reglab/statecodes huggingface dataset:
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 37 - Insurance Holding Companies › Section 59A-37-7 - Mailings to shareholders; expenses.

All statements, amendments or other material filed pursuant to Section 619 or 620 [59A-37-4 or 59A-37-5 NMSA 1978] of this article, and all notices of public hearings held pursuant to Section 621 [59A-37-6 NMSA 1978] of this article shall be mailed by the insurer to its shareholders within five (5) days after the insurer has received such statements, amendments, other material or notices. The expenses of mailing shall be borne by the person making the filing. As security for the payment of the expenses, the person shall file with the superintendent an acceptable bond or other deposit in an amount to be determined by the superintendent.
History:
Laws 1984, ch. 127, § 622.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 37 - Insurance Holding Companies › Section 59A-37-8 - Exemptions.

Sections 619 through 621 [59A-37-4 to 59A-37-6 NMSA 1978] of this article shall not apply to:
A. any transaction which is subject to the provisions of Sections 582 and 585 [59A-34-36 and 59A-34-39 NMSA 1978] of the Insurance Code dealing with the merger, consolidation or conversion of insurers; or
B. any offer, request, invitation, agreement or acquisition which the superintendent by order shall exempt therefrom as:
(1) not having been made or entered into for the purpose and not having the effect of changing or influencing the control of a domestic insurer; or
(2) as otherwise not comprehended within the purpose of Sections 619 through 621 of this article.
History:
Laws 1984, ch. 127, § 623.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 37 - Insurance Holding Companies › Section 59A-37-9 - Violations.

A. The following acts shall be violations of Sections 59A-37-4 through 59A-37-6 NMSA 1978:
(1) the failure to file any statement, amendment or other material required to be filed pursuant to Section 59A-37-4 or 59A-37-5 NMSA 1978; or
(2) the effectuation or any attempt to effectuate an acquisition of control of a domestic insurer unless the superintendent has given approval to it.
B. The failure to timely file a registration statement, a summary of the registration statement or an enterprise risk filing required by Sections 59A-37-11 through 59A-37-19.2 NMSA 1978 and Section 59A-37-30 NMSA 1978 is a violation of Sections 59A-37-11 through 59A-37-19.2 NMSA 1978 and Section 59A-37-30 NMSA 1978.
History:
Laws 1984, ch. 127, § 624; 2014, ch. 59, § 34.
ANNOTATIONS
The 2014 amendment,
effective July 1, 2014, provided that failure to file a registration statement, a summary of a registration statement, or an enterprise risk filing is a violation of the Insurance Holdings Company Law; in Subsection A, after "Sections", deleted "619 through 621 of this article" and added "59A-37-4 through 59A-37-6 NMSA 1978"; in Subsection A, Paragraph (1), after "filed pursuant to", deleted "Sections 619 or 620 of this article" and added "Sections 59A-37-4 or 59A-37-5 NMSA 1978"; and added Subsection B.
Severability.
— Laws 2014, ch. 59, § 54 provided that if any part or application of the provisions of Laws 2014, ch. 59 is held invalid, the remainder or its application to other situations or persons shall not be affected.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
44 C.J.S. Insurance §§ 96, 97.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 37 - Insurance Holding Companies › Section 59A-37-10 - Jurisdiction; consent to service of process.

The courts of this state are hereby vested with jurisdiction over any person not resident, domiciled or authorized to do business in this state, who files a statement with the superintendent under Sections 619 through 622 [59A-37-4 to 59A-37-7 NMSA 1978] of this article, and over all actions involving such person arising out of violations of such sections, and each such person shall be deemed to have performed acts equivalent to and constituting an appointment by such person of the superintendent to be his true and lawful attorney upon whom may be served all lawful process in any action, suit or proceeding arising out of a violation of such sections. Copies of all such lawful process shall be served on the superintendent and transmitted by registered or certified mail by the superintendent to such person at his address last of record with the superintendent. Service of process fee shall be paid at time of service on the superintendent in amount specified in Section 101 [59A-6-1 NMSA 1978] (fee schedule) of the Insurance Code.
History:
Laws 1984, ch. 127, § 625.
ANNOTATIONS
Cross references.
— For New Mexico's "long-arm" statute,
see
38-1-16 NMSA 1978.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 37 - Insurance Holding Companies › Section 59A-37-11 - Registration of insurer member of holding company system.

