Company Licensing FAQs



How do we change the contact person designated to receive any service of process sent to the Superintendent of Insurance on behalf of a licensed insurance company?
You must complete the NAIC Form 12 (Uniform Consent to Service of Process) and mail it to
Office of Superintendent of Insurance,
Company Licensing Bureau
PO Box 1689
Santa Fe, NM 87504-1689.
The form can be found on the NAIC web site www.naic.org/industry_ucaa.htm.




All insurance companies that hold a Certificate of Authority issued by Office of Superintendent of Insurance must file a copy of the Amended Articles of Incorporation certified by the state of domicile.
They must also file a copy of the Amended By–Laws certified by the state official holding custody of the original or by the company’s corporate secretary with the company’s corporate seal affixed to the certification.
There is a 10.00 filing fee for each amendment in accordance with NMSA Section 59A–6–1B.
Make check payable to Office of Superintendent of Insurance.


If an individual is appointed as a new officer and/or director, does an insurance company need to notify Office of Superintendent of Insurance ?
The insurance company must notify Office of Superintendent of Insurance and submit a biographical affidavit for each individual appointed. We utilize the NAIC biographical affidavit which can be found on the NAIC website www.naic.org/industry_ucaa.htm.
The biographical affidavit must reflect the name of the insurance company that the individual is an officer and/or director.
Submit biographical affidavit to the
Office of Superintendent of Insurance,
Company Licensing Bureau,
PO Box 1689
Santa Fe, NM 87504-1689.


Office of Superintendent of Insurance does not rate insurance companies. However, should you require a rating on an insurance company, you can contact A.M. Best Company, Inc. at (908) 439-2200 Customer Service Department ext. 5742.
  • When did the Service Contract Regulation Act become effective in New Mexico?
    The Service Contract Regulation Act went into effect on July 1, 2002.

  • What is the legal citation of the Service Contract Regulation Act in the New Mexico Insurance Code?
    The Service Contract Regulation Act is cited as NMSA 1978, §§ 59A-58-1 et seq. of the New Mexico Insurance Code.

  • Who does the Service Contract Regulation Act apply to?
    The Service Contract Regulation Act applies to all providers of service contracts and prohibits any person from conditioning the approval of a loan or the purchase of property on the purchase of a service contract.

  • What is a service contract?
    A contract where a provider, in exchange for separately stated consideration, is obligated for a specified period to a holder to repair, replace or perform maintenance on, or indemnify or reimburse the holder for the costs of repairing, replacing or performing maintenance on, property that is described in the service contract and that has an operation or structural failure as a result of a defect in materials, workmanship or normal wear and tear including: (1) a contract that includes a provision for incidental payment of indemnity under limited circumstances, including towing, rental and emergency road service and food spoilage; and (2) a contract that provides for the repair, replacement or maintenance of property for damages that result from power surges or accidental damage from handling

  • What is not subject to the Service Contract Regulation Act?
    Be sure to consult with your legal counsel to determine whether the service contract that you provide meets the Service Contract Regulation Act’s defined exclusions.  As defined by the Service Contract Regulation Act, this law does not apply to a warranty; a maintenance agreement; a service contract provided by a public utility on its transmission device if the service contract is regulated by the Office of Superintendent of Insurance; a service contract sold or offered to a person other than a consumer; or a service contract for property costing less than $250.00 in which the consideration for the service contract is less than $25.00.

  • How does the Service Contract Regulation Act define a maintenance agreement?
    A maintenance agreement is a contract for a limited period that provides only for scheduled maintenance.

  • How does the Service Contract Regulation Act define a ’warranty?’
    A warranty is a contract solely provided by a manufacturer, importer, or seller of property for which the manufacturer, importer or seller did not receive separate consideration and that: (1) is not negotiated or separated from the sale of the property; (2) is incidental to the sale of the property; and (3) guarantees to indemnify the consumer for defective parts, mechanical or electrical failure, labor or other remedial measures required to repair or replace the property.

  • What does the Service Contract Regulation Act require?
    The law requires that all service contract providers register with the Office of Superintendent of Insurance, prior to issuing, selling or offering for sale a service contract in New Mexico. Furthermore, the Service Contract Regulation Act mandates that certain consumer protection requirements be made part of the service contract.

  • How does a service contract provider register with the Superintendent?
    In order to properly register under the law, a service contract provider must:
    Complete the standard registration application;
    • Post security (e.g., surety bond, securities, cash or clear & irrevocable letter of credit) in the amount of $50,000.00 except where the service contract covers a motor vehicle or mechanical, plumbing, electrical systems and appliances sold in connection with the sale of residential dwelling, then a $100,000.00 security is required to be posted;
    • Provide the name, address and telephone number of each administrator with whom the provider intends to contract with; and
    • Pay a filing and registration fee of $500.00. 


  • Where does a service contract provider submit the registration forms, security and fees?
    Completed forms, security postings and fees must be submitted to following address in the manner described below:

    Office of Superintendent of Insurance
    Company Licensing Bureau
    Service Contract Regulation Act Registration
    PO Box 1689
    Santa Fe, NM 87504-1689


  • Are the registration and security requirements applicable to major manufacturing company service contracts?
    The registration and security requirements are not applicable to service contracts provided by a major manufacturing company , which is a person who manufactures or produces and sells product under its own name or label or is a wholly owned subsidiary of the person who manufactures or produces products and maintains or its parent company maintains a net worth or stockholders' equity of at least $100,000,000.00.

