2019 New Mexico Statutes
Chapter 59A - Insurance Code
Article 14 - Surplus Line Insurance
Section 59A-14-11 - Duty to file reports and affidavits.
A. The producing broker shall complete, execute and provide to the surplus lines broker a signed statement in substantially the form required by the superintendent, as to the diligent efforts to place the coverage with authorized insurers and the results thereof. The statement shall affirm that the insured was expressly advised prior to placement of the insurance and in the insurance policy that:
(1) the surplus lines insurer with which the insurance was to be placed is not an authorized insurer in this state and is not subject to the superintendent's supervision; and
(2) in the event the surplus lines insurer becomes insolvent, claims will not be paid nor will unearned premiums be returned by any New Mexico insurance guaranty fund.
B. The surplus lines broker shall preserve the original producing broker statements in compliance with Section 59A-14-11 NMSA 1978. The declaration pages shall be confidential and shall not be subject to public inspection. The superintendent's copy of the statements shall be open to public inspection. If the producing broker has failed to provide the producing broker statement, the surplus lines broker shall at the time of quarterly filing notify the superintendent of the producing broker's failure to comply.
C. Each surplus lines broker shall, within sixty days after expiration of each calendar quarter, file with the superintendent a statement under the surplus lines broker's oath of all surplus lines insurance business transacted during such calendar quarter. The statement shall be on forms as prescribed and furnished by the superintendent and shall contain such information relative to the surplus lines insurance transaction as the superintendent may reasonably require for the purposes of Chapter 59A, Article 14 NMSA 1978.
History: 1978 Comp., § 59A-14-11, enacted by Laws 1991, ch. 125, § 17; 1999, ch. 111, § 2; 2017, ch. 130, § 10.
ANNOTATIONSRepeals and reenactments. — Laws 1991, ch. 125, § 17 repealed former 59A-14-11 NMSA 1978, as enacted by Laws 1984, ch. 127, § 249, relating to quarterly statement of broker, and enacted a new section, effective April 3, 1991. For provisions of former section, see the 1990 NMSA 1978 on NMOneSource.com.
The 2017 amendment, effective July 1, 2017, removed the requirement that surplus lines brokers file with the superintendent of insurance copies of producing brokers' affidavits of their efforts, and the results of those efforts, to place coverage with authorized insurers and copies of the policy declarations pages of all surplus lines insurance business transacted during the calendar quarter; and replaced "affidavits" with "statements" throughout the section; in Subsection A, in the first sentence, after "surplus lines broker", deleted "affidavit" and added "a signed statement"; and in Subsection B, deleted "Within sixty days after the end of each calendar quarter, the surplus lines broker shall file with the superintendent a copy of each of the producing broker affidavits required by Subsection A of this section and a copy of the policy declarations page of all surplus lines insurance business transacted during the calendar quarter", and after "Section", changed "59A-14-10" to "59A-14-11".
The 1999 amendment, effective June 18, 1999, deleted former Subsection A which related to a written report provided to the surplus lines broker and redesignated the subsequent subsections accordingly; in the beginning of Subsection A, deleted "At the time of completing each report pursuant to Subsection A of this section" and substituted "an affidavit" for "a sworn, notarized affidavit"; in Subsection A(2), inserted "nor will unearned premiums be returned"; in the first sentence of Subsection B, substituted "the producing broker affidavits required by Subsection A" for "the reports and affidavits required by Subsections A and B", in the second sentence, substituted "original producing broker affidavits" for "original reports and affidavits", in the third sentence, substituted "The declaration pages" for "The reports and all copies", in the fifth sentence, substituted "the producing broker affidavit" for "a report or affidavit", and at the end, added "at the time of quarterly filing, notify the superintendent of the producing broker's failure to comply".
