HOUSE JUDICIARY COMMITTEE SUBSTITUTE FOR
HOUSE BILL 235
55th legislature - STATE OF NEW MEXICO - first session, 2021
AN ACT
RELATING TO INSURANCE; AMENDING, REPEALING AND ENACTING SECTIONS OF THE NEW MEXICO INSURANCE CODE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new Section 59A-1-8.2 NMSA 1978 is enacted to read:
"59A-1-8.2. [NEW MATERIAL] DELIVER OR DELIVERY--DEFINITION.--"Deliver" or "delivery" means send to by:
A. email and retain an email delivery confirmation;
B. electronic transmission through a dedicated two-way communication portal and retain delivery confirmation;
C. fax and retain a fax delivery confirmation;
D. regular mail; or
E. personal delivery."
SECTION 2. Section 59A-2-8 NMSA 1978 (being Laws 1984, Chapter 127, Section 26, as amended) is amended to read:
"59A-2-8. GENERAL POWERS AND DUTIES OF SUPERINTENDENT.--
A. The superintendent shall:
[A.] (1) organize and manage the office of superintendent of insurance and direct and supervise all its activities;
[B.] (2) execute the duties imposed upon the superintendent by the Insurance Code;
[C.] (3) enforce those provisions of the Insurance Code that are administered by the superintendent;
[D.] (4) have the powers and authority expressly conferred by or reasonably implied from the provisions of the Insurance Code;
[E.] (5) conduct such examinations and investigations of insurance matters, in addition to those expressly authorized, as the superintendent may deem proper upon reasonable and probable cause to determine whether a person has violated a provision of the Insurance Code or to secure information useful in the lawful enforcement or administration of the provision;
[F.] (6) have the power to sue or be sued;
[G.] (7) have the power to make, enter into and enforce all contracts, agreements and other instruments necessary, convenient or desirable in the exercise of the superintendent's powers and functions and for the purposes of the Insurance Code;
[H.] (8) prepare an annual budget for the office of superintendent of insurance;
[I.] (9) have the right to require performance bonds of employees as the superintendent deems necessary pursuant to the Surety Bond Act. The office of superintendent of insurance shall pay the cost of required bonds;
[J.] (10) comply with the provisions of the Administrative Procedures Act; [and]
(11) upon an order based upon the invocation of a state of emergency under the All Hazard Emergency Management Act or the Public Health Emergency Response Act by the governor, take those actions necessary to ensure access to insurance and the stability of insurance markets during the emergency. Such actions may include issuing emergency rules or orders to address any or all of the following matters related to insurance policies issued in New Mexico:
(a) grace periods for payment of insurance premiums and performance of other duties by insureds;
(b) refund of premiums;
(c) waiver of cost sharing or deductibles;
(d) temporary postponement of cancellations and nonrenewals;
(e) reporting requirements for claims; and
(f) suspension of compliance with a statute, rule or contract, if strict compliance would prevent, hinder or delay necessary action in response to the emergency; and
[K.] (12) have such additional powers and duties as may be provided by other laws of this state.
B. If a state of emergency under the All Hazard Emergency Management Act or the Public Health Emergency Response Act is invoked by the governor, and the superintendent issues emergency rules or orders to address matters related to insurance policies issued in New Mexico, each emergency rule or order:
(1) shall specify, by line of insurance:
(a) the geographic area in which the order applies; and
(b) the dates on which the order becomes effective and terminates; and
(2) shall not:
(a) apply retroactively;
(b) apply outside the geographic area designated in the governor's order; or
(c) extend beyond the end date of the governor's order."
SECTION 3. Section 59A-4-15 NMSA 1978 (being Laws 1984, Chapter 127, Section 59, as amended by Laws 2011, Chapter 127, Section 3 and by Laws 2011, Chapter 144, Section 1) is amended to read:
"59A-4-15. HEARINGS--IN GENERAL.--
A. The superintendent may hold a hearing, without request by others, for any purpose within the scope of the Insurance Code.
B. The superintendent shall hold a hearing:
(1) if required by any other provision of the Insurance Code; or
(2) upon written request for a hearing by a person aggrieved by any act, threatened act or failure of the superintendent to act or by any report, rule or order of the superintendent, other than an order for the holding of a hearing or order on hearing or pursuant to such an order on a hearing of which the person had notice.
