N.M. Stat. § 59A-42-11

Current through 2024, ch. 69

Section 59A-42-11 - [Effective 1/1/2025] Prevention of insolvencies

To aid in the detection and prevention of insurance insolvencies:

A. the superintendent shall:

(1) notify the superintendents in other states, within thirty days following the action taken or the date the action occurs, when the superintendent takes any of the following actions against a member insurer:

(a) revokes a license;

(b) suspends a license; or

(c) makes a formal order that the member insurer restrict its premium writing, obtain additional contributions to surplus, withdraw from the state, reinsure all or a part of its business or increase capital, surplus or another account for the security of policy owners, contract owners, certificate holders or creditors;

(2) report to the board when the superintendent has taken an action set forth in Paragraph (1) of this subsection or has received a report from another superintendent indicating that an action has been taken in another state. The report to the board shall contain all significant details of the action taken or of the report received from another superintendent;

(3) report to the board when the superintendent has reasonable cause to believe from an examination, whether completed or in process, of a member insurer that the member insurer may be an impaired or insolvent insurer; and

(4) furnish to the board the national association of insurance commissioners' insurance regulatory information system ratios and listings of companies not included in the ratios developed by the national association of insurance commissioners. The board may use that information in carrying out its duties and responsibilities pursuant to this section. The report shall be kept confidential by the board until it is made public by the superintendent or other lawful authority;

B. the superintendent may seek the advice and recommendations of the board concerning a matter affecting the duties and responsibilities of the superintendent regarding the financial condition of member insurers or health maintenance organizations seeking admission to transact business in this state; and

C. the board may, upon majority vote:

(1) notify the superintendent of information indicating that a member insurer may be an impaired or insolvent insurer;

(2) make reports and recommendations to the superintendent upon any matter germane to the solvency, liquidation, rehabilitation or conservation of a member insurer or germane to the solvency of an insurer or health maintenance organization seeking to do business in this state. The reports and recommendations are not public documents; and

(3) make recommendations to the superintendent for the detection and prevention of member insurers' insolvencies.

NMS § 59A-42-11

Laws 1984, ch. 127, § 760; 2012, ch. 9, § 14.

Amended by 2024, c. 36,s. 8, eff. 1/1/2025, app. to no member insurer that was insolvent or unable to fulfill the member insurer's contractual obligations prior to January 1, 2025.

Amended by 2012, c. 9,s. 14, eff. 7/1/2012.

This section is set out more than once due to postponed, multiple, or conflicting amendments.