A. The form of the trust pursuant to Subsection D of Section 3 [59A-12E-3 N.M. Stat. Ann.] of the Credit for Reinsurance Act and any trust amendments shall be filed with the regulator of insurance of every state in which the ceding insurer beneficiaries of the trust are domiciled.

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Terms Used In New Mexico Statutes 59A-12E-4

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • 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.
  • Trustee: A person or institution holding and administering property in trust.

B. The trust instrument shall:

(1)     provide that contested claims shall be valid and enforceable upon the final order of any court of competent jurisdiction in the United States; and

(2)     vest legal title to its assets in its trustees for the benefit of the assuming insurer’s United States ceding insurers, their assigns and successors in interest.

C. The trust and the assuming insurer shall be subject to examination as determined by the superintendent.

D. The trust shall remain in effect for as long as the assuming insurer has outstanding obligations due pursuant to the reinsurance agreements subject to the trust.

E. No later than February 28 of each year, the trustee of the trust shall report to the superintendent in writing the balance of the trust and a list of the trust’s investments at the preceding year’s end and shall certify the date of termination of the trust, if so planned, or certify that the trust will not expire prior to the following December 31.