reglab/statecodes huggingface dataset:
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12A - Insurance Administrators › Section 59A-12A-17 - Compliance deadline.

An administrator that is operating before the effective date of this act shall apply for a license under Chapter 59A, Article 11 NMSA 1978 not later than the sixtieth day after the effective date of this act. An administrator who has made application as provided by this section may continue to operate if it otherwise complies with applicable law, until such time as the superintendent acts on its application. If denied a license, the third party administrator may not act as a third party administrator but may appeal the superintendent's determination as provided by Chapter 59A, Article 4 NMSA 1978.
History:
1978 Comp., § 59A-12A-17, enacted by Laws 1989, ch. 374, § 17.
ANNOTATIONS
Compiler's notes.
— The phrase "effective date of this act" means June 16, 1989, the effective date of Laws 1989, ch. 374.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12B - Managing General Agents › Section 59A-12B-1 - Short title.

Chapter 59A, Article 12B NMSA 1978 may be cited as the "Managing General Agents Law".
History:
1978 Comp., § 59A-12B-1, enacted by Laws 1993, ch. 320, § 27.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12B - Managing General Agents › Section 59A-12B-2 - Definitions.

As used in the Managing General Agents Law:
A. "actuary" means a person who is a member in good standing of the American academy of actuaries;
B. "insurer" means any person, firm, association or corporation duly authorized in this state pursuant to the Insurance Code to transact the business of insurance;
C. "managing general agent" means any person, firm, association or corporation who:
(1) manages all or part of the insurance business of an insurer, including the management of a separate division, department or underwriting office;
(2) acts as an insurance producer for such insurer whether known as a managing general agent, manager or other similar term, who, with or without the authority, either separately or together with affiliates, produces, directly or indirectly, and underwrites an amount of gross direct written premium equal to or more than five percent of the policyholder surplus as reported in the last annual statement of the insurer in any one quarter or year together with one or more of the following activities related to the business produced:
(a) adjusts or pays claims in excess of an amount determined by the superintendent; or
(b) negotiates reinsurance on behalf of the insurer; and
(3) notwithstanding the above, the following persons shall not be considered as managing general agents for the purposes of the Managing General Agents Law:
(a) an employee of the insurer;
(b) a United States manager of the United States branch of an alien insurer;
(c) an underwriting manager which, pursuant to contract, manages all or part of the insurance operations of the insurer, is under common control with the insurer, subject to the Insurance Holding Company Law [Chapter 59A, Article 37 NMSA 1978], and whose compensation is not based on the volume of premiums written; and
(d) the attorney-in-fact authorized by and acting for the subscribers of a reciprocal insurer or inter-insurance exchange under powers of attorney; and
D. "underwrite" means the authority to accept or reject risk on behalf of the insurer.
History:
1978 Comp., § 59A-12B-2, enacted by Laws 1993, ch. 320, § 28; 2016, ch. 89, § 51.
ANNOTATIONS
The 2016 amendment,
effective July 1, 2017, in Subsection C, Paragraph (2), after "acts as an", deleted "agent" and added "insurance producer".
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.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12B - Managing General Agents › Section 59A-12B-3 - Licensure.

A. No person, firm, association or corporation shall act in the capacity of a managing general agent with respect to risks located in this state for an insurer authorized in this state unless such person is a licensed agent or broker in this state.
B. No person, firm, association or corporation shall act in the capacity of a managing general agent representing an insurer domiciled in this state with respect to risks located outside this state unless such person is licensed as an agent or broker in this state pursuant to the provisions of the Managing General Agents Law.
C. The superintendent may require a bond in an amount acceptable to him for the protection of the insurer.
D. The superintendent may require the managing general agent to maintain an errors and omissions policy.
History:
1978 Comp., § 59A-12B-3, enacted by Laws 1993, ch. 320, § 29; 1999, ch. 272, § 17; 1999, ch. 289, § 19.
ANNOTATIONS
The 1999 amendment,
effective June 18, 1999, deleted the last sentence from Subsection B, which read "Such license may be a nonresident license".
Laws 1999, ch. 272, § 17 and Laws 1999, ch. 289, § 19, both effective June 18, 1990, enacted identical amendments to this section. The section was set out as amended by Laws 1999, ch. 289, § 19.
See
12-1-8 NMSA 1978.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12B - Managing General Agents › Section 59A-12B-5 - Duties of insurers.

