N.M. Code R. § 13.18.3.7

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

Section 13.18.3.7 - DEFINITIONS

As used in this rule:

A."Actual cash value" means the cost of replacing damaged or destroyed property with comparable new property, minus depreciation and obsolescence.

B."Assigned risk plan" means the insurance plan established pursuant to the Motor Vehicle Assigned Risks Law, Sections 59A-32-1 et. seq NMSA 1978;

C."Blanket insurance" means a policy of insurance issued to a creditor that covers direct accidental damage to collateral without listing the specific items of collateral covered;

D."Collateral" means property that is pledged as security for the satisfaction of a debt;

E."Credit agreement" means the written document that sets forth the terms of the credit transaction and includes the security agreement;

F."Credit property insurance" means property insurance written in connection with credit transactions under which the creditor is the primary beneficiary;

G."Credit transaction" means a transaction by the terms of which the repayment of money loaned or credit commitment made, or payment for goods, services, or properties sold or leased, is to be made at a future date;

H."Creditor" means a lender of money or vendor or lessor of goods, services, property, rights or privileges for which payment is arranged through a credit transaction, or any successor to the right, title or interest of a lender, vendor or lessor, and includes affiliates, subsidiaries, agents, employees, and representatives of the creditor;

I."Creditor-placed insurance" means insurance that is purchased unilaterally by the creditor, who is the named insured, subsequent to the date of the credit transaction, providing coverage against direct loss or damage to collateralized property. It is purchased according to the terms of the credit agreement as a result of the debtor's failure to provide required physical damage insurance, with the cost of the coverage being charged to the debtor;

J."Debtor" means a borrower of money or a purchaser or lessee of goods, services, property, rights, or privileges for which payment is arranged through a credit transaction;

K."FAIR plan" means the insurance plan established pursuant to the FAIR Plan Act, Sections 59A-29-1 et. seq NMSA 1978;

L."Insurance tracking" means activities undertaken by a person other than a creditor to monitor evidence of insurance on collateralized credit transactions to determine whether insurance required by the credit agreement has lapsed and to communicate with debtors concerning the status of insurance coverage;

M."Lapse" means that the insurance coverage required by the credit agreement is not in force;

N."Limited dual interest insurance" means insurance purchased by the creditor to insure its interest in the collateral that does not contain the three conditions for loss payment required for single interest insurance and extends coverage on the collateral while it is in the possession of the debtor;

O."Loss ratio" means incurred losses divided by earned premiums;

P."Motor vehicles" means those vehicles subject to the Mandatory Financial Responsibility Act, Sections 66-5-201 et. seq NMSA 1978;

Q."Net debt" means the amount necessary to liquidate the remaining debt in a single lump-sum payment, excluding all unearned interest and other unearned charges;

R."Personal property" means all tangible property other than real property and includes motor vehicles, mobile homes and manufactured housing;

S."Single interest insurance" means insurance purchased by the creditor to insure its interest in the collateral securing a debtor's credit transaction which requires that three conditions be met for payment of loss under the policy:

(1) the debtor has defaulted in payment on the credit transaction;

(2) the creditor has legally repossessed the collateral, unless collateral has been stolen from the debtor; and

(3) the creditor has suffered an impairment of interest.

T."Skip, confiscation and conversion coverage" means coverage protecting the creditor from fraud, theft, larceny, conversion, embezzlement or secretion on the part of the debtor.

N.M. Code R. § 13.18.3.7

1/1/99; 3/1/99; Recompiled 11/30/01, Adopted by New Mexico Register, Volume XXIX, Issue 14, July 24, 2018, eff. 7/24/2018