Risk Management Division

NMSA 1978 ch. 15, art. 7

in effect

NMSA 1978, § 15-7-1 Definitions

15-7-1. Definitions As used in Chapter 15, Article 7 NMSA 1978: A. "board" means the risk management advisory board; B. "director" means the director of the risk management division of the general services department; C. "local public body" means all political subdivisions of the state and their agencies, instrumentalities and institutions; D. "public employee" means any officer, employee or servant of a governmental entity, including elected or appointed officials, law enforcement officers and persons acting on behalf or in service of a governmental entity in any official capacity, whether with or without compensation, but the term does not include an independent contractor; and E. "state" or "state agency" means the state of New Mexico or any of its branches, agencies, departments, boards, instrumentalities or institutions, including regional housing authorities. 1953 Comp., § 5-14-20.4, enacted by Laws 1977, ch. 385, § 4; 1978, ch. 166, § 6; 1982, ch. 19, § 1; 1983, ch. 301, § 63; 1996, ch. 45, § 1.

NMSA 1978, § 15-7-2 Risk management division

15-7-2. Risk management division A. There is established a "risk management division" of the general services department. The director of the risk management division shall be appointed by the secretary of general services. The director shall be knowledgeable and experienced in general insurance practices. The director shall be responsible for the acquisition and administration of all insurance purchased by the state. Except as provided by this section, no state agency may procure any kind of insurance other than through the risk management division. B. The risk management division shall apportion to each state agency its contributions toward the purchase of insurance or for the providing of coverage for any risk not insured. The amount of contribution by each agency shall be determined by the risk management division and shall reflect the respective risks of each agency. All contributions toward the purchase of insurance or for the coverage of any risk not insured shall be paid into the public liability fund, the workers' compensation retention fund, the public property reserve fund or the group self-insurance fund, as appropriate. The department of finance and administration may collect or transfer funds from each agency to cover insurance or other costs, pursuant to the risk management division's instructions. C. The director, upon a finding that efficiency and economy so require, may authorize any state agency to purchase insurance for, or otherwise cover, vision, dental, any group or individual health, life, accidental death and dismemberment or disability coverage. Any authorization granted shall be conditioned upon the prior approval by the director of any policy to be purchased and the premium to be paid by the agency. Laws 1978, ch. 166, § 7; 1983, ch. 301, § 64; 1986, ch. 102, § 5; 1989, ch. 231, § 10.