A. The insurer shall have on file an independent financial examination, in a form acceptable to the superintendent, of each managing general agent with which it has done business.
B. If a managing general agent establishes loss reserves, the insurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the managing general agent. This is in addition to any other required loss reserve certification.
C. The insurer shall periodically, at least semiannually, conduct an on-site review of the underwriting and claims processing operations of the managing general agent.
D. Binding authority for all reinsurance contracts or participation in insurance or reinsurance syndicates shall rest with an officer of the insurer, who shall not be affiliated with the managing general agent.
E. Within thirty days of entering into or termination of a contract with a managing general agent, the insurer shall provide written notification of such appointment or termination to the superintendent. Notices of appointment of a managing general agent shall include a statement of duties which the applicant is expected to perform on behalf of the insurer, the lines of insurance for which the applicant is to be authorized to act, and any other information the superintendent may request.
F. An insurer shall review its books and records each quarter to determine if any insurance producer has become a managing general agent. If the insurer determines that an insurance producer has become a managing general agent, the insurer shall promptly notify the insurance producer and the superintendent of such determination and the insurer and insurance producer must fully comply with the provisions of the Managing General Agents Law within thirty days.
G. An insurer shall not appoint to its board of directors an officer, director, employee, insurance producer or controlling shareholder of its managing general agents. This subsection shall not apply to relationships governed by the Insurance Holding Company Law [Chapter 59A, Article 37 NMSA 1978] or, if applicable, the Broker Controlled Insurer Law [Chapter 59A, Article 12C NMSA 1978].
History:
1978 Comp., § 59A-12B-5, enacted by Laws 1993, ch. 320, § 31; 2016, ch. 89, § 52.
ANNOTATIONS
The 2016 amendment,
effective July 1, 2017, replaced "agent or broker" with "insurance producer" throughout the section.
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.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12B - Managing General Agents › Section 59A-12B-6 - Examination authority.

The acts of the managing general agent are considered to be the acts of the insurer on whose behalf it is acting. A managing general agent may be examined as if it were the insurer.
History:
1978 Comp., § 59A-12B-6, enacted by Laws 1993, ch. 320, § 32.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12B - Managing General Agents › Section 59A-12B-7 - Penalties and liabilities.

A. If the superintendent determines that the managing general agent or any other person has not materially complied with the provisions of Chapter 59A, Article 12B NMSA 1978, or any rule or order promulgated thereunder, after notice and opportunity to be heard, the superintendent may order:
(1) for each separate violation, a penalty in an amount not exceeding ten thousand dollars ($10,000);
(2) revocation or suspension of the managing general agent's license; and
(3) if it was found that because of such material noncompliance that the insurer has suffered any loss or damage, the superintendent may maintain a civil action brought by or on behalf of the insurer and its policyholders and creditors for recovery of compensatory damages for the benefit of the insurer and its policyholders and creditors or seek other appropriate relief.
B. If an order of rehabilitation or liquidation of the insurer has been entered pursuant to Chapter 59A, Article 41 NMSA 1978, and the receiver appointed under that order determines that the managing general agent or any other person has not materially complied with the provisions of Chapter 59A, Article 12B NMSA 1978, or any regulation or order promulgated thereunder, and the insurer suffered any loss or damage, the receiver may maintain a civil action for recovery of damages or other appropriate sanctions for the benefit of the insurer.
C. Nothing contained in this section shall affect the right of the superintendent to impose any other penalties provided for in the Insurance Code.
D. Nothing contained in the Managing General Agents Law is intended to or shall in any manner limit or restrict the rights of policyholders, claimants or creditors.
History:
1978 Comp., § 59A-12B-7, enacted by Laws 1993, ch. 320, § 33; 2016, ch. 89, § 53.
ANNOTATIONS
The 2016 amendment,
effective July 1, 2017, in Subsection A, in the introductory sentence, after "1978, or any", deleted "regulation" and added "rule", and in Paragraph (2), after "suspension of the", added "managing general".
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.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12B - Managing General Agents › Section 59A-12B-8 - Effective date.

No insurer may continue to utilize the services of a managing general agent on or after July 1, 1993, unless such utilization is in compliance with the Managing General Agents Law.
History:
1978 Comp., § 59A-12B-8, enacted by Laws 1993, ch. 320, § 34.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12C - Broker Controlled Insurers › Section 59A-12C-1 - Short title.

Chapter 59A, Article 12C NMSA 1978 may be cited as the "Broker Controlled Insurer Law".
History:
1978 Comp., § 59A-12C-1, enacted by Laws 1993, ch. 320, § 35.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12C - Broker Controlled Insurers › Section 59A-12C-2 - Definitions.

