escrowed funds or any overcharge in the interim rates to be distributed appropriately, except that de minimis refunds to policyholders shall not be required.]

A. The superintendent shall disapprove a rate for use in a competitive market if the superintendent finds that the rate is inadequate or unfairly discriminatory under the rate standards set forth in Section 59A-17-6 NMSA 1978. The superintendent shall disapprove a rate for use in a noncompetitive, reverse competitive or residual market if the superintendent finds that the rate is excessive, inadequate or unfairly discriminatory under the rate standards set forth in Section 59A-17-6 NMSA 1978.

B. The superintendent may at any time disapprove a filing submitted under the "file and use" provisions of Subsection A of Section 59A-17-9 NMSA 1978 after giving notice of hearing pursuant to the provisions of Subsection A of Section 59A-4-16 NMSA 1978 to every insurer and advisory organization that adopted the rate.

C. The superintendent may disapprove a filing submitted under the "prior approval" provisions of Subsection B of Section 59A-17-9 NMSA 1978:

(1) without a hearing prior to the expiration of the waiting period or an extension of the waiting period. An insurer or advisory organization whose rates are disapproved under this subsection may request a hearing before the superintendent by filing a written request within thirty days of the date of the disapproval notice; or

(2) at any time after the expiration of the waiting period or an extension of the waiting period, after giving notice of hearing pursuant to the provisions of Subsection A of Section 59A-4-16 NMSA 1978 to every insurer and advisory organization that adopted the rate.

D. The superintendent's notice or order of disapproval shall specify the respects in which the rate fails to meet the standards set forth in Section 59A-17-6 NMSA 1978. The notice or order shall state an effective date no sooner than thirty business days after the date of the notice or order when the insurer shall discontinue the use of the rate. The notice or order shall not affect any policy made before the effective date of the notice or order."

Section 16. A new section of the Insurance Rate Regulation Law is enacted to read:

"[NEW MATERIAL] LARGE COMMERCIAL POLICYHOLDERS.--

A. The superintendent may, by rule, establish a class of large commercial policyholders, to be known as exempt commercial policyholders, that shall be exempt from the rate and form requirements of Chapter 59A, Articles 17 and 18 NMSA 1978, except for form provisions relating to workers' compensation mandatory coverage provisions.

B. In the promulgation of this rule, the superintendent shall consider the following factors in establishing an exempt commercial policyholder class:

(1) the characteristics of insureds that are likely to study and understand the details of their business risks, insurance coverages and exclusions;

(2) the characteristics of insureds that are likely to avail themselves of regular price comparisons between competing insurers and are likely to study and understand the differences and details of pricing proposals that they receive;

(3) the characteristics of insureds that are likely to require individually written policies, as contrasted to insureds that can customarily have their coverage needs met through a compilation of forms with applicability to other insureds as well;

(4) the characteristics of insureds for which filed rates and rating plans are less likely to provide the lowest premiums otherwise consistent with the provisions of the Insurance Rate Regulation Law;

(5) the favorable or adverse experiences with exemptions from regulatory requirements, especially the experience in New Mexico;

(6) the extent to which commercial insureds primarily located in another jurisdiction are subject to similar exemptions or waivers in that jurisdiction; and

(7) any other relevant factors.

C. The superintendent may, by rule, waive some or all of the diligent search requirements related to placement of risks in the approved surplus lines market for some or all of the exempt commercial policyholders."

Section 17. Section 59A-17-13.1 NMSA 1978 (being Laws 1993, Chapter 103, Section 1) is amended to read:

"59A-17-13.1. DISCOUNTS ON HOMEOWNERS' POLICIES FOR [COMPREHENSIVE COVERAGE] BURGLARY PROTECTIONS.--Any insurer licensed to write homeowner's insurance, as defined by the superintendent [of insurance], within the state shall provide a minimum premium discount of ten percent for houses with electronic alarm systems designed to prevent unauthorized entry into the house. The insurer shall also provide a minimum premium discount of five percent for houses with wrought iron bars covering all the doors and windows of the house. These discounts shall apply to comprehensive coverage and shall be [approved by the superintendent pursuant to Section 59A-17-13 NMSA 1978 as] part of the insurer's rate filing. Some or all of the premium discounts required by this section may be omitted upon demonstration to the superintendent in an insurer's rate filing that the discounts are duplicative of other discounts provided by the insurer."

