N.M. Code R. § 13.10.15.39 – Associations

A. The primary responsibility of an association endorsing or selling long-term care insurance shall be to educate its members concerning long-term care issues in general so that its members can make informed decisions. Associations shall provide objective information regarding long-term care insurance policies or certificates endorsed or sold by such associations to ensure that members of such associations receive a balanced and complete explanation of the features in the policies or certificates that are being endorsed or sold.
B. The insurer shall file with the Superintendent the following material:
(1) the policy and certificate as required herein,
(2) a corresponding outline of coverage,
(3) the premium rates as required herein, and
(4) all advertisements requested by the Superintendent.
C. The association shall disclose in any long-term care insurance solicitation:
(1) the specific nature and amount of the compensation arrangements, including all fees, commissions, administrative fees and other forms of financial support, that the association receives from endorsement or sale of the policy or certificate to its members, and
(2) a brief description of the process under which such policies and the insurer issuing such policies were selected.
D. If the association and the insurer have interlocking directorates or trustee arrangements, the association shall disclose such fact to its members.
E. The board of directors of associations selling or endorsing long-term care insurance policies or certificates shall review and approve such insurance policies as well as the compensation arrangements made with the insurer.
F. The association shall also:
(1) at the time of the association's decision to endorse, engage the services of a person with expertise in long-term care insurance not affiliated with the insurer to conduct an examination of the policies, including its benefits, features, and rates and update such examination thereafter in the event of material change;
(2) actively monitor the marketing efforts of the insurer and its agents; and
(3) review and approve all marketing materials or other insurance communications used to promote sales or sent to members regarding such policies or certificates.
G. No group long-term care insurance policy or certificate may be issued to an association unless the insurer files with the Superintendent the information required by this rule.
H. The insurer shall not issue a long-term care policy or certificate to an association or continue to market such a policy or certificate unless the insurer certifies annually that the association has complied with the requirements of this section.
I. Failure to comply with the filing and certification requirements of 13.10.15.36 through 10.13.15.39 NMAC constitutes an unfair trade practice in violation of Chapter 59A, Article 16 NMSA 1978.
[1-1-99; 13.10.15.39 NMAC - Rn, 13 NMAC 10.15.36, 1-1-04]