New Mexico Register / Volume XXIX, Issue 10 /
May 29, 2018
This is an
amendment to 13.14.3 NMAC, Section 11, effective July 1, 2018
13.14.3.11 PREMIUM DIVISION WITH AGENTS -
OTHER FEES AND EXPENSES:
A. All agency contracts, agency agreements and other contracts between
licensed New Mexico title insurance agents and insurers admitted to write title
insurance in New Mexico shall provide that agents shall retain the following
amounts of all gross premiums on policies, and shall remit to the insurer the remainder
of all gross premiums:
(1) for
amounts of insurance up to two million dollars ($2,000,000), agents shall
retain eighty percent;
(2) for
additional amounts of insurance over two million dollars ($2,000,000) and up to
five million dollars ($5,000,000), agents shall retain seventy-five percent;
(3) for
additional amounts of insurance over five million dollars ($5,000,000) and up
to ten million dollars ($10,000,000), agents shall retain seventy percent;
(4) for
additional amounts of insurance over ten million dollars ($10,000,000) and up
to twenty-five million dollars ($25,000,000), agents shall retain sixty-five
percent;
(5) for
additional amounts of insurance over twenty-five million dollars ($25,000,000)
and up to fifty million dollars ($50,000,000), agents shall retain sixty
percent; and
(6) for
additional amounts of insurance over fifty million dollars ($50,000,000),
agents shall retain fifty percent.
B. Agents shall retain eighty percent of all gross premiums paid for the following coverages and shall remit to the insurer the remainder of the gross premiums:
(1) all title commitments and binders as provided for in Subsection A of 13.14.9.19 NMAC;
(2) deletion of standard exception 4 from the title commitment or binder for mechanics’ lien coverage where there is no loss of insured priority over mechanics’ liens as provided for in 13.14.6.15 NMAC and 13.14.10.9 NMAC for owner’s policies or 13.14.7.14 NMAC and 13.14.9.40 NMAC for loan policies; and
(3) any endorsements providing for fixed premiums of one hundred dollars ($100) or less.
C. Agents shall retain the amounts attributable to the pro-rata premium for each level of the amounts of insurance as set forth in Subsection A above for the following coverages and shall remit to the insurer the remainder of the gross premiums:
(1) premium for deletion of standard exception 3 from the title commitment or binder for survey coverage in owner’s or leasehold owner’s policies as provided for in 13.14.6.14 NMAC and 13.14.10.10 NMAC;
(2) extra-hazardous premium for deletion of standard exception 4 from the title commitment or binder for mechanics’ lien coverage where there is a loss of insured priority over mechanics’ liens as provided for in 13.14.6.15 NMAC and 13.14.10.9 NMAC for owner’s policies or 13.14.7.14 NMAC and 13.14.9.40 NMAC for loan policies; and,
(3) any endorsements providing for fixed premiums of more than one hundred dollars ($100.00) or variable premiums based upon a percentage of the basic premium rate.
D. In addition, agents shall retain no part of the additional twenty-five cents ($0.25) per one thousand dollars ($1,000) collected on policy amounts in excess of ten million dollars ($10,000,000) as provided for in 13.14.9.18 NMAC.
E. This premium division shall not apply to replacement policies in the case of insolvent insurers issued pursuant to 13.14.6.22 NMAC, 13.14.7.20 NMAC and 13.14.9.26 NMAC. Agents shall retain forty-two and one-half percent of the gross premium collected for such replacement policies and shall remit to the insurer the remainder of said gross premium.
F. These premium divisions shall remain in effect until altered by the superintendent who shall review the same biennially at the title insurance hearing held in November of every odd numbered year or as otherwise specifically provided by these regulations.
H. No agent or insurer shall pay or receive any consideration for title insurance business (or referral of business) other than that division of premiums set forth herein. Insurers shall not reward or otherwise compensate agents (or vice versa) directly or indirectly for business other than as herein provided.
I. No agent shall be required to
contribute or pay any amount to an insurer for reinsurance or otherwise, and
any contractual provision to the contrary shall be void and unenforceable.
J. Title insurers
may pay on behalf of, or reimburse their agents for expenses associated with
any instruction, lectures or seminars conducted by that title insurer for its
agents, if such instruction, lectures or seminars have been approved in advance
by the office of the superintendent of insurance for continuing education
credit under Section 59A-12-26 NMSA 1978.
An insurer conducting such instruction, lectures or seminars shall submit
to the superintendent for approval, in advance, an agenda and detailed budget
for such instruction, lectures or seminars.
Such courses of instruction, lectures or seminars shall be offered by
the title insurer to all of its agents on a non-discriminatory basis.