reglab/statecodes huggingface dataset:
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 39 - Reciprocal Insurers › Section 59A-39-13 - Service of process; judgment.

A. Legal process shall be served upon a domestic reciprocal insurer by serving the insurer's attorney at his principal office or by serving the superintendent as the insurer's process agent under Sections 98 and 99 [59A-5-31 and 59A-5-32 NMSA 1978] of the Insurance Code.
B. Any judgment based upon legal process so served shall be binding upon each of the insurer's subscribers as their respective interests may appear, but in an amount not exceeding their respective contingent liabilities, if any, the same as though personal service of process was had upon each such subscriber.
History:
Laws 1984, ch. 127, § 670.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 39 - Reciprocal Insurers › Section 59A-39-14 - Contributions to insurer.

A. The attorney or other parties may advance to a domestic reciprocal insurer upon reasonable terms such funds as it may require from time to time in its operations. Sums so advanced shall not be treated as a liability of the insurer and, except upon liquidation of the insurer, shall not be withdrawn or repaid except out of the insurer's realized earned surplus in excess of its minimum required surplus. No such withdrawal or repayment shall be made without the advance approval of the superintendent.
B. This section does not apply to bank loans or to other loans made upon security.
History:
Laws 1984, ch. 127, § 671.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 39 - Reciprocal Insurers › Section 59A-39-15 - Financial condition; method of determining.

In determining the financial condition of a reciprocal insurer the superintendent shall apply the following rules:
A. he shall charge as liabilities the same reserves as are required of incorporated insurers issuing nonassessable policies on a reserve basis;
B. the surplus deposits of subscribers shall be allowed as assets except that any premium deposits delinquent for ninety (90) days shall first be charged against such surplus deposit;
C. the surplus deposits of subscribers shall not be charged as a liability;
D. all premium deposits delinquent less than ninety (90) days shall be allowed as assets;
E. an assessment levied upon subscribers, and not collected, shall not be allowed as an asset;
F. the contingent liability of subscribers shall not be allowed as an asset; and
G. the computation of reserves shall be based upon premium deposits other than membership fees and without any deduction for expenses and the compensation of the attorney.
History:
Laws 1984, ch. 127, § 672.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 39 - Reciprocal Insurers › Section 59A-39-16 - Who may be subscribers.

A. Individuals, partnerships and corporations of this state may make application, enter into an agreement for and hold policies or contracts in or with and be a subscriber of any domestic, foreign or alien reciprocal insurer. Any corporation organized under the laws of this state prior to or after the effective date of the Insurance Code shall, in addition to the rights, powers, and franchises specified in its articles of incorporation, have full power and authority as a subscriber to exchange insurance contracts through such reciprocal insurer. The right to exchange such contracts is hereby declared to be incidental to the purposes for which such corporations are organized and to be as fully granted as the rights and powers expressly conferred upon such corporations.
B. Government or governmental agencies, a state or political subdivisions thereof, boards, associations, estates, trustees or fiduciaries are authorized to exchange nonassessable reciprocal interinsurance contracts with each other and with individuals, partnerships and corporations to the same extent that individuals, partnerships and corporations are authorized in this article to exchange reciprocal interinsurance contracts.
C. Any officer, representative, trustee, receiver or legal representative of any such subscriber shall be recognized as acting for or on its behalf for the purpose of such contract but shall not be personally liable upon such contract by reason of acting in such representative capacity.
History:
Laws 1984, ch. 127, § 673.
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-39-17 - Subscribers' advisory committee.

A. The advisory committee of a domestic reciprocal insurer exercising the subscribers' rights shall be selected under such rules as the subscribers adopt.
B. Not less than two-thirds of such committee shall be subscribers other than the attorney, or any person employed by, representing or having a financial interest in the attorney.
C. The committee shall:
(1) supervise the finances of the insurer;
(2) supervise the insurer's operations to such extent as to assure conformity with the subscribers' agreement and the power of attorney;
(3) procure the audit of the accounts and records of the insurer and of attorney at the expense of the insurer; and
(4) have such additional powers and functions as may be conferred in the subscribers' agreement.
History:
Laws 1984, ch. 127, § 674.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 39 - Reciprocal Insurers › Section 59A-39-18 - Subscribers' liability.

