AGO IAL091806.

• Case Date: September 18, 2006
• Court: New Mexico

New Mexico Attorney General Opinions 2006. AGO IAL091806. September 18, 2006Honorable James Taylor N.M. State Senate3909 Camino Del Valle SW Albuquerque, NM 87105 Re: Request for Opinion - Regulation of Surety IndustryDear Senator Taylor: You have 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. It is our understanding that the Division's interpretation is that every person in the surety bond business must receive a certificate of authority prior to operating in New Mexico. Your letter stated that this interpretation should be examined in the context of the passage of Senate Bill 814 in 2005. Based on our examination of the relevant New Mexico constitutional, statutory and case law authorities, and on the information available to us, we agree with the Division's interpretation. There are two rules of statutory construction that apply to this matter. First, a statute should be read according to its plain, written meaning. See Wilson v. Denver, 125 N.M. 308, 314, 961 P.2d 153 (1998). Second, "[a] fundamental rule of statutory construction is that all provisions of a statute, together with other statutes in pari materia, must be read together to ascertain the legislative intent." Roth v. Thompson, 113 N.M. 331, 334, 825 P.2d 1241 (1992). The Code, in this topic area, is written in plain language. An insurer "includes every person engaged as principal and as indemnitor, surety or contractor in the business of entering into contracts of insurance." NMSA 1978, § 59A-1-8 (1984) (emphasis added). Indeed, "no person shall act as an insurer, and no insurer shall transact insurance in this state unless so authorized by a subsisting certificate of authority issued by the superintendent [of Insurance] ." NMSA 1978, § 59A-5-10 (1984). Senate Bill 814 stated: "A subcontractor shall provide a performance and payment bond on a public works building project if the subcontractor's contract for work to be performed on a project is fifty thousand dollars ($50,000) or more." NMSA 1978, § 13-1-148.1 (2005). It is our understanding that the law has potentially created an...