Title Insurance

NMSA 1978 ch. 59A, art. 30

in effect

NMSA 1978, § 59A-30-1 Short title

59A-30-1. Short title Chapter 59A, Article 30 NMSA 1978 may be cited as the "New Mexico Title Insurance Law". 1978 Comp., § 59A-30-1, enacted by Laws 1985, ch. 28, § 1; 2009, ch. 80, § 3.

NMSA 1978, § 59A-30-2 Purpose and legislative intent of article

59A-30-2. Purpose and legislative intent of article A. The purpose of the New Mexico Title Insurance Law is to provide a comprehensive body of law for the effective regulation and active supervision of the business of title insurance transacted within this state in accordance with the McCarran-Ferguson Act (P.L. 79-15, 15 U.S.C. Sections 1011-1015). B. The legislature intends that the business of title insurance be regulated by the state to provide for the protection of consumers and purchasers of title insurance policies and the financial stability of the title insurance industry. C. The legislature intends that the title insurance market be competitive for all title insurance agents, that regulation of the title insurance industry does not disproportionately impact independent title agencies and that regulation of the industry does not place independent title insurance agents at a competitive disadvantage with underwriter-owned title companies. 1978 Comp., § 59A-30-2, enacted by Laws 1985, ch. 28, § 2; 2009, ch. 80, § 4.

NMSA 1978, § 59A-30-3 Definitions

59A-30-3. Definitions As used in the New Mexico Title Insurance Law: A. "agency agreement" means a document executed by a title insurer and title insurance agent that defines the compensation of the title insurance agent and the scope of the title insurance agent's authority; B. "basic premium rate" means the premium rate for an original owner's policy of title insurance; C. "business of title insurance" means: (1) issuing as title insurer or offering to issue as title insurer a title insurance policy; or (2) transacting or proposing to transact by a title insurer or title insurance agent any of the following activities when conducted or performed in contemplation of the issuance of a title insurance policy: (a) soliciting or negotiating the issuance of a title insurance policy; (b) guaranteeing, warranting or otherwise insuring the correctness of title searches; (c) executing title insurance policies; (d) effecting contracts of reinsurance; (e) abstracting, searching or examining titles; or (f) doing or proposing to do any business in substance equivalent to the business of title insurance in a manner designed to evade the provisions of the New Mexico Title Insurance Law or other laws applicable to the business of title insurance; D. "charge" means any consideration, other than premiums billed by a title insurance agent or title insurer or both, for the performance of services, including but not necessarily limited to: (1) consideration for the supervising or handling of escrows, settlements, closings, preparation of abstracts, delivery or recording of transfer and lien documents and disbursing funds; (2) consideration for services commenced but not completed; and (3) consideration for title searches conducted for a purpose other than issuance of a title insurance policy. "Charge" does not include consideration collected by a title insurer or title insurance agent when the consideration is limited to the amount billed for services rendered by a third party; E. "premium" means the consideration for issuing a title insurance policy and includes the consideration for searching and examining a title when conducted or performed for the purpose of the issuance of a title insurance policy; F. "available funds" means funds subject to immediate withdrawal by cash or check in a depository account with a financial institution, held in the name of and subject to the control of a title insurance agent, title insurer or third party fiduciary, not including a person or entity that is a party to the transaction, cooperating in the closing of a transaction with a title insurance agent or title insurer; G. "title insurance agent" means a person licensed as an agent under the Insurance Code [Chapter 59A NMSA 1978] and appointed by a title insurer; H. "title insurance policy" or "policy" means a contract indemnifying against loss or damage arising from any of the following that exist on or before the effective date of the policy: (1) defects in the insured title; (2) liens or encumbrances on the insured title; (3) unmarketability of the insured title; (4) invalidity or unenforceability of liens or encumbrances on the property that is the subject of the policy; or (5) lack of legal right of access to and from the property. "Title insurance policy" or "policy" does not include an abstract; and I. "title insurer" means any person authorized under the laws of this state to transact as insurer the business of title insurance. 1978 Comp., § 59A-30-3, enacted by Laws 1985, ch. 28, § 3; 1989, ch. 95, § 1; 2009, ch. 80, § 5.