Section 18. Section 59A-17-16 NMSA 1978 (being Laws 1984, Chapter 127, Section 312, as amended) is amended to read:

"59A-17-16. [DELAYED EFFECT OF RATES] REQUIREMENT FOR SUPPORTING INFORMATION.--

A. By rule, the superintendent may require the filing of supporting data as to any or all kinds or lines of insurance or subdivisions thereof or classes of risks or combinations thereof as [he] the superintendent deems necessary for the proper functioning of the rate monitoring and regulating process. The supporting data shall include:

(1) the experience and judgment of the filer and, to the extent it wishes or the superintendent requires, of other insurers or [rate service] advisory organizations;

(2) its interpretation of any statistical data relied upon;

(3) descriptions of the actuarial and statistical methods employed in setting the rates; and

(4) any other relevant matters required by the superintendent.

B. Whenever a filing is not accompanied by [such] the information as the superintendent has required under Subsection A of this section, [he] the superintendent may [so] inform the insurer and the filing shall be deemed to be made when the information is furnished."

Section 19. Section 59A-17-17 NMSA 1978 (being Laws 1984, Chapter 127, Section 313, as amended) is amended to read:

"59A-17-17. USE OF [RATE SERVICE] ADVISORY ORGANIZATION [ADVISORY] FILINGS.--

A. An insurer may itself establish rates and supplementary rate information for [any] a market segment based on the factors set forth in Section 59A-17-7 NMSA 1978 or it may in its rate filing incorporate by reference loss costs and other supplementary rate information prepared by [a rate service] an advisory organization, with [such] modification for its own loss experience as the credibility of that experience allows.

B. Nothing in [Chapter 59A, Article 17 NMSA l978] the Insurance Rate Regulation Law shall be construed as requiring [any] an insurer to become a member of or subscriber to any [rate service] advisory organization.

C. The superintendent may adopt rules establishing standards and administrative procedures to carry out the provisions of this section."

Section 20. Section 59A-17-18 NMSA 1978 (being Laws 1984, Chapter 127, Section 314) is amended to read:

"59A-17-18. [RATE SERVICE] ADVISORY ORGANIZATIONS-- LICENSE REQUIRED--OBLIGATION TO PROVIDE SERVICE.--

A. No [rate service] advisory organization shall provide [any] a service relating to the statistical collection or the rates of [any] an insurance subject to [this article] the Insurance Rate Regulation Law, and no insurer shall [utilize] use the services of [such] the organization for such purposes, unless the organization has obtained a license as required by Section [315 of this article] 59A-17-19 NMSA 1978.

B. No [rate service] advisory organization shall refuse to supply [any] a service for which it is licensed in this state to [any] an authorized insurer offering to pay the fair and usual compensation for the services."

Section 21. Section 59A-17-19 NMSA 1978 (being Laws 1984, Chapter 127, Section 315) is amended to read:

"59A-17-19. [RATE SERVICE] ADVISORY ORGANIZATIONS-- LICENSING.--

A. [Any] A person, whether domiciled within or outside this state, may apply to the superintendent for license as [a rate service] an advisory organization for [such] the kinds of insurance or subdivisions thereof as are specified in its application. The application shall include:

(1) a copy of its constitution, charter, articles of organization, agreement, association or incorporation and a copy of its bylaws, plan of operation and [any] other rules [or regulations] governing conduct of its business;

(2) a list of its members and subscribers;

(3) the name and address of one or more residents of this state upon whom notices, process affecting it or orders of the superintendent may be served;

(4) a statement showing its technical qualifications for acting in the capacity for which it seeks a license;

(5) payment of the license application fee in an amount specified in Section [101 (fee schedule) of the Insurance Code] 59A-6-1 NMSA 1978; and

(6) any other relevant information and documents that the superintendent may require.

