New Mexico § 59A-34-29 Mutual members, levy of contingent liability

New Mexico Statutes

§ 59A-34-29 — Mutual members, levy of contingent liability

New Mexico·Ch. 59A Insurance Code·Art. 34 Domestic Stock and Mutual Insurers

A.If at any time the assets of a domestic mutual insurer are less than its liabilities and the minimum amount of surplus required of it under the Insurance Code for authority to transact the kinds of insurance being transacted, and the deficiency is not otherwise cured, its directors may, if approved by the superintendent as being reasonable and in the best interests of the insurer and its members, levy an assessment only on its members who held policies providing for contingent liability at any time within the twelve (12) months next preceding the date the levy was authorized by the board of directors, and such members shall be liable to the insurer for the amount so assessed.

B.The assessment shall be for the amount required to cure the deficiency and to provide working funds in reason

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A. If at any time the assets of a domestic mutual insurer are less than its liabilities and the minimum amount of surplus required of it under the Insurance Code for authority to transact the kinds of insurance being transacted, and the deficiency is not otherwise cured, its directors may, if approved by the superintendent as being reasonable and in the best interests of the insurer and its members, levy an assessment only on its members who held policies providing for contingent liability at any time within the twelve (12) months next preceding the date the levy was authorized by the board of directors, and such members shall be liable to the insurer for the amount so assessed. B. The assessment shall be for the amount required to cure the deficiency and to provide working funds in reasonable amount above such minimum surplus. C. As to the respective policies subject to the levy, the assessment shall be computed upon the basis of premium earned by the insurer thereon during such twelve (12) month period. D. No member shall have an offset against any assessment on account of any claim for unearned premiums or loss payable. E. As to life insurance, any part of the assessment upon a member which remains unpaid following notice of assessment, demand for payment and lapse of a reasonable waiting period as specified in the notice may, if approved by the superintendent as being in the best interest of the insurer and its members, be secured by placing a lien upon the cash surrender values and accumulated dividends held or to be held by the insurer to the credit of the member's policy.

New Mexico § 59A-34-29 (Mutual members, levy of contingent liability) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.