reglab/statecodes huggingface dataset:
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 2 - INSURANCE HOLDING COMPANIES › Section 13.2.2.11 - OPTIONS PERMITTED IN FORMS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Incorporation by reference:
(1)
				Information required by any item of Form A, Form B, Form D, Form E, or Form F
				may be incorporated by reference in answer or partial answer to any other
				item.
(2) Information contained in
				any financial statement, annual report, proxy statement, statement filed with a
				governmental authority, or any other document may be incorporated by reference
				in answer or partial answer to any item of Form A, Form B, Form D, Form E or
				Form F, provided the document is filed as an exhibit to the
				statement.
(3) Excerpts of
				documents may be filed as exhibits if the documents are extensive.
(4) Documents currently on file with the
				superintendent which were filed within the past three years need not be
				attached as exhibits.
(5)
				References to information contained in exhibits or in documents already on file
				shall clearly identify the material and shall specifically indicate that such
				material is to be incorporated by reference in answer to the item.
(6) Matter shall not be incorporated by
				reference in any case where the incorporation would render the statement
				incomplete, unclear or confusing.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 2 - INSURANCE HOLDING COMPANIES › Section 13.2.2.13 - FORM B

Current through Register Vol. 35, No. 13, July 16, 2024
A.
When
				required:
An insurer required by Section
				59A-37-11
				NMSA 1978 to file an annual registration statement shall file Form B in
				accordance with the requirements of this rule.
B.
Filings on behalf of
				affiliates:
Any authorized insurer may file a registration statement on
				behalf of any affiliated insurer or insurer's that are required to register
				under Section
				59A-37-11
				NMSA 1978.
C.
Additional
				information permitted:
A registration statement may include information
				not required by this rule regarding any insurer in the insurance holding
				company system even if the insurer is not authorized to do business in this
				state.
D.
When copy of
				domiciliary registration permitted:
In lieu of filing a registration
				statement on Form B, the authorized insurer may file a copy of the registration
				statement or similar report that it is required to file in its state of
				domicile, provided:
(1) the statement or
				report contains substantially similar information required to be furnished on
				Form B; and
(2) the filing insurer
				is the principal insurance company in the insurance holding company system. The
				question of whether the filing insurer is the principal insurance company in
				the insurance holding company system is a question of fact and an insurer
				filing a registration statement or report in lieu of Form B on behalf of an
				affiliated insurer, shall set forth a brief statement of facts which will
				substantiate the filing insurer's claim that it, in fact, is the principal
				insurer in the insurance holding company system.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 2 - INSURANCE HOLDING COMPANIES › Section 13.2.2.18 - FORM G

Current through Register Vol. 35, No. 13, July 16, 2024
A.
When
				required:
Subject to Section
				59A-37-22
				NMSA 1978 a registered insurer shall file Form G to report to the
				superintendent all dividends and other distributions to shareholders within 15
				business days following the declaration of such dividends or
				distributions.
B.
Information
				to be furnished in Form G:
(1)
Caption:
Place the following caption at the top of the cover page:
FORM G
NOTICE OF DECLARATION OF DIVIDENDS OR OTHER DISTRIBUTIONS TO
				  SHAREHOLDERS
(2)
Applicant:
Provide the name and address of the insurer filing the
				report.
(3)
Calculations:
Provide a copy of the calculations determining the
				proposed dividends. The work paper shall include the following information:
(a) the amounts, dates and form of payment of
				all dividends or distributions (including regular dividends, but excluding
				distributions of the insurer's own securities) paid within the period of 12
				consecutive months ending on the date fixed for payment of the proposed
				dividend for which approval is sought and commencing on the day after the same
				day of the same month in the last preceding year;
(b) surplus as regards policyholders (total
				capital and surplus) as of the 31st day of December next preceding;
(c) if the insurer is a life insurer, the net
				gain from operations for the 12-month period ending the 31st day of December
				next preceding;
(d) if the insurer
				is not a life insurer, the net income less realized capital gains for the
				12-month period ending the 31st day of December next preceding and the two
				preceding 12-month periods; and
(e)
				if the insurer is not a life insurer, the dividends paid to stockholders,
				excluding distributions of the insurer's own securities in the preceding two
				calendar years.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 2 - INSURANCE HOLDING COMPANIES › Section 13.2.2.19 - FORM H

Current through Register Vol. 35, No. 13, July 16, 2024
A.
When
				required:
(1) A person claiming that
				they do not, or will not upon the taking of some proposed action, control
				another subject person shall file Form H in accordance with this
				rule.
(2) A person requesting
				termination of registration shall file Form H in accordance with this
				rule.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 2 - INSURANCE HOLDING COMPANIES › Section 13.2.2.20 - FORM I

