A. No person, firm, association or corporation shall act or aid in any manner in soliciting, negotiating or procuring liability insurance in New Mexico from a risk retention group unless such person, firm, association or corporation is licensed as an insurance producer pursuant to the provisions of the New Mexico Insurance Code.

B. No person, firm, association or corporation shall act or aid in any manner in soliciting, negotiating or procuring liability insurance:

(1) in New Mexico for a purchasing group from an authorized insurer or a risk retention group chartered in a state, unless such person, firm, association or corporation is licensed as an insurance producer pursuant to the provisions of the New Mexico Insurance Code;

(2) in New Mexico for any members of a purchasing group under a purchasing group's policy, unless such person, firm, association or corporation is licensed as an insurance producer pursuant to the provisions of the New Mexico Insurance Code; or

(3) from an insurer not authorized to do business in New Mexico on behalf of a purchasing group located in this state, unless such person, firm, association or corporation is licensed as a surplus lines agent or excess line broker pursuant to the provisions of the New Mexico Insurance Code.

C. Every person, firm, association or corporation licensed pursuant to the provisions of the New Mexico Insurance Code on business placed with risk retention groups or written through a purchasing group shall inform each prospective insured of the provisions of the notice required by Section 59A-55-10 NMSA 1978 in the case of a purchasing group.

History: Laws 1988, ch. 125, § 24; 1999, ch. 272, § 27; 1999, ch. 289, § 41; 2016, ch. 89, § 69.

Cross references. — For the Insurance Code, see 59A-1-1 NMSA 1978 and notes thereto.

The 2016 amendment, effective July 1, 2017, replaced "agent" and "broker" with "insurance producer" throughout the section.

Severability. — Laws 2016, ch. 89, § 71 provided that if any part or application of Laws 2016, ch. 89 is held invalid, the remainder or its application to other situations or persons shall not be affected.

The 1999 amendment, effective June 18, 1999, deleted former Subsection C, which stated that any requirement of residence in the state shall not apply for the purposes of acting as an agent or broker for a risk retention group or purchasing group pursuant to Subsections A and B; redesignated former Subsection D as Subsection C; and updated the statutory reference in that subsection.