N.M. Code R. § 13.17.4.8 – Participation of Workers’ Compensation Insurers

A. The undertakings of any policy issued by the agency shall be fully reinsured by all members of the pool in proportion to the amount that the net direct workers’ compensation line premium on the insurance written in the state during the preceding calendar year by the issuing member bears to the total of workers’ compensation line premiums written in this state during the preceding calendar year by all members of the agency. Net direct workers’ compensation line premium shall be direct written premium exclusive of policyholder dividends and New Mexico Workers’ Compensation Assigned Risk Pool premiums.
B. The premium used for the basis of proration, as described in Subsection A of 13.17.4.8 NMAC shall be those premiums reported to the New Mexico department of insurance in the annual statement. Each member company may file with the agency for exclusion of those premiums classified as workers’ compensation premiums on the annual statement.
C. The exclusions applicable in Subsection B of 13.17.4.8 NMAC shall not reduce the member’s assessment base below zero.
D. Application for exclusion under Subsection B of 13.17.4.8 NMAC shall be made prior to April 1 of the following calendar year and shall be certified by a responsible officer of the member company. Members may apply for the exclusions described above on a form prescribed by the agency and approved by the superintendent and may be required by the agency to provide other information as may be necessary to verify the information contained in the application.
[1/1/90, 7/1/97; 13.17.4.8 NMAC - Rn & A, 13 NMAC 17.4.8, 12/31/04]