N.M. Admin. Code § 13.19.2.14

Current through Register Vol. 35, No. 21, November 5, 2024

Section 13.19.2.14 - REFUSAL OR WITHDRAWAL OF SURPLUS LINES INSURER ELIGIBILITY

The superintendent may refuse to initially list or continue to list an unauthorized insurer on the superintendent's list of eligible surplus lines insurers for any one of the following reasons:

A. the insurer's key management, owners or other employees have been involved in fraud, mismanagement, bankruptcy or other activities that reflect unfavorably on the integrity of the insurer;

B. the insurer operates through managing general agents without appropriate safeguards;

C. the insurer has a material conflict of interest;

D. the insurer has been in business for less than three years;

E. the insurer has had new owners or management for less than three years;

F. the insurer has an a.m. best's rating of B or lower;

G. the insurer has had three or more adverse IRIS reports, unless the superintendent accepts a valid explanation by the insurer;

H. the insurer has had a rate of growth greater than 20% per year over the last three years, unless other financial indicators are favorable;

I. the insurer has been unprofitable for each of the last three years or has a long-term history of chronic unprofitability, unless the superintendent accepts a valid explanation by the insurer;

J. the insurer has a questionable financial condition for any other reason;

K. the superintendent has reason to believe that the insurer meets the ineligibility standards of Section 59A-14-14.1 NMSA 1978; or

L. the superintendent determines that such action is necessary for protection of the public.

N.M. Admin. Code § 13.19.2.14

1/1/99; Recompiled 11/30/01