Current through Register Vol. 35, No. 13, July 16, 2024
A.
When
				required:
A domestic insurer required by Section
				59A-37-22
				NMSA 1978 to give prior notice to the superintendent of the declaration of any
				extraordinary dividend or any other extraordinary distribution to its
				shareholders shall file Form I in accordance with the requirements of this
				rule.
B.
Information to be
				furnished in Form I:
(1)
Caption:
Place the following caption at the top of the cover page:
FORM I
REQUEST FOR APPROVAL OF EXTRAORDINARY DIVIDENDS OR ANY OTHER
				  EXTRAORDINARY DISTRIBUTION TO SHAREHOLDERS
(2)
Applicant:
Provide the name
				and address of the insurer filing the request.
(3)
Amount:
State the amount of
				the proposed dividend.
(4)
Payment date:
Indicate the date established for payment of the
				dividend.
(5)
Mode of
				payment:
State whether the dividend is to be paid in cash or other
				property and, if in property, describe the property, its cost, and its fair
				market value, and explain the basis for valuation.
(6)
Calculations:
Provide a copy
				of the calculations determining that the proposed dividend is extraordinary.
				The work paper shall include the following information:
(a) the amounts, dates and form of payment of
				all dividends or distributions (including regular dividends but excluding
				distributions of the insurer's own securities) paid within the period of 12
				consecutive months ending on the date fixed for payment of the proposed
				dividend for which approval is sought and commencing on the day after the same
				day of the same month in the last preceding year;
(b) Surplus as regards policyholders (total
				capital and surplus) as of the 31st day of December next preceding;
(c) if the insurer is a life insurer, the net
				gain from operations for the 12-month period ending the 31st day of December
				next preceding;
(d) if the insurer
				is not a life insurer, the net income less realized capital gains for the
				12-month period ending the 31st day of December next preceding and the two
				preceding 12-month periods; and
(e)
				if the insurer is not a life insurer, the dividends paid to stockholders,
				excluding distributions of the insurer's own securities in the preceding two
				calendar years.
(7)
Balance sheet:
Provide a balance sheet and statement of income for
				the period intervening from the last annual statement filed with the
				superintendent and the end of the month preceding the month in which the
				request for dividend approval is submitted.
(8)
Effect on surplus:
Provide a
				brief statement as to the effect of the proposed dividend upon the insurer's
				surplus and the reasonableness of surplus in relation to the insurer's
				outstanding liabilities and the adequacy of surplus relative to the insurer's
				financial needs.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 2 - INSURANCE HOLDING COMPANIES › Section 13.2.2.21 - SUPERVISORY COLLEGES

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Participation by superintendent.
With respect to any insurer registered
				under Section
				59A-37-11
				NMSA 1978, and in accordance with Subsection C below, the superintendent may
				participate in a supervisory college for any domestic insurer that is part of
				an insurance holding company system with international operations in order to
				determine compliance by the insurer with these rules. The superintendent may,
				with respect to supervisory colleges:
(1)
				Initiate the establishment of a supervisory college;
(2) Clarify the membership and participation
				of other supervisors in the supervisory college;
(3) Clarify the functions of the supervisory
				college and the role of other regulators, including the establishment of a
				group-wide supervisor;
(4)
				Coordinate the ongoing activities of the supervisory college, including
				planning meetings, supervisory activities, and processes for information
				sharing;
(5) Establish a crisis
				management plan; and
(6) Take other
				reasonable actions within the scope of the superintendent's
				authority.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 2 - INSURANCE HOLDING COMPANIES › Section 13.2.2.22 - GROUP-WIDE SUPERVISION OF INTERNATIONALLY ACTIVE INSURANCE GROUPS

Current through Register Vol. 35, No. 13, July 16, 2024
A. The
				superintendent may act as the group-wide supervisor for any internationally
				active insurance group in accordance with the provisions of this section.
				However, the superintendent may otherwise acknowledge another regulatory
				official as the group-wide supervisor where the internationally active
				insurance group:
(1) Does not have substantial
				insurance operations in the United States;
(2) Has substantial insurance operations in
				the United States, but not in this state; or
(3) Has substantial insurance operations in
				the United States and this state, but the superintendent has determined
				pursuant to the factors set forth in Subsections B and F of this section that
				the other regulatory official is the appropriate group-wide supervisor.
An insurance holding company system that does not otherwise
				  qualify as an internationally active insurance group may request that the
				  superintendent make a determination or acknowledgment as to a group-wide
				  supervisor pursuant to this section.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 2 - INSURANCE HOLDING COMPANIES › Section 13.2.2.23 - SEVERABILITY CLAUSE

