N.M. Code R. § 13.18.2.11

Current through Register Vol. 35, No. 11, June 11, 2024

Section 13.18.2.11 - PAYMENTS OF BENEFITS TO THE INSURED

A. Excess benefit checks or drafts made in accordance with Section 59A-25-7B NMSA 1978 shall be delivered only by the insurer or, at the option of the insurer, by the creditor. In any case, the insurer shall be responsible for the delivery of such excess benefit checks or drafts. Electronic funds transfers may be used.

B. The creditor agent or group policyholder shall not require that any benefit be applied to the reduction of any indebtedness other than the indebtedness in connection with which the insurance was written.

C. Notice of payments under credit life insurance shall be provided to the insureds' estate. The insured shall be provided notice of initiation of benefits under a credit accident and health insurance policy along with a statement that such benefits will continue while the insured is disabled under the terms of the insurance policy. The insurer shall be responsible for such notice; however, such duty may be delegated to the creditor provided the insurer maintains the responsibility for seeing that these notice requirements are met.

D. Benefit checks or drafts payable to a beneficiary or an insured may not be offset by any insurer against amounts due from a creditor or an agent to the insurer or anyone acting on behalf of the insurer unless the benefit check or draft is endorsed by the beneficiary or the insured to whom it was made payable.

N.M. Code R. § 13.18.2.11

7/1/97, 3/1/98, 6/1/98, 9/1/98; 13.18.2.11 NMAC - Rn, 13 NMAC 18.2.11, 12/31/07