A. The superintendent shall not issue or permit to exist a certificate of authority to transact insurance in this state as to an alien insurer unless and while the insurer has made and maintains out of its surplus over its United States' liabilities a general deposit of assets acceptable to the superintendent with or through the insurance supervisory officer of a state in which the insurer is authorized to transact insurance, in trust for the benefit of all the insurer's policyholders and creditors in the United States.
B. The deposit shall at all times have a value of not less than the capital and surplus required under Schedule I of Section 59A-5-16 NMSA 1978, of a foreign insurer transacting like kinds of insurance in this state. The amount of the deposit shall to like amount offset the amount of general deposit otherwise required of the insurer under Schedule I of Section 59A-5-16 NMSA 1978.
History: Laws 1984, ch. 127, § 87; 1991, ch. 125, § 8.
Cross references. — For existing deposits and bonds, see notes following 59A-5-18 NMSA 1978.
The 1991 amendment, effective April 3, 1991, in Subsection B, substituted "capital and surplus" for "capital funds" and substituted "Section 59A-5-16 NMSA 1978" for "Section 83 of this article" in the first sentence and "Schedule I of Section 59A-5-16 NMSA 1978" for "such Schedule I" at the end of the second sentence.
Construction. — Former 59-5-3 NMSA 1978 required a foreign insurance company organized under the laws of any country other than the United States, desirous of becoming licensed to transact business in this state, to deposit with the department of insurance of either this state, or some other state in the United States, a sum not less than the minimum capital and surplus required of domestic and foreign companies licensed in this state. 1957 Op. Att'y Gen. No. 57-257.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 43 Am. Jur. 2d Insurance §§ 63, 72 to 82.
44 C.J.S. Insurance § 81.
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