N.M. Admin. Code § 13.2.2.22 - GROUP-WIDE SUPERVISION OF INTERNATIONALLY ACTIVE INSURANCE GROUPS
A. The
superintendent may act as the group-wide supervisor for any internationally
active insurance group in accordance with the provisions of this section.
However, the superintendent may otherwise acknowledge another regulatory
official as the group-wide supervisor where the internationally active
insurance group:
(1) Does not have
substantial insurance operations in the United States;
(2) Has substantial insurance operations in
the United States, but not in this state; or
(3) Has substantial insurance operations in
the United States and this state, but the superintendent has determined
pursuant to the factors set forth in Subsections B and F of this section that
the other regulatory official is the appropriate group-wide supervisor.
An insurance holding company system that does not otherwise qualify as an internationally active insurance group may request that the superintendent make a determination or acknowledgment as to a group-wide supervisor pursuant to this section.
B. In cooperation with other state, federal
and international regulatory agencies, the superintendent will identify a
single group-wide supervisor for an internationally active insurance group. The
superintendent may determine that the superintendent is the appropriate
group-wide supervisor for an internationally active insurance group that
conducts substantial insurance operations concentrated in this state. However,
the superintendent may acknowledge that a regulatory official from another
jurisdiction is the appropriate group-wide supervisor for the internationally
active insurance group. The superintendent shall consider the following factors
when making a determination or acknowledgment under this subsection:
(1) The place of domicile of the insurers
within the internationally active insurance group that holds the largest share
of the group's written premiums, assets or liabilities;
(2) The place of domicile of the top-tiered
insurer(s) in the insurance holding company system of the internationally
active insurance group;
(3) The
location of the executive offices or largest operational offices of the
internationally active insurance group;
(4) Whether another regulatory official is
acting or is seeking to act as the group-wide supervisor under a regulatory
system that the superintendent determines to be:
(a) Substantially similar to the system of
regulation provided under the laws of this state, or
(b) Otherwise sufficient in terms of
providing for group-wide supervision, enterprise risk analysis, and cooperation
with other regulatory officials; and
(5) Whether another regulatory official
acting or seeking to act as the group-wide supervisor provides the
superintendent with reasonably reciprocal recognition and
cooperation.
(6) However, a
regulatory official identified in this section as the group-wide supervisor may
determine that it is appropriate to acknowledge another supervisor to serve as
the group-wide supervisor. Acknowledgement of the group-wide supervisor shall
be made after consideration of the factors listed in Paragraph (1) through (5)
above, and shall be made in cooperation with and subject to the acknowledgement
of other regulatory officials involved with supervision of a member of the
internationally active insurance group, and in consultation with the
internationally active insurance group.
C. Notwithstanding any other provisions of
law, when another regulatory official is acting as the group-wide supervisor of
an internationally active insurance group, the superintendent shall acknowledge
that regulatory official as the group-wide supervisor. However, in the event of
material change in the internationally active insurance group that results in
either:
(1) The internationally active
insurance group's insurers domiciled in this state holding the largest share of
the group's premiums, assets or liabilities; or
(2) This state being the place of domicile of
the top-tiered insurer(s) in the insurance holding company system of the
internationally active insurance group, then the superintendent shall make a
determination or acknowledgement as to the appropriate group-wide supervisor
for such internationally active insurance group pursuant to Subsection B of
this section.
D. Pursuant
to Section
59A-37-23 NMSA 1978, the
superintendent is authorized to collect from any insurer registered pursuant to
Section 59A-37-11 NMSA 1978, all
information necessary to determine whether the superintendent may act as the
group-wide supervisor of an internationally active insurance group or if the
superintendent may acknowledge another regulatory official to act as the
group-wide supervisor. Prior to issuing a determination that an internationally
active insurance group is subject to group-wide supervision by the
superintendent, the superintendent will notify the insurer registered pursuant
to Section
59A-37-11 NMSA 1978, and the
ultimate controlling person within the internationally active insurance group.