A. Every insurer which is authorized to do business in this state and which is a member of an insurance holding company system shall register with the superintendent, except a foreign insurer subject to disclosure requirements and standards adopted by statute or regulation in the jurisdiction of its domicile which are substantially similar to those contained in:
(1) Sections 59A-37-11 through 59A-37-19.2 NMSA 1978;
(2) Subsection A of [Section] 59A-37-20 NMSA 1978;
(3) Sections 59A-37-21 and 59A-37-22 NMSA 1978; and
(4) either:
(a) Subsection B of Section 59A-37-20 NMSA 1978; or
(b) a provision requiring each registered insurer to keep current the information required to be disclosed in its registration statement by reporting all material changes or additions within fifteen days after the end of the month in which it learns of each change or addition.
B. Any insurer which is subject to registration under this section shall register within fifteen days after it becomes subject to registration, and annually thereafter by the fifteenth day of April each year, unless the superintendent for good cause shown extends the time for registration, and then within such extended time. The superintendent may require any authorized insurer which is a member of a holding company system and which is not subject to registration under this section to furnish a copy of the registration statement or other information filed by such insurer with the insurance regulatory authority of its domiciliary jurisdiction.
History:
Laws 1984, ch. 127, § 626; 1993, ch. 320, § 76.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and it is not part of the law.
The 1993 amendment,
effective June 18, 1993, added the subsection designations; substituted the language following "similar to those contained in" for "Section 626 through 634 of this article" at the end of Subsection A; in Subsection B, in the first sentence, inserted "under this section" and "and annually thereafter by the fifteenth day of April each year", inserted "under this section" in the second sentence, and made minor stylistic changes throughout the subsection.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 37 - Insurance Holding Companies › Section 59A-37-13 - Materiality.

No information need be disclosed on the registration statement filed pursuant to Sections 59A-37-4 and 59A-37-5 NMSA 1978 if such information is not material for the purposes of Sections 59A-37-1 through 59A-37-19 NMSA 1978. Unless the superintendent by rule, regulation or order provides otherwise, sales, purchases, exchanges, loans or extensions of credit, investments or guarantees involving one-half of one percent or less of an insurer's admitted assets as of the most recent December 31 shall not be deemed material for the purposes of such section.
History:
Laws 1984, ch. 127, § 628; 2014, ch. 59, § 36.
ANNOTATIONS
The 2014 amendment,
effective July 1, 2014, provided that guarantees of one-half percent or less of admitted assets are not material; in the first sentence, after "filed pursuant to Sections", deleted "619 and 620 of this article" and added "59A-37-4 and 59A-37-5 NMSA 1978", and after "for the purposes of", deleted "Section 626 through 634 of this article" and added "Sections 59A-37-11 through 59A-37-19 NMSA 1978", and in the second sentence, after "investments", added "or guarantees", and after "admitted assets as of", added "the most recent", and after "December 31", deleted "next preceding".
Severability.
— Laws 2014, ch. 59, § 54 provided that if any part or application of the provisions of Laws 2014, ch. 59 is held invalid, the remainder or its application to other situations or persons shall not be affected.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 37 - Insurance Holding Companies › Section 59A-37-14 - Summary of registration.

All registration statements shall contain a summary outlining all items in the current registration statement representing changes from the prior registration statement.
History:
1978 Comp., § 59A-37-14, enacted by Laws 1993, ch. 320, § 78.
ANNOTATIONS
Repeals and reenactments.
— Laws 1993, ch. 320, § 78 repealed former 59A-37-14 NMSA 1978, as enacted by Laws 1984, ch. 127, § 629, relating to amendments to registration statements, and enacted a new section, effective June 18, 1993.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 37 - Insurance Holding Companies › Section 59A-37-16 - Consolidated filing.

The superintendent may require or allow two or more affiliated insurers subject to registration to file a consolidated registration statement.
History:
Laws 1984, ch. 127, § 631; 1993, ch. 320, § 79.
ANNOTATIONS
The 1993 amendment,
effective June 18, 1993, deleted "or consolidated reports amending their consolidated registration statement or their individual registration statements" at the end of the section and made a stylistic change.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 37 - Insurance Holding Companies › Section 59A-37-17 - Alternative registration.

The superintendent may allow an insurer which is authorized to do business in this state and which is part of an insurance holding company system to register on behalf of any affiliated insurer which is required to register under Section 626 [59A-37-11 NMSA 1978] of this article, and to file all information and material required to be filed under Sections 626 through 634 [59A-37-11 to 59A-37-19 NMSA 1978] of this article.
History:
Laws 1984, ch. 127, § 632.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 37 - Insurance Holding Companies › Section 59A-37-18 - Registration exemptions.

Sections 59A-37-11 through 59A-37-19.2 NMSA 1978 shall not apply to any insurer, information or transaction if and to the extent that the superintendent by rule, regulation or order shall exempt the same from the provisions of such sections.
History:
Laws 1984, ch. 127, § 633; 1993, ch. 320, § 80.
ANNOTATIONS
The 1993 amendment,
effective June 18, 1993, substituted "Sections 59A-37-11 through 59A-37-19.2 NMSA 1978" for "Sections 626 through 634 of this article" at the beginning of the section.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 37 - Insurance Holding Companies › Section 59A-37-19 - Disclaimer.

