New Mexico Administrative Code
Title 13 - INSURANCE
Chapter 12 - MOTOR VEHICLE INSURANCE
Part 4 - AUTOMOBILE SELF-INSURANCE
Section 13.12.4.7 - DEFINITIONS

Universal Citation: 13 NM Admin Code 13.12.4.7

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

As used in this rule:

A. "Act" means the Mandatory Financial Responsibility Act, Sections 66-5-201 NMSA 1978 et seq.

B. "Applicant" means any person subject to the act who seeks to qualify for exemption from the act by obtaining a certificate of self-insurance from the superintendent.

C. "Change of ownership" means the occurrence of any change in:

(1) the officers, directors, or holders of more than ten percent of the voting stock of the corporation, if the self-insured is a corporation;

(2) general partners or limited partners contributing ten percent or more of the total value of contributions made to the limited partnership, or entitled to ten percent or more of the profits earned, or other compensation by way of income paid, by the limited partnership, if the self-insured is a limited partnership; or

(3) the trustees or partners or owners of more than ten percent interest in the entity, if the self-insured is a legal entity which is not a corporation or limited partnership.

D. "Driver" has the meaning given in Section 66-1-4.4 K NMSA 1978.

E. "Financially solvent" means a self-insured's continuing ability to pay all existing and future claims to which it is or may become obligated by operation of its motor vehicles on the highways of New Mexico, and that there are no circumstances clearly indicating to the superintendent that there is an imminent danger that the self-insured will likely become insolvent.

F. "Qualified actuary" means a member of the casualty actuarial society.

G. "Tangible net worth" means net worth less intangible assets and other assets of questionable quality or liquidity and may include other liabilities of the company.

H. "Safety program" means a program of activities designed to reduce accidents, and may include driver education courses on safe driving practices or special techniques for driving in dangerous conditions, wearing seat belts, enrollment in accident prevent programs, installation of safety devices, and drug testing.

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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