0001| SENATE BILL 503
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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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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-37-2 NMSA 1978 (being Laws 1984,
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0016| Chapter 127, Section 617, as amended) is amended to read:
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0017| "59A-37-2. DEFINITIONS.--As used in Chapter 59A, Article
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0018| 37 NMSA 1978:
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0019| A. "acquire" means to come into possession or
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0020| control of, and "acquisition" means any agreement, arrangement
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0021| or activity the consummation of which results in a person
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0022| acquiring directly or indirectly the control of another person
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0023| and includes [but is not limited to] the acquisition of
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0024| voting securities or assets, bulk reinsurance and mergers;
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0025| B. "affiliate" means a person that directly or
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0001| indirectly is controlled by, is under common control with or
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0002| controls another person;
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0003| C. "control" means the possession of the power to
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0004| direct or cause the direction of the management and policies of
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0005| a person, whether directly or indirectly, through the ownership
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0006| of voting securities, through licensing or franchise
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0007| agreements, by contract other than a commercial contract for
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0008| goods or nonmanagement services, or otherwise, unless the power
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0009| is the result of an official position with or corporate office
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0010| held by an individual. Control shall be presumed to exist if
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0011| any person, directly or indirectly, owns, controls, holds with
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0012| the power to vote or holds ten or more percent of the voting
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0013| securities of any other person. This presumption may be
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0014| rebutted by a showing, in the manner provided by Section
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0015| 59A-37-19 NMSA 1978, that control does not in fact exist. The
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0016| superintendent may determine, after furnishing all persons in
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0017| interest notice and an opportunity to be heard, that control
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0018| exists in fact, notwithstanding the absence of a presumption to
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0019| that effect, provided that the determination is based on
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0020| specific findings of fact in its support;
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0021| D. "insurance holding company" is a person
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0022| [which] that controls an insurer; "insurance holding
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0023| company system" means a combination of two or more affiliated
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0024| persons, at least one of which is an insurer;
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0025| E. "insurer" means a person [which] that
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0001| undertakes, under contract, to indemnify a person against loss,
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0002| damage or liability arising from an unknown or contingent
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0003| future event. The term does not include agencies, authorities
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0004| or instrumentalities of the United States, its possessions or
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0005| territories, the commonwealth of Puerto Rico, the District of
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0006| Columbia, a state or any of its political subdivisions, a
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0007| fraternal benefit society or a nonprofit medical and hospital
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0008| service association;
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0009| F. "person" means an individual, corporation,
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0010| association, partnership, joint stock company, trust,
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0011| unincorporated organization or any similar entity or
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0012| combination of entities;
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0013| G. "securityholder" means the owner of any security
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0014| of a person, including common stock, preferred stock, debt
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0015| obligations and any other security convertible into or
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0016| evidencing the right to acquire any of the foregoing;
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0017| H. "subsidiary" means an affiliate of a person
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0018| controlled by the person either directly or indirectly through
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0019| one or more intermediaries;
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0020| I. "voting security" means a certificate evidencing
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0021| the ownership or indebtedness of a person, to which is attached
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0022| a right to vote on the management or policymaking of that
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0023| person and includes any security convertible into or evidencing
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0024| a right to acquire such a voting security; and
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0025| J. "health maintenance organization" means any
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0001| person [which] that undertakes to provide or arrange for
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0002| the delivery of basic health care services to enrollees on a
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0003| prepaid basis, except for enrollee responsibility for co-
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0004| payments or deductibles."