Any person may file with the superintendent a disclaimer of affiliation with any authorized insurer or a disclaimer may be filed by the authorized insurer or any member of an insurance holding company system. The disclaimer shall fully disclose all material relationships and bases for affiliation between the person and the insurer as well as the basis for disclaiming an affiliation. After a disclaimer has been filed, the insurer shall be relieved of any duty to register or report that may arise out of the insurer's relationship with the person unless and until the superintendent, within thirty days after the receipt of a complete disclaimer, disallows the disclaimer. The superintendent shall disallow such a disclaimer only after furnishing all parties in interest with notice and opportunity to be heard and after making specific findings of fact to support the disallowance.
History:
Laws 1984, ch. 127, § 634; 2014, ch. 59, § 37.
ANNOTATIONS
The 2014 amendment,
effective July 1, 2014, provided a thirty day period in which the superintendent may disallow a disclaimer; in the third sentence, after "until the superintendent", added "within thirty days after the receipt of a complete disclaimer".
Severability.
— Laws 2014, ch. 59, § 54 provided that if any part or application of the provisions of Laws 2014, ch. 59 is held invalid, the remainder or its application to other situations or persons shall not be affected.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 37 - Insurance Holding Companies › Section 59A-37-19.1 - Reporting of dividends to shareholders.

Subject to the provisions of Section 59A-37-22 NMSA 1978, each registered insurer shall report to the superintendent all dividends and other distributions to shareholders within fifteen business days following the declaration thereof.
History:
1978 Comp., § 59A-37-19.1, enacted by Laws 1993, ch. 320, § 81.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 37 - Insurance Holding Companies › Section 59A-37-19.2 - Information of insurers.

Any person within an insurance holding company system subject to registration shall be required to provide complete and accurate information to an insurer, where such information is reasonably necessary to enable the insurer to comply with the provisions of Chapter 59A, Article 37 NMSA 1978.
History:
1978 Comp., § 59A-37-19.2, enacted by Laws 1993, ch. 320, § 82.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 37 - Insurance Holding Companies › Section 59A-37-21 - Adequacy of surplus.

For the purpose of this article, in determining whether an insurer's surplus as regards policyholders is reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs, the following factors, among others, shall be considered:
A. the size of the insurer as measured by its assets, capital and surplus, reserves, premium writings, insurance in force and other appropriate criteria;
B. the extent to which the insurer's business is diversified among the several lines of insurance;
C. the number and size of risks insured in each line of business;
D. the extent of the geographical dispersion of the insurer's insured risks;
E. the nature and extent of the insurer's reinsurance program;
F. the quality, diversification and liquidity of the insurer's investment portfolio;
G. the recent past and projected future trend in the size of the insurer's surplus as regards policyholders;
H. the surplus as regards policyholders maintained by other comparable insurers;
I. the adequacy of the insurer's reserves; and
J. the quality and liquidity of investments in subsidiaries made pursuant to Section 145 [59A-9-12 NMSA 1978] of the Insurance Code. The superintendent may treat any such investment as a disallowed asset for purposes of determining the adequacy of surplus as regards policyholders whenever in his judgment such investment warrants.
History:
Laws 1984, ch. 127, § 636.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 37 - Insurance Holding Companies › Section 59A-37-28 - Suspension, revocation, noncontinuance of certificate of authority.

Whenever it appears to the superintendent that any person has violated a provision of Chapter 59A, Article 37 NMSA 1978 which makes the continued operation of an insurer contrary to the interests of policyholders or the public, the superintendent may, after giving notice and an opportunity to be heard, suspend, revoke or refuse to continue the insurer's certificate of authority to do business in this state for such period as he finds necessary for protection of policyholders or the public. Any such order shall be accompanied by specific findings of fact and conclusions of law.
History:
Laws 1984, ch. 127, § 643; 1993, ch. 320, § 89.
ANNOTATIONS
The 1993 amendment,
effective June 18, 1993, substituted "Chapter 59A, Article 37 NMSA 1978 which" for "this article and which" in the first sentence; and substituted "order" for "determination" in the second sentence.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance § 57.
44 C.J.S. Insurance §§ 96, 97.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 37 - Insurance Holding Companies › Section 59A-37-30 - Enterprise risk filing.

The person who predominantly controls an insurer that is subject to registration shall file an enterprise risk report each year. The report shall reflect that person's knowledge and belief of the material risks within the insurance holding company system that pose enterprise risk to the insurer. The report shall be filed with the lead state insurance supervisory official of the insurance holding company system and in compliance with the relevant procedures outlined in the financial analysis handbook adopted by the national association of insurance commissioners.
History:
1978 Comp., § 59A-37-30, enacted by Laws 2014, ch. 59, § 44.
ANNOTATIONS
Effective dates.
— Laws 2014, ch. 59, § 55 made Laws 2014, ch. 59, § 44 effective July 1, 2014.
Severability.
— Laws 2014, ch. 59, § 54 provided that if any part or application of the provisions of Laws 2014, ch. 59 is held invalid, the remainder or its application to other situations or persons shall not be affected.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 37 - Insurance Holding Companies › Section 59A-37-32 - Supervisory colleges.

