§ 7-40-2 — Definitions

New Mexico § 7-40-2

• Jurisdiction: New Mexico
• Ch. 7: Taxation
• Art. 40: Insurance Premium Tax

Text

As used in the Insurance Premium Tax Act: A. "authorized insurer" means an insurer holding a valid and subsisting certificate of authority to transact insurance in this state; B. "certificate of authority" means the certificate of authority required to transact insurance in this state pursuant to Section 59A-5-10 NMSA 1978; C. "department" means the taxation and revenue department; D. "health maintenance organization" means "health maintenance organization" as that term is used in Chapter 59A, Article 46 NMSA 1978; E. "home state" means "home state" as that term is used in Chapter 59A, Article 14 NMSA 1978; F. "insurance" means a contract whereby a person undertakes to pay or indemnify another as to loss from certain specified contingencies or perils, or to pay or grant a specified amount or determinable benefit in connection with ascertainable risk contingencies, or to act as surety; G. "insurer" includes every person engaged as principal and as indemnitor, surety or contractor in the business of entering into contracts of insurance; H. "nonprofit health care plan" means "health care plan" as that term is used in Chapter 59A, Article 47 NMSA 1978; I. "secretary" means the secretary of taxation and revenue or the secretary's authorized designee; J. "self-insured group" means "group" as that term is used in Chapter 52, Article 6 NMSA 1978; K. "state" means, when used in context indicating a jurisdiction other than New Mexico, any state, district, commonwealth, territory or possession of the United States of America; L. "superintendent" means the superintendent of insurance or the superintendent's duly authorized representative acting in official capacity; M. "surplus lines broker" means "surplus lines broker" as that term is used in Section 59A, Article 14 NMSA 1978; N. "taxpayer" means: (1) an authorized insurer; (2) an insurer formerly authorized to transact insurance in New Mexico and receiving premiums on policies remaining in force in New Mexico, except an insurer that withdrew from New Mexico prior to March 26, 1955; (3) a plan operating under provisions of Chapter 59A, Articles 46 through 49 NMSA 1978; (4) a property bondsman, as that person is defined in Section 59A-51-2 NMSA 1978; (5) an unauthorized insurer that has assumed a contract or policy of insurance, directly or indirectly, from an authorized or formerly authorized insurer and is receiving premiums on such policies remaining in force in New Mexico; provided that the ceding insurer does not continue to pay the taxes imposed pursuant to the Insurance Premium Tax Act as to such policy or contract; (6) an insured who in this state procures, continues or renews insurance with a nonadmitted insurer pursuant to Section 59A-15-4 NMSA 1978; or (7) members of the same bone fide trade or professional association that has been in existence for five years or more and that have entered into agreements to pool the members' liabilities for workers' compensation benefits; provided that an employer that is a public hospital shall segregate the employer's accounting records and investment accounts from those of the other members, in accordance with applicable law; and O. "transact insurance" with respect to an insurance contract or a business of insurance includes any of the following, by mail or otherwise or whether or not for profit: (1) solicitation or inducement; (2) negotiation; (3) effectuation of an insurance contract; (4) transaction of matters subsequent to effectuation and arising out of such a contract; (5) maintenance in this state of an office or personnel performing any function in furtherance of an insurer's business of insurance; or (6) maintenance by an insurer of assets in trust in this state for the benefit, security or protection of its policyholders or its policyholders and creditors.

Legislative History

Laws 2018, ch. 57, § 2; 2021, ch. 65, § 34.