2011 New Mexico Statutes
Chapter 59A: Insurance Code
Article 37: Insurance Holding Companies, 59A-37-1 through 59A-37-28
Section 59A-37-26: Enforcement, criminal proceedings; penalty.

59A-37-26. Enforcement, criminal proceedings; penalty.

A. Any insurer failing, without just cause, to file any registration statement as required in Chapter 59A, Article 37 NMSA 1978 shall be required, after notice and hearing, to pay a penalty of fifty dollars ($50.00) for each day's delay, not to exceed a total penalty of ten thousand dollars ($10,000). The superintendent may reduce the penalty if the insurer demonstrates to the superintendent that the imposition of the penalty would constitute a financial hardship to the insurer.

B. Every director or officer of an insurance holding company system who knowingly violates, participates in, or assents to, or who knowingly permits any officer or agent of the insurer to engage in transactions or make investments which have not been properly reported or submitted pursuant to Section 59A-37-11 NMSA 1978, Subsection B of Section 59A-37-20 NMSA 1978, or Section 59A-37-22 NMSA 1978, or which violate Chapter 59A, Article 37 NMSA 1978, shall pay, in their individual capacity, a penalty of not more than ten thousand dollars ($10,000) per violation, after notice and hearing before the superintendent. In determining the amount of the penalty, the superintendent shall take into account the appropriateness of the penalty with respect to the gravity of the violation, the history of previous violations, and such other matters as justice may require.

C. Whenever it appears to the superintendent that any insurer subject to the provisions of Chapter 59A, Article 37 NMSA 1978 or any director, officer, employee or agent thereof has engaged in any transaction or entered into a contract which is subject to the provisions of Sections 59A-37-20 through 59A-37-22 NMSA 1978 and which would not have been approved had the approval been requested, the superintendent may order the insurer to cease and desist immediately any further activity under that transaction or contract. After notice and hearing the superintendent may also order the insurer to void any contracts and restore the status quo if the action is in the best interest of the policyholders, creditors or the public.

D. Whenever it appears to the superintendent that any insurer or any director, officer, employee or agent thereof has committed a willful violation of Chapter 59A, Article 37 NMSA 1978, the superintendent may cause criminal proceedings to be instituted in the district court for the county in which the principal office of the insurer is located or if such insurer has no such office in the state, then in the district court for Santa Fe county against the insurer or the responsible director, officer, employee or agent thereof. Any insurer which willfully violates that article may be fined not more than twenty thousand dollars ($20,000). Any individual who willfully violates that article may be fined not more than ten thousand dollars ($10,000).

E. Any officer, director, or employee of an insurance holding company system who willfully and knowingly subscribes to or makes or causes to be made any false statements or false reports or false filings with the intent to deceive the superintendent in the performance of his duties under Chapter 59A, Article 37 NMSA 1978, upon conviction thereof, shall be imprisoned for not more than twenty years or fined not more than one million [dollars] ($1,000,000), or both. Any fines imposed shall be paid by the officer, director or employee in his individual capacity.