New Mexico Administrative Code › Title 11 - LABOR AND WORKERS' COMPENSATION › Chapter 4 - WORKERS' COMPENSATION › Part 9 - GROUP SELF-INSURANCE › Section 11.4.9.8 - GROUP SELF INSURANCE

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Application and maintenance:
(1) All the
				requirements for application and maintenance of a certificate of group
				self-insurance are contained in NMSA 1978, Section 52-6-5. In addition, the
				following shall apply:
(a) Submit with the
				application a non-refundable fling fee of five hundred dollars
				($500.00).
(b) The application
				shall include the group's pro forma financial statement, following generally
				accepted accounting principles, presented in a format acceptable to the
				director.
(c) If a surety bond is
				posted to satisfy the security requirements of the act, the surety bond shall
				be written by an insurance company rated "A" or better by A.M. Best or similar
				rating service approved by the director written by a New Mexico admitted
				surety.
(d) If a financial security
				endorsement is posted to satisfy the security requirements of the act, the
				instrument shall be written by a financial institution with locations in New
				Mexico rated "good" or better by Bauer Financial or similar rating service
				approved by the director.
(e)
				Specific excess insurance shall be written with statutory upper limits. The
				insurance shall be written by an insurance company rated "A" or better by A.M.
				Best or similar rating service approved by the director, domiciled within the
				United States of America or an alien insurer listed in the national association
				of insurance commissioner's (NAIC) quarterly listing of alien insurers, the
				policy must include the current New Mexico amendatory endorsement.
(f) The required fidelity bond for the
				service company providing claims service shall be written at a minimum of two
				hundred fifty thousand dollars ($250,000) and issued by a New Mexico admitted
				carrier.
(g) A performance bond
				issued by a New Mexico admitted carrier of two hundred fifty thousand dollars
				($250,000) shall be provided for the service company providing claims service,
				if requested by the director.
(h) A
				fidelity bond for any member of the board of trustees of the group having
				signatory authority with respect to the group's funds or investments, or as a
				condition precedent to any board of trustees action creating or changing such
				signatory authority, is required and shall be written at a minimum of two
				hundred fifty thousand dollars ($250,000) and issued by a New Mexico admitted
				carrier.
(i) The required fidelity
				bond for the administrator shall be written at a minimum of two hundred fifty
				thousand dollars ($250,000) and issued by a New Mexico admitted
				carrier.
(j) A statement of the
				type of business in which employers in the proposed group are engaged and an
				explanation of how they meet the criteria of "same or similar" contained in
				NMSA 1978, Section 52-6-2(B).
(k)
				An actuarial report/study based on at least 3 years loss history of the group's
				proposed members, including loss projections for the group.