NMSA 1978, § 15-7-3 Additional powers and duties of the risk management division

15-7-3. Additional powers and duties of the risk management division A. The risk management division of the general services department may: (1) enter into contracts; (2) procure insurance, reinsurance or employee group benefits; provided that any proposal or contract for the procurement of any group health care benefits shall be subject to the provisions of the Health Care Purchasing Act [Chapter 13, Article 7 NMSA 1978]; and provided further that reinsurance or excess coverage insurance may be placed by private negotiation, notwithstanding the provisions of the Procurement Code [13-1-28 to 13-1-199 NMSA 1978], if the insurance or reinsurance has a restricted number of interested carriers, the board determines that the coverage is in the interest of the state and cannot otherwise be procured for a reasonable cost and the director seeks the advice and review of the board in the placement and in designing private negotiation procedures; (3) in the manner prescribed by Subsection E of Section 9-17-5 NMSA 1978, after a notice and a public hearing, prescribe by rule reasonable and objective underwriting and safety standards for governmental entities and reasonable standards for municipal self-insurance pooling agreements covering liability under the Tort Claims Act [41-4-1 to 41-4-27 NMSA 1978] and adopt such other regulations as may be deemed necessary; (4) compromise, adjust, settle and pay claims; (5) pay expenses and costs; (6) in the manner prescribed by Subsection E of Section 9-17-5 NMSA 1978, prescribe by rule the rating bases, assessments, penalties and risks to be covered by the public liability fund, the workers' compensation retention fund and the public property reserve fund and the extent such risks are to be covered; (7) issue certificates of coverage in accordance with Paragraph (6) of this subsection: (a) to any governmental entity for any tort liability risk covered by the public liability fund; (b) to any governmental entity for any personal injury liability risk or for the defense of any errors or act or omission or neglect or breach of duty, including the risks set forth in Paragraph (2) of Subsection B and Paragraph (2) of Subsection D of Section 41-4-4 NMSA 1978; and (c) to any governmental entity for any part of risk covered by the workers' compensation retention fund, the surety bond fund or the public property reserve fund; (8) study the risks of all governmental entities; (9) initiate the establishment of safety programs and adopt rules to carry out such programs in the manner prescribed by Subsection E of Section 9-17-5 NMSA 1978; (10) hire a safety program director who shall coordinate all safety programs of all state agencies; (11) consult with and advise local public bodies on their risk management problems; and (12) employ full-time legal counsel who shall be under the exclusive control and supervision of the director and the secretary of general services. B. The risk management division of the general services department shall provide liability coverage for the following risks: (1) a claim made pursuant to the provisions of 42 USC Section 1983 against a nonprofit corporation, members of its board of directors or its employees when the claim is based upon action taken pursuant to the provisions of a contract between the corporation and the department of health under which the corporation provides developmental or intellectual disability services to clients of the department and the claim is made by or on behalf of a client; and (2) a claim made pursuant to the provisions of 42 USC Section 1983 against a nonprofit corporation, members of its board of directors or its employees when the corporation operates a facility licensed by the department of health as an intermediate care facility for individuals with developmental or intellectual disabilities and the claim is based upon action taken pursuant to the provisions of the license and is made by or on behalf of a resident of the licensed facility. C. The director shall report findings and recommendations, if any, for the consideration of each legislature. The report shall include the amount and name of any person receiving payment from the public liability fund of any claim paid during the previous fiscal year exceeding one thousand dollars ($1,000). The report shall be made available to the legislature on or before December 15 preceding each regular legislative session. Laws 1978, ch. 166, § 8; 1979, ch. 287, § 3, 1979, ch. 392, § 1; 1983, ch. 301, § 65; 1986, ch. 102, § 6; 1990, ch. 71, § 1; 1995, ch. 173, § 1; 1997, ch. 74, § 6; 2023, ch. 113, § 1.

NMSA 1978, § 15-7-4 Risk management advisory board

15-7-4. Risk management advisory board A. There is created the "risk management advisory board." The board shall be composed of: (1) the attorney general or his designee; (2) the superintendent of insurance; (3) the secretary of finance and administration or his designee; (4) the chief financial officer of a public school district who shall be appointed by the governor; (5) an attorney, who shall be named by the president of the state bar of New Mexico; (6) the director of the legislative council service or his designee; (7) the chief financial officer of an institution of higher education who shall be appointed by the governor; (8) an insurance agent licensed to write property, casualty and life insurance in this state who shall be appointed by the governor; and (9) the chief financial officer of a local public body or the chief administrator of an entity of a local public body, other than a school district, with a risk covered by the public liability fund, who shall be appointed by the governor. B. Members of the board appointed by the governor or named by the president of the state bar of New Mexico shall serve for a term of four years. The insurance agent appointed by the governor and the attorney named by the president of the state bar of New Mexico shall be paid by the risk management division per diem and mileage in accordance with the provisions of the Per Diem and Mileage Act [10-8-1 to 10-8-8 NMSA 1978]. C. A majority of the board shall constitute a quorum. The members of the board shall annually elect from among their membership a chairman and vice chairman. Laws 1978, ch. 166, § 9.