As used in the Broker Controlled Insurer Law:
A. "accredited state" means a state in which the insurance department or regulatory agency has qualified as meeting the minimum financial regulatory standards promulgated and established from time to time by the national association of insurance commissioners;
B. "control" or "controlled" has the meaning ascribed in The Insurance Holding Company Law [Chapter 59A, Article 37 NMSA 1978];
C. "controlled insurer" means an authorized insurer which is controlled, directly or indirectly, by a broker;
D. "controlling broker" means a broker who, directly or indirectly, controls an insurer;
E. "authorized insurer" or "insurer" means any person, firm, association or corporation duly authorized to transact a property or casualty insurance business in this state. The following are not authorized insurers for the purposes of the Broker Controlled Insurer Law:
(1) all risk retention groups as defined in: the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499, 100 Stat. 1613 (1986); the Risk Retention Amendments of 1986, 15 U.S.C. Section 3901 et seq. (1982 & Supp. 1986); and Article 55 of the Insurance Code;
(2) all residual market pools and joint underwriting authorities or associations; and
(3) all captive insurers; for the purposes of the Broker Controlled Insurer Law, captive insurers are insurance companies owned by another organization whose exclusive purpose is to insure risks of the parent organization and affiliated companies or, in the case of groups and associations, insurance organizations owned by the insureds whose exclusive purpose is to insure risks to member organizations or group members and their affiliates; and
F. "broker" means an insurance broker or brokers or any other person, firm, association or corporation, when, for any compensation, commission or other thing of value, such person, firm, association or corporation acts or aids in any manner in soliciting, negotiating or procuring the making of any insurance contract on behalf of an insured other than the person, firm, association or corporation.
History:
1978 Comp., § 59A-12C-2, enacted by Laws 1993, ch. 320, § 36.
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 12C - Broker Controlled Insurers › Section 59A-12C-3 - Applicability.

The Broker Controlled Insurer Law shall apply to authorized insurers either domiciled in this state or domiciled in a state that is not an accredited state having in effect a substantially similar law. All provisions of The Insurance Holding Company Law [Chapter 59A, Article 37 NMSA 1978], to the extent they are not superseded by the Broker Controlled Insurer Law, shall continue to apply to all parties within holding company systems subject to this article.
History:
1978 Comp., § 59A-12C-3, enacted by Laws 1993, ch. 320, § 37.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12C - Broker Controlled Insurers › Section 59A-12C-5 - Disclosure.

The broker, prior to the effective date of the policy, shall deliver written notice to the prospective insured disclosing the relationship between the broker and the controlled insurer; except that, if the business is placed through a subbroker who is not a controlling broker, the controlling broker shall retain in his records a signed commitment from the subbroker that the subbroker is aware of the relationship between the insurer and the broker and that the subbroker has or will notify the insured.
History:
1978 Comp., § 59A-12C-5, enacted by Laws 1993, ch. 320, § 39.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12C - Broker Controlled Insurers › Section 59A-12C-6 - Penalties.

A. If the superintendent believes that the controlling broker or any other person has not materially complied with the Broker Controlled Insurer Law, or any regulation or order promulgated thereunder, after notice and opportunity to be heard, the superintendent may order the controlling broker to cease placing business with the controlled insurer, and if it was found that because of such material noncompliance that the controlled insurer or any policyholder thereof has suffered any loss or damage, the superintendent may maintain a civil action or intervene in an action brought by or on behalf of the insurer or policyholder for recovery of compensatory damages for the benefit of the insurer or policyholder or other appropriate relief.
B. If an order for liquidation or rehabilitation of the controlled insurer has been entered and the receiver appointed under that order believes that the controlling broker or any other person has not materially complied with the Broker Controlled Insurer Law, or any regulation or order promulgated thereunder, and the insurer suffered any loss or damage, the receiver may maintain a civil action for recovery of damages or other appropriate sanctions for the benefit of the insurer.
C. Nothing contained in this section shall affect the right of the superintendent to impose any other penalties provided for in the Insurance Code.
D. Nothing contained in this section is intended to or shall in any manner alter or affect the rights of policyholders, claimants, creditors or other third parties.
History:
1978 Comp., § 59A-12C-6, enacted by Laws 1993, ch. 320, § 40.
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 12C - Broker Controlled Insurers › Section 59A-12C-7 - Effective date.

Controlled insurers and controlling brokers who are not in compliance with Section 59A-12C-4 NMSA 1978 on its effective date shall have until July 31, 1993 to come into compliance and shall comply with Section 59A-12C-5 NMSA 1978 beginning with all policies written or renewed on or after August 1, 1993.
History:
1978 Comp., § 59A-12C-7, enacted by Laws 1993, ch. 320, § 41.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12D - Reinsurance Intermediaries › Section 59A-12D-1 - Short title.

Chapter 59A, Article 12D [NMSA 1978] may be cited as the "Reinsurance Intermediary Law".
History:
1978 Comp., § 59A-12D-1, enacted by Laws 1993, ch. 320, § 42.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and it is not part of the law.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12D - Reinsurance Intermediaries › Section 59A-12D-4 - Required contract provisions; reinsurance intermediary-brokers.

The transactions between a reinsurance intermediary-broker and the insurer it represents in such capacity shall only be entered into pursuant to a written authorization, specifying the responsibilities of each party. The authorization shall, at a minimum, provide that:
A. the insurer may terminate the reinsurance intermediary-broker's authority at any time;
B. the reinsurance intermediary-broker shall render accounts to the insurer accurately detailing all material transactions, including information necessary to support all commissions, charges and other fees received by, or owing, to the reinsurance intermediary-broker and remit all funds due to the insurer within thirty days of receipt;
C. all funds collected for the insurer's account shall be held by the reinsurance intermediary-broker in a fiduciary capacity in a bank which is a qualified United States financial institution;
D. the reinsurance intermediary-broker shall comply with Section 59A-12D-5 NMSA 1978;
E. the reinsurance intermediary-broker shall comply with the written standards established by the insurer for the cession or retrocession of all risks; and
F. the reinsurance intermediary-broker shall disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded.
History:
1978 Comp., § 59A-12D-4, enacted by Laws 1993, ch. 320, § 45.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12D - Reinsurance Intermediaries › Section 59A-12D-5 - Books and records; reinsurance intermediary-brokers.

