On Jan. 31, a new state rule went into effect that moved commercial rates away from the prior-approval system to the industry-favored file and use system.

"The latest action by the New Mexico House is a very significant step toward modernizing and streamlining the commercial insurance regulatory environment in the state," declared Joe Woods, Alliance Southwest regional manager.

"The Alliance has worked very hard in recent years to secure filing changes for commercial products, and New Mexico's responsiveness is gratifying," he stated.

"Combined with the move to modernize rate filings earlier this year, this legislation on forms helps New Mexico join the growing ranks of states encouraging product innovation through regulatory modernization," observed Rita Nowak, Alliance assistant vice president of property-casualty.

"These states are attempting to remove as much of the regulatory red tape from the commercial rate and form filing process as possible," she continued. Ms. Nowak explained that this enables traditional insurers to be more competitive with alternative risk mechanisms and offshore entities.

This in turn "ultimately benefits policyholders, who get more individualized, customized service," she added.

The Alliance said that after the bill is signed into law, it will work with Insurance Superintendent Eric P. Serna to formulate a regulation implementing the new requirements.