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:

1. A. whether the applicant has a tangible net worth of at least two million dollars ($2,000,000.00);
2. B. whether the applicant is financially solvent;
3. C. whether the applicant has a risk management system;

4. 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.

5. E. whether the applicant has a reserve method for claims;
6. F. whether applicant’s automobiles are leased or rented to others;
7. G. the ratio of applicant’s tangible net worth to its annual self-insurance retention;
8. H. the ratio of applicant’s current assets to its current liabilities;
9. I. the ratio of applicant’s debt to its tangible net worth;
10. J. the ratio of applicant’s tangible net worth to its annual automobile bodily injury and property damage projected losses;
11. K. applicant’s profit and loss history, including credit reports and credit ratings;
12. L. applicant’s automobile bodily injury and property damage exposure, premium, and loss history;
13. M. applicant’s organizational structure and the character and reputation of its management;
14. N. applicant’s claims administration personnel, policies, and procedures;
15. O. applicant’s safety program;
16. P. the source and reliability of financial information about applicant;
17. 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;
18. R. the adequacy of applicant’s reserves;
19. S. the adequacy of applicant’s excess insurance coverage;
20. T. the adequacy of applicant’s surety bond or other security;

21. U. the catastrophic loss potential of applicant.

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