2006 New Mexico Statutes - Section 59A-14-1 — Scope of article; purpose; necessity for regulation.

59A-14-1. Scope of article; purpose; necessity for regulation.

A.      Chapter 59A, Article 14 NMSA 1978 governs the placing of insurance of New Mexico risks, through licensed surplus line brokers, in insurers not otherwise authorized to transact insurance in this state and subject to the conditions for such placing as stated in that article; qualifications, licensing and duties and responsibilities of surplus line brokers; and other provisions as to such surplus line business and brokers.  As to unauthorized insurers in general, and in respects other than as to surplus line, refer to Chapter 59A, Article 15 NMSA 1978.   

B.      Chapter 59A, Article 14 NMSA 1978 shall not apply as to reinsurance or to the following insurances when placed by general lines agents or surplus line brokers licensed as such by this state:   

(1)     wet marine and transportation insurance, as defined in Section 59A-7-5 NMSA 1978;   

(2)     insurance of subjects located, resident or to be performed wholly outside this state or on vehicles or aircraft owned and principally garaged outside this state;   

(3)     insurance of property and operations of railroads engaged in interstate commerce;   

(4)     insurance of aircraft of common carriers, or cargo of such aircraft, or against liability, other than employer's liability, arising out of ownership, maintenance or use of such aircraft;   

(5)     insurance of automobile bodily injury and property damage liability risks when written in Mexican insurers and covering in Mexico and not in the United States; or   

(6)     insurance independently procured.   

C.      Chapter 59A, Article 14 NMSA 1978 shall be liberally construed and applied to promote its underlying purposes, which include:   

(1)     protecting insureds and persons seeking insurance in this state;   

(2)     permitting surplus lines insurance to be placed with reputable and financially sound unauthorized insurers, but only pursuant to Chapter 59A, Article 14 NMSA 1978;   

(3)     establishing a system of regulation that will permit controlled access to surplus lines insurance in this state; and   

(4)     assuring collection of revenues and other amounts due to this state.