New Mexico Register / Volume XXXV,
Issue 13 / July 16, 2024
TITLE 13 INSURANCE
CHAPTER 8 INSURANCE
POLICIES AND RATES
PART 7 NOTIFICATION REQUIREMENT OF
DISCONTINUATION OF INSURANCE PRODUCT
13.8.7.1 ISSUING AGENCY: New Mexico Office of Superintendent of
Insurance (OSI).
[13.8.7.1 NMAC –
N, 7/16/2024]
13.8.7.2 SCOPE: This rule applies to all property and
casualty insurers who discontinue an insurance product.
[13.8.7.2
NMAC – N, 7/16/2024]
13.8.7.3 STATUTORY AUTHORITY: Sections 59A-2-8, 59A-2-9, and 59A-18-29 NMSA
1978.
[13.8.7.3 NMAC – N, 7/16/2024]
13.8.7.4 DURATION: Permanent.
[13.8.7.4 NMAC – N, 7/16/2024]
13.8.7.5 EFFECTIVE DATE: July 16, 2024, unless a later date is cited
at the end of a section.
[13.8.7.5
NMAC – N, 7/16/2024]
13.8.7.6 OBJECTIVE: The purpose of this rule is to alert existing
and prospective insureds of a property and casualty insurer’s discontinuation
of an insurance product.
[13.8.7.6
NMAC – N, 7/16/2024]
13.8.7.7 DEFINITIONS: As used in this part, the following terms
are defined:
A. “bureau”
means the property and casualty bureau of the OSI.
B. “delivering”
means sending via electronic mail to the bureau chief listed on the OSI website
or sending via U. S. mail addressed to the bureau chief listed on the OSI
website.
C. “discontinue
or discontinuation” means any of the following:
(1) an insurer’s unilateral decision to terminate an insurance product
during a policy term or to not renew an insurance product after the end of a
policy term;
(2) such
termination of an insurance product by an insurer when a replacement insurance
product is offered by an affiliate or by the insurer; or
(3) an insurer’s unilateral decision to no longer offer an
insurance product.
D. “insurance
product” means the coverage or subline that is the subject of a policy,
contract, or certificate of insurance, including any application, endorsement
or related form that is attached to and made a part of the policy or contract.
[13.8.7.7
NMAC – N, 7/16/2024]
13.8.7.8 NOTIFICATION REQUIREMENT:
All property or casualty insurance insurers that discontinue any insurance
product shall provide at least 30 days’ notice to the bureau prior to the
effective date of the discontinuation of the first insurance product, by
delivering a written letter to the bureau chief identifying the insurance
product, including:
A. the effective date that the first insurance product will
be discontinued; and
B. the total number of insured that will be affected.
[13.8.7.8
NMAC – N, 7/16/2024]
History of 13.8.7 NMAC:
13.8.7 NMAC - Notification Requirement of Discontinuation
of Insurance Product, was filed 1/16/2024 as an emergency rule, effective
2/1/2024.
Other History: 13.8.7 NMAC - Notification Requirement of Discontinuation
of Insurance Product, filed
1/16/2024 as an emergency rule, effective 2/1/2024, has been permanently
replaced by 13.8.7 NMAC, Notification Requirement of Discontinuation of
Insurance Product, effective 7/16/2024.