Service Contract Providers.

SUPERINTENDENT OF INSURANCE John G. Franchini 505-827-4299 NEW MEXICO | OFFICE OF SUPERINTENDENT OF INSURANCE DEPUTY SUPERINTENDENT Robert Doucette 505-827-5832 Bulletin 2018-003 April 2, 2018 TO: SERVICE CONTRACT PROVIDERS RE: REIMBURSEMENT INSURANCE POLICIES THE FOLLOWING BULLETIN is issued pursuant to NMSA 1978 59A-2-8 2 and pursuant to 13.1.2.1 to 13.1.2.10 NMAC. Amendments to the New Mexico Service Contract Regulation Act that became effective June 16, 2017 allow service contract providers to use reimbursement insurance policies to satisfy the financial security requirements of Section 59A-58-6 NMSA 1978. While many service contract providers have reimbursement insurance policies that have been in effect for many years, some service contract providers have recently obtained reimbursement insurance policies that, due to their recent issuance, do not cover all of the service contracts issued by the service contract provider. In these situations, the service contract provider will still need to maintain a deposit to provide financial security for all in-force service contracts that were issued prior to the effective date of the reimbursement insurance policy. To ensure compliance with this requirement, all service contract providers that wish to satisfy their financial security requirements exclusively by means of a reimbursement insurance policy must submit a signed and notarized statement that they do not have any in-force service contracts that were issued before the inception of their reimbursement insurance policy or that are otherwise not covered by their reimbursement insurance policy. Service contract providers that do not submit such a statement will be required to maintain a deposit as described in Section 59A-58-6 NMSA 1978. Any questions on this Bulletin may be directed to Anna Krylova, Actuary, at Anna.Krylova@state.nm.us or at (505) 827-4529. DONE AND ORDERED this 2nd day of April, 2018. JOHN G. FRANCHINI Superintendent of Insurance FILED 2018 APR -2 PM 1:11 NM OFFICE OF 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