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0005| Section 2. Section 59A-46-30 NMSA 1978 (being Laws 1993,
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0006| Chapter 266, Section 29) is amended to read:
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0007| "59A-46-30. STATUTORY CONSTRUCTION AND RELATIONSHIP TO
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0008| OTHER LAWS.--
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0009| A. The provisions of the Insurance Code other than
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0010| Chapter 59A, Article 46 NMSA 1978 shall not apply to health
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0011| maintenance organizations except as expressly provided in the
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0012| Insurance Code and that article. To the extent reasonable and
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0013| not inconsistent with the provisions of that article, the
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0014| following articles and provisions of the Insurance Code shall
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0015| also apply to health maintenance organizations and their
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0016| promoters, sponsors, directors, officers, employees, agents,
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0017| solicitors and other representatives [and]. For the purposes
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0018| of such applicability, a health maintenance organization may
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0019| therein be referred to as an "insurer":
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0020| (1) Chapter 59A, Article 1 NMSA 1978;
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0021| (2) Chapter 59A, Article 2 NMSA 1978;
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0022| (3) Chapter 59A, Article 3 NMSA 1978;
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0023| (4) Chapter 59A, Article 4 NMSA 1978;
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0024| (5) Subsection C of Section 59A-5-22 NMSA
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0025| 1978;
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0001| (6) Sections 59A-6-2 through 59A-6-4 and
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0002| 59A-6-6 NMSA 1978;
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0003| (7) Chapter 59A, Article 8 NMSA 1978;
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0004| (8) Chapter 59A, Article 10 NMSA 1978;
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0005| (9) Section 59A-12-22 NMSA 1978;
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0006| (10) Chapter 59A, Article 16 NMSA 1978;
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0007| (11) Chapter 59A, Article 18 NMSA 1978;
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0008| (12) Chapter 59A, Article 19 NMSA 1978;
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0009| (13) Chapter 59A, Article 23B NMSA 1978;
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0010| (14) Sections 59A-34-9 through 59A-34-13,
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0011| 59A-34-17, 59A-34-23, 59A-34-36 and 59A-34-37 NMSA 1978; and
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0012| (15) Chapter 59A, Article 37 NMSA 1978.
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0013| B. Solicitation of enrollees by a health
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0014| maintenance organization granted a certificate of authority, or
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0015| its representatives, shall not be construed as violating any
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0016| provision of law relating to solicitation or advertising by
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0017| health professionals, but health professionals shall be
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0018| individually subject to the laws, rules, regulations and
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0019| ethical provisions governing their individual professions.
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0020| C. Any health maintenance organization authorized
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0021| under the provisions of the Health Maintenance Organization Law
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0022| shall not be deemed to be practicing medicine and shall be
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0023| exempt from the provisions of laws relating to the practice of
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0024| medicine."
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0025| Section 3. Section 59A-47-33 NMSA 1978 (being Laws 1984,
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0001| Chapter 127, Section 879.32, as amended by Laws 1994, Chapter
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0002| 64, Section 10 and also by Laws 1994, Chapter 75, Section 34)
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0003| is amended to read:
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0004| "59A-47-33. OTHER PROVISIONS APPLICABLE.--The provisions
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0005| of the Insurance Code other than Chapter 59A, Article 47 NMSA
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0006| 1978 shall not apply to health care plans except as expressly
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0007| provided in the Insurance Code and that article. To the extent
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0008| reasonable and not inconsistent with the provisions of that
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0009| article, the following articles and provisions of the Insurance
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0010| Code shall also apply to health care plans, their promoters,
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0011| sponsors, directors, officers, employees, agents, solicitors
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0012| and other representatives; and, for the purposes of such
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0013| applicability, a health care plan may therein be referred to as
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0014| an "insurer":
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0015| A. Chapter 59A, Article 1 NMSA 1978;
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0016| B. Chapter 59A, Article 2 NMSA 1978;
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0017| C. Chapter 59A, Article 4 NMSA 1978;
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0018| D. Subsection C of Section 59A-5-22 NMSA 1978;
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0019| E. Sections 59A-6-2 through 59A-6-4 and
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0020| 59A-6-6 NMSA 1978;
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0021| F. Section 59A-7-11 NMSA 1978;
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0022| G. Chapter 59A, Article 8 NMSA 1978;
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0023| H. Chapter 59A, Article 10 NMSA 1978;
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0024| I. Section 59A-12-22 NMSA 1978;
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0025| J. Chapter 59A, Article 16 NMSA 1978;
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0001| K. Chapter 59A, Article 18 NMSA 1978;
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0002| L. Chapter 59A, Article 19 NMSA 1978;
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0003| M. Subsections B through E of Section
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0004| 59A-22-5 NMSA 1978;
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0005| N. Section 59A-22-34.1 NMSA 1978;
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0006| O. Section 59A-22-39 NMSA 1978;
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0007| P. Section 59A-22-40 NMSA 1978;
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0008| Q. Sections 59A-34-9 through 59A-34-13, [NMSA
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1978] 59A-34-17 and [Section] 59A-34-23 NMSA 1978;
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0010| R. Chapter 59A, Article 37 NMSA 1978, except
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0011| Section 59A-37-7 NMSA 1978; and
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0012| S. Section 59A-46-15 NMSA 1978."
