2006 New Mexico Statutes - Section 59A-54-19 — Rates; standard risk rate.

59A-54-19. Rates; standard risk rate.

A.     The pool shall determine a standard risk rate by actuarially calculating the individual rate that an insurer would charge for an individual policy with the pool benefits issued to a person who was a standard risk. Separate schedules of standard risk rates based on age and other appropriate demographic characteristics may be used. In determining the standard risk rate, the pool shall consider the benefits provided, the standard risk experience and the anticipated expenses for a standard risk for the coverage provided. The rates charged for pool coverage shall be no more than one hundred fifty percent of the standard risk rate for each class of insureds.   

B.     The board shall adopt a low-income premium schedule that provides coverage at lower rates for those persons with an income less than an amount to be determined by the board. The board shall adopt as many income categories as it finds practical and shall determine income based on the preceding taxable year. No person shall be eligible for a low-income premium reduction if that person's premium is paid by a third party who is not a family member.   

C.     All rates and rate schedules shall be submitted to the superintendent for approval.