New Mexico § 38-1-7 - Purpose of act

§ 38-1-7. Purpose of act

The purpose of this act is to subject certain insurers to the jurisdiction of courts

of this state in suits by or on behalf of insureds or beneficiaries under insurance

contracts. The legislature declares that it is a subject of concern that many residents of this

state hold policies of insurance issued or delivered in this state by insurers while

not authorized to do business in this state, thus presenting to such residents the

often insuperable obstacle of resorting to distant forums for the purpose of asserting

legal rights under such policies. In furtherance of such state interest, the legislature herein provides a method

of substituted service of process upon such insurers and declares that in so doing

it exercises its power to protect its residents and to define, for the purpose of

this statute, what constitutes doing business in this state, and also exercises powers

and privileges available to the state by virtue of Public Law 15, 79th Congress of

the United States, Chapter 20, 1st Session, S. 340, 1 which declares that the business of insurance and every person engaged therein shall

be subject to the laws of the several states. 1

59 Stat. 33, McCarran-Ferguson Act, 15 U.S.C.A. § 1011 et seq.