A. All claims shall be promptly reported to the insurer or its designated claim representative, and the insurer shall maintain adequate claim files. All claims shall be settled as soon as possible and in accordance with the terms of the insurance contract.
B. All claims shall be paid either by draft drawn upon the insurer or by check of the insurer to the order of the claimant to whom payment of the claim is due pursuant to the policy provisions, or upon direction of such claimant to one specified.
C. No plan or arrangement shall be used whereby any person other than the insurer or its designated claim representative shall be authorized to settle or adjust claims. The creditor shall not be designated as claim representative for the insurer in adjusting claims; provided, that a group policyholder may, by arrangement with the insurer, draw drafts or checks in payment of claims due to the group policyholder subject to audit and review by the insurer.
History: Laws 1984, ch. 127, ยง 482.
Structure New Mexico Statutes
Article 25 - Credit Life and Credit Health Insurance
Section 59A-25-1 - Scope and short title.
Section 59A-25-3 - Definitions.
Section 59A-25-4 - Forms of credit life, credit health insurances.
Section 59A-25-5 - Amount of insurance.
Section 59A-25-6 - Term of insurance.
Section 59A-25-7 - Provisions of policies and certificates; disclosure to debtors.
Section 59A-25-8 - Filing, approval and withdrawal of forms.
Section 59A-25-9 - Premiums and refunds.
Section 59A-25-10 - Authorized insurer, licensed agent required.
Section 59A-25-11 - Claims administration.
Section 59A-25-12 - Existing insurance; choice of insurer.
Section 59A-25-13 - Director of financial institutions division to report violations.