Chapter 59A — Chapter 59A

A "foreign" insurer is generally one organized under the laws of a state other than New Mexico. Except where distinguished by context, "foreign" insurer includes also an "alien" insurer. History: Laws 1984 ch. 127, § 72.

A "Lloyds" insurer is an unincorporated but formally associated group of separate persons ("underwriters" or "underwriting syndicates") by whom an insurance risk is assumed in whole or part by one or more of such persons. History: Laws 1984, ch. 127, § 73.

A "mutual" insurer is an incorporated insurer without capital stock, the governing body of which is elected by its policyholders. This definition shall not be deemed to exclude as "mutual" insurers certain foreign insurers found by the superintendent to be organized on the mutual…

A "reciprocal" insurer is an unincorporated aggregation of subscribers operating individually and collectively through an attorney-in-fact common to all such persons to provide insurance on basis of reciprocity among themselves. History: Laws 1984, ch. 127, § 75.

A "stock" insurer is an incorporated insurer with capital divided into shares, and owned by its shareholders. History: Laws 1984, ch. 127, § 76.

Chapter 59A, Article 5A NMSA 1978 may be cited as the "Risk-Based Capital Act". History: 1978 Comp., § 59A-5A-1, enacted by Laws 1995, ch. 149, § 1.

A. The provisions of the Risk-Based Capital Act are supplemental to any other provisions of law, and shall not supersede, preclude the exercise of or limit any other powers or duties of the superintendent under such laws, including but not limited to Chapter 59A, Article 41 NMSA …

A. Any foreign insurer or health organization shall, upon the superintendent's written request, submit to the superintendent a risk-based capital report, as of the end of the most recent calendar year, on the same date risk-based capital reports are required to be filed by domest…

There shall be no civil liability on the part of, and no civil cause of action shall arise against the superintendent, the insurance department or its employees or agents for any action taken by them in the performance of their powers and duties under the Risk- Based Capital Act.…

The superintendent's notices to an insurer or health organization pursuant to the Risk-Based Capital Act shall be effective upon mailing by certified mail or, in the case of any other mode of transmission, shall be effective upon the insurer's or health organization's receipt. Hi…

As used in the Risk-Based Capital Act: A. "adjusted risk-based capital report" means a risk-based capital report adjusted in accordance with Subsection E of Section 59A-5A-3 NMSA 1978; B. "authorized control level risk-based capital" means the number determined under the risk-bas…

A. On or before March 1 each year, every domestic insurer and health organization shall prepare and submit to the superintendent a report of its risk-based capital levels as of December 31 of the immediately preceding calendar year, in a form and containing such information as is…

A. As used in the Risk-Based Capital Act, a "company action level event" means any of the following events: (1) the filing of a risk-based capital report by an insurer or health organization that indicates: (a) that the insurer or health organization has total adjusted capital gr…

A. For purposes of the Risk-Based Capital Act, "regulatory action level event" means any of the following events: (1) the filing of a risk-based capital report by an insurer or health organization that indicates that the insurer's or health organization's total adjusted capital i…

A. As used in the Risk-Based Capital Act, "authorized control level event" means any of the following events: (1) the filing of a risk-based capital report by an insurer or health organization that indicates that the insurer's or health organization's total adjusted capital is gr…

A. As used in the Risk-Based Capital Act, "mandatory control level event" means any of the following events: (1) the filing of a risk-based capital report that indicates that an insurer's or health organization's total adjusted capital is less than its mandatory control level ris…

Any insurer or health organization has the right to a confidential administrative hearing of record in accordance with Chapter 59A, Article 4 NMSA 1978 at which the insurer or health organization may challenge any determination or action by the superintendent pursuant to the Risk…

prohibition on use in ratemaking. A. To the extent not set forth in any other form accessible to the public, all information in risk-based capital reports, risk-based capital plans, results or reports of any examination or analysis of an insurer or health organization performed e…

The superintendent shall collect the following fees: A. insurer's certificate of authority - (1) filing application for certificate of authority, and issuance of certificate of authority, including filing of all charter documents, financial statements, service of process, power o…

A three-dollar ($3.00) surcharge shall be assessed for the period beginning March 1, 1996 and ending June 30, 2009 on the annual continuation of appointment fees imposed in Subsections E, F, N, S, W and X of Section 59A-6-1 NMSA 1978. The surcharge collected shall be distributed …

The annual filing fee for rates and forms due in advance on July 1 for each company in the following groupings shall be equal to the product produced by multiplying three thousandths by the company's previous calendar year's direct written premium as shown on its annual financial…

When a check or an electronic payment transaction for payment of fees is dishonored or reversed by the payer's financial institution, the payer shall pay to the insurance division a civil penalty in the amount of twenty-five dollars ($25.00). Neither the division nor the fiscal a…

History: Laws 1984, ch. 127, § 102; 1987, ch. 259, § 5; 1988, ch. 74, § 2; 1988, ch. 75, § 1; 1991, ch. 9, § 40; 1993, ch. 320, § 15; 2003, ch. 14, § 18; 2003, ch. 58, § 1; 2004, ch. 122, § 2; 2005, ch. 132, § 1; 2007, ch. 282, § 3; 2014, ch. 59, § 13; repealed by Laws 2018, ch. …

ANNOTATIONS Repeals. — Laws 1991, ch. 9, § 45 repealed 59A-6-2.1 NMSA 1978, as enacted by Laws 1988, ch. 77, § 1, relating to supplemental premium tax, effective July 1, 1993. For provisions of former section, see the 1990 NMSA 1978 on NMOneSource.com.

