New Mexico Administrative Code

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 s…

Depository shall promptly furnish to the superintendent evidence of pledge of collateral security in such reasonable form and amount as the superintendent may demand.

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…

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…

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 servi…

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.

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.

Permanent.

August 24, 1987, unless a later date is cited at the end of a section.

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.

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.

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 u…

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 "boo…

Office of Superintendent of Insurance ("OSI").

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 …

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 co…

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 …

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 r…

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 s…

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;…

This section shall not apply to foreign or alien insurer's licensed in this state or an insurer that is a SOX compliant entity or a direct or indirect wholly-owned subsidiary of a SOX compliant entity. A. The audit committee shall be directly responsible for the appointment, comp…

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 assuran…

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 su…

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 o…

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 sh…

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 accept…

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 balan…

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 …

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…

The ICPA shall furnish the insurer with a letter stating that: A. that the ICPA is independent with respect to the insurer and conforms to the standards of the profession as contained in the code of professional ethics of the AICPA and the code of ethics and rules of professional…

A. For purposes of this rule, workpapers are the records kept by the ICPA of the procedures followed, the tests performed, the information obtained, and the conclusions reached pertinent to the ICPA's examination of the financial statements of an insurer. Workpapers may include, …

A. No director or officer of an insurer shall, directly or indirectly: (1) make or cause to be made a materially false or misleading statement to an ICPA in connection with any audit, review or communication required under this rule; or (2) omit to state, or cause another person …

A. Upon written application of any insurer, the superintendent may grant an exemption from compliance with any and all provisions of this rule if the superintendent finds, upon review of the application, that compliance with this rule would constitute a financial or organizationa…

A. As regards Canadian and British insurer's, the annual audited financial report shall be defined as the annual statement of total business on the form filed by such companies with their domiciliary supervisory authority, duly audited by an independent chartered accountant. B. F…

Sections 59A-2-8, 59A-2-9, and Chapter 59A Article 37 NMSA 1978 ("the Insurance Holding Company Law").

Permanent.

January 1, 1994, unless a later date is cited at the end of a section.

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)…

A. An "affiliate" of, or person "affiliated" with, a specific person, is a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the person specified. B. "Audit committee" means a committee (or equi…

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.

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 …

New Mexico Public Regulation Commission, Insurance Division.

A. General. (1) In accordance with Section 59A-8-7 NMSA 1978, the appointed actuary shall prepare a memorandum to the company describing the analysis done in support of his or her opinion regarding the reserves. The memorandum shall be made available for examination by the superi…

Asset Adequacy Tested Amounts--Reserves and Liabilities Statement Item Formula Reserves (1) Additional Actuarial Reserves (a) (2) Analysis Method (b) Other Amount (3) Total Amount (1)+(2)+(3) (4) Exhibit 8 A Life Insurance B Annuities C Supplementary Contracts Involving Life Cont…

A. This rule shall apply to all life insurance companies and fraternal benefit societies doing business in this State and to all life insurance companies and fraternal benefit societies that are authorized to reinsure life insurance, annuities or accident and health insurance bus…

Section 59A-2-9 and 59A-8-7 NMSA 1978.

Permanent.

October 1, 2003, unless a later date is cited at the end of a section.

The purpose of this rule is to prescribe: A. Requirements for statements of actuarial opinion that are to be submitted in accordance with Section 59A-8-7 NMSA 1978, and for memoranda in support thereof; B. Rules applicable to the appointment of an appointed actuary; and C. Guidan…

For the purpose of this rule: A. "actuarial opinion" means the opinion of an appointed actuary regarding the adequacy of the reserves and related actuarial items based on an asset adequacy analysis in accordance with 13.2.6.9 NMAC and with applicable actuarial standards of practi…