NMSA 1978, § 59A-30-4 Control and supervision by superintendent

59A-30-4. Control and supervision by superintendent A. Title insurers and title insurance producers shall operate in New Mexico under the control and supervision of the superintendent. The superintendent shall promulgate such rules and regulations as are necessary to carry out the provisions of the New Mexico Title Insurance Law. The superintendent may adopt uniform rules and regulations to address underwriting standards and practices, including but not limited to rules and regulations that prohibit title insurers from insuring specified risks that the superintendent determines may pose an unreasonable risk to the financial stability of title insurers. B. No title insurer or title insurance producer shall collect any premium, issue any title insurance policy or agency agreement, or reinsure any portion of the risk assumed under any title insurance policy, other than in conformance with the New Mexico Title Insurance Law and rules and regulations adopted by the superintendent as authorized by the New Mexico Title Insurance Law. 1978 Comp., § 59A-30-4, enacted by Laws 1985, ch. 28, § 4; 2009, ch. 80, § 6; 2016, ch. 89, § 61.

NMSA 1978, § 59A-30-4.1 Reporting by superintendent

59A-30-4.1. Reporting by superintendent The superintendent shall compile a report for the legislature no later than October 1 each year beginning in 2013 detailing title insurance statistics, including a report on the status of price competition within the title insurance industry in New Mexico. Annual reports shall be made available to interested parties and the general public. Laws 2009, ch. 80, § 13; 2013, ch. 74, § 30.

NMSA 1978, § 59A-30-5 Policy forms

59A-30-5. Policy forms No title insurer or title insurance agent shall use any form of title insurance policy other than the uniform forms promulgated by the superintendent under the New Mexico Title Insurance Law. The superintendent shall not promulgate any uniform form under which the coverage offered is excessive or inadequate in relation to the premium charged for the coverage. 1978 Comp., § 59A-30-5, enacted by Laws 1985, ch. 28, § 5.

NMSA 1978, § 59A-30-5.1 Available funds required to issue policy

59A-30-5.1. Available funds required to issue policy Unless the consideration necessary to create the estate to be insured has been previously delivered, no title insurance agent or title insurer shall issue a title insurance policy until the title insurance agent, title insurer or a third party fiduciary holds available funds, as defined under Subsection E of Section 59A-30-3 NMSA 1978, in an amount sufficient to create the estate being insured and to pay in accordance with the instructions of the parties to the transaction, all sums required to be paid through and at the time of the closing. 1978 Comp., § 59A-30-5.1, enacted by Laws 1989, ch. 95, § 2.

NMSA 1978, § 59A-30-6 Premiums; agency agreements; duty to promulgate reasonable rates; exception