Current through Register Vol. 35, No. 13, July 16, 2024
If any provision of this rule or the application thereof to
				  any person or circumstance, is held invalid, such determination shall not
				  affect other provisions or applications of this rule which can be given effect
				  without the invalid provision or application, and to that end, the provisions
				  of this rule are severable.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 3 - ANNUAL STATEMENT REQUIREMENTS › Section 13.2.3.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
New Mexico State Corporation Commission [Public Regulation
				  Commission], Department of Insurance, Post Office Box 1269, Santa Fe, NM
				  87504-1269.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 3 - ANNUAL STATEMENT REQUIREMENTS › Section 13.2.3.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This rule applies to all domestic, foreign and alien
				  companies authorized to transact the business of insurance in the state of New
				  Mexico.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 3 - ANNUAL STATEMENT REQUIREMENTS › Section 13.2.3.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
July 1, 1997, unless a later date is cited at the end of a
				  section or paragraph.
Compiler's note: The words or paragraph, above, are no
					 longer applicable. Later dates are now cited only at the end of sections, in
					 the history notes appearing in
					 brackets.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 3 - ANNUAL STATEMENT REQUIREMENTS › Section 13.2.3.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The purpose of this rule is to clarify the reporting
				  requirements for annual statements required by Sections 59A-5-29 and 59A-5-29.1
				  NMSA 1978.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 3 - ANNUAL STATEMENT REQUIREMENTS › Section 13.2.3.8 - ELECTRONIC FILING REQUIRED

Current through Register Vol. 35, No. 13, July 16, 2024
A.
NAIC filing:
Each authorized insurer shall file a copy of each
				annual statement and quarterly statement of the insurer with the national
				association of insurance commissioners in both hard copy and on diskette. This
				requirement applies to the extent that the national association of insurance
				commissioners has issued a diskette submission directive or has otherwise
				approved or prescribed an applicable diskette format for the particular class
				of insurer.
B.
Superintendent filing:
Each domestic insurer shall file a copy of each
				annual and quarterly stateme1nt of the insurer with the superintendent in both
				hard copy and on diskette.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 4 - USE OF COMMERCIAL DEPOSITORIES FOR STATUTORY DEPOSITS › Section 13.2.4.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This rule applies to all statutory deposits required in order
				  to be qualified to transact the business of insurance and security deposits
				  required to be registered as a service contract provider in the state of New
				  Mexico.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 4 - USE OF COMMERCIAL DEPOSITORIES FOR STATUTORY DEPOSITS › Section 13.2.4.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Sections 59A-2-9, 59A-5-18, 59A-5-19, 59A-10-4, 59A-10-5,
				  59A-14-4 and 59A-58-6 NMSA 1978.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 4 - USE OF COMMERCIAL DEPOSITORIES FOR STATUTORY DEPOSITS › Section 13.2.4.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
August 24, 1987, unless a later date is cited at the end of a
				  section.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 4 - USE OF COMMERCIAL DEPOSITORIES FOR STATUTORY DEPOSITS › Section 13.2.4.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The purpose of this rule is to assist insurance companies and
				  service contract providers making statutory deposits with detailed instructions
				  to meet those statutory requirements and to provide rules governing a
				  commercial depository receiving these statutory deposits.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 4 - USE OF COMMERCIAL DEPOSITORIES FOR STATUTORY DEPOSITS › Section 13.2.4.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
Depository means the financial institution designated by the
				  state treasurer and approved by the superintendent to receive and hold deposits
				  required by the Insurance Code.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 4 - USE OF COMMERCIAL DEPOSITORIES FOR STATUTORY DEPOSITS › Section 13.2.4.8 - SEGREGATION OF DEPOSITS

Current through Register Vol. 35, No. 13, July 16, 2024
Each of the following types of deposits shall be separately
				  maintained in the books and records of the depository:
A. special deposits required under New Mexico
				law;
B. special deposits required
				under the laws of any state other than New Mexico; and
C. general deposits required under the laws
				of New Mexico or of any other state.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 4 - USE OF COMMERCIAL DEPOSITORIES FOR STATUTORY DEPOSITS › Section 13.2.4.9 - MANNER OF HOLDING DEPOSITS

Current through Register Vol. 35, No. 13, July 16, 2024
All deposit accounts shall be held in the designated
				  depository in the name of the "superintendent of insurance of the state of New
				  Mexico, custodian for (name) insurance company (general/special/other deposit
				  account)". Securities deposited in the account may be held:
A. in "book entry" form in depository's
				account with the federal reserve;
B. in nominee name of depository,
				depository's corresponding bank, or the clearing corporation retained by
				depository; or
C. in the account
				name specified above.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 4 - USE OF COMMERCIAL DEPOSITORIES FOR STATUTORY DEPOSITS › Section 13.2.4.10 - SAFEKEEPING RECEIPTS