A. The liability of each subscriber, other than as to a nonassessable policy, for the obligations of the reciprocal insurer shall be an individual, several and proportionate liability, and not joint.
B. Except as to a nonassessable policy, each subscriber shall have a contingent assessment liability, in the amount provided for in the power of attorney or in the subscribers' agreement, for payment of actual losses and expenses incurred while his policy was in force. Such contingent liability may be at the rate of not less than one nor more than ten (10) times the premium or premium deposit stated in the policy, and the maximum aggregate thereof shall be computed in the manner set forth in Section 679 [59A-39-22 NMSA 1978] of this article.
C. Each assessable policy issued by the insurer shall contain a statement of the contingent liability, set in type of not less prominence than the insuring clause.
History:
Laws 1984, ch. 127, § 675.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 39 - Reciprocal Insurers › Section 59A-39-19 - Subscribers' liability on judgment.

A. No action shall lie against any subscriber upon any obligation claimed against the insurer until a final judgment has been obtained against the insurer and remains unsatisfied for thirty (30) days.
B. Any such judgment shall be binding upon each subscriber only in such proportion as his interests may appear and in an amount not exceeding his contingent liability, if any.
History:
Laws 1984, ch. 127, § 676.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 39 - Reciprocal Insurers › Section 59A-39-20 - Assessments.

A. Assessments may from time to time be levied upon subscribers of a domestic reciprocal insurer liable therefor under the terms of their policies by:
(1) the attorney upon approval in advance by the subscribers' advisory committee and the superintendent; or
(2) the superintendent in liquidation of the insurer.
B. Each subscriber's share of a deficiency for which an assessment is made, but not exceeding in any event his aggregate contingent liability as computed in accordance with Section 679 [59A-39-22 NMSA 1978] of this article, shall be computed by applying to the premium earned on the subscriber's policy or policies during the period to be covered by the assessment, the ratio of the total deficiency to the total premiums earned during such period upon all policies subject to the assessment.
C. In computing the earned premiums for the purposes of this section, the gross premium received by the insurer for the policy shall be used as a base, deducting therefrom solely charges not recurring upon the renewal or extension of the policy.
D. No subscriber shall have an offset against any assessment for which he is liable, on account of any claim for unearned premium or losses payable.
History:
Laws 1984, ch. 127, § 677.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 39 - Reciprocal Insurers › Section 59A-39-21 - Time limit for assessments.

Every subscriber of a domestic reciprocal insurer having contingent liability shall be liable for, and shall pay his share of any assessment as computed and limited in accordance with this article, if:
A. while his policy is in force or within one year after its termination, he is notified by either the attorney or the superintendent of his intentions to levy such assessment; or
B. if an order to show cause why a receiver, conservator, rehabilitator or liquidator of the insurer should not be appointed is issued while his policy is in force or within one year after its termination.
History:
Laws 1984, ch. 127, § 678.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 39 - Reciprocal Insurers › Section 59A-39-22 - Aggregate liability.

No one policy or subscriber to such policy, shall be assessed or charged with an aggregate of contingent liability as to obligations incurred by a domestic reciprocal insurer in any one calendar year, in excess of the amount provided for in the power of attorney or in the subscribers' agreement, computed solely upon the premium earned on such policy during that year.
History:
Laws 1984, ch. 127, § 679.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 39 - Reciprocal Insurers › Section 59A-39-23 - Nonassessable policies.

A. If a reciprocal insurer has a surplus of assets over all liabilities at least equal to the minimum capital stock required to be maintained by a domestic stock insurer authorized to transact like kinds of insurance, upon application of the attorney and as approved by the subscribers' advisory committee the superintendent shall issue his certificate authorizing the insurer to extinguish the contingent liability of subscribers under its policies then in force in this state, and to omit provisions imposing contingent liability in all policies delivered or issued for delivery in this state for so long as all such surplus remains unimpaired.
B. Upon impairment of such surplus, the superintendent shall forthwith revoke the certificate. Such revocation shall not render subject to contingent liability any policy then in force and for the remainder of the period for which the premium has theretofore been paid; but after such revocation no policy shall be issued or renewed without providing for contingent assessment liability of the subscriber.
C. The superintendent shall not authorize a domestic reciprocal insurer so to extinguish the contingent liability of any of its subscribers or in any of its policies to be issued, unless it qualifies to and does extinguish such liability of all its subscribers and in all such policies for all kinds of insurance transacted by it; but if required by the laws of another state in which the insurer is transacting insurance as an authorized insurer, the insurer may issue policies providing for the contingent liability of such of its subscribers as may acquire such policies in such state and need not extinguish the contingent liability applicable to policies theretofore in force in such state.
History:
Laws 1984, ch. 127, § 680.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 39 - Reciprocal Insurers › Section 59A-39-24 - Subscribers' share in assets.

