§ 59A-37-2 — Definitions

New Mexico § 59A-37-2

• Jurisdiction: New Mexico
• Ch. 59A: Insurance Code
• Art. 37: Insurance Holding Companies

Text

As used in the Insurance Holding Company Law: A. "acquire" means to come into possession or control of, and "acquisition" means any agreement, arrangement or activity the consummation of which results in a person acquiring directly or indirectly the control of another person and includes the acquisition of voting securities or assets, bulk reinsurance and mergers; B. "affiliate" means a person that directly or indirectly is controlled by, is under common control with or controls another person; C. "association" means the national association of insurance commissioners; D. "commissioner" means an insurance regulation department of another state or the chief regulator or the regulator's deputy of another state; E. "control" means the possession of the power to direct or cause the direction of the management and policies of a person, whether directly or indirectly, through the ownership of voting securities, through licensing or franchise agreements, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of an official position with or corporate office held by an individual. Control shall be presumed to exist if any person, directly or indirectly, owns, controls, holds with the power to vote or holds proxies representing ten or more percent of the voting securities of any other person. This presumption may be rebutted by a showing, in the manner provided by Section 59A-37-19 NMSA 1978, that control does not in fact exist. The superintendent may determine, after furnishing all persons in interest notice and an opportunity to be heard, that control exists in fact, notwithstanding the absence of a presumption to that effect; provided that the determination is based on specific findings of fact in its support; F. "enterprise risk" means an activity, a circumstance, an event or a series of events involving one or more affiliates of an insurer that, if not remedied promptly, is likely to have a material adverse effect upon the financial condition or liquidity of the insurer or its whole insurance holding company system and includes a situation that would cause a company action level event as defined in Section 59A-5A-4 NMSA 1978 or would cause the insurer to be in a hazardous financial condition as defined in Section 59A-41- 24 NMSA 1978; G. "group-wide supervisor" means the regulatory official authorized to conduct and coordinate group-wide supervision activities who is determined or acknowledged by the superintendent to have sufficient significant contacts with the internationally active insurance group as described in the National Association of Insurance Commissioners Model Laws, Regulations, Guidelines and Other Resources 440-1; H. "health maintenance organization" means a person that undertakes to provide or arrange for the delivery of basic health care services to enrollees on a prepaid basis; provided that "prepaid basis" may include the payment of copayments and deductibles by enrollees; I. "insurance holding company" is a person that controls an insurer; "insurance holding company system" means a combination of two or more affiliated persons, at least one of which is an insurer; J. "insurer" means a person that undertakes, under contract, to indemnify a person against loss, damage or liability arising from an unknown or contingent future event. The term does not include agencies, authorities or instrumentalities of the United States, its possessions or territories, the commonwealth of Puerto Rico, the District of Columbia, a state or any of its political subdivisions or a fraternal benefit society; K. "internationally active insurance group" means an insurance holding company system that includes an insurer registered pursuant to Section 59A-37-12 NMSA 1978 that: (1) writes premiums in at least three counties; (2) produces gross premiums written outside of the United States of at least ten percent of the insurance holding company system's gross written premiums; and (3) has total assets of at least fifty billion dollars ($50,000,000,000) based on a three-year rolling average or has total gross written premiums of at least ten billion dollars ($10,000,000,000); L. "large life insurance company" means a person, as defined by the association, that contracts with a policy owner to guarantee to pay a sum of money to one or more named beneficiaries when an insured person dies; M. "liquidity stress test framework" means the publication adopted or amended by the association that includes the scope criteria for a specific data year and the liquidity stress test instructions and reporting templates for a specific data year; N. "person" means an individual, corporation, association, partnership, joint stock company, trust, unincorporated organization or any similar entity or combination of entities; O. "scope criteria" means the designated exposure bases and minimum magnitudes for a specified data year as detailed by the association used to establish a preliminary list of insurers scoped into the liquidity stress test framework for a data year; P. "securityholder" means the owner of any security of a person, including common stock, preferred stock, debt obligations and any other security convertible into or evidencing the right to acquire any of the foregoing; Q. "subsidiary" means an affiliate of a person controlled by the person either directly or indirectly through one or more intermediaries; and R. "voting security" means a certificate evidencing the ownership or indebtedness of a person, to which is attached a right to vote on the management or policymaking of that person and includes any security convertible into or evidencing a right to acquire such a voting security.

Legislative History

Laws 1984, ch. 127, § 617; 1993, ch. 320, § 71; 1996, ch. 73, § 1; 1997, ch.