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0013|
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0014|
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0015| FORTY-THIRD LEGISLATURE
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0016| FIRST SESSION, 1997
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0017|
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0018|
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0019| February 13, 1997
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0020|
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0021| Mr. President:
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0022|
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0023| Your CORPORATIONS & TRANSPORTATION COMMITTEE, to
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0024| whom has been referred
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0025|
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0001| SENATE BILL 503
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0002|
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0003| has had it under consideration and reports same with
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0004| recommendation that it DO PASS.
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0005|
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0006| Respectfully submitted,
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0007|
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0008|
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0009|
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0010|
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0011| __________________________________
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0012| Roman M. Maes, III, Chairman
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0013|
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0014|
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0015|
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0016| Adopted_______________________ Not
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0017| Adopted_______________________
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0018| (Chief Clerk) (Chief Clerk)
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0019|
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0020|
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0021|
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0022| Date ________________________
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0023|
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0024|
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0025| The roll call vote was 8 For 0 Against
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0001| Yes: 8
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0002| No: None
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0003| Excused: Griego, Maes
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0004| Absent: None
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0005|
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0006|
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0007| S0503CT1
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0008|
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0009|
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0010| FORTY-THIRD LEGISLATURE
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0011| FIRST SESSION, 1997
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0012|
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0013|
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0014| February 13, 1997
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0015|
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0016| Mr. President:
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0017|
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0018| Your CORPORATIONS & TRANSPORTATION COMMITTEE, to
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0019| whom has been referred
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0020|
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0021| SENATE BILL 503
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0022|
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0023| has had it under consideration and reports same with
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0024| recommendation that it DO PASS.
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0025|
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0001| Respectfully submitted,
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0002|
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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| Roman M. Maes, III, Chairman
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0008|
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0009|
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0010|
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0011| Adopted_______________________ Not
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0012| Adopted_______________________
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0013| (Chief Clerk) (Chief Clerk)
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0014|
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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: None
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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| S0503CT1
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0003| State of New Mexico
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0004| House of Representatives
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0005|
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0006| FORTY-THIRD LEGISLATURE
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0007| FIRST SESSION, 1997
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0008|
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0009|
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0010| March 18, 1997
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0011|
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0012|
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0013| Mr. Speaker:
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0014|
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0015| Your BUSINESS AND INDUSTRY COMMITTEE, to whom has
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0016| been referred
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0017|
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0018| SENATE BILL 503
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0019|
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0020| has had it under consideration and reports same with
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0021| recommendation that it DO PASS.
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0022|
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0023| Respectfully submitted,
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0024|
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0025|
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0001|
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0002|
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0003| Fred Luna, Chairman
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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| Date
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0011|
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0012| The roll call vote was 9 For 0 Against
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0013| Yes: 9
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0014| Excused: Alwin, Hobbs, Varela
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0015| Absent: Getty
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0016|
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0017|
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0018| G:\BILLTEXT\BILLW_97\S0503
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