Upon the liquidation of a domestic reciprocal insurer, its assets remaining after the discharge of its indebtedness and policy obligations, the return of any contributions of the attorney or other persons to its surplus, and the return of any unused premiums, savings or credits then standing on subscribers' accounts shall be distributed to its subscribers who were such within the twelve (12) months prior to the last termination of its certificate of authority, according to such reasonable formula as the superintendent may approve.
History:
Laws 1984, ch. 127, § 681.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 39 - Reciprocal Insurers › Section 59A-39-25 - Merger or conversion.

A. A domestic reciprocal insurer upon the affirmative vote of not less than two-thirds of its subscribers who vote on such merger pursuant to due notice, and the approval of the superintendent of the terms therefor after a hearing thereon may merge with another reciprocal insurer or be converted to a stock or mutual insurer.
B. Such a stock or mutual insurer shall be subject to the same capital or surplus requirements and shall have the same rights as a like domestic insurer transacting like kinds of insurance.
C. The superintendent shall not approve any plan for such merger or conversion which is unfair or inequitable to subscribers, or in violation of law or subject to reasonable obligation, or which, if for conversion to a stock insurer, does not give each subscriber preferential right to acquire stock of the proposed insurer proportionate to his interest in the reciprocal insurer as determined in accordance with Section 681 [59A-39-24 NMSA 1978] of this article and a reasonable length of time within which to exercise such right.
History:
Laws 1984, ch. 127, § 682.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 39 - Reciprocal Insurers › Section 59A-39-26 - Impaired reciprocals.

A. Subject to the limitation set forth in the power of attorney or policy, if the assets of a domestic reciprocal insurer are at any time insufficient to discharge its liabilities, other than any liability on account of funds contributed by the attorney or others, and to maintain the required surplus, its attorney shall forthwith make up the deficiency or levy an assessment upon the subscribers for the amount needed to make up the deficiency.
B. If the attorney fails to make up such deficiency or to make the assessment within thirty (30) days after the superintendent orders him to do so, or if the deficiency is not fully made up within sixty (60) days after the date the assessment was made, the insurer shall be deemed insolvent and shall be proceeded against as authorized by the Insurance Code.
C. If liquidation of such an insurer is ordered, an assessment shall be levied upon the subscribers for such an amount, subject to the limits provided by this article, as the superintendent determines to be necessary to discharge all liabilities of the insurer, exclusive of any funds contributed by the attorney or other persons, but including the reasonable cost of the liquidation.
History:
Laws 1984, ch. 127, § 683.
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 40 - Mexican Casualty Insurers › Section 59A-40-1 - May be licensed to write certain insurance effective in Mexico.

A. Any insurer lawfully organized under the laws of the republic of Mexico, or under the laws of any state thereof, and duly authorized by such laws and by its charter or articles of association and by current license of the appropriate insurance regulatory authority of such republic or any state thereof to underwrite risks of the kinds and in the circumstances hereinafter mentioned, may issue in New Mexico, under license of the superintendent, policies of insurance affording any and all kinds of automobile insurance coverage, health insurance and other casualty insurance coverage, upon persons and personal property, to be in force only while such persons and personal property shall be physically within the boundaries of the republic of Mexico, by complying with the requirements of this article.
B. For the purposes of general provisions of the Insurance Code such license shall be deemed to be a "certificate of authority" to transact such insurance in this state, but subject to the provisions of this article.
History:
Laws 1984, ch. 127, § 684.
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 § 38.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 40 - Mexican Casualty Insurers › Section 59A-40-2 - Application for license.