59A-30-6. Premiums; agency agreements; duty to promulgate reasonable rates; exception A. The superintendent shall promulgate the premium rates of title insurers and title insurance producers for title insurance policies and the percentage of premium to be retained by title insurers under agency agreements, except that premium rates for reinsurance as between title insurers shall not be promulgated by the superintendent. No premium that has not been promulgated or approved by the superintendent shall be charged for any title insurance policy. The superintendent shall not promulgate charges of title insurers and title insurance producers other than premium rates for title insurance policies and the percentage of premium to be retained by title insurers under agency agreements. B. The superintendent shall promulgate additional premium rates for searches or examinations of title conducted or performed for the purpose of issuance of a title insurance policy when the search or examination involves more than one chain of title or other unusual complexity. C. Premium rates promulgated by the superintendent shall not be excessive, inadequate or unfairly discriminatory and shall contain an allowance permitting a profit that is not unreasonable in relation to the risks incurred in the business of title insurance. Premium rates may include an allowance for recoupment of assessments made pursuant to the Title Insurance Guaranty Act [Chapter 59A, Article 30A NMSA 1978]. D. Title insurance producers shall retain not less than eighty percent of the gross premiums collected on commitments, policies and endorsements issued for one to four family residential property transactions with a liability amount of not more than two million dollars ($2,000,000); provided, however, that from July 1, 2009 until otherwise ordered by the superintendent, title insurance producers shall retain not less than eighty-one percent of the gross premiums collected on commitments, policies and endorsements issued for one to four family residential property transactions with a liability amount of not more than two million dollars ($2,000,000). The portion of the premium to be retained by the title insurance producers for policies with a liability amount greater than two million dollars ($2,000,000) shall be set by rule. E. A title insurer may file with the superintendent proposed title insurance rates for a specific county or counties lower than the premium rate promulgated by the superintendent. The superintendent shall provide notice of the filed title insurance rates to all insurance producers and underwriters doing business in that county or counties and may conduct a hearing. In determining whether to approve filed title insurance rates, the superintendent shall consider the interests and protection of consumers and independent title insurance producers and the potential impact on competition within the title insurance industry. Upon approval of the filed title insurance rates, the title insurer and its insurance producers shall use the filed and approved title insurance rates. F. The superintendent shall adopt rules to establish standards and procedures by which a title insurance rate lower than the promulgated rate shall be filed and may be approved. 1978 Comp., § 59A-30-6, enacted by Laws 1985, ch. 28, § 6; 1999, ch. 60, § 19; 2009, ch. 80, § 7; 2016, ch. 89, § 62.

NMSA 1978, § 59A-30-6.1 Premiums; refinanced property

59A-30-6.1. Premiums; refinanced property The premium rates for title insurance policies issued in connection with the refinance of an existing mortgage or deed of trust, where a prior loan policy has been issued and a copy of the policy or a closing statement evidencing the issuance of the policy is furnished to the insurer or title insurance agent showing title vested in the same borrower and covering the same property, shall not exceed the percentage of the basic premium rate promulgated or approved by the superintendent as follows: A. forty percent of the current basic premium rate applied to any amount up to the amount of the previous policy insuring the mortgage or deed of trust being refinanced, if the new policy is issued within three years from the date of the prior policy; B. fifty percent of the current basic premium rate applied to any amount up to the amount of the previous policy insuring the mortgage or deed of trust being refinanced, if the new policy is issued more than three years but less than five years from the date of the prior policy; C. sixty percent of the current basic premium rate applied to any amount up to the amount of the previous policy insuring the mortgage or deed of trust being refinanced, if the new policy is issued more than five years but less than ten years from the date of the prior policy; D. eighty percent of the current basic premium rate applied to any amount up to the amount of the previous policy insuring the mortgage or deed of trust being refinanced, if the new policy is issued more than ten years but less than twenty years from the date of the prior policy; or E. the premium for insurance coverage above the amount of the previous policy shall be ninety percent of the current basic premium rate as set by rule. In no event shall the premium collected be less than the minimum premium based on the promulgated or approved rate for a loan policy. 1978 Comp., § 59A-30-6.1, as enacted by Laws 2009, ch. 80, § 8.

NMSA 1978, § 59A-30-6.2 Premiums; Indian nation, tribe or pueblo trust property

59A-30-6.2. Premiums; Indian nation, tribe or pueblo trust property Title insurance policies purchased in association with the acquisition of title to property by the United States in trust for a federally recognized Indian nation, tribe or pueblo located wholly or partially in New Mexico where no monetary consideration is paid, shall be issued subject to the promulgated or filed and approved premium rates for the original issuance of a title insurance policy on the same property for an amount equal to the reduced liability limit for the acquisition provided for by the United States department of justice, unless a higher liability amount is required by the United States. 1978 Comp., § 59A-30-6.2, as enacted by Laws 2009, ch. 80, § 9.

NMSA 1978, § 59A-30-7 Reporting of experience

59A-30-7. Reporting of experience The superintendent shall promulgate reasonable rules, including rules providing statistical plans, for use thereafter by all title insurers and title insurance agents in the recording and reporting of revenue, loss and expense experience so that the experience of title insurers and title insurance agents may be made available to the superintendent at least annually in such form and detail as may be necessary to aid the superintendent in promulgating or approving premium rates. 1978 Comp., § 59A-30-7, enacted by Laws 1985, ch. 28, § 7; 2009, ch. 80, § 10.

