TITLE 6 PRIMARY AND SECONDARY EDUCATION
CHAPTER 50 INSURANCE
PART 4 PARTICIPATION IN AUTHORITY
COVERAGES BY OTHER EDUCATIONAL
ENTITIES
6.50.4.1 ISSUING AGENCY: New Mexico Public School Insurance Authority.
[6.50.4.1
NMAC - Rp, 6 NMAC 50.4.1 NMAC, 09/01/2014]
[The
address of the New Mexico Public School Insurance Authority is 410 Old Taos
Highway, Santa Fe, New Mexico 87501.]
6.50.4.2 SCOPE: This part applies to other educational
entities.
[6.50.4.2
NMAC - Rp, 6 NMAC 50.4.2, 09/01/2014]
6.50.4.3 STATUTORY
AUTHORITY: Subsection D of Section 22-29-7 NMSA 1978, directs
the authority to promulgate necessary rules, regulations and procedures for the
implementation of the New Mexico Public School Insurance Authority Act, Section
22-29-1 et seq. NMSA 1978.
[6.50.4.3
NMAC - Rp, 6 NMAC 50.4.3, 09/01/2014]
6.50.4.4 DURATION: Permanent.
[6.50.4.4
NMAC - Rp, 6 NMAC 50.4.4, 09/01/2014]
6.50.4.5 EFFECTIVE DATE: September 1, 2014 unless a later date is
cited at the end of a section.
[6.50.4.5
NMAC - Rp, 6 NMAC 50.4.5, 09/01/2014]
6.50.4.6 OBJECTIVE: The objective of this part is to set forth
the procedures for other educational entities to join or exit the authority as
well as rules and procedures concerning participation in authority coverages by
other educational entities.
[6.50.4.6
NMAC - Rp, 6 NMAC 50.4.6, 09/01/2014]
6.50.4.7 DEFINITIONS: [RESERVED]
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 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 (10%) of the total annual first year premiums 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]
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 no later than 90 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 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]
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 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]
6.50.4.11 DUE
DATES FOR ACCOUNTING BY THE AUTHORITY: An accounting of
funds and amounts owed by or to the other educational entity which has failed
to participate, dropped coverages or exited the authority for any reason shall
not be due from the authority any earlier than
two years for employee benefits coverages and for risk-related coverages
after the failure to participate, early exit or dropping of coverage by the
other educational entity.
[6.50.4.11 NMAC - Rp, 6 NMAC 50.4.11,
09/01/2014]
HISTORY of
6.50.4 NMAC:
Pre-NMAC
History: The material in this Part was derived from
that previously filed with the State Records Center under:
NMPSIA
Rule 88-100, Participation Rules and Regulations Rule, 11/04/88.
NMPSIA
Rule 93-7, Other Educational Entities Participation, 3/22/93.
History of
Repealed Material:
6 NMAC 50.4, Other Educational Entities Participation (filed 10/1/97)
repealed 09/01/2014.
NMAC History:
6
NMAC 50.4, Other Educational Entities Participation, 10/01/97.
6
NMAC 50.4, Other Educational Entities Participation (filed 10/01/97)
was repealed and replaced by 6.50.4 NMAC, Participation In Authority Coverages
By Other Educational Entities, effective 09/01/2014.