A. Such insurer shall file with the superintendent its written application for license to do business in this state, accompanied by a correct English translation of its charter and bylaws, duly certified by two (2) of its principal officers and by the insurance regulatory officials under whose supervision it operates in the republic of Mexico, and all of its policy forms, application forms, claim forms and other forms of every nature which it uses or expects to use in underwriting the coverage hereby authorized to be written in New Mexico, all of which shall be subject to the approval of the superintendent.
B. Before licensing and annually thereafter, the insurer shall also file with the superintendent a copy of its current license or licenses to operate in the republic of Mexico, and shall file a copy of its latest financial reports or statements, and of the latest examination reports of its affairs and financial condition by the insurance regulatory authorities under which it operates in Mexico, with money amounts therein shown, or accompanied by statement of the amounts thereof, in United States dollars, together with statement of the basis on and date as of which pesos were so converted to dollars.
History:
Laws 1984, ch. 127, § 685.
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 40 - Mexican Casualty Insurers › Section 59A-40-3 - Deposit or bond.

A. Before license is issued the insurer shall deposit with the treasurer of the state of New Mexico through the superintendent at least twenty-five thousand dollars ($25,000) in lawful money of the United States or in securities eligible for investment of funds of domestic casualty insurers and approved by the superintendent, which deposit shall be liable for all lawful claims and final judgments against such insurer, including taxes due New Mexico, and policy claims and other debts and obligations incurred in the course of operations as provided herein, and such deposit shall be kept replenished from time to time with like cash or approved securities to maintain a minimum total deposit of twenty-five thousand dollars ($25,000).
B. In lieu of such deposit of cash or securities, the insurer may file with the superintendent and thereafter maintain in force a surety bond in like amount and for like purposes issued by a surety insurer authorized to transact such business in this state and acceptable to the superintendent.
C. Such deposit or the unincumbered [unencumbered] balance thereof shall be returned to the insurer with approval of the superintendent, or such bond may be terminated, upon withdrawing from the business authorized hereby and upon a showing to the superintendent that all of its policies written in New Mexico hereunder have expired or have been cancelled and that all of the claims against such deposits or bond have been satisfied.
D. The superintendent, upon the approval of the court, shall pay from the deposit required herein, or require payment by the surety under such bond, any unsatisfied final judgment obtained against the insurer in any court of competent jursidiction [jurisdiction] in New Mexico based upon service of process as authorized in this article.
History:
Laws 1984, ch. 127, § 686.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 40 - Mexican Casualty Insurers › Section 59A-40-4 - Service of process.

Prior to issuance of license, the insurer shall file with the superintendent a power of attorney, in a form designated by the superintendent, designating the superintendent and his successors in office as attorney-in-fact for such insurer upon whom service of process may be had upon suits for any alleged liability incurred in operations of the insurer pursuant to this article, with like effect as if such process had been served personally upon the appropriate persons, representatives or officials of such insurer within its home jurisdiction in Mexico. In [the] event process is served upon the superintendent, as provided above, he shall immediately give written notice thereof to such insurer and shall forward such process by registered mail, postage prepaid, and properly addressed to the president of such insurer at its home office as furnished to the superintendent; and no judgment by default shall be taken in any such cause until after the expiration of forty (40) days after the process and notice have been received at such home office. Until rebutted, the presumption shall obtain that such notice and process was received at the home office of the insurer on the tenth (10th) day after being deposited in the mail at Santa Fe, New Mexico, as herein provided.
History:
Laws 1984, ch. 127, § 687.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 40 - Mexican Casualty Insurers › Section 59A-40-5 - Reports.

The insurer shall pay any applicable fees and charges as are required under the Insurance Code to be paid by other authorized insurers transacting in New Mexico the same kind of insurance. The insurer shall make the same reports to the superintendent and the national association of insurance commissioners as are required of such other authorized insurers, but in such adapted forms as may for the purpose be prescribed by the superintendent.
History:
Laws 1984, ch. 127, § 688; 2018, ch. 57, § 23.
ANNOTATIONS
Cross references.
— For the Insurance Code, see 59A-1-1 NMSA 1978 and notes thereto.
The 2018 amendment,
effective January 1, 2020, made conforming changes as a result of the transfer of the collection of insurance premium tax from the superintendent of insurance to the taxation and revenue department; in the catchline, deleted "Fees, taxes and", deleted "The insurer shall pay to New Mexico annually a premium tax based solely upon its gross premium receipts from insurance policies issued by it in New Mexico which cover residents of New Mexico or property or risk principally domiciled or located in this state, as shown by reports of the insurer filed with the superintendent each year, upon the same percentage rate and in the same manner as apply to authorized insurers transacting in New Mexico the same kinds of insurance.", after "The insurer shall", deleted "also", after "pay", deleted "such other" and added "any", after "applicable fees", added "and", after "charges", deleted "and taxes", and after "authorized insurers", added "transacting in New Mexico the same kind of insurance".
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 40 - Mexican Casualty Insurers › Section 59A-40-6 - Premium rates.