NMSA 1978, § 15-7-5 Powers and duties of the advisory board

15-7-5. Powers and duties of the advisory board The advisory board shall review: A. specifications for all insurance policies to be purchased by the risk management division including specifications setting forth minimum capital and surplus requirements for any insurance company submitting a bid; B. all professional service and consulting contracts or agreements to be entered into by the risk management division; C. if insurance is to be purchased by negotiation, the companies and agents to be selected to submit proposals; D. all rules and regulations to be promulgated by the risk management division; E. the form, purpose and content of certificates of coverage to be issued by the risk management division; and F. investments to be made by the risk management division. Laws 1978, ch. 166, § 10.

NMSA 1978, § 15-7-6 Workers' compensation retention fund

15-7-6. Workers' compensation retention fund A. There is created in the state treasury the "workers' compensation retention fund". B. Money deposited in, earned by or appropriated to the workers' compensation retention fund may be used by the director to: (1) purchase workers' compensation insurance; (2) establish appropriate reserves to provide workers' compensation coverage for employees of state agencies or employees of covered educational entities; (3) pay workers' compensation claims in accordance with the Workers' Compensation Act [Chapter 52, Article 1 NMSA 1978]; (4) enter into consulting and other contracts as may be necessary or desirable in carrying out the provisions of this section; and (5) pay costs or expenses incurred in carrying out the provisions of this section. C. For the purposes of this section, "covered educational entities" means school districts as defined in Section 22-1-2 NMSA 1978 and educational institutions established pursuant to Chapter 21, Articles 13, 16 and 17 [repealed] NMSA 1978 that request and are granted coverage from the risk management division of the general services department, if the coverage is commercially unavailable; except that coverage shall be provided to a school district only through the public school insurance authority or its successor unless the district has been granted a waiver by the authority or the authority is not offering the coverage for the fiscal year for which the division offers its coverage. A local school district to which the division may provide coverage may provide for marketing and servicing to be done by licensed insurance agents who shall receive reasonable compensation for their services. 1953 Comp., § 5-14-25, enacted by Laws 1977, ch. 385, § 9; 1978, ch. 166, § 11; 1983, ch. 301, § 66; 1986, ch. 102, § 7; 1989, ch. 324, § 10; 1996 (1st S.S.), ch. 3, § 4; 2000, ch. 27, § 3.

NMSA 1978, § 15-7-7 Consulting and claims adjusting contracts

15-7-7. Consulting and claims adjusting contracts A. Notwithstanding any other provision of law, the risk management division of the department of finance and administration [general services department] may: (1) contract, as may be necessary, with a recognized insurance consulting firm to assist in the implementation of the workmen's compensation retention fund and the public property reserve fund; and (2) contract with a recognized insurance claims adjusting firm for the handling of all claims made against the workmen's compensation retention fund or the public property reserve fund. B. No contract shall be entered into pursuant to this section unless proposals have been sought from two or more qualified firms. Contracts shall be awarded on the basis of cost, financial resources of the firm, service facilities in New Mexico, service reputation and experience. 1953 Comp., § 5-14-26, enacted by Laws 1977, ch. 385, § 10; 1983, ch. 58, § 1.

NMSA 1978, § 15-7-8 Local public bodies; insurance policies; reports

15-7-8. Local public bodies; insurance policies; reports A. Upon request, any local public body shall file with the director of the risk management division: (1) a copy of every insurance policy currently in effect; and (2) a detailed statement of the cost of such policies. B. If a local public body has been unable to insure any risk or for any other reason has failed to insure any risk, it shall report the reason for such failure to the director of the risk management division on or before November 1 of each year. 1953 Comp., § 5-14-27, enacted by Laws 1977, ch. 385, § 16; 1978, ch. 166, § 12; 1983, ch. 58, § 2.

