2011 New Mexico Statutes
Chapter 59A: Insurance Code
Article 5A: Risk-Based Capital, 59A-5A-1 through 59A-5A-13
Section 59A-5A-2: Definitions.

59A-5A-2. Definitions.

As used in the Risk-Based Capital Act [Chapter 59A, Article 5A NMSA 1978]:

A. "adjusted risk-based capital report" means a risk-based capital report adjusted in accordance with Subsection E of Section 59A-5A-3 NMSA 1978;

B. "authorized control level risk-based capital" means the number determined under the risk-based capital formula in accordance with the risk-based capital instructions bearing the same designation;

C. "company action level risk-based capital" means an amount equal to two hundred percent of an insurer's authorized control level risk-based capital;

D. "corrective order" means an order issued by the superintendent specifying required corrective actions;

E. "life or health insurer" means any authorized life insurer, health insurer, casualty insurer writing only health insurance or nonprofit health care plan;

F. "mandatory control level risk-based capital" means an amount equal to seventy percent of an insurer's authorized control level risk-based capital;

G. "property or casualty insurer" means any insurer authorized to write property, marine and transportation, casualty, vehicle or surety insurance, but does not include any insurer writing only one of the following:

(1) mortgage guaranty insurance;

(2) financial guaranty insurance;

(3) title insurance; or

(4) health insurance;

H. "negative trend" means, with respect to a life or health insurer, negative trend over a period of time, as determined in accordance with the trend test calculation included in the risk-based capital instructions;

I. "regulatory action level risk-based capital" means an amount equal to one hundred fifty percent of an insurer's authorized control level risk-based capital;

J. "revised risk-based capital plan" means a risk-based capital plan that has been rejected by the superintendent and revised by the insurer, with or without the superintendent's recommendation;

K. "risk-based capital instructions" means the risk-based capital report, including risk-based capital instructions, adopted by the national association of insurance commissioners, as they may be amended by the national association of insurance commissioners from time to time, and not disapproved by the superintendent;

L. "risk-based capital level" means an insurer's company action level risk-based capital, regulatory action level risk-based capital, authorized control level risk-based capital or mandatory control level risk-based capital;

M. "risk-based capital plan" means a comprehensive financial plan as specified in Subsection B of Section 59A-5A-4 NMSA 1978;

N. "risk-based capital report" means the report specified in Section 59A-5A-3 NMSA 1978; and

O. "total adjusted capital" means the sum of:

(1) an insurer's capital and surplus as determined in accordance with statutory accounting principles applicable to annual financial statements required to be filed under Section 59A-5-29 NMSA 1978; and

(2) such other items, if any, as the risk-based capital instructions may provide.