New Mexico § 52-6-9 - Group membership; termination; liability

§ 52-6-9. Group membership; termination; liability

A. An employer joining a group after the group has been issued a certificate of approval

shall: (1) submit an application for membership to the board of trustees or its administrator;

and (2) if applicable, enter into the indemnity agreement required by Paragraph (5) of Subsection B of Section 52-6-5 NMSA 1978 . Membership takes effect no earlier than each member's date of approval. The application for membership and its approval shall be maintained as permanent

records of the board of trustees. B. Individual members of a group shall be subject to cancellation by the group pursuant

to the bylaws of the group. In addition, individual members may elect to terminate their participation in the

group. The group shall notify the director of the termination or cancellation of a member

within ten days and shall maintain coverage of each canceled or terminated member

for thirty days after such notice, at the terminating member's expense, unless the

group is notified sooner by the director that the canceled or terminated member has

procured workers' compensation and occupational disease disablement insurance, has

become an approved self-insurer or has become a member of another group. C. The group shall pay all workers' compensation and occupational disease disablement

benefits for which each member incurs liability during its period of membership. A private employer member who elects to terminate his membership or is canceled

by a group remains jointly and severally liable for workers' compensation and occupational

disease disablement obligations of the group and its members that were incurred during

the canceled or terminated member's period of membership. D. A group member is not relieved of his workers' compensation or occupational disease

disablement liabilities incurred during his period of membership except through payment

by the group or the member of required workers' compensation and occupational disease

disablement benefits. E. The insolvency or bankruptcy of a member does not relieve the group or any other

member of liability for the payment of any workers' compensation or occupational disease

disablement benefits incurred during the insolvent or bankrupt member's period of

membership.