A ceding insurer shall remain jointly and severally liable with an unauthorized assuming insurer on ceded contracts or policies for which assumption certificates have been issued covering risks resident in this state until such time as:
A. the assuming insurer obtains a certificate of authority to transact the applicable kind of insurance in this state; or
B. the assuming insurer deposits with the superintendent a special deposit in an amount equal to the greater of:
(1) one hundred thousand dollars ($100,000); or
(2) twenty thousand dollars ($20,000) plus the statutory reserves required of an authorized insurer for the contracts assumed.
History: 1978 Comp., § 59A-8-7.1, enacted by Laws 1993, ch. 320, § 23.
Structure New Mexico Statutes
Article 8 - Assets and Liabilities
Section 59A-8-1 - "Assets" defined.
Section 59A-8-2 - Assets not allowed.
Section 59A-8-3 - Disallowance of "wash" transactions.
Section 59A-8-4 - Liabilities, in general.
Section 59A-8-5 - Standard valuation law, life insurance and annuities.
Section 59A-8-7.1 - Continued liability after assumption reinsurance transactions.
Section 59A-8-8 - Loss reserves.
Section 59A-8-10 - Unearned premium reserve, marine and transportation insurance.
Section 59A-8-11 - Title insurance reserves.
Section 59A-8-12 - Mortgage guaranty contingency reserve.
Section 59A-8-13 - Valuation of bonds.
Section 59A-8-14 - Valuation of other securities.