A. In order to determine compliance with the Insurance Holding Company Law by an insurer registered pursuant to Section 59A-37-11 NMSA 1978, the superintendent may participate in a supervisory college for a domestic insurer that is part of an insurance holding company system with international operations. Concerning a supervisory college, the superintendent may:
(1) initiate its establishment;
(2) clarify its membership and the participation of other supervisors;
(3) clarify its functions and the role of other regulators, including the establishment of a group-wide supervisor;
(4) coordinate its ongoing activities, including planning meetings, supervision and processes for information sharing; and
(5) establish a crisis management plan.
B. A registered insurer subject to this section shall pay the reasonable expenses, including for travel, associated with the superintendent's participation in a supervisory college pursuant to Subsection C of this section. A supervisory college may be convened as a temporary or permanent forum for communication and cooperation between the regulators charged with the supervision of the insurer or its affiliates. The superintendent may establish a regular assessment to the insurer for the payment of these expenses.
C. In order to assess the business strategy, financial position, legal and regulatory position, risk exposure, risk management and governance processes of an insurer, and as part of the examination of individual insurers pursuant to Section 59A-37-23 NMSA 1978, the superintendent may participate in a supervisory college with other regulators charged with the supervision of the insurer or its affiliates, including other state, federal and international regulatory agencies. The superintendent may enter into agreements in accordance with Subsection C of Section 59A-37-24 NMSA 1978 that provide the basis for cooperation between the superintendent and the other regulatory agencies and the activities of the supervisory college. Nothing in this section shall delegate to the supervisory college the authority of the superintendent to regulate or supervise the insurer or its affiliates within its jurisdiction.
History:
1978 Comp., § 59A-37-32, enacted by Laws 2014, ch. 59, § 46.
ANNOTATIONS
Effective dates.
— Laws 2014, ch. 59, § 55 made Laws 2014, ch. 59, § 46 effective July 1, 2014.
Severability.
— Laws 2014, ch. 59, § 54 provided that if any part or application of the provisions of Laws 2014, ch. 59 is held invalid, the remainder or its application to other situations or persons shall not be affected.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 38 - Lloyds Plan Automobile Insurance › Section 59A-38-1 - Lloyds Plan automobile insurance authorized.

A. Individuals, partnerships or associations of individuals, hereby designated underwriters, are authorized to make or write fire, theft, collision and comprehensive insurance on motor vehicles, on the Lloyds Plan, by executing articles of agreement expressing their purpose so to do and complying with the requirements of this article.
B. Insurers formed under this article are authorized to transact vehicle insurance as defined in Section 113 [59A-7-7 NMSA 1978] of the Insurance Code if they meet the capital fund requirements specified in Section 83 [59A-5-16 NMSA 1978] of the Insurance Code and other reasonably applicable requirements for domestic stock vehicle insurers formed and qualified under the Insurance Code.
History:
Laws 1984, ch. 127, § 644.
ANNOTATIONS
Cross references.
— For the Insurance Code,
see
59A-1-1 NMSA 1978 and notes thereto.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance §§ 21, 55.
Combining or "stacking" of "no fault" or personal injury protection (PIP) coverages in automobile liability policy or policies, 29 A.L.R.4th 12.
Combining or "stacking" medical payment provisions of automobile liability policy or policies issued by one or more insurers to one insured, 29 A.L.R.4th 49.
Validity and construction of automobile insurance provision or statute automatically terminating coverage when insured obtains another policy providing similar coverage, 61 A.L.R.4th 1130.
46A C.J.S. Insurance § 1709 et seq.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 38 - Lloyds Plan Automobile Insurance › Section 59A-38-2 - Approval of policies; attorney-in-fact.

All forms of policies proposed to be issued shall, before the issuance thereof, be approved by the superintendent. Such policies may be executed by an attorney-in-fact, which attorney-in-fact may be an individual, partnership or corporation, authorized by and acting for such underwriters under power of attorney. The principal office of the attorney-in-fact shall be located in New Mexico at such place as shall be designated by the underwriters in their articles of agreement.
History:
Laws 1984, ch. 127, § 645.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
44 Am. Jur. 2d Insurance § 1901.
46A C.J.S. Insurance §§ 1712, 1720, 1721.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 38 - Lloyds Plan Automobile Insurance › Section 59A-38-3 - Application for certificate of authority.

The attorney-in-fact shall file with the superintendent an application for certificate of authority as provided in Section 88 [59A-5-21 NMSA 1978] of the Insurance Code and also accompanied by:
A. the name of the attorney-in-fact, the name under which policies or contracts of insurance are to be made, and the title under which the business is to be conducted, which title shall contain the name of Lloyds;
B. the location of the principal office of the attorney-in-fact;
C. a copy of each form of policy or contract by which such insurance is to be effected;
D. the classes of vehicle insurance to be issued;
E. a copy of the articles of agreement entered into between underwriters themselves and the attorney-in-fact;
F. the names and addresses of all underwriters, whose number shall not be less than five (5);
G. a statement that executed contracts or bona fide applications to be concurrently effective have been made for the issuance of not less than one hundred (100) separate policies of insurance; and
H. an instrument executed by each and all of the underwriters especially empowering the attorney-in-fact and the superintendent of insurance to accept service of process for each and all of the underwriters in any action on any policy or contract of insurance.
History:
Laws 1984, ch. 127, § 646.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance § 55.
46A C.J.S. Insurance §§ 1710, 1719, 1728.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 38 - Lloyds Plan Automobile Insurance › Section 59A-38-4 - Cash or security deposit.

