2011 New Mexico Statutes
Chapter 59A: Insurance Code
Article 42: Life and Health Insurance Guaranty Fund, 59A-42-1 through 59A-42-16
Section 59A-42-13: Miscellaneous provisions.

59A-42-13. Miscellaneous provisions.

A. Nothing in this article shall be construed to reduce the liability for unpaid assessments of the insureds of an insolvent insurer operating under a plan with assessment liability.

B. Records shall be kept of all negotiations and meetings in which the association or its representatives are involved to discuss the activities of the association in carrying out its powers and duties. Records of the negotiations or meetings shall be made public only upon the termination of a liquidation, rehabilitation or conservation proceeding involving the insolvent insurer, upon the termination of the insolvency of the insurer or upon the order of a court of competent jurisdiction. Nothing in this subsection limits the duty of the association to render a report of its activities under Section 763 [59A-42-14 NMSA 1978] of this article.

C. Prior to the termination of any liquidation, rehabilitation or conservation proceeding the court may take into consideration the contributions of the respective parties, including the association, the shareholders and policyowners of the insolvent insurer and any other party with a bona fide interest in making an equitable distribution of the ownership rights of the insolvent insurer. In such a determination, consideration shall be given the welfare of the policyholders of the continuing or successor insurer.

D. No distribution to stockholders, if any, of an insolvent insurer shall be made until the total amount of assessments levied by the association with respect to the insurer has been fully recovered by the association.

E. It is a prohibited unfair trade practice for any person to make use in any manner of the protection afforded by this article in the sale of insurance.