2011 New Mexico Statutes
Chapter 59A: Insurance Code
Article 10: Administration of Deposits; Trusteed Assets of Alien Insurer, 59A-10-1 through 59A-10-19
Section 59A-10-9: Release of deposit.
59A-10-9. Release of deposit.
A. All general and special deposits of an insurer under the Insurance Code shall be released only:
(1) upon extinguishment of all liabilities of the insurer for the security of which the deposit is held, by reinsurance contract or otherwise; or
(2) upon the insurer ceasing to transact business in this state, and all of the liabilities for which the deposit was security have been satisfied or terminated, or assumed by another insurer authorized to transact insurance in New Mexico; or
(3) if the insurer is subject to delinquency proceedings, upon proper order of a court of competent jurisdiction the insurer's deposited assets shall be released to the receiver, conservator, rehabilitator or liquidator of the insurer; or
(4) deposits held under Section 166 [59A-10-6 NMSA 1978] (excess deposits) of this article shall be released in whole or in part to the insurer on the insurer's request while the insurer is solvent and its general or special deposit, as applicable, is otherwise in amount not less than that required of the insurer under the Insurance Code.
B. If the deposited assets are held pursuant to Section 100 [59A-5-33 NMSA 1978] (reciprocity provision) of the Insurance Code, the deposit shall be released when the basis for such reciprocity no longer exists as to the deposit.
C. Release of a deposit shall be made only on application to and written order of the superintendent, made upon proof satisfactory to the superintendent of the existence of one or more of grounds for release stated in Subsection A, above. The superintendent, before directing release of deposited assets, may require such evidence as he deems satisfactory that the release of the deposit, in whole or in part, should be made. The superintendent shall have no personal liability for any release of a deposit or part thereof so made by him in good faith.
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