NMSA 1978, § 15-7-9 Confidentiality of records

15-7-9. Confidentiality of records A. The following records created or maintained by the risk management division of the general services department are confidential and shall not be subject to any right of inspection by any person except the New Mexico legislative council or a state employee within the scope of the New Mexico legislative council's or state employee's official duties: (1) records pertaining to insurance coverage; provided that any record of a particular coverage shall be available to any public officer, public employee or governmental entity insured under such coverage; and (2) records pertaining to claims for damages or other relief against any governmental entity or public officer or employee; provided that the records shall be subject to public inspection on and after the earliest of: (a) the date a final judgment is issued resolving the claim and all appeals and rights to appeal have been exhausted; or (b) the date a settlement agreement is signed by all of the parties. B. Records protected pursuant to Subsection A of this section shall be made available as necessary for purposes of audit or defense. Any person performing such audit or providing such defense shall keep such records confidential, except as required otherwise by law. 1978 Comp., § 15-7-9, enacted by Laws 1981, ch. 280, § 1; 2020, ch. 37, § 1.

NMSA 1978, § 15-7-10 Legal defense contracts; renewal

15-7-10. Legal defense contracts; renewal Any valid contract between the risk management division and any law firm, to defend claims against the state or any of its public employees pursuant to Subsection B of Section 41-4-4 NMSA 1978, shall be automatically extended for the purpose of and as long as necessary for completing and concluding any matter in litigation, including appeals, referred to the firm for defense prior to the termination date stated in the contract or any applicable amendment thereto. Automatic renewal pursuant to this section applies only to matters which were in litigation and were referred to the law firm prior to the contract termination date and does not apply to regular contract renewals. This section does not affect the director's discretion to assign or to terminate a prior assignment and reassign any matter to any law firm. This section does not apply where nonrenewal is approved: A. by two-thirds majority vote of the board members present and voting and by consent of a majority of the state public employee defendants being represented in each matter; or B. by simple majority vote of the board members present and voting, consent of the law firm and consent of a majority of the state public employee defendants being represented in each matter. 1978 Comp., § 15-7-10, enacted by Laws 1982, ch. 19, § 2.

NMSA 1978, § 15-7-11 Temporary transfer of money among funds administered by risk management division

15-7-11. Temporary transfer of money among funds administered by risk management division A. The director of the risk management division of the general services department may transfer money in accordance with this section among the following funds: (1) the local public body unemployment compensation reserve fund; (2) the public liability fund; (3) the public property reserve fund; (4) the state government unemployment compensation reserve fund; (5) the surety bond fund; (6) the workers' compensation retention fund; and (7) the group self-insurance fund. B. Money may be transferred among the funds specified in Subsection A of this section only upon the director's written certification that: (1) the money is required to maintain the financial stability and liquidity of the fund to which the money is to be transferred; (2) the money is not required to maintain the financial stability and liquidity of any fund from which the money is to be transferred; (3) the fund to which the money is to be transferred can reasonably be expected to have sufficient balances within one year of the date of the transfer to repay the amount transferred in full plus interest; and (4) all other requirements of this section will be fulfilled prior to transfer. C. The secretary of general services and the state board of finance shall approve in advance any transfer of money pursuant to this section. D. The total amount of money that may be transferred out of a particular fund shall not at any time exceed thirty percent of the total balance deposited in the fund, including any money owed to the fund pursuant to this section. E. Amounts of money transferred pursuant to this section shall be repaid to any fund from which transferred within one year from the date of transfer, together with interest. Interest shall be calculated on the basis of the average interest earned on money remaining in the fund during the duration of the transfer. F. If amounts owing any fund cannot be repaid in accordance with this section, the director of the risk management division shall so certify to the secretary of general services and to the state board of finance. Repayment shall then be made as soon as money becomes available therefor. G. Repayment of money to a particular fund shall not be deemed a transfer subject to the requirements of this section. 1978 Comp., § 15-7-11, enacted by Laws 1983, ch. 292, § 1; 1990, ch. 28, § 1; 2013, ch. 186, § 2.

Source: New Mexico Compilation Commission (nmonesource.com)URL: https://nmonesource.com/nmos/nmsa-unanno/en/item/18515/index.doFetched: 10/20/2026