New Mexico Register / Volume XXXV,
Issue 23 / December 10, 2024
This is an amendment to
6.50.4 NMAC, Sections 8, 9 and 10, effective 12/10/2024.
6.50.4.8 PROCEDURE
FOR JOINING THE AUTHORITY BY OTHER EDUCATIONAL ENTITIES:
A. Other
educational entities who desire to join the authority shall provide the
following to the authority:
(1) an up-to-date employee census
including for all employees their age,
gender and classification;
(2) a minimum of three years loss
reports and claims experience for all lines of authority coverages
the other educational entity wishes to participate in;
(3) submission of financial and
benefit information which meets standards set by the board;
(4) a resolution of the governing body
of the other educational entity stating that it is requesting authority
membership and participation in the authority’s offerings of [risk related]
risk-related and employee benefits coverages and a statement that the
other educational entity will abide by the Public School Insurance Authority
Act, Section 22-29-1 et seq. NMSA 1978, and all authority rules and board
policies and will keep in force all authority coverages for the duration of the
then existing carrier agreements;
(5) an agreement in a form acceptable
to the authority whereby the governing body of the other educational entity
agrees that it will abide by and be bound by the Public School Insurance
Authority Act, Section 22-29-1 et seq. NMSA 1978, and all other authority rules
and board policies, including authority claims processing, settlement practices
and the authority schedule for payment of premiums, late penalties and
applicable interest, and will take, pay
for and keep in force for the duration of the carrier agreements all applicable
authority coverages; and
(6) payment of [an excess premium
deposit equal to ten percent of the total annual] the total first
year premiums, however, if the entity joins after July 1st, a
prorated premium would be charged for the coverages selected [by the
educational entity desiring to join the authority].
B. An other
educational entity desiring to participate in only some of the authority’s
coverages shall apply for waivers as is required of school districts and
charter schools pursuant to Subsections C and D of Section 22-29-9 NMSA 1978.
C. The authority may reject any
application by any other educational entity with or without cause.
[6.50.4.8 NMAC - Rp, 6 NMAC
50.4.8, 09/01/2014; A, 12/10/2024]
6.50.4.9 PROCEDURE
FOR EXITING THE AUTHORITY BY OTHER EDUCATIONAL ENTITIES:
A. Other educational entities can voluntarily exit the
authority only at the expiration of the carrier agreements for the authority
coverages they have selected.
B. Under no circumstances can other educational entities
voluntarily exit the authority prior to having been a member for a minimum of
three years.
C. An other educational entity desiring to exit the authority
shall make a request to the board in writing stating the reasons why it desires
to exit, with a provisional notice no later than one year prior to the
expiration date and final notice will be provided no later than [90]
180 days prior to the expiration date of the carrier agreements for the
authority coverages the other educational entity has selected. The board shall
vote whether to accept the resignation of the other educational entity at its
next regular meeting following receipt of the other educational entity’s
request to exit.
D. The board shall reevaluate annually other
educational entities who violate authority rules, regulations or board
policies, which have poor loss histories or which
evidence clear signs of fiscal irresponsibility and the board may at its
discretion terminate the other educational entity’s membership in the authority
upon 90-day notice.
[6.50.4.9 NMAC - Rp, 6 NMAC
50.4.9, 09/01/2014; A, 12/10/2024]
6.50.4.10 PENALTIES AGAINST OTHER
EDUCATIONAL ENTITIES FOR FAILURE TO
PARTICIPATE AFTER JOINING THE AUTHORITY:
A. Other educational entities may not
drop any authority coverages prior to the expiration
of carrier contracts. However, should a successor governing body of a
participating other educational entity drop participation by refusing continued
premium payments, the other educational entity shall be terminated from all coverages by the authority upon [30 day] 30-day
notice and the following penalties shall be incurred.
(1) For risk-related coverages, the
other educational entity shall forfeit to the authority any right to any
reserves held on its behalf and shall pay to the
authority the cost of any losses in excess of premium.
(2) For health and life employee
benefits coverages, the other educational entity shall forfeit
to the authority any right to any return premiums or reserves it may
otherwise be entitled to. It shall pay to the authority any funds the authority
has paid for or will pay for incurred claims related to the other educational
entity in excess of premiums paid by the other
educational entity as well as administrative expenses directly or indirectly
related to claim payments including third party administrator costs and a
reasonable percentage of the authority administrative costs.
B. If the other educational entity
ceases to participate in authority coverages prior to
expiration of the carrier contracts, it shall, in addition to any other
penalties, pay to the authority any sums determined by the authority to be due in order to hold safe and harmless all other members of the
authority from any adverse financial impact caused by its failure to
participate.
[6.50.4.10 NMAC - Rp, 6 NMAC
50.4.10, 09/01/2014; A, 12/10/2024]