Chapter 59A — Chapter 59A

No person, firm, association or corporation acting in the capacity of a managing general agent shall place business with an insurer unless there is in force a written contract between the parties which sets forth the responsibilities of each party and where both parties share res…

A. The insurer shall have on file an independent financial examination, in a form acceptable to the superintendent, of each managing general agent with which it has done business. B. If a managing general agent establishes loss reserves, the insurer shall annually obtain the opin…

The acts of the managing general agent are considered to be the acts of the insurer on whose behalf it is acting. A managing general agent may be examined as if it were the insurer. History: 1978 Comp., § 59A-12B-6, enacted by Laws 1993, ch. 320, § 32.

A. If the superintendent determines that the managing general agent or any other person has not materially complied with the provisions of Chapter 59A, Article 12B NMSA 1978, or any rule or order promulgated thereunder, after notice and opportunity to be heard, the superintendent…

No insurer may continue to utilize the services of a managing general agent on or after July 1, 1993, unless such utilization is in compliance with the Managing General Agents Law. History: 1978 Comp., § 59A-12B-8, enacted by Laws 1993, ch. 320, § 34. ARTICLE 12C Broker Controlle…

Chapter 59A, Article 12C NMSA 1978 may be cited as the "Broker Controlled Insurer Law". History: 1978 Comp., § 59A-12C-1, enacted by Laws 1993, ch. 320, § 35.

As used in the Broker Controlled Insurer Law: A. "accredited state" means a state in which the insurance department or regulatory agency has qualified as meeting the minimum financial regulatory standards promulgated and established from time to time by the national association o…

The Broker Controlled Insurer Law shall apply to authorized insurers either domiciled in this state or domiciled in a state that is not an accredited state having in effect a substantially similar law. All provisions of The Insurance Holding Company Law [Chapter 59A, Article 37 N…

A. The provisions of this section shall apply if, in any calendar year, the aggregate amount of gross written premium on business placed with a controlled insurer by a controlling broker is equal to or greater than five percent of the admitted assets of the controlled insurer, as…

The broker, prior to the effective date of the policy, shall deliver written notice to the prospective insured disclosing the relationship between the broker and the controlled insurer; except that, if the business is placed through a subbroker who is not a controlling broker, th…

A. If the superintendent believes that the controlling broker or any other person has not materially complied with the Broker Controlled Insurer Law, or any regulation or order promulgated thereunder, after notice and opportunity to be heard, the superintendent may order the cont…

Controlled insurers and controlling brokers who are not in compliance with Section 59A-12C-4 NMSA 1978 on its effective date shall have until July 31, 1993 to come into compliance and shall comply with Section 59A-12C-5 NMSA 1978 beginning with all policies written or renewed on …

Chapter 59A, Article 12D [NMSA 1978] may be cited as the "Reinsurance Intermediary Law". History: 1978 Comp., § 59A-12D-1, enacted by Laws 1993, ch. 320, § 42.

A. A reinsurance intermediary shall be subject to examination by the superintendent. The superintendent shall have access to all books, bank accounts and records of the reinsurance intermediary in a form usable to the superintendent. B. A reinsurance intermediary-manager may be e…

A. If the superintendent determines that the reinsurance intermediary or any other person has not materially complied with the provisions of the Reinsurance Intermediary Law, or any regulation or order promulgated thereunder, after notice and opportunity to be heard, the superint…

No insurer or reinsurer may continue to utilize the services of a reinsurance intermediary on or after July 1, 1993, unless utilization is in compliance with the Reinsurance Intermediary Law. History: 1978 Comp., § 59A-12D-12, enacted by Laws 1993, ch. 320, § 53. ARTICLE 12E Cred…

As used in the Reinsurance Intermediary Law: A. "actuary" means a person who is a member in good standing of the American academy of actuaries; B. "controlling persons" means any person, firm, association or corporation who directly or indirectly has the power to direct or cause …

A. No person, firm, association or corporation shall act as a reinsurance intermediary-broker in this state if it maintains an office either directly or as a member or employee of a firm or association, or an officer, director or employee of a corporation: (1) in this state, unle…

brokers. The transactions between a reinsurance intermediary-broker and the insurer it represents in such capacity shall only be entered into pursuant to a written authorization, specifying the responsibilities of each party. The authorization shall, at a minimum, provide that: A…

A. For at least ten years after expiration of each contract of reinsurance transacted by the reinsurance intermediary-broker, the reinsurance intermediary-broker shall keep a complete record for each transaction showing: (1) the type of contract, limits, underwriting restrictions…

intermediary-broker. A. An insurer shall not engage the services of any person, firm, association or corporation to act as a reinsurance intermediary-broker on its behalf unless such person is licensed as required by Subsection A of Section 59A-12D-3 NMSA 1978. B. An insurer may …

managers. Transactions between a reinsurance intermediary-manager and the reinsurer it represents in such capacity shall only be entered into pursuant to a written contract, specifying the responsibilities of each party, which shall be approved by the reinsurer's board of directo…

The reinsurance intermediary-manager shall not: A. cede retrocessions on behalf of the reinsurer, except that the reinsurance intermediary-manager may cede facultative retrocessions pursuant to obligatory facultative agreements if the contract with the reinsurer contains reinsura…

reinsurance intermediary-manager. A. A reinsurer shall not engage the services of any person, firm, association or corporation to act as a reinsurance intermediary-manager on its behalf unless such person is licensed as required by Subsection B of Section 59A-12D-3 NMSA 1978. B. …

This act [59A-12E-1 to 59A-12E-18 NMSA 1978] may be cited as the "Credit for Reinsurance Act". History: Laws 2022, ch. 35, § 1.

