2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12E - Credit for Reinsurance › Section 59A-12E-7 - Certified reinsurers; qualifications.

A. Credit shall be allowed when the reinsurance is ceded to an assuming insurer that has been certified by the superintendent as a reinsurer in the state and complies with this section and secures its obligations in accordance with the requirements of Sections 7 [59A-12E-7 NMSA 1978] through 9 [59A-12E-9 NMSA 1978] of the Credit for Reinsurance Act. To be eligible for certification, the assuming insurer shall:
(1) be domiciled and licensed to transact insurance or reinsurance in a qualified jurisdiction, as determined by the superintendent pursuant to Section 8 [59A-12E-8 NMSA 1978] and Subsection A of Section 9 of the Credit for Reinsurance Act;
(2) maintain minimum capital and surplus, or its equivalent, in an amount to be determined by the superintendent pursuant to rule;
(3) maintain financial strength ratings from two or more rating agencies deemed acceptable by the superintendent pursuant to rule;
(4) agree to submit to the jurisdiction of this state, appoint the superintendent as its agent for service of process in the state and agree to provide security for one hundred percent of the assuming insurer's liabilities attributable to reinsurance ceded by United States ceding insurers if it resists enforcement of a final United States judgment;
(5) agree to meet applicable information filing requirements as determined by the superintendent, both with respect to an initial application for certification and on an ongoing basis; and
(6) satisfy any other requirements for certification deemed relevant by the superintendent.
B. An association, including incorporated and individual unincorporated underwriters, may be a certified reinsurer. To be eligible for certification, in addition to satisfying the requirements of Subsection A of this section:
(1) the association shall satisfy its minimum capital and surplus requirements through the capital and surplus equivalents, net of liabilities, of the association and its members, which shall include a joint central fund that may be applied to any unsatisfied obligation of the association or any of its members, in an amount determined by the superintendent to provide adequate protection;
(2) the incorporated members of the association shall not be engaged in any business other than underwriting as a member of the association and shall be subject to the same level of regulation and solvency control by the association's domiciliary regulator as are the unincorporated members; and
(3) within ninety days after its financial statements are due to be filed with the association's domiciliary regulator, the association shall provide to the superintendent an annual certification by the association's domiciliary regulator of the solvency of each underwriter member or, if a certification is unavailable, financial statements prepared by independent public accountants, of each underwriter member of the association.
History:
Laws 2022, ch. 35, § 7.
ANNOTATIONS
Compiler's notes.
— Laws 2022, ch. 35, § 7 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.