C. The request for a hearing shall briefly state the respects in which the applicant is so aggrieved, the relief to be sought and the grounds to be relied upon as basis for relief. The request shall be received by the superintendent no later than thirty days from the date of the act, threatened act or failure of the superintendent to act or the date of the superintendent's report, rule or order.
D. If the superintendent finds that the request is made in good faith, that the applicant would be so aggrieved if the stated grounds are established and that such grounds otherwise justify the hearing, the superintendent shall commence the hearing within thirty days after filing of the request, unless postponed by mutual consent. No postponement shall be later than ninety days after the filing of the request.
E. Pending the hearing and decision, the superintendent may suspend or postpone the effective date of the action as to which the hearing is requested. If upon request the superintendent refuses to grant the suspension or postponement, the person requesting the hearing may apply no later than twenty days from the superintendent's refusal to the district court of Santa Fe county for a stay of the superintendent's action or proposed action pending the hearing and the superintendent's order.
F. Except as otherwise expressly provided, this section does not apply to hearings relative to matters arising under Chapter 59A, Article 17 NMSA 1978.
G. The superintendent may appoint a hearing officer to preside over hearings [on reconsideration of rate filings]. The hearing officer shall provide the superintendent with a recommended decision on the matter assigned to the hearing officer, including findings of fact and conclusions of law."
SECTION 4. Section 59A-5-23 NMSA 1978 (being Laws 1984, Chapter 127, Section 90) is amended to read:
"59A-5-23. CONTINUANCE, EXPIRATION, REINSTATEMENT OF CERTIFICATE OF AUTHORITY.--
A. A certificate of authority shall continue in force as long as the insurer is entitled thereto under the Insurance Code, and until suspended or revoked by the superintendent or terminated at the insurer's request, subject, however, to continuance of the certificate by the insurer each year by:
(1) payment on or before March 1 of the continuation fee referred to in Section [101 (fee schedule) of the Insurance Code] 59A-6-1 NMSA 1978;
(2) due filing by the insurer of its annual statement for the next preceding calendar year as required by Section [96 of this article] 59A-5-29 NMSA 1978; and
(3) payment by the insurer when due of premium taxes with respect to the preceding calendar year.
B. If not so continued by the insurer its certificate of authority shall expire at midnight on the date of failure of the insurer to continue it in force, unless earlier revoked as provided in Sections [91 through 93 of this article] 59A-5-24 through 59A-5-26 NMSA 1978.
C. Upon the insurer's request made within three [(3)] months after expiration, the superintendent may reinstate a certificate of authority [which] that the insurer inadvertently permitted to expire, after the insurer has fully cured all its failures [which] that resulted in the expiration, and upon payment by the insurer of the fee for reinstatement specified in Section [101 (fee schedule) of the Insurance Code] 59A-6-1 NMSA 1978. Otherwise the superintendent shall grant the insurer another certificate of authority only after filing an application therefor and meeting all other requirements as for an original certificate of authority in this state.
D. If an insurer allows a certificate of authority issued by the superintendent to expire, the holder of the expired certificate shall remain subject to the provisions of the Insurance Code but is not authorized to transact any insurance business. If the insurer reinstates the expired certificate of authority within three months after expiration, the reinstatement shall relate back to the date of the expiration; provided that this shall not excuse any violation of the Insurance Code that occurred during the intervening period."
SECTION 5. Section 59A-5-32 NMSA 1978 (being Laws 1984, Chapter 127, Section 99) is amended to read:
"59A-5-32. SERVING PROCESS--TIME TO PLEAD.--
A. Service of process against an insurer for whom the superintendent is attorney shall be made by delivering by email to [and leaving with] the superintendent, [his deputy, or a person in apparent charge of the office during the superintendent's absence, two (2) copies] or the superintendent's designee, an electronic copy of the process together with the fee [therefor] specified in Section [101 (fee schedule) of the Insurance Code] 59A-6-1 NMSA 1978, taxable as costs in the action.
B. Upon such service the superintendent shall [forthwith forward by prepaid registered or certified mail return receipt requested one of the copies of] deliver such process showing the date and time of service on the superintendent, to the email or electronic portal address of the person currently designated by the insurer to receive [the copy] such process as provided in Section [98 (appointment of superintendent as process agent) of this article] 59A-5-31 NMSA 1978. Service of process on the insurer shall be complete upon [receipt, or, in the event of refusal to accept, the date of such refusal] such electronic delivery of the process.