Prior to issuance of certificate of authority applied for, the attorney-in-fact or underwriters shall deposit with the state treasurer through the superintendent for the benefit of all policies and insurance contracts issued covering risks in this state, the sum of twenty-five thousand dollars ($25,000) in cash or securities of like value to be approved by the superintendent; or, in lieu of deposit of cash or securities, the attorney-in-fact may file with the state treasurer through the superintendent a surety bond issued by an authorized surety insurer, in penal sum of twenty-five thousand dollars ($25,000) and in form as prescribed by the attorney general of New Mexico, conditioned for the benefit of all such policies and insurance contracts. Any such deposit shall be subject to the applicable provisions of Article 10 [Chapter 59A, Article 10 NMSA 1978] (administration of deposits) of the Insurance Code.
History:
Laws 1984, ch. 127, § 647.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance §§ 52, 63; 44 Am. Jur. 2d Insurance §§ 1857, 1858.
46A C.J.S. Insurance § 1717.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 38 - Lloyds Plan Automobile Insurance › Section 59A-38-5 - Surplus required.

The superintendent shall not issue or continue a certificate of authority as to a Lloyds Plan underwriters under this article unless it has initially and thereafter maintained a surplus, over all liabilities, of admitted assets in amount of not less than fifty thousand dollars ($50,000). The initial such surplus as contributed to the attorney-in-fact shall consist of cash or of securities approved by the superintendent, and shall include the amount of cash, securities, or surety bond deposited pursuant to Section 647 [59A-38-4 NMSA 1978] of this article.
History:
Laws 1984, ch. 127, § 648.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance § 62.
46A C.J.S. Insurance §§ 1710, 1719.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 38 - Lloyds Plan Automobile Insurance › Section 59A-38-6 - Limit on volume of insurance written.

A. A Lloyds Plan underwriters shall not assume nor write insurance on risks in this state or for New Mexico residents which produces a net premium income in excess of ten (10) times the underwriters' surplus. If at any time insurance in force produces a net premium income greater than ten (10) times such surplus, the underwriters shall not write any new insurance business until they can do so without exceeding such limit of net premiums to surplus.
B. While the underwriters' surplus is in amount not less than the minimum amount of capital funds (paid-in capital stock) required to be maintained under the Insurance Code by a domestic stock insurer transacting the same kind of insurance, the limit upon volume of business written otherwise applicable under this action shall not apply.
C. If in the superintendent's judgment the underwriters have effected and maintain reinsurance or other contracts with insurers authorized to transact insurance in this state, and which reduces the net insurance risk retained by the underwriters so that their operations are safe and solvency not endangered, then the superintendent may continue the certificate of authority to the underwriters without regard to the limitation upon volume of insurance business in force otherwise provided for in this section.
History:
Laws 1984, ch. 127, § 649.
ANNOTATIONS
Cross references.
— For the Insurance Code,
see
59A-1-1 NMSA 1978 and notes thereto.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 38 - Lloyds Plan Automobile Insurance › Section 59A-38-7 - Determining solvency; investments.

A. In determining solvency of a Lloyds Plan underwriters there shall be considered all funds contributed to the guaranty fund by the underwriters and funds accumulated from insurance business transacted and held for the underwriters by the attorney-in-fact. Underwriters shall be deemed solvent when the admitted assets meet the requirements of this article, after deducting from gross admitted assets all outstanding liabilities, including reserve liabilities; and when the guaranty fund, at least to the minimum required amount, is unimpaired.
B. Funds of underwriters shall be invested in such property and securities as are eligible under Article 9 [Chapter 59A, Article 9 NMSA 1978] (investments) of the Insurance Code for investment of funds of a domestic stock insurer authorized to transact the same kind of insurance.
History:
Laws 1984, ch. 127, § 650.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance § 126.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 38 - Lloyds Plan Automobile Insurance › Section 59A-38-8 - Distribution of profits; how determined.

No profits out of a Lloyds Plan insurance operation shall accrue to an underwriter or underwriters except on the basis of his or their actual investment in cash or eligible securities, and no such profits shall be paid except out of surplus and in proportion to such investment. Such surplus shall be determined by the superintendent in the following manner:
A. he shall charge as liabilities the same reserves as are required of authorized stock insurers transacting the same kind of insurance;
B. he shall allow the surplus deposits of underwriters as an asset, except that if an underwriter's premium deposit is due and unpaid for ninety (90) days, the premium deposit shall first be charged against such surplus;
C. the surplus deposits of underwriters shall not be charged as liabilities;
D. all premium deposits due and unpaid for a period not exceeding ninety (90) days shall be allowed as assets; and
E. the amount of surplus shall otherwise be determined in accordance with similar determination, as applicable, of the surplus of other authorized stock and mutual insurers.
History:
Laws 1984, ch. 127, § 651.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance §§ 57, 68.
44 C.J.S. Insurance § 85 et seq.; 46A C.J.S. Insurance §§ 1717, 1723.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 38 - Lloyds Plan Automobile Insurance › Section 59A-38-9 - Impairment.