B. Every [rate service] advisory organization [which] that has applied for a license shall [thereafter] promptly notify the superintendent in writing of every material change in the facts or in the documents on which its application was based, or of change in name, address of its process agent under Paragraph (3) [above] of Subsection A of this section. No amendment to [any] a document referred to in Paragraph (1) [above] of Subsection A of this section shall be effective until not less than thirty [(30)] days after the amendment is filed with the superintendent.

C. If the superintendent finds that the applicant and the individuals through whom it acts are competent, trustworthy and technically qualified to provide the services proposed, and that all requirements of law are met, [he] the superintendent shall within sixty [(60)] days after completion of the application issue a license to the applicant specifying the authorized activity; otherwise, [he] the superintendent shall refuse to issue the license and shall promptly notify the applicant [thereof], specifying the grounds for refusal. The superintendent shall not issue a license if the proposed activity would tend to create a monopoly or lessen or destroy price competition.

D. Licenses issued pursuant to this section shall remain in effect until the licensee withdraws from the state or until the license is suspended or revoked, subject to annual continuation on May [1st] 1 of each year by payment of the continuation fee specified [therefor] in Section [101 (fee schedule) of the Insurance Code] 59A-6-1 NMSA 1978."

Section 22. Section 59A-17-20 NMSA 1978 (being Laws 1984, Chapter 127, Section 316) is amended to read:

"59A-17-20. SUSPENSION, REVOCATION OF LICENSE.--The superintendent shall promptly revoke the license of [a rate service] an advisory organization if it ceases business or withdraws from this state, and [he] the superintendent may suspend or revoke the license if [he] the superintendent finds after a hearing that:

A. the organization no longer meets the qualifications for licensing; or

B. the organization has failed to file amended documents as required under Section [315 of this article]

59A-17-19 NMSA 1978, or has violated or failed to comply with any other material requirement of [this article] the Insurance Rate Regulation Law or [of] any other law."

Section 23. Section 59A-17-21 NMSA 1978 (being Laws 1984, Chapter 127, Section 317) is amended to read:

"59A-17-21. CONDUCT OF [RATE SERVICE] ADVISORY ORGANIZATION.--

A. [A rate service] An advisory organization shall furnish its services without discrimination to its members and subscribers.

B. [No rate service] An advisory organization shall not adopt any rule, the effect of which would be to prohibit or regulate payment of dividends, savings or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members or subscribers."

Section 24. Section 59A-17-23 NMSA 1978 (being Laws 1984, Chapter 127, Section 319) is amended to read:

"59A-17-23. [RATE SERVICE] ADVISORY ORGANIZATIONS--APPEAL BY MINORITY.--[A. Any] A member of or subscriber to [a rate service] an advisory organization may appeal to the superintendent from the action or decision of [such rate service] the advisory organization in approving or rejecting [any] a proposed change in or addition to the filings of [such] the advisory organization and the superintendent shall, after a hearing, issue an order approving the action or decision of [such rate service] the advisory organization or directing it to give further consideration to [such] the proposal; or, if [such] the appeal is from the action or decision of the [rate service] advisory organization in rejecting a proposed addition to its filings, [he] the superintendent may, in the event [he] the superintendent finds that [such] the action or decision was unreasonable, issue an order directing the [rate service] advisory organization to make an addition to its filings, on behalf of its members and subscribers, in a manner consistent with [his] the superintendent's findings, within a reasonable time after the issuance of [such] the order.