The internationally active insurance group shall have not less than 30 days to
provide the superintendent with additional information pertinent to the pending
determination. The OSI will publish on its website the identity of
internationally active insurance groups that the superintendent has determined
are subject to group-wide supervision by the superintendent.
E. If the superintendent is the group-wide
supervisor for an internationally active insurance group, the superintendent is
authorized to engage in any of the following group-wide supervision activities:
(1) Assess the enterprise risk within the
internationally active insurance group to ensure that:
(a) The material financial condition and
liquidity risks to the members of the internationally active insurance group
that are engaged in the business of insurance are identified by management,
and
(b) Reasonable and effective
mitigation measures are in place;
(2) Request from any member of an
internationally active insurance group subject to the superintendent's
supervision, information necessary and appropriate to assess enterprise risk,
including, but not limited to, information about the members of the
internationally active insurance group regarding:
(a) Governance, risk assessment and
management,
(b) Capital adequacy,
and
(c) Material intercompany
transactions;
(3)
Coordinate and, through the authority of the regulatory officials of the
jurisdictions where members of the internationally active insurance group are
domiciled, compel development and implementation of reasonable measures
designed to ensure that the internationally active insurance group is able to
timely recognize and mitigate enterprise risks to members of such
internationally active insurance group that are engaged in the business of
insurance;
(4) Communicate with
other state, federal and international regulatory agencies for members within
the internationally active insurance group and share relevant information
subject to the confidentiality provisions of Section
59A-37-24 NMSA 1978, through
supervisory colleges as provided in this rule or otherwise;
(5) Enter into agreements with or obtain
documentation from any insurer registered under Section
59A-37-11 NMSA 1978, any member
of the internationally active insurance group, and any other state, federal and
international regulatory agencies for members of the internationally active
insurance group, providing the basis for or otherwise clarifying the
superintendent's role as group-wide supervisor, including provisions for
resolving disputes with other regulatory officials. Such agreements or
documentation shall not serve as evidence in any proceeding that any insurer or
person within an insurance holding company system not domiciled or incorporated
in this state is doing business in this state or is otherwise subject to
jurisdiction in this state; and
(6)
Other group-wide supervision activities, consistent with the authorities and
purposes enumerated above, as considered necessary by the
superintendent.
F. If the
superintendent acknowledges that another regulatory official from a
jurisdiction that is not accredited by the NAIC is the group-wide supervisor,
the superintendent may reasonably cooperate, through supervisory colleges or
otherwise, with group-wide supervision undertaken by the group-wide supervisor,
provided that:
(1) The superintendent's
cooperation is in compliance with the laws of this state; and
(2) The regulatory official acknowledged as
the group-wide supervisor also recognizes and cooperates with the
superintendent's activities as a group-wide supervisor for other
internationally active insurance groups where applicable. Where such
recognition and cooperation is not reasonably reciprocal, the superintendent is
authorized to refuse recognition and cooperation.
G. The superintendent may enter into
agreements with or obtain documentation from any insurer registered under
Section 59A-37-11 NMSA 1978, any
affiliate of the insurer, and other state, federal and international regulatory
agencies for members of the internationally active insurance group, that
provide the basis for or otherwise clarify a regulatory official's role as
group-wide supervisor.
H. A
registered insurer subject to this section shall be liable for and shall pay
the reasonable expenses of the superintendent's participation in the
administration of this section, including the engagement of attorneys,
actuaries and any other professionals and all reasonable travel
expenses.
I. All information, data,
reports and workpapers filed with and collected by the superintendent pursuant
to this section will be obtained in accordance with Section
59A-4-5 NMSA 1978 and subject to
the confidentiality provisions of Section
59A-4-11 and
59A-37-24, NMSA 1978, and the
stricter of these provisions shall apply.
Notes
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