New Mexico: ‘File and Use’ Rate Modernization Law Effective July 1

On July 1, New Mexico will join the ranks of states that have moved away from a "prior approval" regulatory scheme and toward a market competition based "file and use" regulatory system.

"NAMIC, in conjunction with other members of the insurance industry and the Superintendent of Insurance Morris J. Chavez, supported the passage of SB 483 as a way to improve regulatory efficiency, streamline the filing and approval of insurance rates in the state, and promote market competition for the benefit of insurance consumers," said Christian J. Rataj, NAMIC’s western state affairs manager.

According to Rataj, during the months leading up to the implementation of SB 483, the Insurance Division of the Public Regulation Commission had been very receptive to the professional needs and concerns of the insurance industry. "Superintendent Chavez and his chief property/casualty actuary, Alan Seeley, have been working closely with members of the insurance industry to address insurance carrier concerns about how to best protect privileged and confidential insurer documentation and information, and prevent rate filing process delays," Rataj said.

At the last quarterly meeting of the insurance industry and the New Mexico Division of Insurance, members of the insurance industry raised concerns about establishing an administrative process that will separate and safeguard confidential and proprietary insurer information from publicly filed insurer information. Additionally, the industry also discussed the importance of implementing timelines/deadlines for insurance department requests to carriers for additional rate filing information.

In an effort to assist insurance carriers in learning about the new procedural tenets of SB 483, the New Mexico Insurance Division has distributed a handout summarizing the key aspects of the new rate modernization law.

Direct questions to NAMIC State Affairs Manager Christian J. Rataj.

Posted: Tuesday, June 05, 2007 12:00:00 AM. Modified: Tuesday, June 05, 2007 12:53:14 PM.

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We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.