A. To qualify for certificate of authority to transact any one kind or combination of kinds of insurance in this state, an insurer shall possess:
(1) if a stock insurer, paid-in capital stock and, when first so authorized, surplus all as shown in Schedule I of this section; or
(2) if a mutual, reciprocal or Lloyds insurer, basic capital surplus, including guaranty funds, if any, and additional unassigned surplus when first so authorized, as required under Schedule I of this section.
B. Except that an insurer that on January 1, 1985, having applied for a certificate on or before February 15, 1984, held a valid and subsisting certificate of authority to transact insurance in this state may, if a domestic insurer, continue to be so authorized until December 31, 1995, so long as otherwise qualified therefor and possessing paid-in capital stock, if a stock insurer, or basic capital surplus, if a mutual, reciprocal or Lloyds insurer, not less than that required of the insurer by the laws of this state in force on January 1, 1986; and if a foreign insurer, may so continue to be so authorized, if otherwise qualified therefor, while possessing such capital funds (paid-in capital stock and surplus if a stock insurer, and surplus if a mutual or reciprocal insurer) until December 31, 1990. At the expiration of such period, as applicable, the insurer shall meet the basic capital requirements of this section as set forth in Schedule I of this section in order to maintain its certificate of authority. Upon a change in the control of either a domestic insurer or foreign insurer, the insurer shall, within one year from effective date of such change of control, meet the capital funds requirements of Schedule I of this section as though a newly authorized insurer, but this sentence shall not act to extend the otherwise applicable time period. For the purposes of this subsection, "control" shall have the meaning ascribed in Section 59A-37-2 NMSA 1978.
C. The capital funds required for authority to transact insurance in this state shall be based upon all the kinds of insurance the insurer transacts, wherever transacted or to be transacted.
D. This section shall not apply as to domestic Lloyds plan insurers as identified in Chapter 59A, Article 38 NMSA 1978 except as stated in that article.
E. The capital requirements of this section are set forth in the following schedule:
| Schedule I | |||||
| Property/Casualty Insurer | |||||
| Premium Volume: | Under $5 | $5 to $10 | $10 to $25 | Over $25 | |
| Number of Kinds of Insurance | |||||
| 1 | 2 | ||||
| Basic Capital | 500,000 | 600,000 | 800,000 | 900,000 | 1,000,000 |
| Additional |
|
|
|
|
|
| General Deposit | 200,000 | 300,000 | 500,000 | 500,000 | 500,000 |
| Special Deposit | 200,000 | 300,000 | same as | same as | same as |
| Life/Health Insurer | |||||
| Premium Volume: | Under $5 | $5 to $10 | $10 to $25 | Over $25 | |
| Basic Capital | 600,000 | 700,000 | 800,000 | 900,000 | |
| Additional Surplus | 400,000 | 400,000 | 400,000 | 400,000 | |
| General Deposit | 200,000 | 200,000 | 200,000 | 200,000 | |
| Special Deposit | 200,000 | 200,000 | 200,000 | 200,000 | |
| Notes: | Premium Volume means the insurer's worldwide direct premiums earned (if Property/Casualty) or received (if Life/Health) during the previous calendar year. |
| Casualty; |
| When determining Basic Capital and Additional Surplus amounts, the kinds of Insurance shall be based on the insurer's actual or requested transaction authority Worldwide. |
History: Laws 1984, ch. 127, § 83; 1987, ch. 259, § 4; 1987, ch. 262, § 1; repealed and reenacted by Laws 2007, ch. 282, § 1; 2016, ch. 89, § 1.
ANNOTATIONSRepeal and reenactments. — Laws 2007, ch. 282, § 1, effective June 15, 2007, repealed 59A-5-16 NMSA 1978, as enacted by Laws 1984, ch. 127, § 83, and enacted a new section. Other than a minor grammar change, Subsections A through D were not changed. Schedule I was revised.
The 2016 amendment, effective July 1, 2017, increased capital, surplus and deposit requirements; in Subsection E, Schedule I, after "Number of Kinds of Insurance 1 2", deleted the remainder of the schedule, and added new minimum capital, surplus and deposit requirements, in the "Notes", after "Special Deposit: Casualty", deleted "and/or Surety", and after "Property", deleted "and/or Marine & Transportation; Vehicle".
Severability. — Laws 2016, ch. 89, § 71 provided that if any part or application of Laws 2016, ch. 89 is held invalid, the remainder or its application to other situations or persons shall not be affected.