This bill amends the Insurance Holding Company Law in New Mexico by introducing new definitions and requirements related to group capital calculations and liquidity stress tests for insurers. Key definitions added include "association," "group-wide supervisor," "internationally active insurance group," and "liquidity stress test framework," among others. 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. It also emphasizes the importance of maintaining a competitive insurance marketplace and ensuring prudential oversight and solvency monitoring. The bill aims to enhance regulatory oversight and improve the financial stability of insurance holding companies operating within New Mexico.

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