[B. If such appeal is based upon the failure of the rate service organization to make a filing on behalf of such member or subscriber which is based on a system of expense provisions which differs, in accordance with the right granted in Section 303 or 304 of this article, from the system of expense provisions included in a filing made by the rate service organization, the superintendent shall, if he grants the appeal, order the rate service organization to make the requested filing for use by the appellant. In deciding such appeal the superintendent shall apply the standards set forth in Section 302 or 304, as applicable, of this article.]"

Section 25. Section 59A-17-25 NMSA 1978 (being Laws 1984, Chapter 127, Section 320, as amended) is amended to read:

"59A-17-25. JOINT UNDERWRITING, [OR] JOINT REINSURANCE [ORGANIZATIONS] POOL AND RESIDUAL MARKET MECHANISMS.--

A. [Every] A group, association or other organization of insurers [which] that engages in joint underwriting, [or] joint reinsurance pools or residual market mechanisms through [such] the group, association or organization or by standing agreement among the members [thereof], shall file with the superintendent:

(1) a copy of its constitution, its articles of incorporation, agreement or association and [of] its bylaws and rules [and regulations] governing its activities, all duly certified by the custodian of the originals [thereof];

(2) a list of its members; and

(3) the name and address of a resident of this state upon whom notices or orders of the superintendent or process affecting [such] the group, association or organization may be served.

B. Every such group, association or other organization shall notify the superintendent promptly in writing of [every change] changes in its constitution, its articles of incorporation, agreement or association, [in] its bylaws and rules [and regulations] governing conduct of its business, its list of members or [of] the name and address of its process agent referred to in Paragraph (3) of Subsection A of this section.

C. Every such group, association or organization shall be subject to regulation as herein provided, subject, however, as to joint underwriting to applicable provisions of [Chapter 59A, Article 17 NMSA 1978] the Insurance Rate Regulation Law, and as to joint reinsurance to Sections 59A-17-13, [59A-17-14] 59A-17-32, 59A-17-34 and 59A-17-35 NMSA 1978.

D. No [such] group, association or organization shall engage in [any] an unfair or unreasonable practice with respect to its activities. If, after a hearing, the superintendent finds that [any] an activity or practice of [any such] a group, association or organization is unfair or unreasonable or otherwise inconsistent with the provisions of [Chapter 59A, Article 17 NMSA 1978, he] the Insurance Rate Regulation Law, the superintendent may issue [his] an order specifying the respects in which the activity or practice is unfair or unreasonable or otherwise inconsistent with the provisions of [that article] the Insurance Rate Regulation Law and requiring discontinuance of [such] the activity or practice."

Section 26. Section 59A-17-26 NMSA 1978 (being Laws 1984, Chapter 127, Section 321) is amended to read:

"59A-17-26. BINDING AGREEMENTS BY INSURERS.--No insurer shall assume [any] an obligation to [any] a person other than a policyholder or other insurers [which] that with it are under common control or management or are members of a joint underwriting organization subject to the provisions of Section [320 of this article] 59A-17-25 NMSA 1978, to use or adhere to certain rates or rules, and no other person shall impose [any] a penalty or other adverse consequence for failure of an insurer to adhere to certain rates or rules except as to action by the superintendent in enforcement of Section [308 (insurer must adhere to filed rates) or Subsection E of Section 306 (rate filings, workmen's compensation) of this article] 59A-17-12 NMSA 1978."

Section 27. Section 59A-17-27 NMSA 1978 (being Laws 1984, Chapter 127, Section 322) is amended to read:

"59A-17-27. COOPERATIVE ACTIVITIES AUTHORIZED.--Cooperation among [rate service] advisory organizations or among [such] organizations and insurers in rate making or in other matters within the scope of the [article] Insurance Rate Regulation Law is hereby authorized, provided the filings resulting from [such] the cooperation are subject to [all] provisions of the [article] Insurance Rate Regulation Law applicable to filings generally. The superintendent may review [such] the cooperative activities and practices and if, after a hearing, [he] the superintendent finds that [any such] the activity or practice is unfair or unreasonable or otherwise inconsistent with [this article, he] the Insurance Rate Regulation Law, the superintendent may issue an order specifying the respects in which [such] the activity or practice is unreasonable or otherwise inconsistent with [this article] the Insurance Rate Regulation Law and requiring discontinuance of [such] the activity or practice."

