New Mexico Administrative Code
Title 13 - INSURANCE
Chapter 18 - CREDIT INSURANCE
Part 3 - CREDITOR-PLACED INSURANCE
Section 13.18.3.16 - REBATES PROHIBITED
Current through Register Vol. 35, No. 6, March 26, 2024
No insurer shall offer, and no creditor shall accept, a rebate or inducement. This section does not prohibit or restrict an insurer that provides creditor-placed insurance for a creditor from doing business with that creditor if the business is conducted in accordance with the same terms and conditions and at the regular and customary interest rates and charges the creditor applies to its other customers.
A. An insurer shall not pay directly or indirectly to a creditor commissions, fees, rent, expense reimbursement, or other compensation greater than thirty percent of earned premium net of terminations.
B. An insurer shall not pay to a creditor a policyholder dividend, retrospective premium adjustment, profit sharing, or similar return of premium.
C. An insurer transacting creditor-placed insurance shall not provide other insurance coverages to a creditor at inadequate rates.
D. An insurer shall not pay a commission to a person who is not a duly licensed and appointed agent of the insurer.
E. An insurer shall not purchase or offer to purchase certificates of deposit from a creditor or maintain or offer to maintain accounts with a creditor in connection with a creditor-placed insurance solicitation.
F. An insurer shall not purchase certificates of deposit from a creditor or maintain accounts with a creditor at less than market interest rates.
G. An insurer shall not pay for damages that occurred outside the period of coverage or for other losses not covered under the policy.
H. An insurer shall not require a creditor to purchase insurance tracking or any other services from a specific person but may require that such services meet minimum quality standards.
I. A creditor shall not knowingly recover for damages that occurred outside the period of coverage or for other losses not covered under the policy.
J. A creditor shall credit a debtor's account for the amount of any refunded premium upon cancellation of creditor-placed insurance if the creditor has debited the debtor's account for the amount of the premium.
