The New Mexico Office of Superintendent of Insurance published a news release announcing there will be a delay in the publication of the insurance fraud fee charged to all authorized insurers. The news release also announces that the OSI Insurance Fraud Law Endorsement Division is in the process of creating an automation process to collect the fraud fee. The automated process is expected to be available by September 1, 2024.
NMSA 1978, Section 59A-16C provides for the means of funding the Insurance Fraud Act. The fund allows the superintendent of insurance to more effectively detect and investigate insurance fraud. Section 59A-16C-14 states that each authorized insurer must be assessed a fee of not less than $200 and not greater than one-tenth of 1% of the insurer's direct written premiums in New Mexico.
The superintendent should adjust the rate of assessment annually to meet the estimated amount necessary to carry out the provisions of the Insurance Fraud Act. The fee is charged annually. Failure to pay the fee will result in a penalty of $1,000 per month.
The news release can be found here.
Ray Sugrim
Ray Sugrim is an Insurance Editor with FC&S Expert Coverage Interpretation, a division of National Underwriter Company and Arc Network. Ray is responsible for helping develop and edit content for subscribers. Ray is a St John’s University graduate with a degree in Risk Management & Insurance and is a CPCU candidate.