N.M. Admin. Code § 13.2.2.23 - TRANSACTIONS SUBJECT TO PRIOR NOTICE - NOTICE FILING
A. An insurer required to give notice of a
proposed transaction pursuant to
13.2.2.11 NMAC, shall furnish the
required information on Form D, hereby made a part of these
regulations.
B. Agreements for cost
sharing services and management services shall at a minimum and as applicable:
(1) Identify the person providing services
and the nature of such services;
(2) set forth the methods to allocate
costs;
(3) require timely
settlement, not less frequently than on a quarterly basis, and compliance with
the requirements in the accounting practices and procedures manual;
(4) prohibit advancement of funds by the
insurer to the affiliate except to pay for services defined in the
agreement;
(5) state that the
insurer will maintain oversight for functions provided to the insurer by the
affiliate and that the insurer will monitor services annually for quality
assurance;
(6) define records and
data of the insurer to include all records and data developed or maintained
under or related to the agreement that are otherwise the property of the
insurer, in whatever form maintained, including, but not limited to, claims and
claim files, policyholder lists, application files, litigation files, premium
records, rate books, underwriting manuals, personnel records, financial records
or similar records within the possession, custody or control of the
affiliate;
(7) specify that all
records and data of the insurer are and remain the property of the insurer,
and:
(a) are subject to control of the
insurer;
(b) are identifiable;
and
(c) are segregated from all
other persons' records and data or are readily capable of segregation at no
additional cost to the insurer;
(8) state that all funds and invested assets
of the insurer are the exclusive property of the insurer, held for the benefit
of the insurer and are subject to the control of the insurer;
(9) include standards for termination of the
agreement with and without cause;
(10) include provisions for indemnification
of the insurer in the event of gross negligence or willful misconduct on the
part of the affiliate providing the services and for any actions by the
affiliate that violate provisions of the agreement required in Paragraphs (11)
through (15) of Subsection B of this section;
(11) specify that if the insurer is placed in
supervision, seizure, conservatorship or receivership pursuant to the
receivership act:
(a) all of the rights of
the insurer under the agreement extend to the receiver or to the extent
permitted by New Mexico law;
(b)
all records and data of the insurer shall be identifiable and segregated from
all other persons' records and data or readily capable of segregation at no
additional cost to the receiver or the superintendent;
(c) a complete set of records and data of the
insurer will immediately be made available to the receiver or the
superintendent, shall be made available in a usable format and shall be turned
over to the receiver or superintendent immediately upon the receiver or the
superintendent's request, and the cost to transfer data to the receiver or the
superintendent shall be fair and reasonable; and
(d) the affiliated person(s) will make
available all employees essential to the operations of the insurer and the
services associated therewith for the immediate continued performance of the
essential services ordered or directed by the receiver or
superintendent;
(12)
specify that the affiliate has no automatic right to terminate the agreement if
the insurer is placed into supervision, seizure, conservatorship or
receivership pursuant to the receivership act;
(13) specify that the affiliate will provide
the essential services for a minimum period of time (specified in the
agreement) after termination of the agreement, if the insurer is placed into
supervision, seizure, conservatorship or receivership pursuant to the
receivership act, as ordered or directed by the receiver or superintendent.
Performance of the essential services will continue to be provided without
regard to pre-receivership unpaid fees, so long as the affiliate continues to
receive timely payment for post-receivership services rendered, and unless
released by the receiver, superintendent or supervising court;
(14) specify that the affiliate will continue
to maintain any systems, programs or other infrastructure, notwithstanding
supervision, seizure, conservatorship or receivership pursuant to the
receivership act, and will make them available to the receiver or
superintendent as ordered or directed by the receiver or superintendent for so
long as the affiliate continues to receive timely payment for post-receivership
services rendered, and unless released by the receiver, superintendent or
supervising court; and
(15) specify
that, in furtherance of the cooperation between the receiver and the affected
guaranty association(s) and subject to the receiver's authority over the
insurer, if the insurer is placed into supervision, seizure, conservatorship or
receivership pursuant to the receivership act, and portions of the insurer's
policies or contracts are eligible for coverage by one or more guaranty
associations, the affiliate's commitments under Paragraphs (11) through (15),
of Subsection B of this section will extend to such guaranty
association(s).
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.