New Mexico Statutes 59A-48-15. Suspension or revocation of certificate of authority
A. The superintendent may suspend or revoke any certificate of authority of a prepaid dental plan organization if he finds that any of the following conditions exist:
Terms Used In New Mexico Statutes 59A-48-15
- membership coverage: means any certificate or contract issued to a member setting out the dental coverage to which such member is entitled. See New Mexico Statutes 59A-48-2
- prepaid dental plan: means any contractual arrangement whereby any prepaid dental plan organization undertakes to provide directly or to arrange for prepaid dental services and to pay or make reimbursement for any remaining portion of such prepaid dental services on a prepaid basis through insurance or otherwise. See New Mexico Statutes 59A-48-2
- prepaid dental plan organization: means any person who undertakes to conduct one or more prepaid dental plans providing only dental services. See New Mexico Statutes 59A-48-2
(1) the prepaid dental plan organization is operating contrary to its basic organizational documents or in a manner contrary to that described in, and reasonably inferred from, any other information submitted pursuant to Section 883 [59A-48-4 N.M. Stat. Ann.] of this article;
(2) the prepaid dental plan organization issued membership coverage which does not comply with the requirements of Section 887 [59A-48-8 N.M. Stat. Ann.] of this article;
(3) the prepaid dental plan does not provide or arrange for basic dental services appropriate to such plan as determined by the director of the health services division of the health and environment department [department of health];
(4) the prepaid dental plan organization can no longer be expected to meet the obligations to members or prospective members;
(5) the prepaid dental plan organization, or any authorized person on its behalf, has advertised or merchandized [merchandised] its services in an untrue, misleading, deceptive or unfair manner; or
(6) the prepaid dental plan organization has failed to substantially comply with this article or any rules and regulations promulgated thereunder.
B. When the certificate of authority of a prepaid dental plan organization is suspended the organization shall not, during the period of such suspension, accept any additional members except newborn children or other newly acquired dependents of existing members and shall not engage in any advertising or solicitation.
C. When the certificate of authority of a prepaid dental plan organization is revoked, such organization shall proceed immediately following the effective date of the order of revocation, to conclude its affairs and shall conduct no further business except as may be essential to the orderly conclusion of solicitation. The superintendent by written order, may permit such further operation of the organization as the superintendent finds to be in the best interest of members to the end that members shall be afforded the greatest practical opportunity to obtain continuing prepaid dental plan coverage.
D. Notwithstanding the provisions of Subsections B and C of this section, a prepaid dental plan organization which has had its certificate of authority denied, suspended or revoked, or has suffered an adverse decision by the superintendent shall be entitled to a hearing pursuant to Article 4 [N.M. Stat. Ann. Chapter 59A, Article 4] (examinations, hearings and appeals) of the Insurance Code.