The superintendent may refuse to initially list or continue to list an unauthorized insurer on the superintendent’s list of eligible surplus lines insurers for any one of the following reasons:

1. A. the insurer’s key management, owners or other employees have been involved in fraud, mismanagement, bankruptcy or other activities that reflect unfavorably on the integrity of the insurer;
2. B. the insurer operates through managing general agents without appropriate safeguards;
3. C. the insurer has a material conflict of interest;
4. D. the insurer has been in business for less than three years;
5. E. the insurer has had new owners or management for less than three years;
6. F. the insurer has an a.m. best’s rating of B or lower;
7. G. the insurer has had three or more adverse IRIS reports, unless the superintendent accepts a valid explanation by the insurer;
8. H. the insurer has had a rate of growth greater than 20% per year over the last three years, unless other financial indicators are favorable;
9. I. the insurer has been unprofitable for each of the last three years or has a long-term history of chronic unprofitability, unless the superintendent accepts a valid explanation by the insurer;
10. J. the insurer has a questionable financial condition for any other reason;
11. K. the superintendent has reason to believe that the insurer meets the ineligibility standards of Section 59A-14-14.1 NMSA 1978; or

12. L. the superintendent determines that such action is necessary for protection of the public.

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