N.M. Admin. Code § 13.2.8.7 - DEFINITIONS
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:
(1) for business ceded by domestic insurers
authorized to write accident and health, and property and casualty insurance:
(a) losses and allocated loss expenses paid
by the ceding insurer, recoverable from the assuming insurer;
(b) reserves for losses reported and
outstanding;
(c) reserves for
losses incurred but not reported;
(d) reserves for allocated loss expenses;
and
(e) unearned premiums;
or
(2) for business ceded
by domestic insurers authorized to write life, health and annuity insurance:
(a) aggregate reserves for life policies and
contracts net of policy loans and net due and deferred premiums;
(b) aggregate reserves for accident and
health policies;
(c) deposit funds
and other liabilities without life or disability contingencies; and
(d) liabilities for policy and contract
claims.
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:
(1) represents ownership
of one or more promissory notes or certificates of interest or participation in
the notes (including any rights designed to assure servicing of, or the receipt
or timeliness of receipt by the holders of the notes, certificates, or
participation of amounts payable under, the notes, certificates, or
participation of amounts payable under, the notes, certificates or
participation), that:
(a) are directly secured
by a first lien on a single parcel of real estate, including stock allocated to
a dwelling unit in a residential cooperative housing corporation, upon which is
located a dwelling or mixed residential and commercial structure, or on a
residential manufactured home as defined in
42
U.S.C.A. Section 5402(6),
whether the manufactured home is considered real or personal property under the
laws of the state in which it is located; and
(b) were originated by a savings and loan
association, savings bank, commercial bank, credit union, insurance company, or
similar institution that is supervised and examined by a federal or state
housing authority, or by a mortgagee approved by the secretary of housing and
urban development pursuant to
12 U.S.C.A. Sections
1709 and
1715
-b, or, where the notes involve a lien on the manufactured home, by an
institution or by a financial institution approved for insurance by the
secretary of housing and urban development pursuant to
12 U.S.C.A. Section
1703; or
(2) is secured by one or more promissory
notes or certificates of deposit or participations in the notes (with or
without recourse to the insurer of the notes) and, by its terms, provides for
payments of principal in relation to payments, or reasonable projections of
payments, or notes meeting the requirements of Subparagraph (1)(a) of this
Subsection.
I.
"NAIC" means the national association of insurance
commissioners.
J.
"Obligations" means:
(1)
reinsured losses and allocated loss expenses paid by the ceding company, but
not recovered from the assuming insurer;
(2) reserves for reinsured losses reported
and outstanding;
(3) reserves for
reinsured losses incurred but not reported; and
(4) reserves for allocated reinsured loss
expenses and unearned premiums.
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.
Notes
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