New Mexico Administrative Code
Title 13 - INSURANCE
Chapter 4 - LICENSING OF INSURANCE PROFESSIONALS
Part 2 - RESIDENT PRODUCERS AND OTHER RESIDENT LICENSES
Section 13.4.2.7 - DEFINITIONS

A. "affiliate" means a person that controls, is controlled by or is under common control with an insurance producer;

B. "appointment" means official authorization by an insurer of a licensed producer to transact insurance on the insurer's behalf upon application and the payment of required fees by the insurer to the superintendent;

C. "broker" means a type of insurance producer who, not being an agent of the insurer, but as an independent contractor and on behalf of the insured, solicits, negotiates or procures insurance or annuity contracts or the renewal or continuation thereof for insureds or prospective insureds other than the broker. In any controversy between an insured or an insured's beneficiary and the insurer issuing the insurance through its licensed insurance producer at the request of a broker, the broker shall be held to be the agent of the insured unless under particular circumstances it is found that the broker is representing the insurer or in instances of fraud or attempted fraud by the insured. "Broker" does not include a surplus lines broker as defined in Chapter 59A, Article 14 NMSA 1978;

D. "business entity" means a corporation, association, partnership, limited liability company, limited liability partnership or other legal entity;

E. "compensation" means payments, commissions, fees, awards, overrides, bonuses, contingent commissions, loans, stock options, gifts, prizes or any other form of valuable consideration, whether or not payable pursuant to a written agreement;

F. "designated home state" means a state in which an insurance producer is licensed and which the producer designates for purposes of compliance with licensing regulations;

G. "designated responsible licensed producer" or "DRLP" is as defined in Subsection B of 13.4.2.10 NMAC;

H. "errors and omissions policy" or "professional indemnity insurance" means a form of casualty insurance that helps to protect individuals and companies from costs of defending against a negligence claim based on allegations of loss caused by an error or omission in the service sold;

I. "escrow" means a transaction in which funds are delivered or given to a person not otherwise having any right, title or interest in them, to be held by that person for delivery or disbursement to another person upon the occurrence of a specified event or the performance of a specified condition;

J. "home state" means the District of Columbia or any state or territory of the United States which is the principal place of residence or principal place of business for an insurance producer and in which the producer is licensed to transact insurance;

K. "insurance" has the meaning set forth in Section 59A-1-5 NMSA 1978;

L. "insurance consultant" means a person who, under an agreement with an insured or potential insured, provides professional advice regarding a policy, annuity or other instrument of insurance in exchange for a fee, as set forth in Section 59A-11A-1 NMSA 1978.

M. "insurance producer" means a person required to be licensed in this state to sell, solicit or negotiate insurance. A licensed insurance producer appointed by an insurer shall, in any controversy between an insured or an insured's beneficiary and the insurer, be held to be the agent of the insurer that issued the insurance solicited or applied for;

N. "insurer" has the meaning set forth in Section 59A-1-8 NMSA 1978;

O. "license" means a document issued by the superintendent of insurance authorizing a person to act as an insurance producer for the lines of authority specified in the document or to engage in other insurance transactions based on the type of license;

P. "limited lines insurance" means those lines of insurance as set forth in Sections 59A-12-18, 59A-12-18.1 and 59A-60-1 et seq. NMSA 1978, or any other line of insurance that the superintendent deems necessary;

Q. "limited lines insurance producer" means a licensed insurance producer who is qualified to solicit and sell limited lines insurance;

R. "managing general agent" means a specialized type of licensed insurance producer as defined in Subsection C of Section 59A-12B-2 NMSA 1978;

S. "NAIC" means the national association of insurance commissioners;

T. "negotiate" means the act of conferring directly with or offering advice directly to a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits, terms or conditions of the contract, provided that the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers;

U. "offer and disseminate" means providing general information, such as a description of coverage and price, processing applications, collecting premiums and performing other insurance-related activities for which a license is not required by this state;

V. "pharmacy benefits manager" means a person or its subsidiary that provides claims administration, benefit design and management, pharmacy network management, negotiation and administration of product discounts, rebates and other benefits or other prescription drug or device services to third parties, as further described in Subsection G of Section 59A-61-2 NMSA 1978;

W. "prearranged funeral plan" means a contract for future delivery of a funeral plan as defined in Subsections A, B and C of Section 59A-49-4 NMSA 1978;

X. "prepaid dental plan" means a contractual arrangement whereby a prepaid dental plan organization undertakes to directly provide or to arrange for the provision of prepaid dental services and to pay or make reimbursement for any remaining portion of such prepaid dental services on a prepaid basis through insurance or otherwise;

Y. "principal" means a person who gives authority to another to act on the person's behalf;

Z. "rental car endorsee" means a rental car agent's employee who offers, sells, binds, effects, solicits or negotiates rental car insurance and who satisfies the requirements of Subsection C of 13.4.2.15 NMAC;

AA. "rental car insurance" means insurance sold in connection with and incidental to the rental of a vehicle and that applies only to the vehicle that is the subject of the rental agreement, and as further defined in Subsection E of Section 59A-32A-2 NMSA 1978;

BB. "rental car producer" means a person or entity in the business of renting rental cars to the public and that is licensed to offer, sell, bind, effect, solicit or negotiate rental car insurance;

CC. "resident of the state" means an individual who maintains a principal home in New Mexico and holds no active resident insurance license in another state;

DD. "sell" means to exchange a contract of insurance by any means, for money or its equivalent, on behalf of an insurer;

EE. "service representative" means an individual regularly employed and salaried by an insurer, group of insurers or managing general agent who assists insurance producers in soliciting, negotiating and effectuating insurance for the insurer, group or managing general agent and who, in the conduct of their business, receives no part of the commission on insurance written. A service representative is not required to be licensed, nor shall the service representative independently solicit or negotiate insurance or annuity contracts;

FF. "solicit" means to attempt to sell insurance or ask or urge a person to apply for a particular kind of insurance from a particular insurer;

GG. "superintendent" means the superintendent of insurance, the office of superintendent of insurance or employees of the office of superintendent of insurance acting within the scope of the superintendent's official duties and with the superintendent's authorization;

HH. "terminate" means to cancel the relationship between an insurance producer and the insurer or to terminate a licensed insurance professional's authority to transact insurance;

II. "title abstract plant" is as defined in Section 59A-12-13 NMSA 1978;

JJ. "title insurance policy" means an insurance contract indemnifying against loss or damages, as set forth in Subsection H of Section 59A-30-3 NMSA 1978;

KK. "title insurance business" means the types of business set forth in Subsection C of Section 59A-30-3 NMSA 1978;

LL. "title insurance producer" is a person licensed in this state to engage in the business of title insurance and who has been appointed to perform escrow, closing and settlement functions of a real estate transaction by a title insurer;

MM. "travel insurance policy" means insurance coverage for personal risks incident to planned travel as defined in Paragraph (3) of Subsection H of Section 59A-12-18.1 NMSA 1978; and

NN. "travel retailer" means a business entity that makes, arranges or offers travel services.