A. Credit shall be allowed when reinsurance is ceded to an assuming insurer meeting each of the following conditions: (1) the assuming insurer shall have its head office or be domiciled in, as applicable, and be licensed in a reciprocal jurisdiction; (2) the assuming insurer shal…

A. The superintendent shall timely create and publish a list of reciprocal jurisdictions. A list of reciprocal jurisdictions shall be published through the national association of insurance commissioners committee process. The superintendent's list shall include any reciprocal ju…

A. The superintendent shall timely create and publish a list of reciprocal jurisdiction assuming insurers that have satisfied the conditions set forth in this section and to which cessions shall be granted credit. The superintendent may add an assuming insurer to the list if a na…

A. With respect to reciprocal jurisdiction reinsurers, credit may be taken pursuant to this section only for reinsurance agreements entered into, amended or renewed on or after the effective date of the Credit for Reinsurance Act and only with respect to losses incurred and reser…

A. If an accredited or certified reinsurer ceases to meet the requirements for accreditation or certification, the superintendent may suspend or revoke the reinsurer's accreditation or certification. B. The superintendent shall give the reinsurer notice and opportunity for hearin…

A. A ceding insurer shall take steps to manage its reinsurance recoverables proportionate to its own book of business. A domestic ceding insurer shall notify the superintendent within thirty days after reinsurance recoverables from any single assuming insurer, or group of affilia…

A. An asset or a reduction in liability for the reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of Sections 3 [59A-12E-3 NMSA 1978] through 15 [59A-12E-15 NMSA 1978] of the Credit for Reinsurance Act shall be allowed in an amount not ex…

A. The superintendent shall adopt rules to implement the provisions of the Credit for Reinsurance Act. B. The superintendent may adopt rules applicable to reinsurance arrangements as set forth in Subsection C of this section. C. A rule adopted pursuant to Subsections B through G …

Upon the insolvency of a non-United-States insurer or reinsurer that provides security to fund its obligations in the United States in accordance with the Credit for Reinsurance Act, the assets representing the security shall be maintained in the United States, and claims shall b…

As used in the Credit for Reinsurance Act: A. "accredited jurisdiction" means a jurisdiction that meets the accreditation standards established by the national association of insurance commissioners; B. "alien assuming insurer" means an assuming insurer that is formed according t…

A. Credit for reinsurance shall be allowed a domestic ceding insurer as either an asset or a reduction from liability on account of reinsurance ceded only when the reinsurer meets the requirements of the Credit for Reinsurance Act. The superintendent shall adopt and promulgate ru…

A. The form of the trust pursuant to Subsection D of Section 3 [59A-12E-3 NMSA 1978] of the Credit for Reinsurance Act and any trust amendments shall be filed with the regulator of insurance of every state in which the ceding insurer beneficiaries of the trust are domiciled. B. T…

Credit shall be allowed when the reinsurance is ceded to an assuming insurer that is accredited by the superintendent as a reinsurer in this state. To be eligible for accreditation, a reinsurer shall: A. file with the superintendent evidence of its submission to the state's juris…

A. The trust fund for a single assuming insurer shall consist of funds in trust in an amount not less than the assuming insurer's liabilities attributable to reinsurance ceded by United States ceding insurers, and, in addition, the assuming insurer shall maintain a trusteed surpl…

A. Credit shall be allowed when the reinsurance is ceded to an assuming insurer that has been certified by the superintendent as a reinsurer in the state and complies with this section and secures its obligations in accordance with the requirements of Sections 7 [59A-12E-7 NMSA 1…

A. The superintendent shall create and publish a list of qualified jurisdictions under which an assuming insurer licensed and domiciled in such jurisdiction is eligible to be considered for certification by the superintendent as a certified reinsurer. B. To determine whether the …

A. If a certified reinsurer's domiciliary jurisdiction ceases to be a qualified jurisdiction, the superintendent may suspend the certified reinsurer's certification indefinitely, in lieu of revocation. B. The superintendent shall assign a rating to each certified reinsurer, givin…

This article [Chapter 59A, Article 13 NMSA 1978] defines adjusters, requires license, states qualifications for licensing, and other requirements of adjusters so acting in this state. As to licensing procedures, issuance, duration, suspension, revocation or refusal to continue li…

A. Each independent adjuster shall keep at the business address shown on his license a record of all transactions under the license. The record shall include: (1) the documents relating to all investigations or adjustments undertaken, and (2) a statement of any fee, commission or…

compensation claims. Each workers' compensation insurer shall have at least one claims representative within New Mexico, licensed as an adjuster, to pay workers' compensation claims of claimants resident or located in New Mexico. Such claims shall be paid promptly through such re…

A. The superintendent shall require as a condition to continuation of an adjuster license that during the twenty-four months next preceding expiration of the current license period, the licensee has attended the minimum number of hours of formal class instruction, lectures or sem…

of property damage. A. An adjuster may not adjust a loss related to physical damage of a property on which the adjuster is also a contractor, acts as a contractor or is employed as a contractor, including a roofing contractor, building contractor or plumbing contractor, or otherw…

A. All adjusters shall adhere to the following standards of conduct: (1) an adjuster shall not permit an unlicensed employee or representative of the adjuster to conduct business for which a license is required pursuant to the Insurance Code [Chapter 59A NMSA 1978]; (2) an adjust…

A. Public adjusters shall ensure that all contracts for their service are in writing and contain the following terms: (1) legible full name of the adjuster signing the contract, as specified in the office of superintendent of insurance records; (2) permanent home state business n…

A public adjuster who receives, accepts or holds any funds on behalf of an insured toward the settlement of a claim for loss or damage shall deposit the funds in a non- interest-bearing escrow or trust account in a financial institution that is insured by an agency of the federal…