Definitions

The following words and terms shall have the following meanings unless the context otherwise requires: A. “agent” means any person licensed by the superintendent to transact the insurer’s business in this state; B. “casualty insurance” has the meaning given in Section 59A-7-6 NMSA 1978; C. “insurance binder” means any undertaking by an insurer, or its agent, to issue a policy of insurance to the insured; D. “insured” means any person who has been issued a policy of insurance or insurance binder by an insurer; E. “insurer” means any insurance company authorized to transact property and casualty insurance in this state, and any non-admitted insurance company providing property and casualty policies of insurance through a surplus line broker in this state; F. “mail or mailing” means the deposit of a written notice to the insured in the U.S. mails, first- class postage prepaid, addressed to the insured at his last known address; G. “marine and transporation insurance” has the meaning given in Section 59A-7-5 NMSA 1978; H. “personal insurance” has the meaning given in Section 59A-17A-3 NMSA 1978; I. “policy or policy of insurance” has the meaning given in Section 59A-18-2 NMSA 1978; J. “policy term” means the stated time during which a policy is effective; K. “property and casualty insurance”, as used in this rule, includes property, casualty, vehicle, marine and transportation, wet marine and surety insurance; L. “property insurance” has the meaning given in Section 59A-7-4 NMSA 1978; M. “surety insurance” has the meaning given in Section 59A-7-8 NMSA 1978; N. “vehicle insurance” has the meaning given in Section 59A-7-7 NMSA 1978; and O. “wet marine insurance” has the meaning given in Section 59A-7-5 NMSA 1978; [2/1/80, 7/1/97; 13.8.4.7 NMAC - Rn & A, 13 NMAC 8.4.7, 12/31/07] 13.8.4.8 CANCELLATION DURING POLICY TERM - MORE THAN SIXTY (60) DAYS AFTER EFFECTIVE DATE OF POLICY: 13.8.4 NMAC 2 A. If a policy of insurance has been in effect for sixty (60) days or more, an insurer may cancel the policy if there has been a substantial change in the risk assumed by the insurer since the policy was issued. An insurer, to affect such cancellation, shall mail or deliver to the insured a written notice stating the reason for such cancellation and stating when, not less than thirty (30) days after mailing or delivery, the cancellation shall be effective. B. If a policy of insurance has been in effect for sixty (60) days or more, an insurer may cancel the policy only for one or more of the following reasons: (1) the policy was obtained through material misrepresentation, fraudulent statements, omissions or concealment of fact material to the acceptance of the risk or to the hazard assumed by the insurer; (2) willful and negligent acts or omission by the insured have substantially increased the hazards insured against; (3) revocation or suspension of driver’s license of the named insured or other operator who either resides in the same household or customarily operates the vehicle; or (4) the named insured presented a claim based on fraud or material misrepresentation. C. An insurer, to affect such cancellation, shall mail or deliver to the insured a written notice stating the reason for such cancellation and stating when, not less than fifteen (15) days after the mailing or delivery, the cancellation shall be effective. Provided, however, an insurer may eliminate the reason for such cancellation from any notice mailed to an additional insured or lienholder under the policy.