A. For at least ten years after expiration of each contract of reinsurance transacted by the reinsurance intermediary-broker, the reinsurance intermediary-broker shall keep a complete record for each transaction showing:
(1) the type of contract, limits, underwriting restrictions, classes or risks and territory;
(2) period of coverage, including effective and expiration dates, cancellation provisions and notice required of cancellation;
(3) reporting and settlement requirements of balances;
(4) rate used to compute the reinsurance premium;
(5) names and addresses of assuming reinsurers;
(6) rates of all reinsurance commissions, including the commissions on any retrocessions handled by the reinsurance intermediary-broker;
(7) related correspondence and memoranda;
(8) proof of placement;
(9) details regarding retrocessions handled by the reinsurance intermediary-broker, including the identity of retrocessionaires and percentage of each contract assumed or ceded;
(10) financial records, including but not limited to, premium and loss accounts; and
(11) when the reinsurance intermediary-broker procures a reinsurance contract on behalf of a licensed ceding insurer:
(a) directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or
(b) if placed through a representative of the assuming reinsurer, other than an employee, written evidence that such reinsurer has delegated binding authority to the representative.
B. The insurer shall have access and the right to copy and audit all accounts and records maintained by the reinsurance intermediary-broker related to its business in a form usable by the insurer.
History:
1978 Comp., § 59A-12D-5, enacted by Laws 1993, ch. 320, § 46.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12D - Reinsurance Intermediaries › Section 59A-12D-6 - Duties of insurers utilizing the services of a reinsurance intermediary-broker.

A. An insurer shall not engage the services of any person, firm, association or corporation to act as a reinsurance intermediary-broker on its behalf unless such person is licensed as required by Subsection A of Section 59A-12D-3 NMSA 1978.
B. An insurer may not employ an individual who is employed by a reinsurance intermediary-broker with which it transacts business, unless such reinsurance intermediary-broker is under common control with the insurer and subject to The Insurance Holding Company Law [Chapter 59A, Article 37 NMSA 1978].
C. The insurer shall annually obtain a copy of statements of the financial condition of each reinsurance intermediary-broker with which it transacts business.
History:
1978 Comp., § 59A-12D-6, enacted by Laws 1993, ch. 320, § 47.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12D - Reinsurance Intermediaries › Section 59A-12D-8 - Prohibited acts.

The reinsurance intermediary-manager shall not:
A. cede retrocessions on behalf of the reinsurer, except that the reinsurance intermediary-manager may cede facultative retrocessions pursuant to obligatory facultative agreements if the contract with the reinsurer contains reinsurance underwriting guidelines for such retrocessions. Such guidelines shall include a list of reinsures with which such automatic agreements are in effect, and for each such reinsurer, the coverages and amounts or percentages that may be reinsured and commission schedules;
B. commit the reinsurer to participate in reinsurance syndicates;
C. appoint any producer without assuring that the producer is lawfully licensed to transact the type of reinsurance for which he is appointed;
D. without prior approval of the reinsurer, pay or commit the reinsurer to pay a claim, net of retrocessions, that exceeds the lesser of an amount specified by the reinsurer or one percent of the reinsurer's policyholder's surplus as of December 31 of the last complete calendar year;
E. collect any payment from a retrocessionaire or commit the reinsurer to any claim settlement with a retrocessionaire, without prior approval of the reinsurer. If prior approval is given, a report shall be promptly forwarded to the reinsurer;
F. jointly employ an individual who is employed by the reinsurer unless such reinsurance intermediary-manager is under common control with the reinsurer subject to The Insurance Holding Company Law [Chapter 59A, Article 37 NMSA 1978];
G. appoint a sub-reinsurance intermediary-manager.
History:
1978 Comp., § 59A-12D-8, enacted by Laws 1993, ch. 320, § 49.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12D - Reinsurance Intermediaries › Section 59A-12D-9 - Duties of reinsurers utilizing the services of a reinsurance intermediary-manager.

