2006 New Mexico Statutes - Section 59A-5-16 — Capital funds, deposits, required for certificate of authority.

59A-5-16. Capital funds, deposits, required for certificate of authority.

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 which 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 such 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.   

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