Current through Register Vol. 35, No. 13, July 16, 2024
Safekeeping receipts evidencing the holding of any security
				  at an institution other than the designated depository shall be accepted only
				  with the prior express written approval of the superintendent upon a showing of
				  exceptional circumstances.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 4 - USE OF COMMERCIAL DEPOSITORIES FOR STATUTORY DEPOSITS › Section 13.2.4.11 - ASSETS ELIGIBLE FOR DEPOSIT

Current through Register Vol. 35, No. 13, July 16, 2024
All statutory deposits required by the New Mexico Insurance
				  Code shall be comprised solely of securities which are:
A. described and permitted by Section
				59A-10-3 NMSA 1978 as the same may be amended from time to time, and either:
(1) traded on a national securities exchange
				and for which daily "bid" prices are regularly published and
				available;
(2) public obligations
				as defined in Section 59A-9-6 NMSA 1978 or
(3) certificates of deposit in solvent state
				and national banks or trust companies whose principal office is located in New
				Mexico, provided that no deposit shall include certificates of deposit
				aggregating more than $100,000 under the valuation method described
				herein;
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 4 - USE OF COMMERCIAL DEPOSITORIES FOR STATUTORY DEPOSITS › Section 13.2.4.12 - VALUATION OF DEPOSITS

Current through Register Vol. 35, No. 13, July 16, 2024
All securities deposited pursuant to the New Mexico Insurance
				  Code shall be valued at their fair market value as of the valuation
				  date.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 4 - USE OF COMMERCIAL DEPOSITORIES FOR STATUTORY DEPOSITS › Section 13.2.4.13 - RELEASE OF DEPOSITS, OR OF PROCEEDS OR PRINCIPAL OF DEPOSITS

Current through Register Vol. 35, No. 13, July 16, 2024
Depository shall not release nor pay to any person any
				  security held as a deposit hereunder, or any proceeds of the sale of, or
				  payments of principal upon, such securities, except upon written direction of
				  the superintendent, or upon order of a court of competent jurisdiction in an
				  action to which the superintendent is a party.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 4 - USE OF COMMERCIAL DEPOSITORIES FOR STATUTORY DEPOSITS › Section 13.2.4.14 - REPORTING REQUIREMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
Depository shall promptly furnish:
A. to the superintendent:
(1) not later than three (3) days after
				completion of any transaction with respect to a deposit held by depository
				hereunder, a report of the transaction in a form approved by the
				superintendent, except that no report shall be made to the superintendent of a
				transaction involving solely a receipt of, or payment to insurer of, income on
				the securities;
(2) monthly, a
				security transaction listing and security inventory for each deposit,
				subtotaled by the deposit account, in a form satisfactory to the
				superintendent;
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 4 - USE OF COMMERCIAL DEPOSITORIES FOR STATUTORY DEPOSITS › Section 13.2.4.15 - COLLATERAL SECURITY

Current through Register Vol. 35, No. 13, July 16, 2024
Depository shall promptly furnish to the superintendent
				  evidence of pledge of collateral security in such reasonable form and amount as
				  the superintendent may demand.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 4 - USE OF COMMERCIAL DEPOSITORIES FOR STATUTORY DEPOSITS › Section 13.2.4.16 - FEES CHARGED BY DEPOSITORY

Current through Register Vol. 35, No. 13, July 16, 2024
Total compensation and reimbursement to be received by
				  depository for its services as described in this rule shall be an annual fee
				  not greater than two-tenths of one percent (0.2)$) of the face amount of
				  securities held by depository, plus New Mexico gross receipts tax as agreed
				  upon by the superintendent and the state treasurer, or such lesser amount as
				  may be agreed between depository and an individual insurer.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 4 - USE OF COMMERCIAL DEPOSITORIES FOR STATUTORY DEPOSITS › Section 13.2.4.17 - RELATIONSHIP BETWEEN DEPOSITORY AND INSURER OR SERVICE CONTRACT PROVIDER

