2018 New Mexico Statutes
Chapter 59A - Insurance Code
Article 37 - Insurance Holding Companies
Section 59A-37-23 - Examinations.
A. Pursuant to general powers of investigation and examination vested in the superintendent under Chapter 59A, Article 4 NMSA 1978, the superintendent may order an insurer registered under Section 59A-37-11 NMSA 1978 to produce such records, books or other information papers in the possession of the insurer or its affiliates as are necessary to ascertain the insurer's financial condition, including the enterprise risk to the insurer by the ultimate controlling party, or by any entity or combination of entities within the insurance holding company system, or by the insurance holding company system on a consolidated basis or the insurer's compliance with the Insurance Company Holding Law. If the insurer fails to comply with the order, the superintendent may examine its affiliates to obtain the information.
B. The examination shall be conducted and otherwise be subject to applicable provisions of Chapter 59A, Article 4 NMSA 1978.
C. To determine compliance with the Insurance Holding Company Law, the superintendent may require that an insurer registered pursuant to Section 59A-37-11 NMSA 1978 produce information not possessed by the insurer if the insurer can access that information through a contractual relationship, statutory obligation or other valid method. If the insurer cannot obtain the information that the superintendent requests, the insurer shall provide the superintendent with a detailed explanation of the reasons for that inability and the identity of the holder of information. If the superintendent believes that the explanation lacks merit, the superintendent may require, after notice and a hearing, that the insurer pay a penalty of five hundred dollars ($500) for each day that the production of information is delayed, or the superintendent may suspend or revoke the insurer's license.
History: Laws 1984, ch. 127, § 638; 1993, ch. 320, § 85; 2014, ch. 59, § 40.
The 2014 amendment, effective July 1, 2014, expanded the information that insurers are required to provide concerning the financial condition of the insurer, including the enterprise risk to the insurer; provided for penalties; in Subsection A, in the first sentence, after "financial condition", deleted "or its" and added "including the enterprise risk to the insurer by the ultimate controlling party, or by any entity or combination of entities within the insurance holding company system, or by the insurance holding company system on a consolidated basis or the insurer's"; and added Subsection C.
Severability. — Laws 2014, ch. 59, § 54 provided that if any part or application of the provisions of Laws 2014, ch. 59 is held invalid, the remainder or its application to other situations or persons shall not be affected.
The 1993 amendment, effective June 18, 1993, rewrote the first sentence in Subsection A; deleted former Subsection B, relating to the circumstances under which the superintendent exercised his power under Subsection A; redesignated former Subsection C as Subsection B; and substituted "Chapter 59A, Article 4 NMSA 1978" for "Sections 48 through 58 of the Insurance Code" in Subsection B.