Any insurer holding certificate of authority to transact insurance in New Mexico that ceases to do business in the state shall thereupon file with the secretary of taxation and revenue a report of its premiums collected to date of such cessation of business that are subject to th…

Every insurer, nonprofit health care plan, health maintenance organization, prepaid dental plan or prearranged funeral plan transacting business in New Mexico that fails to pay when due any fees as required in Chapter 59A, Article 6 NMSA 1978 may be liable to the state for the am…

A. All money received by the office of superintendent of insurance for fees, licenses and penalties shall be paid daily by the superintendent to the state treasurer and credited to the "insurance department suspense fund" except as provided by the Law Enforcement Protection Fund …

The state government of New Mexico preempts the field of taxation of insurers, nonprofit health care plans, health maintenance organizations, prepaid dental plans, prearranged funeral plans and insurance producers as such. The payment of the taxes, licenses and fees provided for …

ANNOTATIONS Repeals. — Laws 1991, ch. 9, § 45 repealed 59A-6-7 NMSA 1978, as enacted by Laws 1988, ch. 76, § 5, relating to approval by superintendent of refund plans, effective July 1, 1993. For provisions of former section, see the 1990 NMSA 1978 on NMOneSource.com.

and revenue department necessary to administer the Insurance Premium Tax Act. The superintendent shall provide to the taxation and revenue department information regarding an insurer or plan subject to the Insurance Premium Tax Act [7-40-1 to 7-40- 10 NMSA 1978] that is necessary…

classification of insurers. A. It is intended that certain insurance coverages may come within more than one "kind" of insurance as defined in Chapter 59A, Article 7 NMSA 1978, and inclusion of such coverage within one definition shall not exclude it as to any other kind of insur…

A. No insurer shall, other than as stated in this section, retain any risk on any one subject of insurance, whether located or to be performed in this state or elsewhere, in an amount exceeding ten percent of its surplus to policyholders. B. No domestic Lloyds plan insurer shall …

History: Laws 1984, ch. 127, § 117; 1993, ch. 320, § 18; 1994, ch. 13, § 1; 2014, ch. 59, § 14; repealed by Laws 2022, ch. 35, § 19.

Life and annuity includes: A. fixed annuity; B. immediate annuity; C. deferred annuity; D. equity-indexed annuity; E. endowment; F. term life; G. universal life; H. whole life; I. credit life; and J. similar products relating to life and annuity matters. History: Laws 1984, ch. 1…

A. Accident and health includes: (1) accident; (2) accidental death and dismemberment; (3) blanket accident and sickness; (4) credit disability; (5) critical illness; (6) dental; (7) disability income; (8) home health care; (9) hospital indemnity; (10) long-term care; (11) major …

Property includes: A. aircraft cargo; B. aircraft hull; C. auto commercial physical damage; D. baggage; E. builders risk; F. business owners; G. cargo; H. commercial inland marine; I. commercial multi-peril; J. commercial property; K. crop; L. crop hail; M. difference in conditio…

History: Laws 1984, ch. 127, § 111; repealed by Laws 2016, ch. 89, § 70.

A. Casualty includes: (1) aircraft liability; (2) auto commercial liability; (3) auto private passenger liability; (4) auto warranty contract; (5) boiler and machinery; (6) burglary and theft; (7) collateral protection; (8) commercial excess/umbrella liability; (9) commercial gen…

Variable life and annuity includes: A. variable deferred annuity; B. variable immediate annuity; C. variable life; and D. similar products relating to variable life and annuity matters. History: Laws 1984, ch. 127, § 113; 1978 Comp., § 59A-7-7, repealed and reenacted by Laws 2016…

History: Laws 1984, ch. 127, § 114; repealed by Laws 2016, ch. 89, § 70.

History: Laws 1984, ch. 127, § 115; repealed by Laws 2016, ch. 89, § 70.

In determination of the financial condition of any insurer or fraternal benefit society or United States branch of an alien insurer there shall be allowed as assets only such assets as are owned by the insurer or society and which consist of: A. cash, including legal tender or eq…

insurance. As to marine and transportation insurance, the entire amount of premiums on trip risks not terminated shall be deemed unearned; and the superintendent may require the insurer to carry a reserve equal to one hundred percent of premiums on trip risks written during the m…

A. As to title insurance the insurer shall set up and maintain unearned premium reserves as follows: (1) as to guaranties and policies on property in this state issued prior to January 1, 1957, the insurer shall reserve initially a sum equal to ten percent of gross premiums there…

A. Casualty or surety insurers insuring real property mortgage or deed of trust lenders against loss by nonpayment of the indebtedness shall maintain a contingency reserve for protection of policyholders against the effects of adverse economic cycles. B. The insurer shall contrib…

A. Subject to the provisions of Subsections B, C and D of this section, all bonds or other evidences of debt having a fixed term and rate of interest held by an insurer may, if amply secured and not in default as to principal or interest, be valued as follows: (1) if purchased at…

A. Common stocks shall be valued at their market value, as determined by customary method, or, at the option of the company, they may be carried at cost if cost is less than market value. If no publicly traded market quotation is available, the value of the stocks shall be based …

A. Real property held by a company may be valued at not more than: its cost plus the cost of capitalized additions and permanent improvements, less depreciation, or its fair market value as determined by appraisal within the most recent three years, whichever is less. Depreciatio…

Purchase money mortgages or deeds of trust on real property referred to in Subsection A of Section 132 [59A-8-15 NMSA 1978] of this article shall be valued in an amount not exceeding acquisition cost of the real property covered thereby or ninety percent of the fair value of the …

A. In addition to assets impliedly excluded by provisions of Section 118 [59A-8-1 NMSA 1978] of this article, the following expressly shall not be allowed as assets in any determination of the financial condition of any insurer or fraternal benefit society: (1) goodwill, trade na…