New Mexico Administrative Code
Title 13 - INSURANCE
Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION
Part 8 - CREDIT FOR REINSURANCE
Section 13.2.8.7 - DEFINITIONS
Current through Register Vol. 35, No. 6, March 26, 2024
As used in this rule:
A. "Annual financial statement" means the statement required by Section 59A-5-29 NMSA 1978.
B. "Beneficiary" means the entity for whose sole benefit the trust has been established and any successor of the beneficiary by operation of law, including without limitation any liquidator, rehabilitator, receiver or conservator except that, if a court of law appoints a successor in interest to a domestic insurer for whose benefit a letter of credit qualified under 13.2.8.24 NMAC has been established, then the named beneficiary includes and is limited to the court-appointed domiciliary receiver.
C. "Commissioner" means the individual or regulatory agency in a jurisdiction other than New Mexico who has jurisdiction over banking, financial services, the business of insurance, or other relevant business.
D. "Form" means a form, including any applicable instructions, that is posted on the official OSI website or, if the form is generated by an agency or entity other than OSI, an official form to be obtained from such other agency or entity. Forms AR-1, CR-1, CR-F, CR-S and RJ-1 as referenced in this rule will be posted on the official OSI website.
E. "Grantor" means the entity that has established a trust for the sole benefit of the beneficiary. When established in conjunction with a reinsurance agreement, the grantor is the unlicensed, unaccredited assuming insurer.
F. "Jurisdiction" means any state, district or territory of the U.S. and any lawful national government.
G. "Liabilities" means the assuming insurer's gross liabilities attributable to reinsurance ceded by U.S. domiciled insurers excluding liabilities that are otherwise secured by acceptable means, and shall include:
H. "Mortgage-related security" means an obligation that is rated AA or higher (or the equivalent) by a securities rating agency recognized by the SVO and that either:
I. "NAIC" means the national association of insurance commissioners.
J. "Obligations" means:
K. "OECD" means the organization for economic cooperation and development.
L. "Promissory note" when used in connection with a manufactured home, shall also include a loan, advance or credit sale as evidenced by a retail installment sales contract or other instrument.
M. "Qualified U.S. financial institution" has the meaning given in Subsection E of Section 59A-12E-2 NMSA 1978.
N. "Reciprocal jurisdiction" means a jurisdiction, as designated by the superintendent pursuant to Subsection D of 13.2.8.16 NMAC, that meets one of the criteria set forth in Subsection B of 13.2.8.16 NMAC.
O. "Solvent scheme of arrangement" means a foreign or alien statutory or regulatory compromise procedure subject to requisite majority creditor approval and judicial sanction in the assuming insurer's home jurisdiction either to finally commute liabilities of duly noticed classed members or creditors of a solvent debtor, or to reorganize or restructure the debts and obligations of a solvent debtor on a final basis, and which may be subject to judicial recognition and enforcement of the arrangement by a governing authority outside the ceding insurer's home jurisdiction.
P. "Substantially similar standards" means credit for reinsurance standards which the superintendent determines are equal to or exceed the standards of the Credit for Reinsurance Act and this rule.
Q. "Statutory financial statement" means quarterly, annual or other financial statements required by state law.
R. "SVO" means the securities valuation office of the NAIC.
S. "Superintendent" means the superintendent of insurance, the office of superintendent of insurance or employees of the office of superintendent of insurance acting within the scope of the superintendent's official duties and with the superintendent's authorization.