Types of Insurance Authorized Based on Type of Certificate

NM OFFICE OF SUPERINTENDENT OF INSURANCE 2017 AUG 21 AM 11: 16 SUPERINTENDENT OF INSURANCE John G. Franchini 505-827-4299 [LOGO] NEW MEXICO OFFICE OF SUPERINTENDENT OF INSURANCE DEPUTY SUPERINTENDENT Robert Doucette 505-827-5832 Bulletin 2017-011 August 21, 2017 TO: ALL INSURANCE COMPANIES CURRENTLY HOLDING OR SEEKING TO HOLD A CERTIFICATE OF AUTHORITY TO TRANSACT INSURANCE IN NEW MEXICO RE: TYPES OF INSURANCE AUTHORIZED BASED ON TYPE OF CERTIFICATE THE FOLLOWING BULLETIN is issued pursuant to Sections 59A-2-8, 59A-2-10, 59A-5-10, 59A-5-22 and 59A-7-1 et seq. NMSA 1978, and 13.1.2. et seq. NMAC. This Bulletin is issued in response to inquiries received by the Company Licensing Bureau of the New Mexico Office of Superintendent of Insurance (“OSI”) and interprets the New Mexico Insurance Code for all insurers who have been issued a Certificate of Authority (“COA”) or are seeking a Certificate of Authority to transact one or more lines of insurance in the State of New Mexico. Effective July 1, 2017, Article 7 of the Insurance Code was modified to redefine the Lines of Authority available for persons transacting insurance in this state. As a result of those modifications, “[a] n insurer may apply to engage in insurance activities in one or more of the following lines of insurance: (1) life and annuities; (2) accident and health; Main Phone: 505-827-4601 Main Fax: 505-827-4734 Toll Free: 1-855-4-ASK-OSI Mailing Address: P.O. Box 1689 Santa Fe, NM 87504-1689 Physical Address: 1120 Paseo de Peralta Santa Fe, NM 87501 Website: WWW.OSI.STATE.NM.US (3) property; (4) casualty; and ply to engage in insurance activities in one or more of the following lines of insurance: (1) life and annuities; (2) accident and health; Main Phone: 505-827-4601 Main Fax: 505-827-4734 Toll Free: 1-855-4-ASK-OSI Mailing Address: P.O. Box 1689 Santa Fe, NM 87504-1689 Physical Address: 1120 Paseo de Peralta Santa Fe, NM 87501 Website: WWW.OSI.STATE.NM.US (3) property; (4) casualty; and (5) variable life and annuity." Section 59A-7-1(C) NMSA 1978. In the subsequent sections, Article 7 of 59A NMSA 1978 lists the types of insurance for each of the five lines of insurance. See Section 59A-7-2 NMSA 1978 (Life & Annuity), Section 59A-7-3 NMSA 1978 (Accident & Health Insurance), Section 59A-7-4 NMSA 1978 (Property), Section 59A-7-6 NMSA 1978 (Casualty) and Section 59A-7-7 NMSA 1978 (Variable Life & Annuity). In addition to the list of the specific types of insurance which fall within each line of insurance, several of the sections include additional explanations. For example, with respect to the Casualty line, Subsection A of Section 59A-7-6 NMSA 1978 includes a list of fifty-six (56) types of Casualty Insurance, while Subsection B is a statement that "An insurer authorized to transact casualty insurance may write accident and health insurance as those terms are defined in Section 59A-7-3 NMSA 1978." The Company Licensing Bureau interprets Article 7 to mean that an insurer holding a certificate for a specific line or lines of authority may transact business for any and all of the types of insurance listed in the related section of Article 7. Continuing with the above example, an insurer with a certificate of authority for casualty insurance could therefore transact any or all of the 56 types of casualty insurance as well as all of the types of insurance listed for the accident and health insurance line. ine or lines of authority may transact business for any and all of the types of insurance listed in the related section of Article 7. Continuing with the above example, an insurer with a certificate of authority for casualty insurance could therefore transact any or all of the 56 types of casualty insurance as well as all of the types of insurance listed for the accident and health insurance line. Insurers are cautioned to consult the Insurance Code found at Section 59A-1-1 et seq. and Bulletin 2007-006 (issued October 1, 2007) for additional information regarding additional line-specific requirements, including form filing requirements. Insurers are also cautioned that insurance producers may be required to obtain specific training and successfully pass specific Main Phone: 505-827-4601 Main Fax: 505-827-4734 Toll Free: 1-855-4-ASK-OSI Mailing Address: P.O. Box 1689 Santa Fe, NM 87504-1689 Physical Address: 1120 Paseo de Peralta Santa Fe, NM 87501 Website: WWW.OSI.STATE.NM.US examinations based on the type of insurance prior to appointment by the insurer to transact business for a line of insurance on the insurer's behalf in this State. Any person aggrieved by a Bulletin may request a hearing before the Superintendent in accordance with Section 59A-4-15 NMSA 1978. If you have additional questions regarding this Bulletin, please contact Victoria Baca at VictoriaA.baca@state.nm.us, or Ursula Almada at Ursula.Almada@state.nm.us. DONE AND ORDERED this twenty first day of August, 2017. JOHN G. FRANCHINI Superintendent of Insurance Main Phone: 505-827-4601 Main Fax: 505-827-4734 Toll Free: 1-855-4-ASK-OSI Mailing Address: P.O. Box 1689 Santa Fe, NM 87504-1689 Physical Address: 1120 Paseo de Peralta Santa Fe, NM 87501 Website: WWW.OSI.STATE.NM.US