Premiums charged by insurers licensed under this article shall be at rates filed with the superintendent and not disapproved by him, in the same manner as to premium rates of authorized insurers transacting in this state the same kinds of insurance.
History:
Laws 1984, ch. 127, § 689.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 40 - Mexican Casualty Insurers › Section 59A-40-7 - Examination.

The superintendent may examine at any and all times, at the expense of the insurer, the affairs and conditions and all books and records of the insurer for the purpose of ascertaining its financial condition and solvency, and its compliance with applicable laws of this state and of its home jurisdiction. Any such examination shall be conducted, as far as reasonably possible, in the same manner and subject to the same requirements of the insurer and staff and matters related to the examination, as provided by the Insurance Code as to examination of insurers in general.
History:
Laws 1984, ch. 127, § 690.
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 40 - Mexican Casualty Insurers › Section 59A-40-8 - Acceptance of laws; suspension, revocation, nonrenewal of license.

Prior to issuance of license under this article the insurer shall file with the superintendent a document in English as prescribed by the superintendent and executed by the insurer's appropriate officials expressly accepting the terms of this article and agreeing that the superintendent may at any time in his lawful discretion suspend, revoke or refuse to grant or continue the license of the insurer to do business in this state as in this article authorized, upon a determination by the superintendent that the insurer is insolvent or in dangerous financial condition, or that it has violated any law of this state or of its home jurisdiction.
History:
Laws 1984, ch. 127, § 691.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 40 - Mexican Casualty Insurers › Section 59A-40-9 - Licensed agents required.

The insurer shall write business in New Mexico only through its resident United States agents duly appointed by it in writing and duly licensed by the superintendent under provisions of the Insurance Code applicable to insurance agents of authorized insurers. The appointment of agents shall specifically authorize the licensee to write for the Mexican insurer the insurance coverages as specified in Chapter 59A, Article 40 NMSA 1978.
History:
Laws 1984, ch. 127, § 692; 1999, ch. 272, § 21; 1999, ch. 289, § 31.
ANNOTATIONS
Cross references.
— For the Insurance Code,
see
59A-1-1 NMSA 1978 and notes thereto.
The 1999 amendment,
effective June 18, 1999, substituted "resident United States agents" for "resident New Mexico agents thereunto" in the first sentence, deleted "such" preceding "agents" in the second sentence, and updated the statutory reference in the last sentence.
Laws 1999, ch. 272, § 21 and by Laws 1999, ch. 289, § 31, both effective June 18, 1999, enacted identical amendments to this section. The section was set out as amended by Laws 1999, ch. 289, § 31.
See
12-1-8 NMSA 1978.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 41 - Conservation, Rehabilitation and Liquidation › Section 59A-41-1 - Short title.

This article [Chapter 59A, Article 41 NMSA 1978] constitutes and may be cited as the Insurers Conservation, Rehabilitation, and Liquidation Law.
History:
Laws 1984, ch. 127, § 694.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance §§ 88 to 107.
What constitutes insolvency of insurance company justifying state dissolution proceedings and the like, 17 A.L.R.4th 16.
44 C.J.S. Insurance § 135 et seq.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 41 - Conservation, Rehabilitation and Liquidation › Section 59A-41-2 - Scope of article.

