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Operating Procedures

The following operating procedures are adopted as a guide to be followed by the applicant, or applicant's representative to obtain insurance coverage through the Program.

These operating procedures are to be used as a guide to be followed by the Administrator of the FAIR Plan in the processing of applications for insurance.

  1. Application for Essential Property Insurance
    a. Any person having an insurable interest in real or tangible personal property in a fixed location in New Mexico is entitled to make application for Essential Property Insurance with the Program.
    b. If insurance is desired, the applicant or applicant's representative must completely fill in an application supplied by the Program on each building to be insured.  The completed application, along with the quoted premium made payable to the New Mexico Property Insurance Program must be delivered to the Program office.  If the application is not complete, the application and submitted premium shall be returned.  Both applicant and applicant's representative will be notified that no policy will be issued and no coverage will be in force until a completely filled in application, accompanied by the quoted premium is received by the Program.
  2. Acceptance of Risk - If the property meets the reasonable underwriting standards established by the Program, after receipt of a fully completed application , photos of front and rear and receipt of the quoted premium  made payable to the New Mexico Property Insurance Program, a policy covering the property shall be issued by the Progam and forwarded to the applicant or applicant's representative.
    a. Coverage will be in effect upon the completion of the requirements set forth in paragraph 2a of these procedures or the date requested on the application, if later.
  3. Declination of Risk - In the event the risk is declined because the property does not meet reasonable underwriting standards, but can be improved to meet such standards, the Program shall within ten (10) business days advise the applicant and applicant's representative what improvements should be made to the property.
    a. In the event a risk is declined by the Program, the Program shall within ten (10) business days advise the applicant and applicant's representative of the reasons for declination.
  4. Endorsements or Cancellations by Policyholder - Any request for policy changes or cancellation by the policyholder should be initiated by the policy holder or policyholder's representative by forwarding a written request to the Program.  Any requests for policy changes requiring increased coverage or any increased premium or both shall be handled under the procedure set forth for processing a new application for insurance.
    a. Upon cancellation or reduction in coverage the gross return premium should be paid to the insured or the insured's representative.  The insured's representative shall be billed for the ratable return of any service fee.
  5. Cancellation of Policy by the Program - Upon the Program's decision to cancel a policy it has issued, the Program shall process.
    a. The Program shall cause a notice of cancellation of the policy to be mailed or delivered to insured and insured's representative.

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