A. A domestic stock insurer shall have the right to purchase or acquire shares of its own stock only as follows:
(1) for elimination of fractional shares;
(2) incidental to enforcement of rights of the insurer as to lawful transactions previously entered into in good faith for purposes other than acquisition of such shares;
(3) for purposes of a general savings and investment plan for the insurer's personnel;
(4) for mutualization of the insurer as provided in Section 580 [59A-34-34 NMSA 1978] of this article;
(5) for purposes of cancellation in connection with plan of recapitalization or reduction or reclassification of outstanding shares, or under other plan submitted to and approved in writing by the superintendent. The superintendent shall not approve a plan unless found by him to be for reasonable purposes, to be equitable as to the remaining stockholders of the insurer and not materially adverse to protection of policyholders; or
(6) as result of gift or bequest of the shares to the insurer.
B. Its own shares held by the insurer shall be part of paid-in capital stock, but shall not be voted or constitute an asset for financial statement purposes.
History: Laws 1984, ch. 127, § 568.