2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12E - Credit for Reinsurance › Section 59A-12E-17 - Promulgation of rules.

A. The superintendent shall adopt rules to implement the provisions of the Credit for Reinsurance Act.
B. The superintendent may adopt rules applicable to reinsurance arrangements as set forth in Subsection C of this section.
C. A rule adopted pursuant to Subsections B through G of this section may apply only to reinsurance relating to:
(1) life insurance policies with guaranteed nonlevel gross premiums or guaranteed nonlevel benefits;
(2) universal life insurance policies with provisions resulting in the ability of a policyholder to keep a policy in force over a secondary guarantee period;
(3) variable annuities with guaranteed death or living benefits;
(4) long-term care insurance policies; or
(5) such other life and health insurance and annuity products as to which the national association of insurance commissioners adopts model regulatory requirements with respect to credit for reinsurance.
D. A rule adopted pursuant to Paragraph (1) or (2) of Subsection C of this section may apply to any treaty containing:
(1) policies issued on or after January 1, 2015; or
(2) policies issued prior to January 1, 2015, if risk pertaining to such pre-2015 policies is ceded in connection with the treaty, in whole or in part, on or after January 1, 2015.
E. A rule adopted pursuant to Subsections B through G of this section may require the ceding insurer, in calculating the amounts or forms of security required to be held pursuant to rules promulgated pursuant to the Credit for Reinsurance Act, to use the valuation manual adopted by the national association of insurance commissioners pursuant to Paragraph (1) of Section 11B of the national association of insurance commissioners standard valuation law, including all amendments adopted by the national association of insurance commissioners and in effect on the date as of which the calculation is made, to the extent applicable.
F. A rule adopted pursuant to Subsections B through G of this section shall not apply to cessions to an assuming insurer that:
(1) meets the conditions set forth in Sections 10 [59A-12E-10 NMSA 1978] through 12 [59A-12E-12 NMSA 1978] and Subsections A through D of Section 13 [59A-12E-13 NMSA 1978] of the Credit for Reinsurance Act;
(2) is certified in this state; or
(3) maintains at least two hundred fifty million dollars ($250,000,000) in capital and surplus when determined in accordance with the national association of insurance commissioners accounting practices and procedures manual, including all amendments thereto adopted by the national association of insurance commissioners, excluding the impact of any permitted or prescribed practices; and
(4) is licensed in at least twenty-six states; or
(5) is licensed in at least ten states, and licensed or accredited in at least thirty-five states.
G. The authority to adopt rules pursuant to Subsections B through F of this section shall not limit the superintendent's general authority to adopt rules pursuant to Subsection A of this section.
History:
Laws 2022, ch. 35, § 17.
ANNOTATIONS
Compiler's notes.
— Laws 2022, ch. 35, § 17 was not enacted as part of the Insurance Code, but was compiled there for the convenience of the user.
Emergency clauses.
— Laws 2022, ch. 35, § 20 contained an emergency clause and was approved March 2, 2022.