The provisions of Chapter 59A, Article 41 NMSA 1978 as applicable shall apply as to:
A. all insurers that are transacting or have transacted insurance in this state and against whom claims arising from that business may exist now or in the future;
B. all insurers that purport to do insurance business in this state;
C. all insurers having insureds resident in this state;
D. all persons in process of organization, or holding themselves out as organizing, or proposing to organize in this state for the purpose of becoming an insurer;
E. all nonprofit health care plans and fraternal benefit societies;
F. all title insurance companies;
G. all health maintenance organizations and prepaid dental or other prepaid health care delivery plans;
H. all Lloyds insurers, mandatory state pooling plans, mutual assessment companies, insurance exchanges, stipulated premium insurance companies, prearranged funeral plans, motor clubs, reciprocal insurers, surplus lines insurers, alien insurers or reinsurers with assets in trust or located in New Mexico, multiple employer welfare arrangements, risk retention groups, risk purchasing groups or surety companies; and
I. all other persons to whom such provisions may otherwise be made expressly applicable by law.
History:
Laws 1984, ch. 127, § 693; 1991, ch. 125, § 29.
ANNOTATIONS
The 1991 amendment,
effective April 3, 1991, substituted "Chapter 59A, Article 41 NMSA 1978" for "this article" in the introductory paragraph; rewrote Subsection A, which read "all insurers authorized to transact insurance in this state"; rewrote Subsection B, which read "all nonprofit health care plans, prepaid dental plans, motor clubs and similar organizations and plans authorized to transact business in this state; and for the purpose of such applicability all such plans, clubs and organizations may in this article be referred to as 'insurers' "; substituted "insureds" for "policyholders" in Subsection C; deleted former Subsection D, which read "all insurers against whom a claim under an insurance contract may arise in this state"; redesignated former Subsection E as Subsection D; added Subsections E to H; and redesignated former Subsection F as Subsection I.
Severability.
— Laws 1991, ch. 125, § 30 provides for the severability of the act if any part or application thereof is held invalid.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 41 - Conservation, Rehabilitation and Liquidation › Section 59A-41-3 - Definitions.

As used in this article and unless context otherwise requires, the words and terms defined in Sections 696 through 708 [59A-41-4 to 59A-41-16 NMSA 1978] of this article shall have the meanings ascribed to them respectively in such sections.
History:
Laws 1984, ch. 127, § 695.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance §§ 129, 143.
Validity, construction and effect of Uniform Insurers Liquidation Act, 46 A.L.R.2d 1185.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 41 - Conservation, Rehabilitation and Liquidation › Section 59A-41-5 - "Creditor" defined.

"Creditor" means a person having a claim, whether matured or unmatured, liquidated or unliquidated, secured or unsecured, or absolute, fixed or contingent.
History:
Laws 1984, ch. 127, § 697.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 41 - Conservation, Rehabilitation and Liquidation › Section 59A-41-6 - "Delinquency proceeding" defined.

"Delinquency proceeding" means any proceeding commenced against an insurer pursuant to this article for the purpose of conserving, rehabilitating, reorganizing or liquidating the insurer.
History:
Laws 1984, ch. 127, § 698.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 41 - Conservation, Rehabilitation and Liquidation › Section 59A-41-7 - "Domiciliary state" defined.

"Domiciliary state" means the state in which an insurer is incorporated or organized or, as to an alien insurer, the state in which at commencement of delinquency proceedings the larger amount of the insurer's assets are held in trust or on deposit for the benefit of its policyholders and creditors in the United States.
History:
Laws 1984, ch. 127, § 699.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 41 - Conservation, Rehabilitation and Liquidation › Section 59A-41-9 - "General assets" defined.

"General assets" means all property, real, personal or otherwise, not specifically mortgaged, pledged, deposited or otherwise encumbered for the security or benefit of specified persons or a limited class or classes of persons, and as to such specifically encumbered property the term includes all such property or its proceeds in excess of the amount necessary to discharge the sums secured thereby. Assets held in trust or on deposit for the security or benefit of all policyholders or all policyholders and creditors in the United States are deemed general assets.
History:
Laws 1984, ch. 127, § 701.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 41 - Conservation, Rehabilitation and Liquidation › Section 59A-41-10 - "Impairment" defined.

"Impairment" exists as to:
A. a stock, mutual, reciprocal, or foreign Lloyds insurer, when its basic capital is less than that required to be maintained by it under Section 83 [59A-5-16 NMSA 1978] of the Insurance Code;
B. a domestic Lloyds insurer, when its surplus is less than as required under Section 83 or Article 38 [Chapter 59A, Article 38 NMSA 1978] of the Insurance Code;
C. a nonprofit health care plan, when its assets are in amount less than the sum of its required trust deposit, required reserves and other liabilities;
D. a prepaid dental care plan, when its assets are in amount less than the sum of its required bond or deposit in lieu thereof, its required reserves, and its other liabilities;
E. a motor club, when its assets are in amount less than the sum of its required bond or deposit in lieu thereof, its required reserves, and its other liabilities; and
F. any other corporation, when its assets are in amount less than the sum of its surplus required, if any, to be maintained, its paid-in capital stock, if any, and its other liabilities.
History:
Laws 1984, ch. 127, § 702.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 41 - Conservation, Rehabilitation and Liquidation › Section 59A-41-11 - "Insolvency" defined.

