The receiver shall have a right to recover from an affiliate of the insurer property of the insurer transferred to or for the benefit of the affiliate within the five years preceding the initial petition for receivership. No transfer is recoverable under this section if the affiliate shows that, when the transfer was made:
A. the insurer was solvent;
B. the transfer was lawful; and
C. neither the insurer nor the affiliate knew or should have known that the transfer, under then-applicable statutory accounting standards, would:
(1) place the insurer in violation of applicable capital or surplus requirements;
(2) place the insurer below the risk-based capital level as defined in the Risk-Based Capital Act [Chapter 59A, Article 5A NMSA 1978];
(3) cause the insurer's filed financial statements not to present fairly the capital and surplus of the insurer; or
(4) otherwise cause the insurer to be in a hazardous financial condition.
History: Laws 2012, ch. 9, § 3.
ANNOTATIONSEffective dates. — Laws 2012, ch. 9, § 23 made Laws 2012, ch. 9, § 3 effective July 1, 2012.