2006 New Mexico Statutes - Section 59A-56-4 — Alliance created; board created.

59A-56-4. Alliance created; board created.

A.     The "New Mexico health insurance alliance" is created as a nonprofit public corporation for the purpose of providing increased access to health insurance in the state.  All insurance companies authorized to transact health insurance business in this state, nonprofit health care plans, health maintenance organizations and self-insurers not subject to federal preemption shall organize and be members of the alliance as a condition of their authority to offer health insurance in this state, except for an insurance company that is licensed under the Prepaid Dental Plan Law [ 59A-48-1 NMSA 1978] or a company that is solely engaged in the sale of dental insurance and is licensed under a provision of the Insurance Code [ 59A-1-1 NMSA 1978].  

B.     The alliance shall be governed by a board of directors constituted pursuant to the provisions of this section.  The board is a governmental entity for purposes of the Tort Claims Act [ 41-4-1 NMSA 1978], but neither the board nor the alliance shall be considered a governmental entity for any other purpose.  

C.      Each member shall be entitled to one vote in person or by proxy at each meeting.  

D.     The alliance shall operate subject to the supervision and approval of the board.  The board shall consist of: 

(1)     five directors, elected by the members, who shall be officers or employees of members and shall consist of two representatives of health maintenance organizations and three representatives of other types of members; 

(2)     five directors, appointed by the governor, who shall be officers, general partners or proprietors of small employers, one director of which shall represent nonprofit corporations; 

(3)     four directors, appointed by the governor, who shall be employees of small employers; and 

(4)     the superintendent or the superintendent's designee, who shall be a nonvoting member, except when the superintendent's vote is necessary to break a tie.  

E.     The superintendent shall serve as chairman of the board unless the superintendent declines, in which event the superintendent shall appoint the chairman.  

F.     The directors elected by the members shall be elected for initial terms of three years or less, staggered so that the term of at least one director expires on June 30 of each year.  The directors appointed by the governor shall be appointed for initial terms of three years or less, staggered so that the term of at least one director expires on June 30 of each year.  Following the initial terms, directors shall be elected or appointed for terms of three years.  A director whose term has expired shall continue to serve until a successor is elected or appointed and qualified.  

G.     Whenever a vacancy on the board occurs, the electing or appointing authority of the position that is vacant shall fill the vacancy by electing or appointing an individual to serve the balance of the unexpired term; provided, when a vacancy occurs in one of the director's positions elected by the members, the superintendent is authorized to appoint a temporary replacement director until the next scheduled election of directors elected by the members is held.  The individual elected or appointed to fill a vacancy shall meet the requirements for initial election or appointment to that position.  

H.     Directors may be reimbursed by the alliance as provided in the Per Diem and Mileage Act [ 10-8-1 NMSA 1978] for nonsalaried public officers, but shall receive no other compensation, perquisite or allowance from the alliance.