Current through Register Vol. 35, No. 13, July 16, 2024
A. Depository may,
				by agreement between itself and an insurer or service contract provider, accept
				such other or further additional duties to an insurer or service contract
				provider as may be agreed between them, provided that no provision of any such
				agreement shall be effective to impair, diminish or otherwise affect any right
				or power of the superintendent or the state of New Mexico under this rule or
				applicable law.
B. All compensation
				or reimbursement due to depository shall be the sole liability and
				responsibility of insurer or service contract provider, and no claim shall be
				made upon the superintendent or the state of New Mexico, either by depository
				or by insurer or service contract provider, for collection or payment of any
				such amounts.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 4 - USE OF COMMERCIAL DEPOSITORIES FOR STATUTORY DEPOSITS › Section 13.2.4.18 - SURETY BONDS IN LIEU OF SPECIAL DEPOSITS

Current through Register Vol. 35, No. 13, July 16, 2024
Surety bonds submitted in lieu of special deposits shall be
				  issued by a surety company qualified to transact surety business within the
				  state of New Mexico, provided that such surety company shall not control, be
				  controlled by, or be under common control with the insurer or service contract
				  provider for which the bond is submitted.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 5 - ANNUAL AUDITED FINANCIAL REPORTS › Section 13.2.5.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
A. Every insurer
				shall be subject to this rule.
B.
				insurer's having direct premiums written in this state of less than $1,000,000
				in any calendar year and less than 1,000 policyholders or certificate holders
				of direct written policies nationwide at the end of the calendar year shall be
				exempt from this rule for the year, unless the superintendent makes a specific
				finding that compliance is necessary for the superintendent to carry out
				statutory responsibilities.
C.
				insurer's having assumed premiums pursuant to contracts or treaties of
				reinsurance of $1,000,000 or more are not exempt.
D. Foreign or alien insurer's filing the
				audited financial report in another state, pursuant to that states requirement
				for filing of audited financial reports, which has been found by the
				superintendent to be substantially similar to the requirements herein, are
				exempt from this rule if:
(1) a copy of the
				audited financial report, communication of internal control related matters
				noted in an audit, and the accountant's letter of qualifications that are filed
				with the other state are filed with the superintendent in accordance with the
				filing dates specified in this rule respectively; and
(2) a copy of any notification of adverse
				financial condition report filed with the other state is filed with the
				superintendent within the time specified in this rule.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 5 - ANNUAL AUDITED FINANCIAL REPORTS › Section 13.2.5.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Sections
				  59A-2-8,
				  59A-2-9,
				  and Chapter 59A Article 37 NMSA 1978 ("the Insurance Holding Company
				  Law").
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 5 - ANNUAL AUDITED FINANCIAL REPORTS › Section 13.2.5.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
January 1, 1994, unless a later date is cited at the end of a
				  section.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 5 - ANNUAL AUDITED FINANCIAL REPORTS › Section 13.2.5.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The purpose of this rule is to ensure robust surveillance of
				  the financial condition of insurer's by requiring:
(1) an annual audit of financial statements
				reporting the financial position and the results of operations of insurer's by
				independent certified public accountants;
(2) communication of internal control related
				matters noted in an audit; and
(3)
				management's report of internal control over financial reporting.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 5 - ANNUAL AUDITED FINANCIAL REPORTS › Section 13.2.5.8 - CONFLICT WITH OTHER PROVISIONS

Current through Register Vol. 35, No. 13, July 16, 2024
This rule shall not prohibit, preclude or in any way limit
				  the superintendent from ordering, conducting or performing examinations of
				  insurer's under the Insurance Code or other OSI rules.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 5 - ANNUAL AUDITED FINANCIAL REPORTS › Section 13.2.5.9 - FILING DATES AND EXTENSIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A. An
				insurerer shall have an annual audit by an independent certified public
				accountant and shall file an annual audited financial report and management's
				report of internal control over financial reporting with the superintendent on
				or before June 1 for the year ended December 31 immediately preceding. The
				superintendent may require an insurer to file an audited financial report and
				management's report of internal control over financial reporting earlier than
				June 1 with ninety days advance notice to the insurer.
B. The superintendent may grant extensions of
				the June 1 filing date for 30-day periods for good cause shown. The request for
				extension shall be submitted in writing not less than 10 days prior to the
				filing date. The insurer and its independent certified public accountant shall
				show the reasons for requesting such extension in sufficient detail to permit
				the superintendent to make an informed decision with respect to the requested
				extension.
C. An insurer required
				to file an annual audited financial report pursuant to this rule shall
				designate a group of individual's as constituting its audit committee, as
				defined in
				13.2.5.7
				NMAC. The audit committee of an entity that controls an insurer may be deemed
				to be the insurer's audit committee for purposes of this rule at the election
				of the controlling person consistent with
				13.2.5.16
				NMAC.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 5 - ANNUAL AUDITED FINANCIAL REPORTS › Section 13.2.5.10 - REPORT PERIOD

