Insurance Consultants

NMSA 1978 ch. 59A, art. 11A

in effect

NMSA 1978, § 59A-11A-1 Insurance consultant; license required

59A-11A-1. Insurance consultant; license required Unless licensed as an insurance consultant under the provisions of this act [59A-11A-1 to 59A-11A-8 NMSA 1978], no person shall: A. for a fee received or to be received, offer to examine, examine or aid in examining any policy of insurance or any annuity or pure endowment contract for the purpose of giving or offering to give any advice, counsel, recommendation or information in respect to the terms, conditions, benefits, coverage or premium of any such policy or contract or in respect to the expediency or advisability of altering, changing, exchanging, converting, replacing, surrendering, continuing, renewing or rejecting any such policy or contract or of accepting or procuring any such policy or contract from any company; or B. in or on advertisements, cards, signs, circulars or letterheads or elsewhere or in any other way or manner by which public announcements are made use the title "insurance consultant", "insurance advisor", "insurance specialist", "insurance counselor", "insurance analyst", "policyholders' advisor", "policyholders' counselor" or any other similar title or any title, word or combination of words indicating that he gives or is engaged in the business of giving advice, counsel, recommendation or information to holders of policies of insurance or annuity or pure endowment contracts. Laws 1989, ch. 97, § 1.

NMSA 1978, § 59A-11A-2 Insurance consultant license; exemptions

59A-11A-2. Insurance consultant license; exemptions Nothing in this act [59A-11A-1 to 59A-11A-8 NMSA 1978] shall be construed to: A. prohibit the customary advice offered by a licensed insurance agent or adjuster; B. apply to a person admitted to the practice of law or permitted to engage in the practice of public accountancy in this state when the person is acting within the scope of that practice; or C. require licensure of or otherwise apply to a salaried employee of a group or its service company as defined in the Group Self-Insurance Act [Chapter 52, Article 6 NMSA 1978]. Laws 1989, ch. 97, § 2.

NMSA 1978, § 59A-11A-3 Insurance consultant license; application; requirements for issuance; fee; renewal

59A-11A-3. Insurance consultant license; application; requirements for issuance; fee; renewal A. The superintendent shall issue a license as an insurance consultant to a person who: (1) has reached the age of majority; (2) files a written application in the manner and form prescribed by the superintendent, stating the lines of insurance for which the applicant desires a license; (3) passes an examination as provided in Subsection B of this section; (4) pays an application fee and an examination fee as specified in Section 59A-6-1 NMSA 1978; and (5) satisfies the superintendent that the person is competent, financially responsible and of good moral character. B. The superintendent shall examine all initial applicants for a license as an insurance consultant in the manner and form that the superintendent prescribes. The examination shall be of sufficient scope to demonstrate a broad knowledge of insurance contracts and the practices of the insurance industry in the lines of insurance for which the applicant desires a license. However, the superintendent may waive the requirement for the examination for: (1) property and casualty insurance in the case of an applicant who has been awarded the professional designation of chartered property and casualty underwriter or certified insurance counselor in the property and casualty line; (2) life and accident insurance in the case of an applicant who has been awarded the professional designation of chartered life underwriter; and (3) all lines of insurance in the case of an applicant who has been awarded the professional designations of chartered property and casualty underwriter and chartered life underwriter. C. If an applicant fails an examination, the applicant may be reexamined upon payment of a ten-dollar ($10.00) examination fee for each reexamination. D. The license as an insurance consultant shall be issued for two years. The license may, at the discretion of the superintendent, be renewed biennially upon application and payment of a fee as specified in Section 59A-6-1 NMSA 1978. Laws 1989, ch. 97, § 3; 2011, ch. 127, § 7.

NMSA 1978, § 59A-11A-4 Insurance consultant license; suspension or revocation; appeal; penalty

59A-11A-4. Insurance consultant license; suspension or revocation; appeal; penalty A. The superintendent may revoke the license of an insurance consultant or suspend it for a period not exceeding the expiration date of the license for any good cause shown as provided in the Insurance Code. The superintendent shall revoke or suspend a license only upon notice and hearing as provided in the Insurance Code. B. Any person aggrieved by the action of the superintendent in revoking, suspending or refusing to grant, renew or reissue a license may appeal that action to the district court pursuant to the provisions of Section 39-3-1.1 NMSA 1978. C. The superintendent may at any time require such information as he deems necessary in respect to the business methods, policies and transactions of a licensee. Any person who fails or refuses to furnish the superintendent in the form he may require any such information within ten days after receiving a written request for it is guilty of a misdemeanor and upon conviction shall be fined not less than fifty dollars ($50.00) or more than five hundred dollars ($500). Laws 1989, ch. 97, § 4; 1998, ch. 55, § 62; 1999, ch. 265, § 66.

NMSA 1978, § 59A-11A-5 Insurance consultants; contracts and agreements

59A-11A-5. Insurance consultants; contracts and agreements No contract or agreement with an insurance consultant for any advice, counsel, recomendation [recommendation] or other information provided within the scope of his license shall be enforceable by him unless: A. it is in writing and executed in duplicate by the person to be charged or his legal representative; B. the duplicate is delivered to or retained by the person to be charged when it is signed by him; C. it plainly specifies the amount of the fee paid or payable by the person to be charged and the services to be rendered by the insurance consultant; and D. it is in a form currently approved by the superintendent. Laws 1989, ch. 97, § 5.

NMSA 1978, § 59A-11A-6 Insurance consultant; required acknowledgments

59A-11A-6. Insurance consultant; required acknowledgments A. An insurance consultant who furnishes any advice or counsel within the scope of his license as such a consultant, makes any recommendation or gives any information except under the terms of a previously executed written contract conforming to Section 4 [59A-11-4 NMSA 1978] of this act and in full force and effect shall upon furnishing such advice, counsel, recommendation or information give to the recipient thereof; (1) a statement in writing, signed by the consultant, in a form currently approved by the superintendent, specifying the advice, counsel, recommendation or information given; and (2) a receipt in a form currently approved by the superintendent for the fee paid to him or a statement in a form currently approved by the superintendent of the fee to be received by him. B. Any person who violates any provision of Subsection A of this section is guilty of a misdemeanor and upon conviction shall be punished by a fine of not less than fifty dollars ($50.00) or more than five hundred dollars ($500). Laws 1989, ch. 97, § 6.

NMSA 1978, § 59A-11A-7 Payment from insurers or insurance producers for sale of insurance prohibited; penalty

59A-11A-7. Payment from insurers or insurance producers for sale of insurance prohibited; penalty A. No insurance consultant serving any person, firm, association, organization or corporation not engaged in the insurance business, for compensation paid or to be paid by the person served, shall directly or indirectly receive any part of any commission or compensation paid by any insurer or insurance producer of any insurer in connection with the sale or writing of any insurance that is within the subject matter of any such service. B. Any person who violates any provision of Subsection A of this section is guilty of a misdemeanor and upon conviction shall be punished by a fine of not more than five hundred dollars ($500) or by imprisonment in the county jail for a definite term of not less than thirty days or more than ninety days or both. Laws 1989, ch. 97, § 7; 2016, ch. 89, § 24.

NMSA 1978, § 59A-11A-8 Acting as insurance consultant without a license prohibited; penalty

59A-11A-8. Acting as insurance consultant without a license prohibited; penalty Any person who acts as an insurance consultant without a license or during the suspension of his license is guilty of a misdemeanor and upon conviction shall be punished by a fine of not more than five hundred dollars ($500) or by imprisonment in the county jail for a definite term not exceeding six months or both. Laws 1989, ch. 97, § 8.

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