A. Whenever it is found by the superintendent that the minimum surplus required of a Lloyds Plan underwriters under this article has become impaired, the superintendent shall immediately give notice to the attorney-in-fact to appear and show cause why the certificate of authority of the attorney-in-fact should not be revoked; and if within thirty (30) days from the giving of such notice the impairment has not been made good by the underwriters or the attorney-in-fact or otherwise, the superintendent shall forthwith revoke the certificate of authority.
B. If the attorney-in-fact or other person makes any advancement of funds to make good the impairment of surplus, the claim for funds so advanced shall as to assets be deferred to claims for losses under policies or insurance contracts.
C. If the impairment of surplus is not made good within the time prescribed, the superintendent, in addition to revocation of the certificate of authority, shall commence delinquency proceedings against the underwriters as provided for as to insurers in general under Article 41 [Chapter 59A, Article 41 NMSA 1978] (conservation, rehabilitation, liquidation) of the Insurance Code.
History:
Laws 1984, ch. 127, § 652.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance § 68; 44 Am. Jur. 2d Insurance §§ 1857 to 1867.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 38 - Lloyds Plan Automobile Insurance › Section 59A-38-10 - Withdrawal of underwriters.

If the underwriters of a Lloyds Plan insurance operation desire to withdraw from the insurance business they may do so if and when they have satisfied the superintendent that adequate provision has been made through reinsurance or otherwise for payment of all unpaid losses and for reinsurance of all outstanding risks of New Mexico residents or covering property located in New Mexico. Upon being so satisfied the superintendent shall release any bond of the attorney-in-fact and release to the underwriters the deposit and remaining assets.
History:
Laws 1984, ch. 127, § 653.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance § 68; 44 Am. Jur. 2d Insurance §§ 1857 to 1867.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 38 - Lloyds Plan Automobile Insurance › Section 59A-38-11 - Lloyds Plan insurance producers; licensing.

The provisions of the Insurance Code as to qualifications, appointment, licensing and regulation of insurance producers apply neither to the attorney-in-fact at Lloyds nor to a salaried representative of Lloyds who receives no commission, but do apply to any insurance producer who receives any commission.
History:
Laws 1984, ch. 127, § 654; 2016, ch. 89, § 65.
ANNOTATIONS
Cross references.
— For the Insurance Code,
see
59A-1-1 NMSA 1978 and notes thereto.
The 2016 amendment,
effective July 1, 2017, replaced "agent" and "solicitor" with "insurance producer" throughout the section; and after "Lloyds nor to", deleted "the" and added "a".
Severability.
— Laws 2016, ch. 89, § 71 provided that if any part or application of Laws 2016, ch. 89 is held invalid, the remainder or its application to other situations or persons shall not be affected.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
Agents or brokers, public regulation or control, 10 A.L.R.2d 950.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 38 - Lloyds Plan Automobile Insurance › Section 59A-38-12 - Lloyds Plan an "insurer".

For the purposes of the Insurance Code a Lloyds Plan insurance operation is subject to applicable provisions of this code, and may be therein referred to as an "insurer".
History:
Laws 1984, ch. 127, § 655.
ANNOTATIONS
Cross references.
— For the Insurance Code,
see
59A-1-1 NMSA 1978 and notes thereto.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 38 - Lloyds Plan Automobile Insurance › Section 59A-38-13 - Illegal transactions; penalty.

Any attorney-in-fact of Lloyds Plan underwriters or representative of such attorney-in-fact who exchanges or solicits or negotiates the exchange of any automobile insurance contract without compliance by the attorney-in-fact with the provisions of this article, shall be deemed guilty of a misdemeanor and upon conviction shall be punished by a fine of not to exceed five thousand dollars ($5,000).
History:
Laws 1984, ch. 127, § 656.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance § 180.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 38 - Lloyds Plan Automobile Insurance › Section 59A-38-14 - Venue of action.

Actions against the attorney-in-fact or underwriters of a domestic Lloyds Plan insurance operation may be brought either in the county in which the person or property insured is resident or located, or in which the attorney-in-fact has his principal office or place of business in this state.
History:
Laws 1984, ch. 127, § 657.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 39 - Reciprocal Insurers › Section 59A-39-1 - "Reciprocal" insurance defined.

As used in the Insurance Code, "reciprocal" insurance is that resulting from an interchange among persons, known as "subscribers," of reciprocal agreements of indemnity, the interchange being effectuated through an attorney-in-fact common to all such persons.
History:
Laws 1984, ch. 127, § 658.
ANNOTATIONS
Cross references.
— For the Insurance Code,
see
59A-1-1 NMSA 1978 and notes thereto.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance §§ 77 to 83.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 39 - Reciprocal Insurers › Section 59A-39-2 - Scope of chapter; existing insurers.