Current through Register Vol. 35, No. 13, July 16, 2024
The annual audited financial report shall report the
				  financial position of the insurer as of the end of the most recent calendar
				  year and the results of its operations, cash flows and changes in capital and
				  surplus for the year then ended, in conformity with statutory accounting
				  practices prescribed or otherwise permitted by the department of insurance of
				  the insurer's state of domicile.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 5 - ANNUAL AUDITED FINANCIAL REPORTS › Section 13.2.5.11 - REPORT FORM

Current through Register Vol. 35, No. 13, July 16, 2024
The financial statements included in the audited financial
				  report shall be prepared in a form and using language and groupings
				  substantially the same as the relevant sections of the annual statement of the
				  insurer filed with the superintendent. The financial statement shall be
				  comparative, presenting the amounts as of December 31 of the current year and
				  the amounts as of the immediately preceding December 31. The comparative data
				  may be omitted in the first year in which an insurer is required to file an
				  audited financial report.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 5 - ANNUAL AUDITED FINANCIAL REPORTS › Section 13.2.5.12 - CONTENTS OF REPORT

Current through Register Vol. 35, No. 13, July 16, 2024
The annual audited financial report shall include the
				  following:
A. report of independent
				certified public accountant;
B.
				balance sheet reporting admitted assets, liabilities, capital and
				surplus;
C. statement of
				operations;
D. statement of cash
				flows;
E. statement of changes in
				capital and surplus;
F. notes to
				financial statements, including:
(1) those
				required by the appropriate NAIC annual statement instructions and the NAIC
				accounting practices and procedures manual;
(2) a reconciliation of differences, if any,
				between the annual audited financial report filed pursuant to this rule and the
				annual statement filed pursuant to Section
				59A-5-29 NMSA
				1978, with a written description of the nature of these differences;
(3) a summary of ownership and relationships
				of the insurer and all affiliated companies; and
(4) any other notes required by generally
				accepted accounting principles; and
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 5 - ANNUAL AUDITED FINANCIAL REPORTS › Section 13.2.5.13 - REGISTRATION OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT

Current through Register Vol. 35, No. 13, July 16, 2024
A. An insurer required by this rule to file
				an annual audited financial report must, within 60 days after becoming subject
				to such requirement, register with the superintendent, in writing, the name and
				address of the ICPA or accounting firm retained to conduct the annual audit
				required by this rule.
B. An
				insurer shall obtain a letter from the ICPA, and submit a copy to OSI stating
				that the ICPA is aware of the provisions of the insurance code and the rules of
				the insurance department of the insurer's state of domicile that relate to
				accounting and financial matters and affirming that the ICPA will express an
				opinion on the financial statement in terms of conformity to the statutory
				accounting practices prescribed or otherwise permitted by that department,
				specifying such exceptions as the ICPA may believe appropriate.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 5 - ANNUAL AUDITED FINANCIAL REPORTS › Section 13.2.5.14 - DISMISSAL OR RESIGNATION OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT

Current through Register Vol. 35, No. 13, July 16, 2024
A. If an accountant
				who was the ICPA for the immediately preceding filed audited financial report
				is dismissed or resigns, the insurer shall notify the superintendent in writing
				of this event within five business days.
B. The insurer shall also furnish the
				superintendent with a separate letter of disagreement within ten business days
				of the notice of dismissal or resignation, which shall contain the following:
(1) the letter shall state whether, in the 24
				months preceding such event, there were any disagreements with the former ICPA
				on any matter of accounting principles or practices, financial statement
				disclosure, or auditing scope or procedure, which would have caused the
				accountant to make reference in the ICPA opinion to the subject matter of the
				disagreement if the disagreement had not been resolved to the satisfaction of
				the former ICPA; and
(2) the
				insurer must report in the letter all disagreements that occurred at the
				decision-making level (i.e., between personnel of the insurer responsible for
				presentation of its financial statements and personnel of the accounting firm
				responsible for rendering its report), whether resolved to the former ICPA's
				satisfaction or not resolved to the former ICPA's satisfaction.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 5 - ANNUAL AUDITED FINANCIAL REPORTS › Section 13.2.5.15 - QUALIFICATIONS OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT

