A. Before any unauthorized insurer files or causes to be filed any pleading in any court action, suit or proceeding or any notice, order, pleading or process in an administrative proceeding before the superintendent instituted against such person or insurer, by service made as provided in Section 262 [59A-15-7 NMSA 1978] of this article, such insurer shall either:
(1) deposit with the clerk of the court in which such action, suit or proceeding is pending, or with the superintendent in administrative proceedings before the superintendent, cash or securities, or file with such clerk or the superintendent a bond with good and sufficient sureties, to be approved by the clerk or the superintendent, in an amount to be fixed by the court or superintendent sufficient to secure the payment of any final judgment which may be rendered in such action or administrative proceeding; or
(2) procure a certificate of authority to transact insurance in this state. In considering the application of an insurer for a certificate of authority, for the purposes of this paragraph the superintendent need not assert the provisions of Section 100 [59A-5-33 NMSA 1978] (reciprocity provision) of the Insurance Code against such insurer with respect to its application if he determines that the insurer would otherwise comply with the requirements for such certificate of authority.
B. The superintendent, in any administrative proceeding in which service is made as provided in Section 262 of this article, may in his discretion order such postponement as may be necessary to afford the defendant reasonable opportunity to comply with the provisions of Paragraph (1) above, and to defend such action.
C. Nothing in Subsection A above, shall be construed to prevent an unauthorized insurer from filing a motion to quash a writ or to set aside service thereof, on the ground that such unauthorized insurer has not transacted insurance in this state.
History: Laws 1984, ch. 127, § 263.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 43 Am. Jur. 2d Insurance § 267.
Structure New Mexico Statutes
Article 15 - Unauthorized Insurers
Section 59A-15-1 - Purposes of article.
Section 59A-15-2 - Representing or aiding unauthorized insurer prohibited.
Section 59A-15-3 - Inclusion of unauthorized insurer in coverage.
Section 59A-15-4 - Insurance independently procured; duty to report.
Section 59A-15-5 - Validity of contract not impaired; right of insurer as to court action.
Section 59A-15-6 - Superintendent is attorney of unauthorized insurer for service of process.
Section 59A-15-7 - Service of process on unauthorized insurer.
Section 59A-15-8 - Defense of action by unauthorized insurer; bond.
Section 59A-15-9 - Enforcement of foreign decrees.
Section 59A-15-10 - Penalty for violation.
Section 59A-15-11 - Unauthorized Insurers False Advertising Process Law; title.
Section 59A-15-12 - Notice to domiciliary supervisory official.
Section 59A-15-13 - Action by superintendent.
Section 59A-15-14 - Short title; Health Care Benefits Jurisdiction Act.
Section 59A-15-16 - Jurisdiction over health care benefits providers presumed.
Section 59A-15-17 - Demonstrating jurisdiction.
Section 59A-15-18 - Examination.
Section 59A-15-19 - Disclosure.
Section 59A-15-20 - Multiple-employer welfare arrangements; regulations.