2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 5A - Risk-Based Capital › Section 59A-5A-6 - Authorized control level event.

A. As used in the Risk-Based Capital Act, "authorized control level event" means any of the following events:
(1) the filing of a risk-based capital report by an insurer or health organization that indicates that the insurer's or health organization's total adjusted capital is greater than or equal to its mandatory control level risk-based capital but less than its authorized control level risk-based capital;
(2) the superintendent's notification to an insurer or health organization that its adjusted risk-based capital report indicates the existence of an event described in Paragraph (1) of this subsection, unless the insurer or health organization challenges the adjusted report pursuant to Section 59A-5A-8 NMSA 1978;
(3) if an insurer or health organization challenges the adjusted risk-based capital report, notification to the insurer or health organization that the superintendent has, after hearing, rejected the challenge;
(4) an insurer's or health organization's failure to respond, in a manner satisfactory to the superintendent, to a corrective order unless the insurer or health organization has challenged the order pursuant to Section 59A-5A-8 NMSA 1978; or
(5) if an insurer or health organization has challenged a corrective order and the superintendent has, after hearing, rejected the challenge or modified the corrective order, the failure of the insurer or health organization to respond, in a manner satisfactory to the superintendent, to the corrective order subsequent to rejection or modification.
B. In the event of an authorized control level event with respect to an insurer or health organization, the superintendent shall:
(1) take such actions as are required pursuant to Section 59A-5A-5 NMSA 1978 regarding an insurer or health organization with respect to which a regulatory action level event has occurred; or
(2) if the superintendent deems it to be in the best interests of the insurer's or health organization's policyholders and creditors and of the public, take such actions as are necessary to cause the insurer or health organization to be placed under regulatory control pursuant to Chapter 59A, Article 41 NMSA 1978. The authorized control level event constitutes sufficient grounds for the superintendent to take action pursuant to Chapter 59A, Article 41 NMSA 1978, and the superintendent has the rights, powers and duties with respect to the insurer or health organization set forth in Chapter 59A, Article 41 NMSA 1978.
History:
1978 Comp., § 59A-5A-6, enacted by Laws 1995, ch. 149, § 6; 2014, ch. 59, § 6.
ANNOTATIONS
The 2014 amendment,
effective July 1, 2014, subjected health organizations to the Risk-Based Capital Act; in Subsection A, Paragraph (1), after "by an insurer", deleted "which", and added "or health organization that", and after "the insurer's", added "or health organization's"; in Subsection A, Paragraph (2), after "notification to an insurer", added "or health organization", and after "unless the insurer", added "or health organization"; in Subsection A, Paragraph (3), after "if an insurer", added "or health organization", after "adjusted", added "risk-based", and after "notification to the insurer", added "or health organization"; in Subsection A, Paragraph (4), after "an insurer's", added "or health organization's", and after "unless the insurer", added "or health organization"; in Subsection A, Paragraph (5), after "if an insurer", added "or health organization", and after "failure of the insurer", added "or health organization"; in Subsection B, in the introductory sentence, after "to an insurer", added "or health organization"; in Subsection B, Paragraph (1), after "an insurer", added "or health organization"; and in Subsection B, Paragraph (2), in the first sentence, after "interests of the insurer's", added "or health organization's", and after "cause the insurer", added "or health organization", and in the second sentence, after "respect to the insurer", added "or health organization".
Severability.
— Laws 2014, ch. 59, § 12 provided that if any part or application of the provisions of the Risk-Based Capital Act is held invalid, the remainder or its application to other situations or persons shall not be affected.