A. The superintendent shall review any filing, except any filing by a health insurance issuer for a change in rate, made pursuant to Section 59A-18-12 or 59A-18-13 NMSA 1978 within sixty days of the filing date. The superintendent shall approve any form if the superintendent finds that it complies with the Insurance Code [Chapter 59A NMSA 1978] and shall disapprove any form, classification of risks or rate only on one or more of the following grounds:
(1) if the form is in any respect in violation of or does not comply with the Insurance Code;
(2) if the form contains, or incorporates by reference where such incorporation is otherwise permissible, any inconsistent, ambiguous or misleading clauses or exceptions and conditions that deceptively affect the risk purported to be assumed in the general coverage of the contract, or that encourage misrepresentation of the policy or its benefits;
(3) if the benefits offered are unreasonably restricted in relation to the premium charged;
(4) if the form has a title, heading or other indication of its provisions that is misleading or if the form is printed in such type or manner of reproduction as to be difficult to read; or
(5) if purchase of the form is being solicited by advertising, communication or dissemination of information that is deceptive or misleading.
B. If the superintendent disapproves any form during the sixty-day review period, the superintendent shall give the insurer written notice of the disapproval, stating the grounds for the disapproval.
C. After expiration of the sixty-day review period referred to in Subsection A of this section or at any time after having approved a form, the superintendent may, after a hearing thereon, disapprove a form or withdraw a previous approval on any of the grounds stated in Subsection A of this section. The superintendent's order issued on such hearing shall state the grounds for disapproval or withdrawal of previous approval and the date, not less than twenty days after the date of the order, when disapproval or withdrawal of approval shall become effective.
D. Any filing for a rate by a health insurance issuer shall be reviewed pursuant to the provisions of Section 6 [59A-18-13.3 NMSA 1978] of this 2011 act.
E. As used in this section, "health insurance issuer" means a health insurer; nonprofit health service provider; health maintenance organization; managed care organization; or provider service organization that offers a hospital and medical expense-incurred policy, plan or contract; "health insurance issuer" does not include a person that offers an individual policy intended to supplement major medical group-type coverage such as medicare supplement, long-term care, disability income, specified disease, accident-only, hospital indemnity or any other limited-benefit health insurance policy.
History: Laws 1984, ch. 127, § 344; 1987, ch. 244, § 11; 2011, ch. 144, § 4.
ANNOTATIONSThe 2011 amendment, effective January 1, 2012, exempted filings by health insurance issuers for rate changes from review by the superintendent; permitted the superintendent to disapprove classifications of risks; required rate filings by health insurance issuers to be reviewed pursuant to Section 6 [59A-18-13.3 NMSA 1978] of this act; and added a definition of "health insurance issuer".