New Mexico Statutes 59A-12E-12. Reciprocal jurisdiction assuming insurers
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 national association of insurance commissioners accredited jurisdiction has added the assuming insurer to its list of assuming insurers or if, upon initial eligibility for credit for reinsurance, the assuming insurer submits the information to the superintendent as required pursuant to Paragraph (4) of Subsection A of Section 10 [59A-12E-10 N.M. Stat. Ann.] of the Credit for Reinsurance Act and complies with any additional requirements that the superintendent may impose by rule, except to the extent that they conflict with an applicable covered agreement.
Terms Used In New Mexico Statutes 59A-12E-12
- Contract: A legal written agreement that becomes binding when signed.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
B. If the superintendent determines that an assuming insurer no longer meets one or more of the requirements pursuant to this section, the superintendent may revoke or suspend the eligibility of the assuming insurer for recognition pursuant to this section in accordance with procedures set forth in rule.
C. While an assuming insurer’s eligibility is suspended, no reinsurance agreement issued, amended or renewed after the effective date of the suspension qualifies for credit except to the extent that the assuming insurer’s obligations pursuant to the contract are secured in accordance with Section 16 [59A-12E-16 N.M. Stat. Ann.] of the Credit for Reinsurance Act.
D. If an assuming insurer’s eligibility is revoked, no credit for reinsurance may be granted after the effective date of the revocation with respect to any reinsurance agreements entered into by the assuming insurer, including reinsurance agreements entered into prior to the date of revocation, except to the extent that the assuming insurer’s obligations pursuant to the contract are secured in a form acceptable to the superintendent and consistent with the provisions of Section 16 of the Credit for Reinsurance Act.
E. If subject to a legal process of rehabilitation, liquidation or conservation, as applicable, the ceding insurer or its representative may seek and, if determined appropriate by the court in which the proceedings are pending, may obtain an order requiring that the assuming insurer post security for all outstanding ceded liabilities.
F. Nothing in this section shall limit or in any way alter the capacity of parties to a reinsurance agreement to agree on requirements for security or other terms in that reinsurance agreement, except as expressly prohibited by the Credit for Reinsurance Act or other applicable law or rule.