For the purpose of the Insurance Code:
A. a "broker" is a type of insurance producer who, not being an agent of the insurer, as an independent contractor and on behalf of the insured solicits, negotiates or procures insurance or annuity contracts or renewal or continuation thereof for insureds or prospective insureds other than the broker. "Broker" does not include a surplus line broker, as defined in Chapter 59A, Article 14 NMSA 1978; and
B. "service representative" means an individual, regularly employed on salary by an insurer, group of insurers or managing general agent, who assists insurance producers in soliciting, negotiating and effectuating insurance for such insurer, group or managing general agent and, in conduct of their business, receives no part of the commission on insurance written. A service representative is not required to be licensed, nor shall the service representative independently solicit or negotiate insurance or annuity contracts.
History: Laws 1984, ch. 127, § 203; 2016, ch. 89, § 27.
ANNOTATIONSThe 2016 amendment, effective July 1, 2017, amended the definition of "broker" and defined "service representative" as used in the Insurance Code; in the catchline, after "'broker'", deleted "'nonresident broker'" and added "and 'service representative'"; in Subsection A, after "'broker' is a", deleted "person generally" and added "type of insurance producer", and after "insureds other than", deleted "himself" and added "the broker"; deleted former Subsection B; deleted the subsection designation "C" and added the sentence from former Subsection C to Subsection A, and in the sentence from former Subsection C, after "defined in", added "Chapter 59A", and after "Article 14", deleted "of the Insurance Code" and added "NMSA 1978; and"; and added a new Subsection B.
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.
Cross references. — For the Insurance Code, see 59A-1-1 NMSA 1978 and notes thereto.
Nonresident broker's license could not be issued to a person who desired to solicit insurance business for a company because he would be acting as an agent or a solicitor for an agent. 1945 Op. Att'y Gen. No. 45-4640.
Foreign corporation. — As a prerequisite to being licensed as a nonresident broker, a foreign corporation does not have to be admitted to do business in New Mexico. 1963 Op. Att'y Gen. No. 63-16.