"Insolvency" exists as to:
A. any organization, when it is unable to meet its obligations as they mature; or
B. a stock insurer or other stock corporation, when its assets are in amount less than its liabilities, exclusive of paid-in capital stock; or
C. a mutual, reciprocal, or foreign Lloyds insurer, when its assets are in amount less than its liabilities exclusive of the minimum paid-in basic capital required under Section 83 [59A-5-16 NMSA 1978] of the Insurance Code for its authority to transact insurance; or
D. a domestic Lloyds insurer, nonprofit health care plan, prepaid dental care plan, motor club, or other corporation other than any referred to in Subparagraphs B or C, above, when its assets are in amount less than its liabilities, exclusive of surplus, guaranty fund or deposit required to be maintained under the Insurance Code for its authority to transact insurance in this state.
History:
Laws 1984, ch. 127, § 703.
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. —
What constitutes insolvency of insurance company justifying state dissolution proceedings and the like, 17 A.L.R.4th 16.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 41 - Conservation, Rehabilitation and Liquidation › Section 59A-41-14 - "Reciprocal state" defined.

"Reciprocal state" means any state other than this state in which in substance and effect the provisions of the Uniform Insurers Liquidation Act [59A-41-17 to 59A-41-23 NMSA 1978] are in force, including provisions requiring that the commissioners, director, superintendent of insurance or the equivalent insurance supervisory officer be the receiver of a delinquent insurer; and in which effective provisions exist for avoidance of fraudulent conveyances and unlawful preferential transfer.
History:
Laws 1984, ch. 127, § 706.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 41 - Conservation, Rehabilitation and Liquidation › Section 59A-41-15 - "Secured claim" defined.

"Secured claim" means any claim secured by mortgage, trust deed, pledge, deposit as security, escrow or otherwise, but not including special deposit claims or claims against general assets. "Secured claims" also include claims which more than four (4) months prior to commencement of delinquency proceedings in the state of the insurer's domicile have become liens upon specific assets through judicial process and not invalidated.
History:
Laws 1984, ch. 127, § 707.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 41 - Conservation, Rehabilitation and Liquidation › Section 59A-41-16 - "Special deposit claim" defined.

"Special deposit claim" means any claim secured by a deposit made under a statute for the security or benefit of a limited class or classes of persons, but not including any general assets.
History:
Laws 1984, ch. 127, § 708.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 41 - Conservation, Rehabilitation and Liquidation › Section 59A-41-17 - Uniform Insurers Liquidation Act; composition, severability and interpretation.

A. Sections 695 [709] through 715 [59A-41-17 to 59A-41-23 NMSA 1978] of this article comprise and may be cited as the Uniform Insurers Liquidation Act.
B. If any provision of the Uniform Insurers Liquidation Act or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisions of the act are declared to be severable.
C. The Uniform Insurers Liquidation Act shall be so interpreted as to effectuate its general purpose to make uniform the laws of those states which enact it. To the extent that its provisions, when applicable, conflict with other provisions of the Insurance Code, the provisions of the Uniform Insurers Liquidation Act shall control.
History:
Laws 1984, ch. 127, § 709.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law. The reference in Subsection A to Section 695 is apparently erroneous. The intended reference is probably to Section 709, which appears as this section.
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 §§ 93, 107.
Validity, construction, and application of uniform insurers liquidation act, 44 A.L.R.5th 683.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 41 - Conservation, Rehabilitation and Liquidation › Section 59A-41-19 - Conduct of delinquency proceedings against nondomestic insurers; domiciliary receiver may sue.