A. All authorized reciprocal insurers shall be governed by those sections of this article not expressly made applicable to domestic reciprocals.
B. After the effective date of the Insurance Code existing authorized reciprocal insurers shall comply with the provisions of this article, and shall make such amendments to their subscribers' agreement, power of attorney, policies and other documents and accounts and perform such other acts as may be required for such compliance.
History:
Laws 1984, ch. 127, § 659.
ANNOTATIONS
Compiler's notes.
— Laws 1984, ch. 127, § 999 made the Insurance Code effective January 1, 1985.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 39 - Reciprocal Insurers › Section 59A-39-3 - Insuring powers of reciprocals.

A. A reciprocal insurer may, upon qualifying therefor as provided for by the Insurance Code, transact any kind or kinds of insurance defined by the Insurance Code other than life or title insurances.
B. Such an insurer may purchase reinsurance upon the risk of any subscriber, and may grant reinsurance as to any kind of insurance it is authorized to transact direct.
History:
Laws 1984, ch. 127, § 660.
ANNOTATIONS
Cross references.
— For the Insurance Code,
see
59A-1-1 NMSA 1978 and notes thereto.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 39 - Reciprocal Insurers › Section 59A-39-4 - Name; suits.

A reciprocal insurer shall:
A. have and use a business name. The name shall include the word "reciprocal" or "interinsurer," or "interinsurance," or "exchange," or "underwriters," or "underwriting," or "association"; and
B. sue and be sued in its own name.
History:
Laws 1984, ch. 127, § 661.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 39 - Reciprocal Insurers › Section 59A-39-5 - Attorney.

A. "Attorney", as used in Chapter 59A, Article 39 NMSA 1978, refers to the attorney-in-fact of a reciprocal insurer. The attorney may be an individual, firm or corporation.
B. The attorney of a foreign reciprocal insurer, which insurer is duly authorized to transact insurance in this state, shall not, by virtue of the discharge of its duties as such attorney with respect to the insurer's transactions in this state, be thereby deemed to be doing business in this state within the meaning of any laws of this state applying to foreign persons, firms or corporations.
C. The subscribers and the attorney-in-fact comprise a reciprocal insurer and single entity for the purposes of the Insurance Premium Tax Act [7-40-1 to 7-40-10 NMSA 1978] and Sections 59A-6-3 through 59A-6-6 NMSA 1978 as to all operations under the insurer's certificate of authority.
History:
Laws 1984, ch. 127, § 662; 2018, ch. 57, § 22.
ANNOTATIONS
The 2018 amendment,
effective January 1, 2020, provided that subscribers of reciprocal agreements and the attorney-in-fact of a reciprocal insurer comprise a single entity for purposes of the Insurance Premium Tax Act and certain sections of the NMSA 1978; in Subsection A, after "as used in", deleted "this article" and added "Chapter 59A, Article 39 NMSA 1978"; in Subsection C, after "for the purposes of", added "the Insurance Premium Tax Act", and after "Sections", deleted "102 to 106 (premium tax and related provisions), inclusive, of the Insurance Code" and added "59A-6-3 through 59A-6-6 NMSA 1978".
Temporary provisions.
— Laws 2018, ch. 57, § 30 provided that:
A. On January 1, 2020, all personnel directly involved with the audit and collection of the taxes imposed pursuant to the New Mexico Insurance Code prior to the effective date of this act, functions, appropriations, money, records, furniture, equipment and other property of, or attributable to, the financial audit bureau of the office of superintendent of insurance shall be transferred to the taxation and revenue department.
B. On January 1, 2020, no contractual obligations of the office of superintendent of insurance shall be binding on the taxation and revenue department.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 39 - Reciprocal Insurers › Section 59A-39-6 - Organization of reciprocal insurer.

A. Twenty-five (25) or more persons domiciled in this state may organize a domestic reciprocal insurer and make application to the superintendent for a certificate of authority to transact insurance.
B. The proposed attorney shall fulfill the requirements of and shall execute and file with the superintendent when applying for a certificate of authority a declaration setting forth:
(1) the name of the insurer;
(2) the location of the insurer's principal office, which shall be the same as that of the attorney and shall be maintained within this state;
(3) the kinds of insurance proposed to be transacted;
(4) the names and addresses of the original subscribers;
(5) the designation and appointment of the proposed attorney and a copy of the power of attorney;
(6) the names and addresses of the officers and directors of the attorney, if a corporation, or its members, if a firm;
(7) the powers of the subscribers' advisory committee, and the names and terms of office of the members thereof;
(8) that all moneys paid to the reciprocal shall, after deducting therefrom any sum payable to the attorney, be held in the name of the insurer and for the purposes specified in the subscribers' agreement;
(9) a statement that each of the original subscribers had in good faith applied for insurance of a kind proposed to be transacted, and that the insurer has received from each such subscriber the full premium or premium deposit required for the policy applied for, for a term of not less than six (6) months at an adequate rate theretofore filed with and approved by the superintendent;
(10) a statement of the financial condition of the insurer, a schedule of its assets, and a statement that the surplus as required by Section 83 [59A-5-16 NMSA 1978] of the Insurance Code is on hand; and
(11) a copy of each policy, endorsement and application form it then proposes to issue or use.
C. The declaration shall be acknowledged by the attorney in the manner required for the acknowledgment of deeds.
History:
Laws 1984, ch. 127, § 663.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 39 - Reciprocal Insurers › Section 59A-39-7 - Certificate of authority.

