Section 59A-55-1 – Short title.
Sections 1 through 26 [59A-55-1 to 59A-55-26 NMSA 1978] of this act may be cited as the “Risk Retention and Purchasing Group Act”. History: Laws 1988, ch. 125, § 1.
Section 59A-55-10 – Notice to purchasers.
The superintendent may require risk retention groups to provide notice to purchasers concerning the limitation of regulatory oversight of risk retention groups and the lack of insolvency guaranty fund protection. History: Laws 1988, ch. 125, § 10.
Section 59A-55-11 – Prohibited acts regarding solicitation or sale.
The following acts by a risk retention group are prohibited: A. the solicitation or sale of insurance by a risk retention group to any person who is not eligible for membership in such group; and B. the solicitation or sale of insurance by, or operation of, a risk retention group that is in hazardous financial […]
Section 59A-55-12 – Prohibition on ownership by an insurance company.
No risk retention group shall be allowed to do business in this state if an insurance company is directly or indirectly a member or owner of such risk retention group, other than in the case of a risk retention group all of whose members are insurance companies. History: Laws 1988, ch. 125, § 12.
Section 59A-55-13 – Prohibited coverage.
The terms of any insurance policy issued by any risk retention group shall not provide or be construed to provide coverage prohibited generally by statute of this state or declared unlawful by the highest court of this state whose law applies to such policy. History: Laws 1988, ch. 125, § 13.
Section 59A-55-14 – Delinquency proceedings.
A risk retention group not having a New Mexico certificate of authority that is doing business in New Mexico shall comply with a lawful order issued in a voluntary dissolution proceeding or in a delinquency proceeding commenced by a state superintendent if there has been a finding of financial impairment after an examination under Section […]
Section 59A-55-15 – Penalties.
A risk retention group that violates any provision of the Risk Retention and Purchasing Group Act shall be subject to fines and penalties, including revocation of its right to do business in New Mexico, applicable to licensed insurers generally. History: Laws 1988, ch. 125, § 15.
Section 59A-55-16 – Operation prior to enactment of act.
In addition to complying with the requirements of the Risk Retention and Purchasing Group Act, any risk retention group operating in New Mexico prior to enactment of that act shall, within thirty days after the effective date of that act, comply with the provisions of Section 4 or 5 [59A-55-4 or 59A-55-5 NMSA 1978] of […]
Section 59A-55-17 – Compulsory associations.
A. No risk retention group shall be required or permitted to join or contribute financially to any insurance insolvency guaranty fund or similar mechanism in New Mexico nor shall any risk retention group or its insureds or claimants against its insureds receive any benefit from any such fund for claims arising under the insurance policies […]
Section 59A-55-18 – Purchasing groups’ exemption from certain laws.
A purchasing group and its insurer or insurers shall be subject to all applicable laws of this state, except that a purchasing group and its insurer or insurers shall be exempt in regard to liability insurance for the purchasing group from any law that would: A. prohibit the establishment of a purchasing group; B. make […]
Section 59A-55-19 – Notice and registration requirements of purchasing groups.
A. A purchasing group which intends to do business in New Mexico shall, prior to doing business, furnish notice to the superintendent. The notice shall contain all information requested by the superintendent. B. The purchasing group shall register with and designate the superintendent as its agent solely for the purpose of receiving service of legal […]
Section 59A-55-2 – Purpose.
The purpose of the Risk Retention and Purchasing Group Act is to regulate the formation and operation of risk retention groups and purchasing groups in New Mexico formed pursuant to the provisions of the federal Liability Risk Retention Act of 1986 to the extent permitted by that act. History: Laws 1988, ch. 125, § 2. […]
Section 59A-55-20 – Restrictions on insurance purchased by purchasing groups.
A. A purchasing group may not purchase insurance from a risk retention group that is not chartered in a state or from an insurer not admitted in the state in which the purchasing group is located, unless the purchase is effected through a licensed agent or broker acting pursuant to the surplus lines laws and […]
Section 59A-55-21 – Repealed.
History: Laws 1988, ch. 125, § 21; repealed by Laws 2018, ch. 57, § 31. ANNOTATIONS Repeals. — Laws 2018, ch. 57, § 31 repealed 59A-55-21 NMSA 1978, as enacted by Laws 1988, ch. 125, § 21, relating to purchasing group taxation, effective January 1, 2020. For provisions of former section, see the 2019 NMSA […]
Section 59A-55-22 – Administrative and procedural authority regarding risk retention groups and purchasing groups.
The superintendent is authorized to make use of any of the powers established under the New Mexico Insurance Code to enforce the laws of New Mexico not specifically preempted by the Risk Retention Act of 1986 including the superintendent’s administrative authority to investigate, issue subpoenas, conduct depositions and hearings, issue orders, impose penalties and seek […]
Section 59A-55-23 – Penalties.
A risk retention group that violates any provision of the Risk Retention and Purchasing Group Act shall be subject to fines and penalties applicable to licensed insurers generally, including revocation of its certificate of authority or the right to do business in New Mexico, or both. History: Laws 1988, ch. 125, § 23.
Section 59A-55-24 – Duty of insurance producers to obtain license.
A. No person, firm, association or corporation shall act or aid in any manner in soliciting, negotiating or procuring liability insurance in New Mexico from a risk retention group unless such person, firm, association or corporation is licensed as an insurance producer pursuant to the provisions of the New Mexico Insurance Code. B. No person, […]
Section 59A-55-25 – Binding effect of orders issued in United States district court.
An order issued by any district court of the United States enjoining a risk retention group from soliciting or selling insurance or operating in any state upon a finding that such a group is in hazardous financial or financially impaired condition shall be enforceable in the state courts of New Mexico. History: Laws 1988, ch. […]
Section 59A-55-26 – Rules and regulations.
The superintendent may establish and from time to time amend such regulations relating to risk retention groups and purchasing groups as may be necessary or desirable to carry out the provisions of the Risk Retention and Purchasing Group Act. History: Laws 1988, ch. 125, § 26. ANNOTATIONS Severability. — Laws 1988, ch. 125, § 27 […]
Section 59A-55-3 – Definitions.
As used in the Risk Retention and Purchasing Group Act: A. “completed operations liability” means liability arising out of the installation, maintenance or repair of any product at a site which is not owned or controlled by: (1) any person who performs that work; or (2) any person who hires an independent contractor to perform […]