2006 New Mexico Statutes - Section 59A-18-14 — Grounds, procedure for disapproval.

59A-18-14. Grounds, procedure for disapproval.

A.     The superintendent shall review any filing made pursuant to Section 59A-18-12 or 59A-18-13 NMSA 1978 within sixty days of the filing date. The superintendent shall approve any form or rate if he finds that it complies with the Insurance Code, and disapprove any form or rate only on any one or more of the following grounds:   

(1)     if the form is in any respect in violation of or does not comply with the Insurance Code;   

(2)     if the form contains, or incorporates by reference where such incorporation is otherwise permissible, any inconsistent, ambiguous or misleading clauses, or exceptions and conditions which deceptively affect the risk purported to be assumed in the general coverage of the contract, or which encourages misrepresentation of the policy or its benefits;   

(3)     if the benefits offered are unreasonably restricted in relation to the premium charged;   

(4)     if the form has any title, heading or other indication of its provisions which is misleading, or if the form is printed in such type or manner of reproduction as to be difficult to read; or   

(5)     if purchase of the form is being solicited by advertising, communication or dissemination of information which is deceptive or misleading.   

B.     If the superintendent disapproves any such form during the sixty-day review period, he shall give the insurer written notice of the disapproval, stating the grounds therefor.   

C.     After expiration of the sixty-day review period referred to in Section 59A-18-13 NMSA 1978 [Subsection A of this section], or at any time after having approved a form, the superintendent may, after a hearing thereon, disapprove a form or withdraw a previous approval on any of the grounds stated in Subsection A of this section. The superintendent's order issued on such hearing shall state the grounds for disapproval or withdrawal of previous approval and the date, not less than twenty days after the date of the order, when disapproval or withdrawal of approval shall become effective.