2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 12E - Credit for Reinsurance › Section 59A-12E-2 - Definitions.

As used in the Credit for Reinsurance Act:
A. "accredited jurisdiction" means a jurisdiction that meets the accreditation standards established by the national association of insurance commissioners;
B. "alien assuming insurer" means an assuming insurer that is formed according to the laws of a foreign country;
C. "assuming insurer" means an insurer assuming risk from another insurer;
D. "ceding insurer" means an insurer that transfers risk by purchasing reinsurance;
E. "qualified United States financial institution" means an institution that:
(1) for purposes of Paragraphs (3) and (4) of Subsection B of Section 16 [59A-12E-16 NMSA 1978] of the Credit for Reinsurance Act:
(a) is organized, or in the case of a United States office of a foreign banking organization, licensed pursuant to laws of the United States or any state thereof;
(b) is regulated, supervised and examined by federal or state authorities having regulatory authority over banks and trust companies; and
(c) has been determined by either the superintendent or the securities valuation office of the national association of insurance commissioners to meet such standards of financial condition and standing as are considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the superintendent; or
(2) for purposes of those provisions of the Credit for Reinsurance Act specifying those institutions that are eligible to act as a fiduciary of a trust:
(a) is organized, or in the case of a United States branch or agency office of a foreign banking organization, licensed, pursuant to the laws of the United States or any state thereof and has been granted authority to operate with fiduciary powers; and
(b) is regulated, supervised and examined by federal or state authorities having regulatory authority over banks and trust companies;
F. "reciprocal jurisdiction" means a jurisdiction that meets one of the following descriptions:
(1) a non-United-States jurisdiction that is subject to an in-force covered agreement with the United States, each within its legal authority, or, in the case of a covered agreement between the United States and the European Union, is a member state of the European Union. For purposes of this paragraph, a "covered agreement" is an agreement entered into pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act that is currently in effect or in a period of provisional application and addresses the elimination, under specified conditions, of collateral requirements as a condition for entering into any reinsurance agreement with a ceding insurer domiciled in this state or for allowing the ceding insurer to recognize credit for reinsurance;
(2) a United States jurisdiction that meets the requirements for accreditation pursuant to the national association of insurance commissioners financial standards and accreditation program; or
(3) a qualified jurisdiction, as determined by the superintendent pursuant to Section 8 [59A-12E-8 NMSA 1978] and Subsection A of Section 9 [59A-12E-9 NMSA 1978] of the Credit for Reinsurance Act, which is not otherwise described in Paragraph (1) or (2) of Subsection F of Section 2 [59A-12E-2 NMSA 1978] of the Credit for Reinsurance Act and which meets certain additional requirements, consistent with the terms and conditions of in-force covered agreements, as specified by the superintendent in rule; and
G. "superintendent" means the superintendent of insurance.
History:
Laws 2022, ch. 35, § 2.
ANNOTATIONS
Compiler's notes.
— Laws 2022, ch. 35, § 2 was not enacted as part of the Insurance Code, but was compiled there for the convenience of the user.
Cross references.
— For the Dodd-Frank Wall Street Reform and Consumer Protection Act,
see
12 U.S.C.
Emergency clauses.
— Laws 2022, ch. 35, § 20 contained an emergency clause and was approved March 2, 2022.