New Mexico: premium trust account rules
What New Mexico requires of insurance producers holding premium funds, and what happens when those funds are diverted.
Citation
§§ 59A-11-14; 59A-12-22; 59A-12B-4
Source chart last reviewed this jurisdiction: 2/25
What the jurisdiction requires
All funds are received and held in a fiduciary capacity. Managing general agent shall hold in a fiduciary capacity all funds that are collected for the account of an insurer.
Penalties for diversion
Diversion or appropriation of funds for own use is larceny by embezzlement. The superintendent may place on probation, suspend, revoke or refuse to issue or renew a license if the licensee improperly withheld, misappropriated or converted any money received in the course of doing insurance business.
This reference is not legal advice. Citations and summaries are transcribed from the NAIC's Fiduciary Responsibilities—Premiums chart (Spring 2025) and reflect that chart's own review dates, which vary by jurisdiction. Statutes change, and the chart may lag the current code. Confirm the current text of any provision with the jurisdiction's insurance department or your own counsel before relying on it.
Tie out a New Mexico trust account
Tie your premium trust account out three ways — bank, ledger and what you owe — with New Mexico's cited rule beside the worksheet. Runs in your browser; nothing is uploaded.
Trust account reconciliation worksheetKeep your trust account provably in balance
Policy Balance Hub tracks premium held in trust against what you owe each carrier, so the reconciliation an examiner asks for already exists.