As to property, casualty, vehicle and surety insurance, and marine and transportation insurance other than as provided in Section 59A-8-10 NMSA 1978, the insurer shall maintain as a liability an unearned premium reserve on policies in force computed as follows: fifty percent of the gross premium in force on policies having one year or less to run and pro rata on those for longer periods, or pro rata for all premiums in force.
History: Laws 1984, ch. 127, § 126; 1997, ch. 121, § 4.
The 1997 amendment, effective June 20, 1997, substituted "Section 59A-8-10 NMSA 1978" for "Section 127 of this article" and deleted the second sentence, which read: "As to surety risks the minimum unearned premium reserve shall be the aggregate of the net premiums for the entire term instead of the unexpired portion thereof".
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.