Regulatory Alerts2024-01-10
Regulatory Guidance Regarding Freedom to Choose Notice
The New Mexico Financial Institutions Division clarifies that the mandatory Freedom to Choose Insurance Company and Insurance Professional Notice must explicitly state the name of the actual natural person delivering the disclosure to the consumer. This guidance addresses a common practice where lenders or sellers incorrectly inserted their company names into the designated "(individual’s name)" blank on the statutory form. Citing the Insurance Code’s definition of "individual" as a natural person, the Division mandates that only the specific human agent providing the notice may be named to ensure full regulatory compliance.
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