New Mexico Administrative Code
Title 13 - INSURANCE
Chapter 12 - MOTOR VEHICLE INSURANCE
Part 4 - AUTOMOBILE SELF-INSURANCE
Section 13.12.4.11 - EVALUATION FACTORS

Universal Citation: 13 NM Admin Code 13.12.4.11

Current through Register Vol. 35, No. 18, September 24, 2024

In determining if an applicant will be able to meet its obligations as a self-insured, both at the time of application and continuously thereafter if applicant is granted a certificate of self-insurance, the factors to be considered by the superintendent shall include, but not be limited to, the following:

A. whether the applicant has a tangible net worth of at least two million dollars ($2,000,000.00);

B. whether the applicant is financially solvent;

C. whether the applicant has a risk management system;

D. whether the applicant has an adequate claims management system;

(1) If a third party administrator or claims administration service is to be used, it must be licensed in New Mexico.

(2) If claims are handled in-house, the self-insured must employ a New Mexico-licensed adjuster.

E. whether the applicant has a reserve method for claims;

F. whether applicant's automobiles are leased or rented to others;

G. the ratio of applicant's tangible net worth to its annual self-insurance retention;

H. the ratio of applicant's current assets to its current liabilities;

I. the ratio of applicant's debt to its tangible net worth;

J. the ratio of applicant's tangible net worth to its annual automobile bodily injury and property damage projected losses;

K. applicant's profit and loss history, including credit reports and credit ratings;

L. applicant's automobile bodily injury and property damage exposure, premium, and loss history;

M. applicant's organizational structure and the character and reputation of its management;

N. applicant's claims administration personnel, policies, and procedures;

O. applicant's safety program;

P. the source and reliability of financial information about applicant;

Q. the number of applicant's employees and the number who regularly drive automobiles, or if applicant is an individual, the number of persons who regularly drive applicant's automobiles;

R. the adequacy of applicant's reserves;

S. the adequacy of applicant's excess insurance coverage;

T. the adequacy of applicant's surety bond or other security;

U. the catastrophic loss potential of applicant.

Disclaimer: These regulations may not be the most recent version. New Mexico may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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