2011 New Mexico Statutes
Chapter 59A: Insurance Code
Article 5A: Risk-Based Capital, 59A-5A-1 through 59A-5A-13
Section 59A-5A-6: Authorized control level event.

59A-5A-6. Authorized control level event.

A. As used in the Risk-Based Capital Act [Chapter 59A, Article 5A NMSA 1978], "authorized control level event" means any of the following events:

(1) the filing of a risk-based capital report by an insurer which indicates that the insurer's total adjusted capital is greater than or equal to its mandatory control level risk-based capital but less than its authorized control level risk-based capital;

(2) the superintendent's notification to an insurer that its adjusted risk-based capital report indicates the existence of an event described in Paragraph (1) of this subsection, unless the insurer challenges the adjusted report pursuant to Section 59A-5A-8 NMSA 1978;

(3) if an insurer challenges the adjusted capital report, notification to the insurer that the superintendent has, after hearing, rejected the challenge;

(4) an insurer's failure to respond, in a manner satisfactory to the superintendent, to a corrective order unless the insurer has challenged the order pursuant to Section 59A-5A-8 NMSA 1978; or

(5) if an insurer has challenged a corrective order and the superintendent has, after hearing, rejected the challenge or modified the corrective order, the failure of the insurer to respond, in a manner satisfactory to the superintendent, to the corrective order subsequent to rejection or modification.

B. In the event of an authorized control level event with respect to an insurer, the superintendent shall:

(1) take such actions as are required pursuant to Section 59A-5A-5 NMSA 1978 regarding an insurer with respect to which a regulatory action level event has occurred; or

(2) if the superintendent deems it to be in the best interests of the insurer's policyholders and creditors and of the public, take such actions as are necessary to cause the insurer to be placed under regulatory control pursuant to Chapter 59A, Article 41 NMSA 1978. The authorized control level event shall constitute sufficient grounds for the superintendent to take action pursuant to Chapter 59A, Article 41 NMSA 1978, and the superintendent shall have the rights, powers and duties with respect to the insurer set forth in Chapter 59A, Article 41 NMSA 1978.