NMSA 1978, § 59A-30-8 Hearings; notice

59A-30-8. Hearings; notice A. The superintendent shall commence a hearing no earlier than November 1 of every third calendar year to consider promulgation of premium rates and any other matters related to the regulation of the business of title insurance deemed necessary by the superintendent. B. The superintendent may, in the superintendent's discretion, hold a public hearing at any time to consider promulgation of premium rates and such other matters and subjects related to the regulation of the business of title insurance as the superintendent shall determine necessary or proper. C. Notice of the public hearings provided for in Subsections A and B of this section shall be as provided in Subsection A of Section 59A-4-16 NMSA 1978. D. The superintendent may promulgate premium rates and forms of title insurance policies only after a public hearing as provided in Subsections A and B of this section. E. After the collection of all evidence relevant to the hearing, the superintendent shall file a notice of closure of the administrative record. The superintendent shall issue a decision within sixty days following the filing of the notice of closure of the administrative record for the public hearing provided for in Subsections A and B of this section. However, if the superintendent determines that the data and information presented to the superintendent pursuant to Section 59A-30-7 NMSA 1978 are incomplete, inaccurate or otherwise insufficient to determine whether a change in rates is warranted, the superintendent shall require a party, intervenor or participant at the public hearing to furnish the additional necessary data and information, and, in such event, the period of time allowed for the superintendent to issue a decision shall commence from the date such additional data and information are furnished. 1978 Comp., § 59A-30-8, enacted by Laws 1985, ch. 28, § 8; 1990, ch. 62, § 1; 2009, ch. 80, § 11; 2023, ch. 140, § 1.

NMSA 1978, § 59A-30-9 Review; appeals

59A-30-9. Review; appeals A person aggrieved by an order of the superintendent promulgating, approving or disapproving rates under the New Mexico Title Insurance Law shall have the rights to review and appeal provided for in Sections 59A-17-34 and 59A-17-35 NMSA 1978. The request for review shall be filed no later than thirty days after the superintendent's issuance of the order that promulgated, approved or disapproved the rates. 1978 Comp., § 59A-30-9, enacted by Laws 1985, ch. 28, § 9; 1998, ch. 55, § 65; 2009, ch. 80, § 12.

NMSA 1978, § 59A-30-10 Reserve for losses and loss expenses

59A-30-10. Reserve for losses and loss expenses A. All title insurers operating under the provisions of the New Mexico Title Insurance Law shall at all times establish and maintain, in addition to other reserves, a reserve against unpaid losses and a reserve against loss expense. Such reserves shall be calculated by making a careful estimate in each case of the loss and loss expense likely to be incurred by reason of every claim presented pursuant to notice, from or on behalf of the insured of a title defect in or lien or adverse claim against the title insured, that may result in a loss or cause expense to be incurred for the proper disposition of the claim. B. The amounts so estimated may be revised from time to time as circumstances warrant, but shall be redetermined at least once each year. C. The amounts set aside in such reserve in any year shall be deducted in determining the net profits for such year of any title insurer. 1978 Comp., § 59A-30-10, enacted by Laws 1985, ch. 28, § 10.

