A. A surplus line broker may accept and export surplus line business from and for any insurance producer licensed by this state for the kind of insurance involved, and may compensate the insurance producer therefor.
B. A surplus line broker shall not directly or indirectly compensate any person other than a licensed insurance producer for origination of business. This provision shall not be deemed to prohibit payment of regular salaries to the surplus line broker's employees or sharing of compensation with other persons entitled thereto under firm and corporate agreements and surplus line broker licenses. Violation of this provision is a misdemeanor.
History: Laws 1984, ch. 127, § 247; 2016, ch. 89, § 57.
Cross references. — For general penalty provision, see 59A-1-18 NMSA 1978.
For penalty for misdemeanor, see 31-19-1 NMSA 1978.
The 2016 amendment, effective July 1, 2017, in the catchline, added "Surplus line", deleted "agents" and added "insurance producers"; in Subsection A, after "any insurance", deleted "agent or broker" and added "producer", and after "may compensate the", deleted "agent or broker" and added "insurance producer"; and in Subsection B, after "any person other than", deleted "such", after "a licensed", deleted "agent or broker as to" and added "insurance producer for", and after "origination of", deleted "such".
Severability. — Laws 2016, ch. 89, § 71 provided that if any part or application of Laws 2016, ch. 89 is held invalid, the remainder or its application to other situations or persons shall not be affected.
Structure New Mexico Statutes
Article 14 - Surplus Line Insurance
Section 59A-14-1 - Scope of article; purpose; necessity for regulation.
Section 59A-14-2 - Definitions.
Section 59A-14-3 - Placement of surplus lines insurance.
Section 59A-14-4 - Eligible surplus lines insurers required.
Section 59A-14-4.1 - Withdrawal of eligibility from a surplus lines insurer.
Section 59A-14-5 - Signature and special endorsement of surplus lines policy.
Section 59A-14-6 - Surplus line insurance valid.
Section 59A-14-7 - Surplus lines broker license required; qualifications for license.
Section 59A-14-10 - Office and records.
Section 59A-14-11 - Duty to file reports and affidavits.
Section 59A-14-13 - Examination of surplus line broker.
Section 59A-14-14 - Evidence of insurance; policy changes; penalties.
Section 59A-14-15 - Liability of insurer.
Section 59A-14-16 - Legal process against surplus line insurer; venue.
Section 59A-14-17 - Certain other provisions applicable.
Section 59A-14-19 - National database; participation required.