New Mexico Mutual -Objectives| New Mexico's Work Comp Insurance Leader

In 1991, the State Legislature created New Mexico Mutual out of the Employers Mutual Act. The intent of the Act was to help fulfill the need of providing quality, cost-effective workers' compensation insurance to all New Mexicans. Here are some highlights of the Act, which our company focuses our efforts towards.

Provide competitive workers compensation coverage for the health, welfare and economic well-being of all the citizens of New Mexico.
Provide consistent, with sound underwriting practices, assistance and competitively priced workers' compensation and occupational disease disablement insurance to those small and medium sized employers, who are good risks for workers' compensation and occupational disease disablement insurance but face serious obstacles in securing insurance at reasonable rates in the private voluntary market.
Provide assistance and competitively priced workers' compensation and occupational disease disablement insurance to all employers; provided, however, that priority attention is reserved for small and medium-sized employers.
To improve and stimulate the state's economy, including critical industries relating to oil and gas production to enhance the performance of oil and gas production and increase severance tax revenues.
To generate data on New Mexico experience alone to assess more accurately the performance of New Mexico's workers' compensation and occupational disease disablement system and the impact of New Mexico's laws.
To insure employers against the risk of liability for payment of benefits claims to workers as a domestic mutual insurance company.
To be competitive with other insurers of workers' compensation and occupational disease disablement insurance, to become self-supporting, and to provide as many of its services in-house as practicable in order to control costs.
To be liable to the same extent as any private insurance company for the payments that are required to be made under the Insurance Code to protect against the insolvency of any other insurer of workers' compensation or occupational disease disablement, and to receive the same benefits under those provisions as any other insurer of workers' compensation or occupational disease disablement.
To provide necessary assistance to its policyholders regarding workplace safety, to reward or penalize policyholders depending upon their participation in workplace safety programs, actual loss reduction and safety performance, and to notify its policyholders of all safety services provided at the time of issuance or renewal of a policy.
To provide its policyholders with loss-control services to prevent accidents from occurring, case management review to monitor the status, progress and appropriateness of each claim filed and to help workers return to work, and utilization review to determine the appropriateness of medical services charged.
To annually ascertain the incurred loss experience and expense of the company and where appropriate declare a cash dividend or allow a credit to an employer who has been insured with the company in accordance with criteria approved by the board, which may account for the employerâ€™s safety record and performance.
To retain an independent investment counsel that reports at least once a month to the Board on investment results and related matters.
To insure any New Mexico employer for workers' compensation and employer's liability coverage to the same extent as any other insurer.
To indemnify a New Mexico employer against his liability for workers' compensation and employer's liability coverage under the laws of any other state for New Mexico employees temporarily working outside this state if the company insures the employer's workers who work within this state.
To sue and be sued in all actions arising out of any act or omission in connection with its business or affairs.
To enter into any contracts or obligations relating to the company that are authorized or permitted by law.
To issue revenue bonds as authorized pursuant to the EMCA.
To invest and reinvest money belonging to the company as provided in the EMCA.
To conduct all business and affairs and perform all acts in carrying out its function whether or not specifically designated in the EMCA.
Subject to the restrictions imposed by the Board, the President may carry out the policies and procedures established by the Board in conducting the business and affairs of the company may execute the other responsibilities set forth in Section 52-9-16, NMSA 1978.
To cause an annual audit, by the Board, of the books of accounts, funds and securities of the company to be made by a competent and independent firm of certified public accountants, the cost of the audit to be charge against the company filed with the Superintendent and the President and open for public inspection.
To assure that all premiums and other money paid to the company, all property and securities acquired through the use of money belonging to the company and all interest and dividends earned upon money belonging the company and all interest and dividends earned upon money belonging to the company and deposited or invested by the company are the sole property of the company and shall be used exclusively for the operations and obligations of the company.
To assure, as established by the Board, that: (1) any private independent insurance agent is properly licensed to sell workers' compensation insurance in New Mexico for the company; (2) any insurance association acting as a general agent has at least one hundred members; (3) the standard agency contract is utilized for any insurance association acting as a general agent with which the Board contracts; (4) the pay to any qualified independent insurance agent or association complies with the schedule of commissions adopted by the Board; and (5) any marketing representatives employed directly by the company have obtained a license from the Superintendent to exclusively sell workers' compensation or occupational disablement insurance.
To submit, by the president, an annual, independently audited report, in accordance with procedures governing annual reports adopted by the NAIC, by October 1 of each year to the Governor, the Legislative Finance Committee (LFC) and any other appropriate legislative committee indicating the business done by the company during the previously completed fiscal year and containing as statement of the resources and liabilities of the companies to include: (1) the volume of premiums insured through the company and its share of the workersâ€™ benefits marking in New Mexico; (2) the percent division of the premium dollars among various types of benefit payments and administrative costs for policies and claims under the company; (3) the average rate of return enjoyed by the company on invested assets; (4) recommendations concerning desired changes in the company to promote prompt and efficient administration of policies and claims; (5) recommendations to the Legislature and Governor regarding the continued operation of the company; and (6) any other information the President deems appropriate.
To assist the Board in issuing revenue bonds as necessary and in the manner prescribed by Section 52-9-25, NMSA 1978.