New Mexico Statutes
Article 16 - Trade Practices and Frauds
Section 59A-16-18 - Receipt of rebates and inducements; penalty.

Any person not a licensed agent, broker, solicitor or other representative, who at any time knowingly receives any rebate of any premium specified in any insurance policy or coverage, or any special favor or advantage of any kind or nature whatsoever not plainly designated in the policy, or receive any dividends or profits, except dividends on participating policies, or agrees to receive such dividends or profits or anything of value whatsoever not specified in the policy other than matters exempted under Sections 282 and 283 [59A-16-16 and 59A-16-17 NMSA 1978] of this article, shall upon conviction thereof be guilty of a misdemeanor punishable by a fine of not over one thousand dollars ($1,000).
History: Laws 1984, ch. 127, § 284.
One object of section is to prevent splitting of commissions with the insured or some friend of the prospect who may assist the agent in "bringing him through". It was not intended that any contract of insurance made in its violation should be invalid, but merely that the practice should be discouraged by a forfeiture of the license of anyone violating the statute. Douglass v. Mutual Benefit Health & Accident Ass'n, 1937-NMSC-097, 42 N.M. 190, 76 P.2d 453.
Liability for payment of premium. — Since the insurance company could not have avoided liability on its policy because of a rebate illegally given to insured, neither could insured escape payment of the premium represented by the note on such grounds; to excuse him would result in his being permitted to take advantage of his own criminal act. Southern States Life Ins. Co. v. McCauley, 1970-NMSC-010, 81 N.M. 114, 464 P.2d 404.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 43 Am. Jur. 2d Insurance §§ 831, 832.
Insurance anti-rebate statutes: validity and construction, 90 A.L.R.4th 213.
44 C.J.S. Insurance § 85 et seq.

Structure New Mexico Statutes