A. A reinsurer shall not engage the services of any person, firm, association or corporation to act as a reinsurance intermediary-manager on its behalf unless such person is licensed as required by Subsection B of Section 59A-12D-3 NMSA 1978.
B. The reinsurer shall annually obtain a copy of statements of the financial condition of each reinsurance intermediary-manager which such reinsurer has engaged prepared by an independent certified accountant in a form acceptable to the superintendent.
C. If a reinsurance intermediary-manager establishes loss reserves, the reinsurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the reinsurance intermediary-manager. This opinion shall be in addition to any other required loss reserve certification.
D. Binding authority for all retrocessional contracts or participation in reinsurance syndicates shall rest with an officer of the reinsurer who shall not be affiliated with the reinsurance intermediary-manager.
E. Within thirty days of termination of a contract with a reinsurance intermediary-manager, the reinsurer shall provide written notification of such termination to the superintendent.
F. A reinsurer shall not appoint to its board of directors, any officer, director, employee, controlling shareholder or subagent or subbroker of its reinsurance intermediary-manager. This subsection shall not apply to relationships governed by The Insurance Holding Company Law [Chapter 59A, Article 37 NMSA 1978] or, if applicable, the Broker Controlled Insurer Law [Chapter 59A, Article 12C NMSA 1978].
History:
1978 Comp., § 59A-12D-9, enacted by Laws 1993, ch. 320, § 50.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12D - Reinsurance Intermediaries › Section 59A-12D-10 - Examination authority.

A. A reinsurance intermediary shall be subject to examination by the superintendent. The superintendent shall have access to all books, bank accounts and records of the reinsurance intermediary in a form usable to the superintendent.
B. A reinsurance intermediary-manager may be examined as if it were the reinsurer.
History:
1978 Comp., § 59A-12D-10, enacted by Laws 1993, ch. 320, § 51.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12D - Reinsurance Intermediaries › Section 59A-12D-11 - Penalties and liabilities.

A. If the superintendent determines that the reinsurance intermediary or any other person has not materially complied with the provisions of the Reinsurance Intermediary Law, or any regulation or order promulgated thereunder, after notice and opportunity to be heard, the superintendent may order:
(1) for each separate violation, a penalty in an amount not exceeding ten thousand dollars ($10,000);
(2) revocation or suspension of the reinsurance intermediary's license; and
(3) if it was found that because of such material noncompliance that the insurer or reinsurer has suffered any loss or damage, the superintendent may maintain a civil action brought by or on behalf of the reinsurer or insurer and its policyholders and creditors for recovery of compensatory damages for the benefit of the insurer and its policyholders and creditors or seek other appropriate relief.
B. If an order of rehabilitation or liquidation of the insurer has been entered pursuant to Chapter 59A, Article 41 NMSA 1978, and the receiver appointed under that order determines that the reinsurance intermediary or any other person has not materially complied with the provisions of the Reinsurance Intermediary Law or any regulation or order promulgated thereunder, and the insurer suffered any loss or damage therefrom, the receiver may maintain a civil action for recovery of damages or another appropriate sanction for the benefit of the insurer.
C. Nothing contained in this section shall affect the right of the superintendent to impose any other penalties provided for in the Insurance Code.
D. Nothing contained in the Reinsurance Intermediary Law is intended to or shall in any manner limit or restrict the rights of policyholders, claimants, creditors or other third parties.
History:
1978 Comp., § 59A-12D-11, enacted by Laws 1993, ch. 320, § 52.
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 12D - Reinsurance Intermediaries › Section 59A-12D-12 - Effective date.

No insurer or reinsurer may continue to utilize the services of a reinsurance intermediary on or after July 1, 1993, unless utilization is in compliance with the Reinsurance Intermediary Law.
History:
1978 Comp., § 59A-12D-12, enacted by Laws 1993, ch. 320, § 53.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12E - Credit for Reinsurance › Section 59A-12E-1 - Short title.

This act [59A-12E-1 to 59A-12E-18 NMSA 1978] may be cited as the "Credit for Reinsurance Act".
History:
Laws 2022, ch. 35, § 1.
ANNOTATIONS
Compiler's notes.
— Laws 2022, ch. 35, § 1 was not enacted as part of the Insurance Code, but was compiled there for the convenience of the user.
Emergency clauses.
— Laws 2022, ch. 35, § 20 contained an emergency clause and was approved March 2, 2022.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12E - Credit for Reinsurance › Section 59A-12E-4 - Trusts; trust amendments.

A. The form of the trust pursuant to Subsection D of Section 3 [59A-12E-3 NMSA 1978] of the Credit for Reinsurance Act and any trust amendments shall be filed with the regulator of insurance of every state in which the ceding insurer beneficiaries of the trust are domiciled.
B. The trust instrument shall:
(1) provide that contested claims shall be valid and enforceable upon the final order of any court of competent jurisdiction in the United States; and
(2) vest legal title to its assets in its trustees for the benefit of the assuming insurer's United States ceding insurers, their assigns and successors in interest.
C. The trust and the assuming insurer shall be subject to examination as determined by the superintendent.
D. The trust shall remain in effect for as long as the assuming insurer has outstanding obligations due pursuant to the reinsurance agreements subject to the trust.
E. No later than February 28 of each year, the trustee of the trust shall report to the superintendent in writing the balance of the trust and a list of the trust's investments at the preceding year's end and shall certify the date of termination of the trust, if so planned, or certify that the trust will not expire prior to the following December 31.
History:
Laws 2022, ch. 35, § 4.
ANNOTATIONS
Compiler's notes.
— Laws 2022, ch. 35, § 4 was not enacted as part of the Insurance Code, but was compiled there for the convenience of the user.
Emergency clauses.
— Laws 2022, ch. 35, § 20 contained an emergency clause and was approved March 2, 2022.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12E - Credit for Reinsurance › Section 59A-12E-5 - Accreditation of reinsurers.