Current through Register Vol. 35, No. 13, July 16, 2024
A. The superintendent shall not recognize a
				person or firm as a qualified ICPA if the person or firm:
(1) is not in good standing with the AICPA
				and in all states in which the ICPA is licensed to practice, or, for a Canadian
				or British company, that is not a chartered accountant; or
(2) has either directly or indirectly entered
				into an agreement of indemnity or release from liability, collectively referred
				to as indemnification, with respect to the audit of the insurer.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 5 - ANNUAL AUDITED FINANCIAL REPORTS › Section 13.2.5.17 - INTERNAL AUDIT FUNCTION REQUIREMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Function.
An insurer or group
				of insurer's shall establish an internal audit function providing independent,
				objective and reasonable assurance to the audit committee and insurer
				management regarding the insurer's governance, risk management and internal
				controls. This assurance shall be provided by performing general and specific
				audits, reviews and tests and by employing other techniques deemed necessary to
				protect assets, evaluate control effectiveness and efficiency, and evaluate
				compliance with policies and regualtions.
B.
Independence.
In order to
				ensure that internal auditors remain objective, the internal audit function
				must be organizationally independent. Specifically, the internal audit function
				shall have direct and unrestricted access to the board of directors.
				Organizational independence does not preclude dual-reporting
				relationships.
C.
Reporting.
The head of the internal audit function shall report to
				the audit committee regularly, but no less than annually, on the periodic audit
				plan, factors that may adversely impact the intenal audit function's
				independence or effectiveness, material findings from completed audits and the
				appropriateness of corrective actions implemented by management as a result of
				audit findings.
D.
Additional
				Requirements.
If an insurer is a member of an insurance holding company
				system or included in a group of insurer's, the insurer may satisfy the
				internal audit function requirements set forth in this section at the ultimate
				controlling parent level, an intermediate holding company level or the
				individual legal entity level.
E.
Exemption.
An insurer may be exempt from the requirements of this
				section only if
(1) the insurer has annual
				direct written and unaffiliated assumed premium, including international direct
				and assumed premium but excluding premiums reinsured with the federal corp
				insurance coporation and federal flood program, less than $500,000,000);
				or,
(2) if the insurer is a member
				of a group of insurer's that has annual direct written and unaffiliated assumed
				premium including international direct and assumed premium, but excluding
				premiums reinsured with federal crop insurance corporation and federal flood
				program, less than $1,000,000,000.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 5 - ANNUAL AUDITED FINANCIAL REPORTS › Section 13.2.5.18 - ROTATION OF ACCOUNTANTS REQUIRED

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				No partner or other person responsible for rendering a report may act in that
				capacity for more than five consecutive years. Following any such period of
				service the person shall be disqualified from acting in that or a similar
				capacity for the same company or its insurance subsidiaries or affiliates for a
				period of two years.
B. An insurer
				may make application to the superintendent for relief from this rotation
				requirement on the basis of unusual circumstances. The superintendent may
				consider the following factors in determining if the relief should be granted:
(1) the number of partners, expertise of the
				partners or the number of insurance clients in the currently registered
				firm;
(2) the premium volume of the
				insurer; and
(3) the number of
				jurisdictions in which the insurer transacts business.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 5 - ANNUAL AUDITED FINANCIAL REPORTS › Section 13.2.5.19 - CONSOLIDATED OR COMBINED AUDITS

Current through Register Vol. 35, No. 13, July 16, 2024
An insurer may make written application to the
				  superintendent for approval to file consolidated or combined annual audited
				  financial reports in lieu of separate annual audited financial reports if the
				  insurer is part of a group of insurance companies which utilizes a pooling or
				  one hundred percent reinsurance agreement that affects the solvency and
				  integrity of the insurer's reserves and such insurer cedes all of its direct
				  and assumed business to the pool. In such cases, a columnar consolidated or
				  combined worksheet shall be filed with the report, as follows:
A. amounts shown on the consolidated or
				combined audited financial report shall be shown on the worksheet;
B. amounts for each insurer subject to this
				section shall be stated separately;
C. noninsurance operations may be shown on
				the worksheet on a combined or individual basis;
D. explanations of consolidated and
				eliminated entries shall be included; and
E. a reconciliation shall be included of any
				differences between the amounts shown in the individual insurer columns of the
				worksheet and comparable amounts shown on the annual statements of the
				insurer's.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 5 - ANNUAL AUDITED FINANCIAL REPORTS › Section 13.2.5.20 - SCOPE OF EXAMINATION AND REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT

Current through Register Vol. 35, No. 13, July 16, 2024
A. The
				superintendent will not accept any annual audited financial report prepared in
				whole or in part by any person or firm that is not recognized as a qualified
				ICPA.
B. The examination of the
				insurer's financial statements shall be conducted in accordance with generally
				accepted auditing standards.
C. The
				ICPA shall use such other procedures illustrated in the NAIC's financial
				condition examiner's handbook as the ICPA may deem necessary.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 5 - ANNUAL AUDITED FINANCIAL REPORTS › Section 13.2.5.21 - REPORT OF ADVERSE FINANCIAL CONDITION