Section 28. Section 59A-17-28 NMSA 1978 (being Laws 1984, Chapter 127, Section 323) is amended to read:

"59A-17-28. RECORDING, REPORTING OF EXPERIENCE.--The superintendent shall promulgate or approve reasonable rules, including rules providing statistical plans, for use [thereafter] by all insurers in the recording and reporting of loss and expense experience, so that the experience of an insurer may be made available to [him] the superintendent at least annually in such form and detail as may be necessary to aid [him] the superintendent in determining whether rating systems comply with applicable rate standards and requirements. In promulgating [such] the rules and plans the superintendent shall give due consideration to the rating systems on file with [him] the superintendent and, so that [such] the rules and plans may be as uniform as practicable among the several states, to the rules and form of plans used for rating systems in other states. No insurer shall be required to record or report its experience on a classification basis inconsistent with its own rating system. The superintendent may designate one or more [rate service] advisory organizations to assist [him] the superintendent in gathering [such] that experience and making compilations [thereof] of that experience, which shall be made available to insurers, [rate service] advisory organizations and the public."

Section 29. Section 59A-17-29 NMSA 1978 (being Laws 1984, Chapter 127, Section 324) is amended to read:

"59A-17-29. EXCHANGE OF DATA, CONSULTATION AUTHORIZED.--

A. The superintendent may promulgate reasonable rules and plans for interchange among insurers, [rate service] advisory organizations and others, of data necessary for application of rating plans.

B. For furtherance of uniformity in administration of rate regulatory laws, the superintendent and every insurer and [rate service] advisory organization may exchange information and experience data with insurance [supervisory] regulatory officials, insurers and [rate service] advisory organizations in this and other states and may consult with them as to rate making and the application of rating systems."

Section 30. Section 59A-17-30 NMSA 1978 (being Laws 1984, Chapter 127, Section 325) is amended to read:

"59A-17-30. INFORMATION TO BE FURNISHED INSUREDS--HEARINGS AND APPEALS OF INSUREDS.--

A. Every [rate service] advisory organization and every insurer [which] that makes its own rates shall, within time frames promulgated by the superintendent or, in the absence of time frames, within a reasonable time after receiving written request [therefor and upon payment of such reasonable charge as it may make], furnish to [any] an insured affected by a rate made by it, or to the authorized representative of [such] the insured, all pertinent information as to [such] the rate.

B. Every [rate service] advisory organization and every insurer [which] that makes its own rates shall provide within this state reasonable means whereby [any] a person aggrieved by the application of its rating system may be heard, in person or by [his] the person's authorized representative, on [his] the person's written request to review the manner in which [such] the rating system has been applied in connection with the insurance afforded [him] the person. If the [rate service] advisory organization or insurer fails to grant or reject [such] the request within thirty [(30)] days after it is made, the applicant may proceed in the same manner as if [his] the application had been rejected. [Any] A party affected by the action of [such] the rate service organization or [such] the insurer on [such] the request may, within thirty [(30)] days after written notice of [such] the action, appeal to the superintendent, who, after a hearing, may affirm or reverse [such] the action. If, after the hearing, it is determined that the rates charged by an insurer are in excess of the otherwise appropriate rate, the overcharge shall be refunded to the insured."

Section 31. Section 59A-17-31 NMSA 1978 (being Laws 1984, Chapter 127, Section 326) is amended to read:

"59A-17-31. FALSE OR MISLEADING INFORMATION.--No person shall [wilfully] willfully withhold information from, or knowingly give false or misleading information to, the superintendent or statistical agency designated by [him] the superintendent or [rate service] advisory organization or insurer [which] that will affect rates or rating plans under [this article] the Insurance Rate Regulation Law. Violation of this section shall be subject to the penalties provided under Section [18 (general penalty) of the Insurance Code] 59A-1-18 NMSA 1978."