Credit shall be allowed when the reinsurance is ceded to an assuming insurer that is accredited by the superintendent as a reinsurer in this state. To be eligible for accreditation, a reinsurer shall:
A. file with the superintendent evidence of its submission to the state's jurisdiction;
B. submit to the superintendent's authority to examine its books and records;
C. be licensed to transact insurance or reinsurance in at least one state, or in the case of a United States branch of an alien assuming insurer, be entered through and licensed to transact insurance or reinsurance in at least one state;
D. file annually with the superintendent a copy of its annual statement filed with the insurance department of its state of domicile and a copy of its most recent audited financial statement; and
E. demonstrate to the satisfaction of the superintendent that it has adequate financial capacity to meet its reinsurance obligations and is otherwise qualified to assume reinsurance from domestic insurers, provided that an assuming insurer is deemed to meet this requirement as of the time of its application if it maintains a surplus as regards policyholders in an amount not less than twenty million dollars ($20,000,000) and its accreditation has not been denied by the superintendent within ninety days after submission of its application.
History:
Laws 2022, ch. 35, § 5.
ANNOTATIONS
Compiler's notes.
— Laws 2022, ch. 35, § 5 was not enacted as part of the Insurance Code, but was compiled there for the convenience of the user.
Emergency clauses.
— Laws 2022, ch. 35, § 20 contained an emergency clause and was approved March 2, 2022.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12E - Credit for Reinsurance › Section 59A-12E-8 - Qualified jurisdictions.

A. The superintendent shall create and publish a list of qualified jurisdictions under which an assuming insurer licensed and domiciled in such jurisdiction is eligible to be considered for certification by the superintendent as a certified reinsurer.
B. To determine whether the domiciliary jurisdiction of a non-United-States-assuming insurer is eligible to be recognized as a qualified jurisdiction, the superintendent shall evaluate the appropriateness and effectiveness of the reinsurance supervisory system of the jurisdiction, both initially and on an ongoing basis, and consider the rights, benefits and the extent of reciprocal recognition afforded by the non-United-States jurisdiction to reinsurers licensed and domiciled in the United States. A qualified jurisdiction shall agree to share information and cooperate with the superintendent with respect to all certified reinsurers domiciled within that jurisdiction. A jurisdiction shall not be recognized as a qualified jurisdiction if the superintendent has determined that the jurisdiction does not adequately and promptly enforce final United States judgments and arbitration awards. Additional factors may be considered in the discretion of the superintendent.
C. The superintendent shall consider a list of qualified jurisdictions published through the national association of insurance commissioners committee process in determining qualified jurisdictions. If the superintendent approves a jurisdiction as qualified that does not appear on a list of qualified jurisdictions, the superintendent shall provide thoroughly documented justification in accordance with criteria to be developed by rule.
D. United States jurisdictions that meet the requirement for accreditation pursuant to the national association of insurance commissioners financial standards and accreditation program shall be recognized as qualified jurisdictions.
History:
Laws 2022, ch. 35, § 8.
ANNOTATIONS
Compiler's notes.
— Laws 2022, ch. 35, § 8 was not enacted as part of the Insurance Code, but was compiled there for the convenience of the user.
Emergency clauses.
— Laws 2022, ch. 35, § 20 contained an emergency clause and was approved March 2, 2022.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12E - Credit for Reinsurance › Section 59A-12E-11 - Reciprocal jurisdictions.

A. The superintendent shall timely create and publish a list of reciprocal jurisdictions. A list of reciprocal jurisdictions shall be published through the national association of insurance commissioners committee process. The superintendent's list shall include any reciprocal jurisdiction as defined in Paragraphs (1) and (2) of Subsection F of Section 2 [59A-12E-2 NMSA 1978] of the Credit for Reinsurance Act and shall consider any other reciprocal jurisdiction included on the national association of insurance commissioners list. The superintendent may approve a jurisdiction that does not appear on the national association of insurance commissioners list of reciprocal jurisdictions in accordance with criteria to be developed pursuant to rules adopted by the superintendent.
B. The superintendent may remove a jurisdiction from the list of reciprocal jurisdictions upon a determination that the jurisdiction no longer meets the requirements of a reciprocal jurisdiction, in accordance with a process set forth in rules adopted by the superintendent, except that the superintendent shall not remove from the list a reciprocal jurisdiction as defined in Paragraphs (1) and (2) of Subsection F of Section 2 of the Credit for Reinsurance Act. Upon removal of a reciprocal jurisdiction from the list, credit for reinsurance ceded to an assuming insurer that has its home office or is domiciled in that jurisdiction shall be allowed, if otherwise allowed pursuant to the Credit for Reinsurance Act.
History:
Laws 2022, ch. 35, § 11.
ANNOTATIONS
Compiler's notes.
— Laws 2022, ch. 35, § 11 was not enacted as part of the Insurance Code, but was compiled there for the convenience of the user.
Emergency clauses.
— Laws 2022, ch. 35, § 20 contained an emergency clause and was approved March 2, 2022.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12E - Credit for Reinsurance › Section 59A-12E-12 - Reciprocal jurisdiction assuming insurers.

