N.M. Admin. Code § 13.12.4.11

Current through Register Vol. 35, No. 17, September 10, 2024

Section 13.12.4.11 - EVALUATION FACTORS

In determining if an applicant will be able to meet its obligations as a self-insured, both at the time of application and continuously thereafter if applicant is granted a certificate of self-insurance, the factors to be considered by the superintendent shall include, but not be limited to, the following:

A. whether the applicant has a tangible net worth of at least two million dollars ($2,000,000.00);

B. whether the applicant is financially solvent;

C. whether the applicant has a risk management system;

D. whether the applicant has an adequate claims management system;

(1) If a third party administrator or claims administration service is to be used, it must be licensed in New Mexico.

(2) If claims are handled in-house, the self-insured must employ a New Mexico-licensed adjuster.

E. whether the applicant has a reserve method for claims;

F. whether applicant's automobiles are leased or rented to others;

G. the ratio of applicant's tangible net worth to its annual self-insurance retention;

H. the ratio of applicant's current assets to its current liabilities;

I. the ratio of applicant's debt to its tangible net worth;

J. the ratio of applicant's tangible net worth to its annual automobile bodily injury and property damage projected losses;

K. applicant's profit and loss history, including credit reports and credit ratings;

L. applicant's automobile bodily injury and property damage exposure, premium, and loss history;

M. applicant's organizational structure and the character and reputation of its management;

N. applicant's claims administration personnel, policies, and procedures;

O. applicant's safety program;

P. the source and reliability of financial information about applicant;

Q. the number of applicant's employees and the number who regularly drive automobiles, or if applicant is an individual, the number of persons who regularly drive applicant's automobiles;

R. the adequacy of applicant's reserves;

S. the adequacy of applicant's excess insurance coverage;

T. the adequacy of applicant's surety bond or other security;

U. the catastrophic loss potential of applicant.

N.M. Admin. Code § 13.12.4.11

4/1/99; Recompiled 11/30/01