Section 32. Section 59A-17-32 NMSA 1978 (being Laws 1984, Chapter 127, Section 327) is amended to read:

"59A-17-32. EXAMINATION OF [RATE SERVICE] ADVISORY AND JOINT UNDERWRITING ORGANIZATIONS, JOINT REINSURANCE [ORGANIZATIONS] POOLS AND RESIDUAL MARKET MECHANISMS.--

A. To [inform himself] be informed about any matter related to enforcement of provisions of the Insurance Code, the superintendent may examine the affairs and condition of any [rate service organization] advisory or joint underwriting [or] organization, joint reinsurance [organization] pool or residual market mechanism. The superintendent shall [so] examine every [rate service] advisory organization and conduct the examinations at intervals established by rules [and regulations duly] promulgated by [him] the superintendent.

B. In lieu of all or part of [any such] an examination, or in addition [thereto] to an examination, the superintendent may order an independent audit by certified public accountants or actuarial evaluation by actuaries approved by [him] the superintendent, or may accept the report of an audit already made by certified public accountants or actuarial evaluation by actuaries approved by [him] the superintendent, or the report of an examination made by the insurance supervisory official of another state.

C. Conduct of the examination, examiners and other personnel used by the superintendent in making the examinations, payment of costs of the examination by the examinee, examination report and review and adoption [thereof] and the examination in general shall be subject to the applicable provisions of Chapter 59A, Article 4 [(examinations, hearings and appeals) of the Insurance Code] NMSA 1978."

Section 33. Section 59A-17-33 NMSA 1978 (being Laws 1984, Chapter 127, Section 328) is amended to read:

"59A-17-33. ENFORCEMENT--CEASE AND DESIST, INJUNCTIONS--PENALTIES.--

A. The superintendent shall enforce compliance with the provisions of [this article] the Insurance Rate Regulation Law. Whenever the superintendent believes that there is a violation of [this article] the Insurance Rate Regulation Law and that such violation is continuing, [he] the superintendent shall serve upon the [rate service] advisory, joint underwriting, joint reinsurance [organization] pool, residual market mechanism or insurer or other person [so] violating, as the case may be, notice of a hearing before the superintendent to be held not less than twenty [(20)] days after service of the notice, and requiring [such] the organization or person to show cause why the superintendent should not order the organization or person to cease and desist from [such] the violation.

B. The superintendent, through the attorney general, may maintain an action to enjoin [any] a continuing violation of [this article] the Insurance Rate Regulation Law.

C. After hearing, the superintendent may suspend the license of [any rate service] an advisory organization or insurer [which] that fails to comply with the superintendent's order within the time limited by the order or [any] an extension of time [which] that the superintendent may grant. The suspension shall not become effective until the time prescribed for an appeal [therefrom] has expired, or if an appeal has been taken, until [such] the order has been affirmed; otherwise, the superintendent may determine when the suspension shall become effective, and the suspension shall remain in effect for the period [so] fixed unless the superintendent modifies or rescinds the suspension, or until the order on which suspension is based is modified, rescinded or reversed.

D. If [he] the superintendent finds that [any] a person has violated any provision of [this article] the Insurance Rate Regulation Law, the superintendent may impose a penalty of not more than [fifty dollars ($50)] ten thousand dollars ($10,000) for each [such] violation; but if [he] the superintendent finds the violation to be [wilful] willful, the superintendent may impose a penalty of not more than [five hundred ($500)] twenty-five thousand dollars ($25,000) for each violation. Such penalties may be in addition to any other penalty provided by law, and, if not paid voluntarily by the violator, may be collected through civil action in the district court of Santa Fe county in the name of the state of New Mexico on the relation of the insurance board.

E. For the purposes of this section, an insurer using a rate for which the insurer has failed to file the rate, supplementary rate information or supporting information, if Section 59A-17-9 NMSA 1978 requires the materials to be filed, shall have committed a separate violation for each day the failure continues."

