N.M. Admin. Code § 11.4.8.7

Current through Register Vol. 35, No. 21, November 5, 2024

Section 11.4.8.7 - DEFINITIONS

A. "Approved excess insurer" means an insurer domiciled within the United States of America or an alien insurer listed in the national association of insurance commissioner's (NAIC) quarterly listing of alien insurers with a rating of "A" or better by A.M. Best or similar rating organization approved by the director.

B. "Approved security" means a letter of credit or surety bond issued by an approved financial institution or surety respectively and used for the payment of claims and related expenses in the event of default by the employer and for reimbursement to the guarantee fund for any benefits paid by the fund on behalf of the employer.

C. "Approved surety" means a financial institution with at least one location in New Mexico or a New Mexico admitted carrier, that is not in the control of the self-insured, and that has a rating of "A" or better from A.M. Best, a rating of "good" or better by Bauer Financial, or similar ratings from organizations approved by the director.

D. "Completed application" means an application for certificate of self-insurance that demonstrates all the eligibility criteria and that attaches all required documentation, as set forth in these rules.

E. "Director" means the director of the workers' compensation administration.

F. "Financially solvent" means an employer's current and continuing ability to pay, as they become due, all existing and future obligations, including workers' compensation benefits to which it is or becomes obligated under the act.

G. "Guarantee fund" means the fund created by Section 52-8-7(A) NMSA 1978 to provide benefits to workers and the families of workers of private individual self-insurers who become insolvent or otherwise unable to meet their financial obligations.

H. "Guarantee board" means the board of directors of the self-insurers' guarantee fund commission.

I. "Parent" means ownership of a subsidiary entity of greater than 50 percent.

J. "Reserves" means the value of claims without regard to expected excess insurance or other recoveries.

K. "Risk management program" means an entity's claims administration personnel, policies and procedures, safety program and personnel, and adequate excess insurance.

L. "Tangible net worth" means net worth less intangible assets.

N.M. Admin. Code § 11.4.8.7

8/1/96, 10/1/98; 11.4.8.7 NMAC - Rn & A, 11 NMAC 4.8.7, 1/14/05, Adopted by New Mexico Register, Volume XXVI, Issue 18, September 29, 2015, eff. 10/1/2015