A. The superintendent shall timely create and publish a list of reciprocal jurisdiction assuming insurers that have satisfied the conditions set forth in this section and to which cessions shall be granted credit. The superintendent may add an assuming insurer to the list if a national association of insurance commissioners accredited jurisdiction has added the assuming insurer to its list of assuming insurers or if, upon initial eligibility for credit for reinsurance, the assuming insurer submits the information to the superintendent as required pursuant to Paragraph (4) of Subsection A of Section 10 [59A-12E-10 NMSA 1978] of the Credit for Reinsurance Act and complies with any additional requirements that the superintendent may impose by rule, except to the extent that they conflict with an applicable covered agreement.
B. If the superintendent determines that an assuming insurer no longer meets one or more of the requirements pursuant to this section, the superintendent may revoke or suspend the eligibility of the assuming insurer for recognition pursuant to this section in accordance with procedures set forth in rule.
C. While an assuming insurer's eligibility is suspended, no reinsurance agreement issued, amended or renewed after the effective date of the suspension qualifies for credit except to the extent that the assuming insurer's obligations pursuant to the contract are secured in accordance with Section 16 [59A-12E-16 NMSA 1978] of the Credit for Reinsurance Act.
D. If an assuming insurer's eligibility is revoked, no credit for reinsurance may be granted after the effective date of the revocation with respect to any reinsurance agreements entered into by the assuming insurer, including reinsurance agreements entered into prior to the date of revocation, except to the extent that the assuming insurer's obligations pursuant to the contract are secured in a form acceptable to the superintendent and consistent with the provisions of Section 16 of the Credit for Reinsurance Act.
E. If subject to a legal process of rehabilitation, liquidation or conservation, as applicable, the ceding insurer or its representative may seek and, if determined appropriate by the court in which the proceedings are pending, may obtain an order requiring that the assuming insurer post security for all outstanding ceded liabilities.
F. Nothing in this section shall limit or in any way alter the capacity of parties to a reinsurance agreement to agree on requirements for security or other terms in that reinsurance agreement, except as expressly prohibited by the Credit for Reinsurance Act or other applicable law or rule.
History:
Laws 2022, ch. 35, § 12.
ANNOTATIONS
Compiler's notes.
— Laws 2022, ch. 35, § 12 was not enacted as part of the Insurance Code, but was compiled there for the convenience of the user.
Emergency clauses.
— Laws 2022, ch. 35, § 20 contained an emergency clause and was approved March 2, 2022.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12E - Credit for Reinsurance › Section 59A-12E-14 - Revocation of accreditation or certification.

A. If an accredited or certified reinsurer ceases to meet the requirements for accreditation or certification, the superintendent may suspend or revoke the reinsurer's accreditation or certification.
B. The superintendent shall give the reinsurer notice and opportunity for hearing. The suspension or revocation shall not take effect until after the superintendent's order on hearing unless:
(1) the reinsurer waives its right to hearing;
(2) the superintendent's order is based on regulatory action by the reinsurer's domiciliary jurisdiction or the voluntary surrender or termination of the reinsurer's eligibility to transact insurance or reinsurance business in its domiciliary jurisdiction or in the primary certifying state of the reinsurer pursuant to Subsection J of Section 9 [59A-12E-9 NMSA 1978] of the Credit for Reinsurance Act; or
(3) the superintendent finds that an emergency requires immediate action and a court of competent jurisdiction has not stayed the superintendent's action.
C. While a reinsurer's accreditation or certification is suspended, no reinsurance contract issued or renewed after the effective date of the suspension qualifies for credit except to the extent that the reinsurer's obligations pursuant to the contract are secured in accordance with Section 16 [59A-12E-16 NMSA 1978] of the Credit for Reinsurance Act. If a reinsurer's accreditation or certification is revoked, no credit for reinsurance shall be granted after the effective date of the revocation, except to the extent that the reinsurer's obligations pursuant to the contract are secured in accordance with Subsections C through I of Section 9 or Section 16 of the Credit for Reinsurance Act.
History:
Laws 2022, ch. 35, § 14.
ANNOTATIONS
Compiler's notes.
— Laws 2022, ch. 35, § 14 was not enacted as part of the Insurance Code, but was compiled there for the convenience of the user.
Emergency clauses.
— Laws 2022, ch. 35, § 20 contained an emergency clause and was approved March 2, 2022.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12E - Credit for Reinsurance › Section 59A-12E-15 - Concentration of risk.

