(6)
Enterprise risk: The
registrant/applicant, to the best of its knowledge and belief, shall provide
information regarding the following areas that could produce enterprise risk as
defined in Subsection D of Section
59A-37-2 NMSA 1978, provided such
information is not disclosed in the
Insurance Holding Company System
Annual Registration Statement filed on behalf of itself or another
insurer for which it is the ultimate controlling person:
(a) any material developments regarding
strategy, internal audit findings, compliance or risk management affecting the
insurance holding company system;
(b) acquisition or disposal of insurance
entities and reallocating of existing financial or insurance entities within
the insurance holding company system;
(c) any changes of shareholders of the
insurance holding company system exceeding ten percent or more of voting
securities;
(d) developments in
various investigations, regulatory activities or litigation that may have
significant bearing or impact on the insurance holding company
system;
(e) business plan of the
insurance holding company system and summarized strategies for the next 12
months;
(f) identification of
material concerns of the insurance holding company system raised by a
supervisory college, if any, in the last year;
(g) identification of insurance holding
company system capital resources and material distribution patterns;
(h) identification of any negative movement,
or discussions with rating agencies which may have caused, or may cause,
potential negative movement in the credit ratings and individual insurer
financial strength ratings assessment of the insurance holding company system
(including both the rating score and outlook);
(i) information on corporate or parental
guarantees throughout the holding company and the expected source of liquidity
should such guarantees be called upon; and
(j) identification of any material activity
or development of the insurance holding company system that, in the opinion of
senior management, could adversely affect the insurance holding company system.
The registrant/applicant may attach the appropriate form most
recently filed with the SEC, provided the registrant/applicant includes
specific references to those areas listed in Paragraph (6) of Subsection B of
13.2.2.17 NMAC for which the form
provided responsive information. If the registrant/applicant is not domiciled
in the United States, it may attach its most recent audited financial statement
filed in its country of domicile, provided the registrant/ applicant includes
specific reference to those areas in Paragraph (6) for which the financial
statement provides responsive information.
(7)
Obligation to report: If the
registrant/applicant has not disclosed any information pursuant to Paragraph
(6) of Subsection B of
13.2.2.17 NMAC, the
registrant/applicant shall include a statement affirming that, to the best of
its knowledge and belief, it has not identified enterprise risk subject to
disclosure pursuant to Paragraph (6).