  • How long will a registration be valid?
    A registration is valid only for one year.

  • How often will a registration need to be renewed?
    Service contract providers must renew their registration annually.

  • What consumer protection requirements are required by the Service Contract Regulation Act to be part of the service contract?
    The Service Contract Regulation Act requires that the following consumer protections be made part of every service contract:
    • Right of Return Provision: A service contract must clearly state that the holder has the right to return the service contract for refund of the purchase price if the holder has not made a claim under the service contract and the holder returns the service contract within 20 days after the provider mails a copy of the service contract; within 10 days if the provider furnishes a copy of the contract at the time of purchase; or within a longer period specified in the service contract.
    • Refund Provision: The service contract must provide the service contract provider shall refund or credit to the account of the holder the purchase price of the service contract within 60 days after a service contract is returned. Failure to do so will result in a penalty of 10% of the purchase price of the contract for each 30-day period or portion thereof that the refund and any accrued penalties remain unpaid.
    • Provider or Contract Administrator Contact Information: The service contract must include the name, address and telephone number of the provider or the contract administrator.
    • Legibility & Readability: The service contract must be written in language that is understandable and printed in legible typeface.
    • Purchase Price, Description and Deductible: The service contract must include the purchase price and a description of the property. It shall also include the amount, if applicable, of any deductible that the holder is required to pay.
    • Provider’s Duties Provision: The service contract must specify the duties of the provider and any limitations, exceptions or exclusions.
    • Replacement Parts Provision: In contracts involving motor vehicles, the service contract, where applicable, shall indicate whether replacement parts not made for or by the original manufacturer will be used.
    • Transferring or Renewing Provisions: The service contract shall include any restrictions on transferring or renewing the service contract.
    Cancellation Provision: The service contract shall include the terms, restrictions or conditions for canceling the service contract before it expires and the procedure for canceling the service contract. The conditions for canceling the service contract shall include a provision providing that a service contract in effect for at least 70 days may not be cancelled by the provider before the expiration of the agreed term or one year after the effective date of the service contract, whichever occurs first, except for: (1) failure by the holder to pay an amount when due; (2) a conviction of the holder of a crime that results in an increase in the service required under the service contract; (3) discovery of fraud or material misrepresentation by the holder in obtaining the service contract or in presenting a claim for service there under; or (4) discovery of either an act or omission by the holder or a violation by the holder of any condition of the service contract of the following if it occurred after the effective date of the service contract and substantially and material increased the service required under the service contract. Finally, the service contract shall include a provision stating that no cancellation of a service contract may become effective until at least 15 days after the notice of cancellation is mailed to the holder.
    • Holders Duties Provision: The service contract shall include the duties of the holder under the contract, including the duty to protect against damage to the property covered by the service contract or to comply with any instructions included in the owner's manual for the property.
    • Consequential Damages Provision: The service contract shall include a provision indicating whether the service contract authorizes the holder to recover consequential damages.
    • Existing Defect Provision: The service contract shall state whether any defect in the property existing on the date of the service contract purchase is covered under the service contract.
    • Non-Insurance Statement: The service contract provider must state that a service contract is not a contract of insurance.


  • Does the Service Contract Regulation Act have any restriction on a service contract provider's name?
    Yes. The Act prohibits a service contract provider from including in the name of his or her business the words insurance, casualty, surety, mutual, or any other word or term that implies that the service contract provider is in the business of transacting insurance or is a surety company.

  • May the approval of a loan or the purchasing of property be conditioned on the purchase of a service contract?
    No. The Service Contract Regulation Act prohibits any person from conditioning the approval of a loan or the purchase of property on the purchase of a service contract.

  • Does the Service Contract Regulation Act have any record-keeping requirements?
    Yes. Service contract providers must keep and maintain transaction records for every type of service contract issued, sold or offered for sale in the State of New Mexico. All books and records will be subject to examination by the Office of Superintendent of Insurance in accordance with the enforcement power contained in Article 4 of the New Mexico Insurance Code.

  • How long will a provider be required to retain records under the Service Contract Regulation Act?
    A provider shall retain all records relating to a service contract for at least one year after the contract has expired.

  • How are records required to be maintained under the Service Contract Regulation Act?
    Records may be stored on a computer disk or other storage device for a computer from which the records can be readily printed.

  • Do the record requirements apply to major manufacturing company service contracts?
    No. Record requirements do not apply to major manufacturing company's service contracts.

  • What will happen if a service contract provider fails to comply with the Service Contract Regulation Act ?
    Failure to comply with the requirements of the Service Contract Regulation Act may result in penalties such as administrative fines or other action. Article 16 of the New Mexico Insurance Code governing unfair or deceptive trade practices is also applicable to service contracts. Article 16 provides for civil penalties not more than $5,000.00 for each act or violation, not to exceed $100,000 in the aggregate for violations a similar nature of the Service Contract Regulation Act.

  • Are there special requirements for insurance companies that provide service contracts?
    The Service Contract Regulation Act does not make an exception for insurers who also happen to provide service contracts in such specific situations. They would need to register as service contract providers and comply with this law.

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