2015 New Mexico Statutes
Chapter 59A - Insurance Code
Section 11 Licensing Procedures, Agents, Solicitors, Brokers, Adjusters and Others
Section 59A-11-13 Agents' rights; cancellation.

59A-11-13. Agents' rights; cancellation.

A. No insurer shall terminate a contract appointing any person as an independent agent without giving the agent written notice of the termination, including the specific reason for such action, at least one hundred eighty days prior to the termination.

B. Notwithstanding the provisions of Subsection A of this section, no insurer may cancel a written agreement with an agent with respect to property or casualty insurance because of an adverse loss-ratio experience on that agent's book of business during any three full consecutive calendar years if:

(1) the insurer required the agent to submit the application for underwriting approval, all material information on the application was fully completed and the agent had not omitted or altered any information provided by the applicant; or

(2) the insurer accepted without prior approval policies issued by the agent, if all material information on the application or on the insurer's copy of any policy issued by the agent was fully completed and the agent had not omitted or altered any information provided by the applicant.

C. The provisions of Subsection A or B of this section shall not apply to termination of a contract for insolvency, abandonment, gross or willful misconduct, failure to pay over to the company money due to the company under existing agency or company contract after receipt of a written demand therefor, fraud or intentional misrepresentation by the agent, either to the insurer or to an insured, or after the agent's license is revoked or otherwise terminated by the superintendent.

D. For one year following termination for any reason other than those set forth in Subsection C of this section, the agent may renew, for a term of one year, any policies of the insurer in force at termination if the insureds meet current underwriting standards. The agent shall earn a commission for such renewals at a rate not less than the rate in effect prior to termination.

E. For the purposes of this section:

(1) "independent agent" means an agent that is not an employee of an insurer and represents more than one insurer;

(2) "one insurer" includes any group of insurance companies under substantially the same management and control;

(3) "insurer" means any insurance company authorized to transact property or casualty insurance business in this state; and

(4) "policies" means all kinds of insurance, except life, health, annuities and credit life and health.

F. Any person who has suffered damages as a result of a violation of this section is granted a right to bring an action in district court to recover damages, including reasonable costs and attorneys fees, if approved by the court.

History: Laws 1984, ch. 127, 192; 1986, ch. 109, 1; 1987, ch. 259, 12; 1989, ch. 12, 1.