NEW MEXICO ADMINISTRATIVE CODE
TITLE 13. INSURANCE
CHAPTER 18. Credit Insurance
PART 3. Creditor-Placed Insurance
13 NMAC § 18.3.17 Notice of Creditor-placed Insurance
An insurer shall, within fifteen (15) days of the initial placement or renewal of creditor-placed insurance, either directly or through the creditor, using the form prescribed in 13 NMAC 18.3.20 or a substantially similar form mail to the debtor by first-class mail a copy of the certificate of insurance or policy. In the case of limited dual-interest insurance, the insurer shall also explain the debtor's rights to file a claim for damages incurred after the effective date of the coverage.
NEW MEXICO ADMINISTRATIVE CODE
TITLE 13. INSURANCE
CHAPTER 18. Credit Insurance
PART 3. Creditor-Placed Insurance
13 NMAC § 18.3.8 Limited Authorization to Transact
8.1 An insurer shall not issue creditor-placed insurance to a creditor unless the creditor has an insurable interest in the collateral.
8.3 Creditor-placed insurance shall be either single interest insurance or limited dual interest insurance.
NEW MEXICO ADMINISTRATIVE CODE
TITLE 13. INSURANCE
CHAPTER 18. Credit Insurance
PART 3. Creditor-Placed Insurance
13 NMAC § 18.3.20 Notice of Creditor-placed Insurance from Insurer
NOTICE OF CREDITOR-PLACED
INSURANCE
You are required to maintain insurance on the property that is the collateral for your debt. You have not provided proof of insurance in response to the notices previously sent you. Therefore, [insert name of creditor] has placed insurance coverage for you in accordance with the terms of your credit agreement. A copy of that policy/certificate is attached. It states the total cost to you of the insurance and the period of time the insurance will be in force. You may purchase other insurance coverage at any time; as soon as you provide proof of other coverage to [insert name of creditor], we will cancel this creditor-placed coverage and refund to you any unearned premiums that you have paid.
If you have had difficulty obtaining insurance, you may be eligible to purchase:
New Mexico Assigned Risk coverage for motor vehicles from you local agent or from the New Mexico Assigned Risk Plan at 1-800-227-4659.
FAIR Plan coverage for real property or mobile homes from your local agent;
or you may obtain information about either insurance plan from:
The New
Mexico Department of Insurance
P.O. Box 1269
Santa Fe, New Mexico 87504-1269
Telephone (505) 827-4601
Toll free: 1-800-947-4722
The insurance placed by [insert name of creditor] will pay claims for covered physical damage to the property until the debt is paid. The insurance placed by [insert name of creditor] will not give you any liability insurance coverage and will not meet the requirements of the New Mexico Mandatory Financial Responsibility Law.
[For limited dual interest policies]
As the debtor, you have the right to file a claim for damage incurred on or after the effective date of coverage stated in the policy/certificate. This insurance will pay no more than the unpaid balance on the loan, which may be less than the value of the property. In order to file a claim, you must
[insert instructions for filing a claim]
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