New Mexico Administrative Code
Title 13 - INSURANCE
Chapter 19 - NON-ADMITTED OR SURPLUS LINES INSURANCE
Part 2 - WRITING SURPLUS LINE BUSINESS
Section 13.19.2.9 - PROHIBITION ON ARTIFICIAL DIVISION OF COVERAGE
Universal Citation: 13 NM Admin Code 13.19.2.9
Current through Register Vol. 35, No. 6, March 26, 2024
A. Artificial divisions of coverage in one class or any form of coverage under one class into two or more proposed contracts for the purpose of obtaining a marketing or rate advantage upon the entire risk is prohibited where the entire coverage sought in that class or form would be acceptable as a single contract to an authorized insurer.
B. Combinations of primary coverage and excess coverage shall not be considered a violation of this section if the excess insurance is written by an eligible surplus lines insurer:
(1) because of a refusal in writing
by the primary authorized insurer to assume the limits of liability desired by
the person seeking insurance; or
(2) on a written demand, including specific
reasons, by the person seeking insurance that the entire liability not be
placed with one insurance company.
Disclaimer: These regulations may not be the most recent version. New Mexico may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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