MORATORIUM ON FILING OF COMMERCIAL INSURANCE FORMS

ST ATE OF NEW MEXICO OFFICE OF SUPERINTENDENT OF INSURANCE SUPERINTENDENT OF INSURANCE Russell Toal :A'si DEPUTY SUPERINTENDENT Robeit E. Doucette, Jr. BULLETIN 2020-023 December 4, 2020 TO: EVERY INSURER AUTHORIZED TO SELL COMMERCIAL INSURANCE IN NEW MEXICO RE: MORATORIUM ON FILING OF COMMERCIAL INSURANCE FORMS Section 59A-1 8-12(A)(4) NMSA 1978, wich became effective on July 1, 2007, authorizes the superintendent to exempt, by rule, "various lines and kinds of commercial insurance" from the requirement that he approve any insurance forin prior to its use in New Mexico. On October 1, 2007, the superintendent promulgated 13.8.3.9 NMAC, which exempts most commercial insurance products from the prior approval requirement of Section 59A-1 8-12(A). Commercial insurers have experienced significant claims as a result of the current COVID- 19 public health emergency. In response to those claims, and anticipated claims, commercial insurers have filed with the superintendent, and have proposed to file, endorsements that would exclude coverage for various risks presented by COVID-19. In this bulletin, the superintendent expresses no opinion as to whether any such filed or proposed exclusion or endorsement should be approved for sale in New Mexico. But the timing and nature of those filings has caused the superintendent to question whether a rule that exempts ceitain comi'nercial insurance product from substantive compliance review prior to use remains in the public interest during a period of public health emergency. The superintendent's concern is amplified by Section 59A-1 8-14(C) NMSA 1978, which provides that the superintendent may only withdraw prior approval of a form "after a hearing thereon." Because that process involves significant inherent delay, a "file and use" policy form that does not comply with New Mexico Main Office: 1120 Paseo de Peralta, Room 428, Santa Fe, NM 87501 Satellite Office: 6200 Uptown Blvd NE, Suite 100, Albuquerque, NM 87110 Main Phone: (505) 827-4601 i Satellite Phone: (505) 322-2186i Toll Free: (855) 4 - ASK - OSI www.osi.state.nm.us B U L L E T I N 2 0 2 0 - 0 2 3 P a g e 2 law, and deprives New Mexicans of protection from COVID-19 related claims, may become widely used before the superintendent can give the proposed policy foim full consideration. To ensure that COVID-19 related changes to commercial insurance foims are subjected to consistent and equitable review under meaningful substantive criteria, the superintendent will not accept new coinrnercial insurance filings that include COVID-19 related changes pending the conclusion of the 2021 New Mexico legislative session. The superintendent will extend this moratorium as necessary to effectuate and accommodate any fon'n review refonns adopted during that session. Any pending commercial insurance form filings that include COVID-19 related changes will be administratively withdrawn pending the rescission of this bulletin. Any previously approved commercial insura,nce foims may continue to be sold in New Mexico until further order of the supeiintendent. TMs Bulletin is effective immediately. If you have questions regarding this Bulletin, please contact Bryan E. Brock, General Counsel, at Bryan.Brock@state.nm.us. ISSUED tis 4%ay of December, 2020. Ntrssb& TOAL Superintendent of Insurance Main Office: 1120 Paseo de Peralta, Room 428, Santa Fe, NM 87501 Satellite Office: 6200 Uptown Blvd NE, Suite 100, Albuquerque, NA4 87110 Main Phone: (505) 827-4601 i Satellite Phone: (505) 322-2186i Toll Free: (855) 4 - ASK - OSI www.osi.state.nm.us