2017 New Mexico Statutes
Chapter 59A - Insurance Code
Article 22 - Health Insurance Contracts
Section 59A-22-37 - "Franchise" insurance.
59A-22-37. "Franchise" insurance.
A. Health insurance on a "franchise" plan is health insurance issued to:
(1) five or more employees of any corporation, partnership or individual employer or any governmental corporation, agency or department thereof; or
(2) ten or more members of any trade or professional association or of a labor union or of any other association having had an active existence for at least two years, having a constitution or bylaws and formed and existing in good faith for purposes other than that of obtaining or maintaining insurance; where such employees or members, with or without their dependents, are issued the same form of individual policy varying only as to amounts and kinds of coverage applied for by such persons, under an arrangement whereby the premiums on such policies may be paid to the insurer periodically by the employer, with or without payroll deductions, or by the association or union for its members, or by some designated person acting on behalf of such employer, association or union.
B. As compared with similar policies issued on an individual basis the insurer may vary such franchise coverages as to premium rates, benefits payable, and underwriting procedures used without being held to be in violation of laws prohibiting unfair discrimination so long as such rates, benefits, and procedures do not discriminate unfairly as between franchise plans.
History: Laws 1984, ch. 127, 459; 1987, ch. 259, 22.
