CITATION & EFFECTIVE DATE
NMSA 1978, §§ 59A-43-1 et seq. (1984).
MODEL OR SIMILAR ACT
COVERED LINES OF BUSINESS
All kinds of direct insurance except life, annuity, health and disability; mortgage guaranty, financial guaranty, other insurance protecting investment risk; fidelity or surety bonds or other bonding obligations; credit insurance; insurance of warranties or service contracts; title insurance; ocean marine; any transactions which involve the transfer of investment or credit risk unaccompanied by transfer of insurance risk; any insurance provided by or guaranteed by a governmental entity.
Is covered up to $300,000.
A “covered claim” is an unpaid claim of an insured or of a liability claimant in excess of $25.00, that arises out of and within the coverage of a policy issued by an insurer authorized to conduct business in New Mexico and which has been declared insolvent. § 59A-43-4C.
MAXIMUM ANNUAL %
2% of total premiums. $100 per insurer per year administrative expense assessment also permitted.
Year preceding year of assessment
LIMITS ON CLAIMS
DEDUCTIBLE OR MINIMUM PER CLAIM
MAXIMUM PER CLAIM
$100,000, No limit for Workers’ Compensation
An amount that is directly or indirectly due a reinsurer, insurer, insurance pool, or underwriting association, as recovered by subrogation, indemnity or contribution, or otherwise.
Covered claim does not include self-insured retention or deductible, or an adjustment or attorney’s fees and expenses, court costs or interest and bond premiums incurred by the insolvent insurer prior to the appointment of a liquidator unless the expenses would also be a valid claim against the insured.
CLAIMS COVERED BY OTHER INSURANCE AND OTHER GUARANTY ASSOCIATIONS
Any person having a claim against an insurer, including a claim for damages caused by an uninsured motorist, under any provision in an insurance policy other than a policy of an insolvent insurer, which is also a covered claim, shall be required to exhaust first his right under any such policy. Any amount payable on a covered claim must be reduced by the amount of the applicable limit under the claimant’s policy, regardless of whether the claimant recovered the full amount payable under that policy or exhausts only a lesser amount. Any person having a claim which may be covered by more than one guaranty association shall seek recovery first from the association of the place of residence of the insured, except that if it is a first party claim for damage to property with a permanent location, he shall seek recovery first from the association of the location of the property, and if it is a workers’ compensation claim then he shall first seek recovery first from the association of the residence of the claimant. Any recovery made from this association shall be reduced by the amount of the recovery from any other association.
Insolvent insurer defined as licensed insurer against which a final order of liquidation with a finding of insolvency has been entered by a court of competent jurisdiction in the insurer’s state of domicile or in Nevada, or which is involved in a judicial proceeding related to the determination of solvency, rehabilitation or liquidation, if the court involved in those proceedings has issued an order prohibiting the insurer from paying claims for more than 30 days.
Association is a nonprofit, unincorporated legal entity.
Notice of claims to the receiver of the insolvent insurer shall be deemed to be notice to the association.
Expenses of the association in handling claims shall be accorded the same priority as the liquidator’s expenses.
No cause of action shall arise against any member insurer, the association, its agents or employees, the board of directors, or the commissioner or his representatives for any action taken under this chapter.
All proceedings against an insolvent insurer or any party to be defended by an insolvent insurer shall be stayed for up to three months from the date insolvency is determined or such additional time as may be determined by a court of competent jurisdiction.