AGO IAL080307.

• Case Date: August 03, 2007
• Court: New Mexico

New Mexico Attorney General Opinions 2007. AGO IAL080307. August 3, 2007IAL080307Mr. Morris Chavez Superintendent of Insurance NM Public Regulation Commission1120 Paseo de PeraltaSanta Fe, NM 87504-1269 Re: Request for Opinion - Follow-up on Regulation of Surety IndustryDear Superintendent Chavez: We are in receipt of your February 28, 2007 letter wherein your office requested our advice regarding the New Mexico Public Regulation Commission Insurance Division's ("Division") interpretation of the requirements of the New Mexico Insurance Code ("Code") for the surety bond industry. Our office previously issued an advisory letter on this topic on September 18, 2006 to New Mexico State Senator James Taylor. According to your request: "We agree with that [AGO] letter and have taken the position that all sureties whether corporate or individual must apply for and receive a license before they transact business in the state of New Mexico." Nevertheless, you now request: (a) a formal Attorney General Opinion letter (and not an advisory letter) on this topic; (b) affirmation of the position taken in the advisory letter; (c) clarification that the advisory letter addressed the situation of an individual helping out a family member; and (d) clarification of the situation where an individual uses a direct cash deposit and not a surety bond. For several reasons, we do not believe it is necessary to issue a formal opinion addressing the same topic as our previous advisory letter. First, the September 18, 2006 advisory letter, although issued during the previous administration, remains in effect unless and until it is modified or withdrawn by the current administration. Second, it is our understanding that none of the relevant laws cited in the September 18, 2006 advisory letter were amended during the 2007 legislative session. Therefore, the advisory letter's research and conclusions are still relevant. Third, the advisory letter did...