A. As to a risk assumed by an unauthorized insurer under Chapter 59A, Article 14 NMSA 1978, and if the premium thereon has been received by the producing broker or the surplus lines broker who placed the insurance, in all questions thereafter arising under the coverage between the insurer and the insured the insurer shall be deemed to have received the premium due it for the coverage; and the insurer shall be liable to the insured for losses covered by the insurance and for unearned premiums that may become payable to the insured upon cancellation of the insurance, whether or not in fact the surplus lines broker is indebted to the insurer as to the insurance or for any other cause.
B. Each unauthorized insurer assuming a surplus lines risk under Chapter 59A, Article 14 NMSA 1978 shall be deemed thereby to have subjected itself to the terms of this section.
History: Laws 1984, ch. 127, § 253; 1991, ch. 125, § 19.
ANNOTATIONSThe 1991 amendment, effective April 3, 1991, substituted "Chapter 59A, Article 14 NMSA 1978" for "this article" in Subsections A and B; in Subsection A, inserted "the producing broker or" near the beginning and substituted "lines broker" for "line broker" in two places; substituted "lines risk" for "line risk" in Subsection B; and made a minor stylistic change in Subsection A.