A. The certificate of authority of a reciprocal insurer shall be issued to its attorney in the name of the insurer.
B. The superintendent may refuse, suspend or revoke the certificate of authority, in addition to other grounds therefor, for failure of the attorney to comply with any applicable provision of the Insurance Code.
History:
Laws 1984, ch. 127, § 664.
ANNOTATIONS
Cross references.
— For the Insurance Code,
see
59A-1-1 NMSA 1978 and notes thereto.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 39 - Reciprocal Insurers › Section 59A-39-8 - Power of attorney.

A. The rights and powers of the attorney of a reciprocal insurer shall be as provided in the power of attorney given it by the subscribers.
B. The power of attorney must set forth:
(1) the powers of the attorney;
(2) if a domestic insurer, that the attorney is empowered to accept service of process on behalf of the insurer in actions against the insurer upon contracts exchanged;
(3) the general services to be performed by the attorney;
(4) the maximum amount, if any, to be deducted from advance premiums or deposits to be paid to the attorney and the general items of expense, if any, in addition to losses, to be paid by the insurer; and
(5) except as to nonassessable policies, a provision for a contingent several liability of each subscriber in a specified amount which amount shall be not less than one nor more than ten (10) times the premium or premium deposit stated in the policy.
C. The power of attorney may:
(1) provide for the right of substitution of the attorney and revocation of the power of attorney and rights thereunder;
(2) impose such restrictions upon the exercise of the power as are agreed upon by the subscribers;
(3) provide for the exercise of any right reserved to the subscribers directly or through their advisory committee; and
(4) contain other lawful provisions deemed advisable.
D. The terms of any power of attorney or agreement collateral thereto shall be reasonable and equitable, and no such power or agreement shall be used or be effective in this state until approved by the superintendent.
History:
Laws 1984, ch. 127, § 665.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 39 - Reciprocal Insurers › Section 59A-39-9 - Modifications.

Modifications of the terms of the subscribers' agreement or of the power of attorney of a domestic reciprocal insurer shall be made jointly by the attorney and the subscribers' advisory committee. No such modification shall be effective retroactively, or as to any insurance contract issued prior thereto.
History:
Laws 1984, ch. 127, § 666.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 39 - Reciprocal Insurers › Section 59A-39-10 - Attorney's bond.

A. Concurrently with the filing of the declaration provided for in Section 663 [59A-39-6 NMSA 1978] of this article, the attorney of a domestic reciprocal insurer shall file with the superintendent a bond in favor of this state for the benefit of all persons damaged as a result of breach by the attorney of the conditions of this bond as set forth in Subsection B, below. The bond shall be executed by the attorney and by an authorized corporate surety, and shall be subject to the superintendent's approval.
B. The bond shall be in the penal sum of fifty thousand dollars ($50,000), aggregate in form, conditioned that the attorney will faithfully account for all moneys and other property of the insurer coming into his hands, and that he will not withdraw or appropriate to his own use from the funds of the insurer any moneys or property to which he is not entitled under the power of attorney.
C. The bond shall provide that [it] is not subject to cancellation unless thirty (30) days' advance notice in writing of cancellation is given both the attorney and the superintendent.
History:
Laws 1984, ch. 127, § 667.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Compiler's notes.
— Laws 1984, ch. 127, § 993, provides that any deposit or surety bond filed in lieu thereof with or through the superintendent or state treasurer by any insurer in conjunction with authority to transact business in the state immediately prior to the effective date of the act (January 1, 1985) shall be given effect to the extent it complies with similar bonds required by the act after that date.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 39 - Reciprocal Insurers › Section 59A-39-11 - Deposit in lieu of bond.

In lieu of the bond required under Section 667 [59A-39-10 NMSA 1978] of this article, the attorney may maintain on deposit through the superintendent, a like amount in cash or in market value of United States government bonds, subject to the same conditions as the bond.
History:
Laws 1984, ch. 127, § 668.
ANNOTATIONS
Compiler's notes.
— Laws 1984, ch. 127, § 993, provides that any deposit or surety bond filed in lieu thereof with or through the superintendent or state treasurer by any insurer in conjunction with authority to transact business in the state immediately prior to the effective date of the act (January 1, 1985) shall be given effect to the extent it complies with similar bonds required by the act after that date.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 39 - Reciprocal Insurers › Section 59A-39-12 - Action on bond.

An action on the attorney's bond or to recover against any such deposit made in lieu thereof may be brought by one or more subscribers suffering loss through a violation of its conditions, or by a receiver or liquidator of the insurer. Amounts recovered on the bond shall be deposited in and become part of the insurer's funds. The total aggregate liability of the surety shall be limited to the amount of the penalty of such bond.
History:
Laws 1984, ch. 127, § 669.