New Mexico Office of Superintendent of Insurance

The New Mexico Office of Superintendent of Insurance (OSI) is the state agency responsible for regulating the Property & Casualty insurance industry in New Mexico. OSI ensures fair insurance practices, maintains a stable insurance market, and protects New Mexico consumers.

The Superintendent of Insurance

Appointment and Authority

The New Mexico Superintendent of Insurance:

• Appointed by the Governor
• Confirmed by the New Mexico State Senate
• Serves as the chief insurance regulator for the state
• Enforces the New Mexico Insurance Code (NMSA Chapter 59A)
• Has broad regulatory and enforcement authority

Superintendent Powers and Responsibilities

New Mexico Insurance Code (NMSA Chapter 59A)

The New Mexico Statutes Annotated (NMSA) Chapter 59A is the state insurance code that governs:

Key Statutory Areas

1. Chapter 59A-1: General Provisions and Definitions
2. Chapter 59A-11: Producer Licensing and Regulation
3. Chapter 59A-12: Insurance Companies and Organization
4. Chapter 59A-15: Policy Forms and Rates
5. Chapter 59A-16: Unfair Trade Practices
6. Chapter 59A-18: Property Insurance Requirements
7. Chapter 59A-23: Auto Insurance Requirements

Exam Tip: You don't need to memorize specific statute numbers, but understand that NMSA Chapter 59A is the foundation of New Mexico insurance law.

Rate Regulation in New Mexico

File-and-Use System

New Mexico uses a file-and-use system for most P&C insurance rates:

How It Works:

1. Insurers file rate changes with OSI
2. Rates can be used immediately upon filing (no prior approval needed)
3. OSI reviews filed rates for compliance with law
4. OSI may disapprove rates if found:
   • Excessive - unreasonably high relative to benefits
   • Inadequate - insufficient to sustain future claims obligations
   • Unfairly discriminatory - not based on sound actuarial principles

Rate Standards

Insurance rates in New Mexico must be:

Prohibited Rating Factors:

• Race
• Religion
• National origin
• Sexual orientation
• Gender identity

Important: While rates must be adequate, not excessive, and not unfairly discriminatory, insurers have flexibility to set rates based on legitimate risk factors like claims history, credit score (in most lines), location, and coverage limits.

OSI Divisions and Functions

Licensing Division

Responsibilities:

• Process producer and agency license applications through NIPR
• Conduct background checks for resident applicants
• Issue licenses and lines of authority
• Monitor continuing education compliance
• Maintain licensing database

Contact: Agents.Licensing@osi.nm.gov

Consumer Services Division

Responsibilities:

• Handle consumer complaints and inquiries
• Mediate disputes between consumers and insurers
• Investigate unfair claim practices
• Provide consumer education
• Assist with billing and coverage questions

Key Services:

• Free complaint investigation
• Policy interpretation assistance
• Rate comparison information
• Consumer alerts and notices

Financial Regulation Division

Responsibilities:

• Monitor insurer financial condition
• Review annual financial statements
• Conduct financial examinations
• Oversee insurer solvency
• Coordinate with other states through NAIC

Market Conduct Division

Responsibilities:

• Examine insurer business practices
• Investigate trade practice violations
• Review claims handling procedures
• Monitor advertising and marketing
• Ensure compliance with laws and regulations

Fraud Division

Responsibilities:

• Investigate suspected insurance fraud
• Work with law enforcement agencies
• Prosecute fraud cases
• Educate industry on fraud detection
• Operate fraud reporting hotline

Fraud Hotline: (855) 427-5674

New Mexico Contact Information

Main OSI Contact

Office Hours

• Monday - Friday: 8:00 AM - 5:00 PM Mountain Time
• Closed: State holidays

National Association of Insurance Commissioners (NAIC)

New Mexico is a member state of the National Association of Insurance Commissioners (NAIC), which:

• Develops model laws and regulations
• Coordinates multi-state regulatory activities
• Maintains the Producer Database (PDB)
• Operates the State-Based Systems (SBS) for licensing
• Provides research and training for state regulators

NIPR (National Insurance Producer Registry):

• All license applications processed through www.NIPR.com
• Centralized licensing platform
• Electronic application submission
• Background check coordination
• License verification and lookup

Exam Tip: New Mexico uses NIPR exclusively for licensing applications. You cannot apply directly with OSI—all applications must go through NIPR's online portal.

Regulatory Philosophy and Consumer Protection

OSI Mission Statement

The New Mexico OSI mission includes:

1. Protect consumers from unfair insurance practices
2. Ensure market stability through insurer regulation
3. Promote competition to benefit consumers
4. Educate consumers about insurance options
5. Enforce compliance with laws and regulations

Consumer Rights in New Mexico

New Mexico insurance consumers have the right to:

• Fair treatment in underwriting and claims
• Timely claim processing under statutory timeframes
• Accurate information about policies and coverage
• File complaints with OSI without retaliation
• Access to insurance through residual markets if necessary
• Privacy protection of personal information

Producer Responsibilities to OSI

Licensed producers must:

• Report address changes within 30 days
• Report legal actions including arrests, charges, convictions
• Maintain appointments with insurers
• Comply with CE requirements (24 hours/2 years)
• Cooperate with investigations when requested by OSI
• Maintain accurate records for 5 years
• Submit to examinations when OSI requests

Important OSI Initiatives and Programs

New Mexico FAIR Plan

The New Mexico Property Insurance Plan (FAIR Plan) is a residual market mechanism that:

• Provides property insurance for high-risk properties
• Serves as insurer of last resort
• Available when voluntary market coverage unavailable
• Covers dwelling, personal property, and commercial property
• Offers basic fire and extended coverage perils

When Used: Properties denied coverage by at least 2 voluntary market insurers may apply to FAIR Plan.

Wildfire Mitigation and Insurance

New Mexico faces significant wildfire risk. OSI initiatives include:

• Wildfire risk education for homeowners
• Mitigation incentives for defensible space creation
• Rate considerations for fire-adapted communities
• Coordination with forestry and emergency management agencies

Consumer Education Programs

OSI provides free resources:

• Insurance Buyers Guide for homeowners and auto
• Senior Consumer Resources including Medicare supplement info
• Disaster Preparedness Materials
• Fraud Awareness Education
• Premium Comparison Tools

Relationship with Other Regulators

State Regulators

OSI coordinates with:

• New Mexico Attorney General - Consumer protection enforcement
• New Mexico Department of Public Safety - Background checks
• New Mexico Taxation & Revenue - Premium tax collection
• New Mexico Motor Vehicle Division - SR-22 and insurance verification

Federal Coordination

OSI works with:

• Federal Insurance Office (FIO) - Federal-state coordination
• National Flood Insurance Program (NFIP) - Flood insurance oversight
• Federal Emergency Management Agency (FEMA) - Disaster response

On the Exam: Questions may test your understanding of OSI's role, the Superintendent's appointment process, rate regulation systems, and consumer protection functions.