NMSA 1978, § 59A-30-11 Underwriting standards and record retention

59A-30-11. Underwriting standards and record retention A. No title insurance policy may be written unless the title insurer or its title insurance agent has caused to be conducted a reasonable search and examination of the title using an abstract plant meeting the requirements of Section 59A-12-13 NMSA 1978 and has caused to be made a determination of insurability of title in accordance with sound underwriting practices. The duty to search and examine imposed by this section is solely for the purpose of enhancing the financial stability of title insurers for the benefit of insureds under title insurance policies. The New Mexico Title Insurance Law is not intended and should not be construed to create any duty to search and examine that runs to the benefit of, or to create any right or cause of action in favor of, any person other than a title insurer. B. Evidence of the examination of title and determination of insurability shall be preserved and retained in the files of the title insurer or its title insurance agent for a period of not less than fifteen years after the title insurance policy has been issued. Instead of retaining the original evidence, the title insurer or title insurance agent may in the regular course of business establish a system whereby all or part of the evidence is recorded, copied or reproduced by any process that accurately and legibly reproduces or forms a durable medium for reproducing the contents of the original. This subsection shall not apply to: (1) a title insurer assuming liability through a contract of reinsurance; or (2) a title insurer acting as coinsurer if one of the other coinsuring title insurers has complied with this section. 1978 Comp., § 59A-30-11, enacted by Laws 1985, ch. 28, § 11; 1999, ch. 60, § 20.

NMSA 1978, § 59A-30-12 Maintenance assessment

59A-30-12. Maintenance assessment The superintendent shall determine a rate of assessment and collect a maintenance fee in an amount not to exceed one percent of the correctly reported gross title insurance premiums on policies written in New Mexico of all authorized title insurers. The fee required by this section is in addition to all other taxes and fees now imposed or that may be subsequently imposed and that are not in conflict with this article. The superintendent, after taking into account the unexpended funds produced by this fee, if any, shall adjust the rate of assessment each year to produce the amount of funds that he estimates will be necessary to pay all the expenses of regulating the business of title insurance during the succeeding year. The superintendent in promulgating premium rates shall take into account assessments made under this section. 1978 Comp., § 59A-30-12, enacted by Laws 1985, ch. 28, § 12.

NMSA 1978, § 59A-30-13 Title insurance maintenance assessment fund created; appropriation

59A-30-13. Title insurance maintenance assessment fund created; appropriation There is created a "title insurance maintenance assessment fund" in the state treasury. All receipts of the department of insurance collected under Section 59A-30-12 NMSA 1978 shall be deposited in the title insurance maintenance assessment fund and are appropriated to the superintendent for use in paying the expenses of the insurance department incurred in administering the New Mexico Title Insurance Law, including compensation and expenses of salaried personnel and consultants employed by the superintendent in administering the New Mexico Title Insurance Law. 1978 Comp., § 59A-30-13, enacted by Laws 1985, ch. 28, § 13.

NMSA 1978, § 59A-30-14 Other provisions applicable

59A-30-14. Other provisions applicable To the extent not in conflict with the New Mexico Title Insurance Law, the following articles and provisions of the Insurance Code [Chapter 59A NMSA 1978] shall also apply to title insurers, title insurance agents and the business of title insurance: A. Chapter 59A, Article 1 NMSA 1978; B. Chapter 59A, Article 2 NMSA 1978; C. Chapter 59A, Article 4 NMSA 1978; D. Chapter 59A, Article 5 NMSA 1978; E. Chapter 59A, Article 6 NMSA 1978; F. Chapter 59A, Article 7 NMSA 1978; G. Chapter 59A, Article 8 NMSA 1978; H. Chapter 59A, Article 9 NMSA 1978; I. Chapter 59A, Article 10 NMSA 1978; J. Chapter 59A, Article 11 NMSA 1978; K. Chapter 59A, Article 12 NMSA 1978; L. the Unauthorized Insurers Law [Chapter 59A, Article 13 NMSA 1978]; M. Chapter 59A, Article 16 NMSA 1978; N. the Insurance Fraud Act [Chapter 59A, Article 16C NMSA 1978]; O. Chapter 59A, Article 34 NMSA 1978; and P. The Insurance Holding Company Law [Chapter 59A, Article 37 NMSA 1978]. 1978 Comp., § 59A-30-14, enacted by Laws 1985, ch. 28, § 14; 1999, ch. 60, § 21; 1999, ch. 289, § 27; 2001, ch. 297, § 3.

Source: New Mexico Compilation Commission (nmonesource.com)URL: https://nmonesource.com/nmos/nmsa-unanno/en/item/18562/index.doFetched: 10/20/2026