Section 34. Section 59A-17-35 NMSA 1978 (being Laws 1984, Chapter 127, Section 330, as amended by Laws 1999, Chapter 265, Section 67 and also by Laws 1999, Chapter 289, Section 26) is amended to read:

"59A-17-35. APPEALS FROM COMMISSION.--Any order made by the [public regulation] commission pursuant to Section 59A-17-34 NMSA 1978 shall be subject to review by appeal to the district court pursuant to the provisions of Section 39-3-1.1 NMSA 1978. Upon institution of the appeal and for good cause shown upon motion and hearing, the court may, in the following cases, stay operation of the commission's order:

A. where, pursuant to [Chapter 59A, Article 17 NMSA 1978, a rate service] the Insurance Rate Regulation Law, an advisory organization has been refused a license or an insurer has been refused a certificate of authority or had its license or certificate of authority suspended, it may, with leave of court, be allowed to continue to engage in business, subject to the provisions of [that article] the Insurance Rate Regulation Law, pending final disposition of its application for review; or

B. where any order of the commission shall provide for, or sustain the superintendent's order for, a change in [any] a rate or rating system that results in an increase or decrease in rates, [any] an insurer affected may, with leave of court pending final disposition of the proceedings in the district court, continue to charge rates that existed prior to [such] the order, on condition that the difference in the rates be deposited in a special escrow or trust account with a reputable financial institution by the insurer affected, to be held in trust by [such] the insurer and to be retained by the insurer or paid to the holders of policies issued after the order of the court, as the court may determine."

Section 35. Section 59A-17-36 NMSA 1978 (being Laws 1989, Chapter 145, Section 2) is amended to read:

"59A-17-36. RATE FILING--FAILURE TO SUBMIT DATA--PENALTY.--

A. [Any] An insurer or [rate service] advisory organization [who] that makes a rate filing under the Insurance Rate Regulation Law and fails, without reasonable cause, to provide the data requested by the superintendent within thirty working days from the date of the request shall be subject to an administrative penalty as provided in Section 59A-1-18 NMSA 1978.

B. The superintendent may, for good cause shown, grant an extension of the thirty-day time period provided for in Subsection A of this section.

C. The insurer or [rate service] advisory organization may, within ten days after entry of the order, request a hearing before the superintendent as provided in Section 59A-17-34 NMSA 1978."

Section 36. Section 59A-18-12 NMSA 1978 (being Laws 1984, Chapter 127, Section 342, as amended) is amended to read:

"59A-18-12. FILING OF FORMS AND CLASSIFICATIONS--REVIEW OF EFFECT UPON INSURED.--

A. An insurance policy or annuity contract shall not be delivered or issued for delivery in this state, nor shall [any] an assumption certificate, endorsement, rider or application that becomes a part of [any such] a policy be used, until a copy of the form and the classification of risks pertaining [thereto] to the policy have been filed with the superintendent. [Any such] A filing shall be made at least sixty days before its proposed effective date. A filing made pursuant to this section shall not become effective nor shall it be used until approved by the superintendent pursuant to Section 59A-18-14 NMSA 1978, at which time it may be used. A filing for any kind of insurance other than life insurance or health insurance, as defined in the Insurance Rate Regulation Law, shall be deemed to meet the requirements of Chapter 59A, Article 18 NMSA 1978 to become effective unless disapproved pursuant to Section 59A-18-14 NMSA 1978 by the superintendent before the expiration of the waiting period or an extension of the waiting period. Provided, that:

(1) this subsection shall not apply as to policies, contracts, endorsements or riders of unique and special character not for general use or offering but designed and used solely as to a particular insured or risk; [and]

(2) if the superintendent has exempted a person or a class of persons or a market segment from a part or all of the provisions of the Insurance Rate Regulation Law pursuant to Subsection C of Section 59A-17-2 NMSA 1978, the superintendent also may exempt by rule that person, class of persons or market segment from a part or all of the provisions of this subsection;

(3) an insurer subject to the Insurance Rate Regulation Law may authorize an advisory organization to file policy forms, endorsements and other contract language and related attachment rules on its behalf. Reference filings shall be made prior to their use or by other methods the superintendent may allow by rule; and

(4) the superintendent may, by rule, exempt various lines and kinds of commercial insurance, as defined in the Insurance Rate Regulation Law, from some or all of the requirements of this subsection.