A. Whenever under the laws of this state an ancillary receiver is to be appointed in delinquency proceedings for an insurer not domiciled in this state, the court shall appoint the superintendent as ancillary receiver. The superintendent shall file a petition requesting the appointment:
(1) if he finds that there are sufficient assets of such insurer located in this state to justify the appointment of an ancillary receiver; or
(2) if ten (10) or more persons resident in this state having claims against such insurer file a petition with the superintendent requesting the appointment of such ancillary receiver.
B. The domiciliary receiver for the purpose of liquidating an insurer domiciled in a reciprocal state, shall be vested by operation of law with the title to all of the property, contracts and rights of action, and all of the books and records of the insurer located in this state, and he shall have the immediate right to recover balances due from the local agents and to obtain possession of any books and records of the insurer found in this state. He shall also be entitled to recover the other assets of the insurer located in this state except that upon the appointment of an ancillary receiver in this state, the ancillary receiver shall during the ancillary receivership proceedings have the sole right to recover such other assets. The ancillary receiver shall, as soon as practicable, liquidate from their respective securities those special deposit claims and secured claims which are proved and allowed in the ancillary proceedings in this state, and shall pay the necessary expenses of the proceedings. All remaining assets he shall promptly transfer to the domiciliary receiver. Subject to the foregoing provisions the ancillary receiver and his deputies shall have the same powers and be subject to the same duties with respect to the administration of such assets, as a receiver of an insurer domiciled in this state.
C. The domiciliary receiver of an insurer domiciled in a reciprocal state may sue in this state to recover any assets of such insurer to which he may be entitled under the laws of this state.
History:
Laws 1984, ch. 127, § 711.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance § 129.
Validity, construction and effect of Uniform Insurers Liquidation Act, 46 A.L.R.2d 1185.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 41 - Conservation, Rehabilitation and Liquidation › Section 59A-41-20 - Filing, proving claims of nonresidents against delinquent domestic insurers.

A. In a delinquency proceeding begun in this state against an insurer domiciled in this state, claimants residing in reciprocal states may file claims either with the ancillary receivers, if any, in their respective states, or with the domiciliary receiver. All such claims must be filed on or before the last date fixed for the filing of claims in the domiciliary delinquency proceedings.
B. Controverted claims belonging to claimants residing in reciprocal states may either:
(1) be proved in this state as provided by law; or
(2) if ancillary proceedings have been commenced in such reciprocal states, may be proved in those proceedings.
In the event a claimant elects to prove his claim in ancillary proceedings, if notice of the claim and opportunity to appear and be heard is afforded the domiciliary receiver of this state as provided in Section 713 [59A-41-21 NMSA 1978] of this article with respect to ancillary proceedings in this state, the final allowance of such claim by the courts in the ancillary state shall be accepted in this state as conclusive as to its amount, and shall also be accepted as conclusive as to its priority, if any, against special deposits or other security located within the ancillary state.
History:
Laws 1984, ch. 127, § 712.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance § 143.
Validity, construction and effect of Uniform Insurers Liquidation Act, 46 A.L.R.2d 1185.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 41 - Conservation, Rehabilitation and Liquidation › Section 59A-41-21 - Filing, proving claims of residents against delinquent insurers domiciled in reciprocal states.

A. In a delinquency proceeding in a reciprocal state against an insurer domiciled in that state, claimants against such insurer who reside within this state or an insurance guaranty fund of this state, may file claims either with the ancillary receiver, if any, appointed in this state, or with the domiciliary receiver. All such claims must be filed on or before the last date fixed for the filing of claims in the domiciliary delinquency proceeding.
B. Controverted claims belonging to claimants residing in this state may either:
(1) be proved in the domiciliary state as provided by the law of that state; or
(2) if ancillary proceedings have been commenced in this state, be proved in those proceedings.
In the event that any such claimant elects to prove his claim in this state, he shall file his claim with the ancillary receiver in the manner provided by the law of this state for the proving of claims against insurers domiciled in this state, and he shall give notice in writing to the receiver in the domiciliary state, either by registered mail or by personal service at least forty (40) days prior to the date set for the hearing. The notice shall contain a concise statement of the amount of the claim, the facts on which the claim is based and the priorities asserted, if any. If the domiciliary receiver, within thirty (30) days after the giving of such notice, shall give notice in writing to the ancillary receiver and to the claimant, either by registered mail or by personal service, of his intention to contest such claim, he shall be entitled to appear or to be represented in any proceeding in this state involving the adjudication of the claim. The final allowance of the claim by the courts of this state shall be accepted as conclusive as to its priority, if any, against special deposits or other security located within this state.
History:
Laws 1984, ch. 127, § 713.
ANNOTATIONS
Notice to insurance guaranty association not required.
— Subsection A does not require notice to the property and casualty insurance guaranty association; it requires notice only to the domiciliary receiver or the ancillary receiver.
Aztec Well Servicing Co. v. Property & Cas. Ins. Guar. Ass'n
, 1993-NMSC-023, 115 N.M. 475, 853 P.2d 726.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance § 143.
Validity, construction and effect of Uniform Insurers Liquidation Act, 46 A.L.R.2d 1185.