New Mexico Administrative Code
Title 13 - INSURANCE
Chapter 10 - HEALTH INSURANCE
Part 11 - HEALTH INSURANCE ALLIANCE PLAN OF OPERATION AND ELIGIBILITY CRITERIA
Section 13.10.11.12 - OPERATIONS

A. The board, in addition to the powers prescribed in the act, shall have the specific authority to enter into contracts and undertake such other activities as are necessary or proper to carry out the provisions and purposes of the act, including the authority, with the approval of the superintendent, to enter into contracts with similar alliances of other states for the joint performance of common administrative functions. The board may employ such persons, firms or corporations to perform such administrative or other functions as are necessary for the operations of the alliance. Such persons, firms or corporations shall keep such records of their activities as may be required by the board.

B. The board may open one or more bank accounts for use in alliance business. Reasonable delegation of deposit and withdrawal authority for such accounts for alliance business may be made, consistent with prudent fiscal policy. The board may borrow money from any person, or organization as the board may deem advantageous for the alliance and the public. The alliance administration is responsible, within such authority as may be granted to it by the board, for the handling, safe-guarding, and disbursement of funds of the alliance, subject to and responsible to the board. The alliance administration may maintain the financial records of the alliance as directed by the board.

C. The board may review the act and other appropriate insurance laws and regulations in order to make recommendations to the superintendent for the improved operation of the alliance.

D. The board shall provide and accept applications for health insurance in accordance with the eligibility criteria set forth in this rule, and for any other insurance plans developed by the board of directors, which contain standard policy provisions as specified by the act.

E. The board shall adopt a plan for the periodic advertising of the general availability of health insurance coverage from the alliance and the eligibility requirements and procedures for enrollment in an approved health plan and to maintain public awareness of the alliance.

F. The board shall establish procedures to determine the amount of and method for collecting on assessments pursuant to the act. The board shall impose the initial administrative assessment. The board shall promptly inform the superintendent of the failure of any member to pay an assessment after 30 days' written notice to the member that payment is due. A minimum penalty of $1000, plus interest at the rate used by the IRS on the assessment, will be assessed against any member who fails to pay the assessment within the time prescribed by the board unless such other minimum penalty is established by the board and approved by the superintendent.

G. The board annually shall review operating expenses and outstanding contractual obligations and determine if an assessment is necessary for the proper administration of the alliance and, if so, the amount. If such assessment is deemed to be necessary, the board shall levy such assessment based upon the criteria set forth in Section 59A-56-11 NMSA 1978. The board may adopt other or additional methods of adjusting the formula to achieve equity of assessments among alliance members, within the provisions of the act. The board may abate or defer in any part the assessment of a member, if, in the opinion of the board, payment of the assessment would endanger the ability of the member to fulfill its contractual obligations. The assessment shall be imposed annually.

H. The alliance may adopt any additional policies or procedures necessary or proper for the execution of the powers and duties of the alliance.