A. A ceding insurer shall take steps to manage its reinsurance recoverables proportionate to its own book of business. A domestic ceding insurer shall notify the superintendent within thirty days after reinsurance recoverables from any single assuming insurer, or group of affiliated assuming insurers, exceeds fifty percent of the domestic ceding insurer's last reported surplus to policyholders, or after it is determined that reinsurance recoverables from any single assuming insurer, or group of affiliated assuming insurers, is likely to exceed this limit. The notification shall demonstrate that the exposure is safely managed by the domestic ceding insurer.
B. A ceding insurer shall take steps to diversify its reinsurance program. A domestic ceding insurer shall notify the superintendent within thirty days after ceding to any single assuming insurer, or group of affiliated assuming insurers, more than twenty percent of the ceding insurer's gross written premium in the prior calendar year, or after it has determined that the reinsurance ceded to any single assuming insurer, or group of affiliated assuming insurers, is likely to exceed this limit. The notification shall demonstrate that the exposure is safely managed by the domestic ceding insurer.
History:
Laws 2022, ch. 35, § 15.
ANNOTATIONS
Compiler's notes.
— Laws 2022, ch. 35, § 15 was not enacted as part of the Insurance Code, but was compiled there for the convenience of the user.
Emergency clauses.
— Laws 2022, ch. 35, § 20 contained an emergency clause and was approved March 2, 2022.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12E - Credit for Reinsurance › Section 59A-12E-16 - Reduction in liability.

A. An asset or a reduction in liability for the reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of Sections 3 [59A-12E-3 NMSA 1978] through 15 [59A-12E-15 NMSA 1978] of the Credit for Reinsurance Act shall be allowed in an amount not exceeding the liabilities carried by the ceding insurer; provided that the superintendent may adopt by rule pursuant to Section 17 [59A-12E-17 NMSA 1978] of the Credit for Reinsurance Act specific additional requirements relating to or setting forth:
(1) the valuation of assets or reserve credits;
(2) the amount and forms of security supporting reinsurance arrangements described in Section 17 of the Credit for Reinsurance Act; and
(3) the circumstances pursuant to which credit will be reduced or eliminated.
B. The reduction shall be in the amount of funds held by or on behalf of the ceding insurer, including funds held in trust for the ceding insurer, pursuant to a reinsurance contract with the assuming insurer as security for the payment of obligations thereunder, if the security is held in the United States subject to withdrawal solely by, and under the exclusive control of, the ceding insurer; or, in the case of a trust, held in a qualified United States financial institution as defined in Paragraph (2) of Subsection E of Section 2 [59A-12E-2 NMSA 1978] of the Credit for Reinsurance Act. This security may be in the form of:
(1) cash;
(2) securities listed by the securities valuation office of the national association of insurance commissioners, including those deemed exempt from filing as defined by the purposes and procedures manual of the securities valuation office, and qualifying as admitted assets;
(3) clean, irrevocable, unconditional letters of credit issued or confirmed by a qualified United States financial institution effective no later than December 31 of the year for which the filing is being made and in the possession of, or in trust for, the ceding insurer on or before the filing date of its annual statement;
(4) letters of credit meeting applicable standards of issuer acceptability as of the dates of their issuance or confirmation shall, notwithstanding the issuing or confirming institution's subsequent failure to meet applicable standards of issuer acceptability, continue to be acceptable as security until their expiration, extension, renewal, modification or amendment, whichever first occurs; or
(5) any other form of security acceptable to the superintendent.
History:
Laws 2022, ch. 35, § 16.
ANNOTATIONS
Compiler's notes.
— Laws 2022, ch. 35, § 16 was not enacted as part of the Insurance Code, but was compiled there for the convenience of the user.
Emergency clauses.
— Laws 2022, ch. 35, § 20 contained an emergency clause and was approved March 2, 2022.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12E - Credit for Reinsurance › Section 59A-12E-18 - Insolvency.

Upon the insolvency of a non-United-States insurer or reinsurer that provides security to fund its obligations in the United States in accordance with the Credit for Reinsurance Act, the assets representing the security shall be maintained in the United States, and claims shall be filed with and valued by the state insurance commissioner with regulatory oversight, and the assets shall be distributed, in accordance with the insurance laws of the state in which the trust is domiciled that are applicable to the liquidation of domestic United States insurance companies.
History:
Laws 2022, ch. 35, § 18.
ANNOTATIONS
Compiler's notes.
— Laws 2022, ch. 35, § 18 was not enacted as part of the Insurance Code, but was compiled there for the convenience of the user.
Emergency clauses.
— Laws 2022, ch. 35, § 20 contained an emergency clause and was approved March 2, 2022.