On October 7, 2016 the New Mexico Superintendent of Insurance, John Franchini, issued Bulletin 2016-024 summarizing changes to New Mexico law effective July 1, 2017.
The new law will simplify certain statutes, reducing the number of lines of business in New Mexico to 5. This will result in the issuance of new alphanumeric codes for each licensed Insurer. As part of these changes, licensed Insurers will be subject to new deposit requirements, renewal fees, and license fees. All licensed insurers and insurers seeking to be licensed must satisfy the new deposit requirements by the July 1, 2017 effective date. New Mexico will begin issuing new Certificates of Authority to reflect these changes. The new Certificates of Authority will be issued upon receipt of deposit confirmation and return of a licensed Insurer’s current Certificate of Authority (or Affidavit of Loss, if the Certificate of Authority cannot be located). The New Mexico Company Licensing Bureau is requesting that all insurers complete a new Contact Processing Form and a New NAIC Form 12 (Uniform Consent to Service of Process) to help implement these changes.
For any questions regarding these changes in New Mexico, or for assistance in compliance matters pertaining to the new laws, please contact Westmont Associates, Inc.
Westmont Associates, Inc. tracks developments affecting the insurance industry, in addition to our other services. If you have any questions, please contact us.