A. If the assets of a group are at any time insufficient to enable the group to discharge its legal liabilities and other obligations and to maintain the reserves required of it under the Group Self-Insurance Act, it shall forthwith make up the deficiency or levy an assessment upon its members for the amount needed to make up the deficiency.
B. In the event of a deficiency in any fund year, such deficiency shall be made up immediately, either from:
(1) surplus from a fund year other than the current fund year;
(2) administrative funds;
(3) assessment of the membership, if ordered by the group; or
(4) such alternate method as the director may approve or direct.
The director shall be notified prior to any transfer of surplus funds from one fund year to another.
C. If the group fails to assess its members or to otherwise make up such deficit within thirty days, the director shall order it to do so.
D. If the group fails to make the required assessment of its members within thirty days after the director orders it to do so, or if the deficiency is not fully made up within sixty days after the date on which such assessment is made, or within such longer period of time as may be specified by the director, the group shall be deemed to be insolvent.
E. The director shall proceed against an insolvent group in the same manner as the superintendent would proceed against an insolvent domestic insurer in this state as prescribed by the Insurance Code. The director shall have the same powers and limitations in such proceedings as are provided to the superintendent under that code, except as otherwise provided in the Group Self-Insurance Act.
F. In the event of the liquidation of a group, the director shall levy an assessment upon its members for such an amount as the director determines to be necessary to discharge all liabilities of the group, including the reasonable cost of liquidation.
History: Laws 1986, ch. 22, § 94; 1990 (2nd S.S.), ch. 2, § 79.
ANNOTATIONSCross references. — For the Insurance Code, see 59A-1-1 NMSA 1978 and notes thereto.
The 1990 (2nd S.S.) amendment, effective January 1, 1991, substituted "director" for "superintendent" throughout the section and inserted "to the superintendent" in Subsection E.