B. A workers' compensation insurance policy covering a risk arising from the employment of a worker performing work for an employer in New Mexico when that employer is not domiciled in New Mexico shall not be issued or become effective, nor shall any endorsement or rider covering such a risk be issued or become effective, until a copy of the form and the classification of risks pertaining thereto have been filed with the superintendent.

C. [Any] An insured may in writing request the insurer to review the manner in which its filing has been applied as to insurance afforded [him] the insured. If the insurer fails to make a review and grant appropriate relief within thirty days after the request is received, the insured may file a written complaint and request for a hearing with the superintendent, stating grounds relied upon. If the complaint charges a violation of the Insurance Code and the superintendent finds that the complaint was made in good faith and that the insured would be aggrieved if the violation is proved, [he] the superintendent shall hold a hearing, with notice to the insured and insurer stating the grounds of complaint. If upon the hearing the superintendent finds the complaint justified, [he] the superintendent shall order the insurer to correct the matter complained of within a reasonable time specified but not less than twenty days after a copy of [his] the order was mailed to or served upon the insurer."

Section 37. Section 59A-18-17 NMSA 1978 (being Laws 1984, Chapter 127, Section 346, as amended) is amended to read:

"59A-18-17. STANDARD PROVISIONS, IN GENERAL.--

A. Insurance contracts shall contain such standard or uniform provisions as are required by applicable provisions of the Insurance Code pertaining to contracts of particular kinds of insurance.

B. No policy shall contain [any] a provision inconsistent with or contradictory to [any] a standard or uniform provision used or required to be used, but the superintendent may approve [any] a substitute provision [which] that is, in [his] the superintendent's opinion, not less favorable in any particular to the insured, owner or beneficiary than the provision otherwise required or [which] that is designed to comply with Chapter 59A, Article 19 NMSA 1978.

C. Insurance coverage provided in residential property insurance policies shall provide coverage for the cost to repair or replace without deduction for depreciation. If the insured elects to effectuate repairs to the property [himself] by the insured's own self, a reasonable overhead expense shall be allowed.

D. In lieu of the provisions required by the Insurance Code for contracts for particular kinds of insurance, substantially similar provisions required by the laws of the domicile of a foreign or alien insurer may be used when approved by the superintendent.

E. A policy issued by a domestic insurer for delivery in another jurisdiction may contain any provision required or permitted under the laws of such jurisdiction.

F. To protect consumers as well as enhance the value of consumer information systems, the superintendent may specify minimum coverage provisions that homeowners insurance policies, private passenger non-fleet automobile insurance policies or other lines or kinds of insurance policies that are priced in a consumer information system shall contain, provided that such minimum coverage provisions are contained in the majority of policies in force in New Mexico for that line or kind of insurance. An insurer that does not offer a policy that contains the minimum coverage provisions specified by the superintendent for a line or kind of insurance shall not be included in a consumer information system for that line or kind of insurance. The superintendent shall not compel an insurer to offer a policy containing minimum coverage provisions specified by the superintendent."

Section 38. REPEAL.--Sections 59A-17-10, 59A-17-14, 59A-17-22, 59A-17-22.1 and 59A-17-24 NMSA 1978 (being Laws 1984, Chapter 127, Sections 306, 310 and 318, Laws 1986, Chapter 22, Section 100 and Laws 1984, Chapter 127, Section 319a, as amended) are repealed.

Section 39. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2007.

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