New Mexico Life Insurance (NM)
Life insurance laws and regulations have been put into place to protect both consumers and insurers in the state of New Mexico.
Laws Protecting New Mexico Life Insurance Consumers (NM)
The state of New Mexico’s insurance industry is regulated by Chapters 59 & 59A of the New Mexico Statutes, outlining claims procedures and policy requirements for the protection of New Mexico life insurance consumers.
In New Mexico, life insurance claims need to be settled by the insurer immediately upon receiving proof of death, with all finalized within two months. Each insurer may follow its own claims procedure, but the outline must be provided to you in the text portion of your policy.
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Life Insurance Laws Protecting New Mexico Insurers (NM)
Protections are also in force to assist the insurance companies. Any misstatement or fraudulent finding on a life insurance policy or application for coverage is grounds for policy termination by the insurer. No claims need to be honored. However, any error regarding age will simply result in the recalculation of death benefit, reflecting the actual age of the insured.
Additional New Mexico Life Insurance RegulationS (NM)
You and your policy will have the added protection of the New Mexico Life Insurance Guaranty Association as long as your policy is underwritten by a licensed, New Mexico insurance company. Each licensed insurer pays the Guaranty Association fees annually, which will then cover your life insurance benefits in the event that your life insurance company becomes insolvent. Your policy premiums need to be current in order to qualify for these benefits.
The benefits of the guaranty Association do, however, have restrictions. Compensation for a death benefit cannot exceed $300,000 per insured individual, and $100,000 is the limit for cash surrender per insured. These limits hold true no matter the number of policies held by the insured
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Life-Insurance-Info.us is not a life insurance broker or carrier, and cannot issue life insurance policies. This site provides free information on insurance providers and coverage options. We are not associated with the companies profiled on Life-Insurance-Info.us and we make no representation, express or implied, that you will receive a quote from a specific company profiled herein. Products and policies may not be available in all states, and product and policy information is subject to change without notice. Please contact the insurance company directly to answer your policy inquiries.
Last Updated: June 16, 2009
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