The bill amends the Insurance Holding Company Law in New Mexico to introduce new definitions and requirements related to group capital calculation reports and liquidity stress tests for insurers. Key insertions include definitions for terms such as "association," "group-wide supervisor," "internationally active insurance group," and "liquidity stress test framework." The bill mandates that the ultimate controlling person of an insurer file an annual group capital calculation report, with certain exemptions for specific insurance holding company systems. Additionally, it establishes that large life insurance companies must conduct and report the results of liquidity stress tests in accordance with guidelines set by the National Association of Insurance Commissioners.

Furthermore, the bill outlines the role of the superintendent in overseeing these processes, including the ability to act as a group-wide supervisor for internationally active insurance groups and to determine the appropriate group-wide supervisor in cooperation with other regulatory agencies. The legislation emphasizes the importance of regulatory compliance and the need for effective risk management within insurance holding company systems, thereby enhancing the financial stability and oversight of the insurance industry in New Mexico.

Statutes affected:
introduced version: 59A-37-2, 59A-37-30, 59A-37-32