Current through Register Vol. 35, No. 13, July 16, 2024
A. An insurer shall require its ICPA to
				report, in writing, within five business days to the board of directors or its
				audit committee any determination by the ICPA that the insurer has materially
				misstated its financial condition as reported to the superintendent as of the
				balance sheet date currently under examination or that the insurer does not
				meet the minimum capital and surplus requirements of the New Mexico Insurance
				Code as of that date.
B. An insurer
				who has received a report of adverse financial condition shall forward a copy
				of the report to the superintendent within five business days of receiving it
				and shall furnish to the ICPA evidence that the report of adverse financial
				condition was forwarded to the superintendent.
C. If the ICPA fails to receive such evidence
				within the required five business day period, the independent certified public
				accountant shall furnish to the superintendent a copy of its report of adverse
				financial condition within the next five business days.
D. No ICPA shall be liable in any manner to
				any person for any statement made in connection with this section if such
				statement is made in good faith compliance with this section.
E. If the ICPA, subsequent to the date of the
				audited financial report filed pursuant to this rule, becomes aware of facts
				which might have affected that report, then the ICPA has the obligation to take
				such action as prescribed in Volume 1, Section AU 561 of the Professional
				Standards of the AICPA.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 5 - ANNUAL AUDITED FINANCIAL REPORTS › Section 13.2.5.22 - REPORT ON UNREMEDIATED MATERIAL WEAKNESSES IN INTERNAL CONTROLS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Within 60 days
				after the filing of the annual audited financial statements, an insurer shall
				submit to the superintendent a written report prepared by the ICPA describing
				any unremediated material weaknesses in the insurer's internal control
				structure noted by the ICPA during the audit. SAS No. 112, Communication of
				Internal Control Structure Matters Noted in an Audit (AU Section 325A of the
				Professional Standards of the AICPA) requires an ICPA to communicate
				unremediated material weaknesses (known as reportable conditions) noted during
				a financial statement audit to the appropriate person's within an entity. If no
				unremediated weakness were noted, the communication should so state.
B. An insurer shall provide a description of
				remedial actions taken or proposed to correct unremediated material weaknesses,
				if such actions are not described in the ICPA's communication.
C. No report on unremediated material
				weaknesses in internal controls should be issued if the ICPA does not identify
				unremediated material weaknesses.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 5 - ANNUAL AUDITED FINANCIAL REPORTS › Section 13.2.5.23 - MANAGEMENT'S REPORT OF INTERNAL CONTROL OVER FINANCIAL REPORTING

Current through Register Vol. 35, No. 13, July 16, 2024
A. An insurer
				required to file an audited financial report pursuant to this rule that has
				annual direct written and assumed premiums, excluding premiums reinsured with
				the federal crop insurance corporation and federal flood program, of
				$500,000,000 or more shall prepare a report of the insurer's or group of
				insurer's internal control over financial reporting, as these terms are defined
				in this rule. The report shall be submitted to the superintendent along with
				the communication of internal control related matters noted in an audit
				described in this rule. Management's report of internal control over financial
				reporting shall be as of December 31 immediately preceding.
B. Notwithstanding the premium threshold in
				this section the superintendent may require an insurer to submit managements
				report of internal control over financial reporting if the insurer is in any
				risk based capital level event, or if the insurer meets one or more of the
				standards of an insurer deemed to be in hazardous financial
				condition.
C. An insurer or a group
				of insurer's that is:
(1) directly subject to
				Section 404;
(2) part of a holding
				company system whose parent is directly subject to Section 404;
(3) not directly subject to Section 404, but
				is a SOX compliant entity; or
(4)
				a member of a holding company system whose parent is not directly subject to
				Section 404, but is a SOX compliant entity; may file its or its parent's
				Section 404 report and an addendum in satisfaction of this requirement provided
				that those internal controls of the insurer or group of insurer's having a
				material impact on the preparation of the insurer's or group of insurer's'
				audited statutory financial statements were included in the scope of the
				Section 404 report. The addendum shall be a positive statement by management
				that there are no material processes with respect to the preparation of the
				insurer's or group of insurer's' audited statutory financial statements
				excluded from the Section 404 report. If there are internal controls of the
				insurer or group of insurer's that have a material impact on the preparation of
				the insurer's or group of insurer's' audited statutory financial statements and
				those internal controls were not included in the scope of the Section 404
				report, the insurer or group of insurer's may either file (i) a report required
				by this section, or (ii) the Section 404 report and a report required by this
				section for those internal controls that have a material impact on the
				preparation of the insurer's or group of insurer's audited statutory financial
				statements not covered by the Section 404 report.