Property Insurance Contracts; FAIR Plan Act

NMSA 1978 ch. 59A, art. 29

in effect

NMSA 1978, § 59A-29-1 Short title

59A-29-1. Short title This article [Chapter 59A, Article 29 NMSA 1978] may be cited as the "FAIR Plan Act" (fair access to insurance requirements). 1978 Comp., § 59A-29-1, enacted by Laws 1985, ch. 61, § 1.

NMSA 1978, § 59A-29-2 Organization of FAIR plan and underwriting association

59A-29-2. Organization of FAIR plan and underwriting association All insurers licensed to write and writing essential property insurance, as defined by the superintendent of insurance, in New Mexico on a direct basis are authorized, subject to approval and regulation by the superintendent of insurance, to establish and maintain a FAIR plan and to establish and maintain an underwriting association and to formulate and from time to time amend the plan and articles of association and rules and regulations in connection therewith and to assess and share on a fair and equitable basis all expenses, income and losses incident to such FAIR plan and underwriting association in a manner consistent with the provisions of the FAIR Plan Act. Such underwriting association shall be known as the "New Mexico Property Insurance Program." 1978 Comp., § 59A-29-2, enacted by Laws 1985, ch. 61, § 2.

NMSA 1978, § 59A-29-3 Participation

59A-29-3. Participation Each insurer authorized to write and writing essential property insurance in New Mexico shall be required to become and remain a member of the FAIR plan and the underwriting association and comply with the requirements thereof as a condition of its authority to transact property insurance business. As a prerequisite to such authority to transact property insurance business each insurer shall automatically subscribe to the articles of agreement on file in the superintendent's office. 1978 Comp., § 59A-29-3, enacted by Laws 1985, ch. 61, § 3.

NMSA 1978, § 59A-29-4 Requirements of plan and authority of association

59A-29-4. Requirements of plan and authority of association The FAIR plan and articles of association shall make provision for an underwriting association having authority on behalf of its members to cause to be issued property insurance policies, to reinsure in whole or in part any such policies and to cede any such reinsurance. The plan and articles of association shall provide, among other things, for the perils to be covered, geographical area of coverage, compensation and commission, assessments of members, the sharing of expenses, income and losses on an equitable basis, cumulative weighted voting for the governing committee of the association, the administration of the plan and association and any other matter necessary or convenient for the purpose of assuring fair access to insurance requirements. 1978 Comp., § 59A-29-4, enacted by Laws 1985, ch. 61, § 4.

NMSA 1978, § 59A-29-5 Changes in plan or articles

59A-29-5. Changes in plan or articles The governing committee of the New Mexico property insurance program may, on its own initiative or at the request of the superintendent of insurance, amend the plan and articles, subject to approval by the superintendent. 1978 Comp., § 59A-29-5, enacted by Laws 1985, ch. 61, § 5.

NMSA 1978, § 59A-29-6 Appeals; judicial review

59A-29-6. Appeals; judicial review A. A person aggrieved by an action or decision of the administrators of the FAIR plan or the underwriting association or of any insurer as a result of its participation may appeal to the superintendent within thirty days from the date of the action or the decision. The superintendent shall, after hearing held upon thirty days' written notice, issue an order approving the action or decision or disapproving the action or decision with respect to the matter that is the subject of appeal. B. All final orders and decisions of the superintendent shall be subject to judicial review in the district court pursuant to the provisions of Section 39-3-1.1 NMSA 1978. 1978 Comp., § 59A-29-6, enacted by Laws 1985, ch. 61, § 6; 1998, ch. 55, § 64; 1999, ch. 265, § 68.

NMSA 1978, § 59A-29-7 Immunity

59A-29-7. Immunity There shall be no liability on the part of, and no cause of action of any nature shall arise against, any member insurer, the association or its agents or employees, the governing committee or the superintendent or his representative for any action taken by them in the performance of their powers and duties under the FAIR Plan Act. The meetings, activities, recommendations and decisions of the governing committee of the association as required or permitted in that act shall not be open to public inspection, nor be considered public documents, nor be subject to Sections 10-15-1 through 10-15-4 NMSA 1978. 1978 Comp., § 59A-29-7, enacted by Laws 1985, ch. 61, § 7.

NMSA 1978, § 59A-29-9 Retroactive application

59A-29-9. Retroactive application The FAIR Plan Act shall be effective and shall apply retroactively to April 30, 1981, to validate action taken under the New Mexico interim uniform basic property insurance and placement program promulgated by the superintendent of insurance. 1978 Comp., § 59A-29-9, enacted by Laws 1985, ch. 61, § 9.

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