1. A. All insurers shall organize and remain members of the association as a condition of their authority to transact insurance or a health maintenance organization business covered by Section 59A-42-4 NMSA 1978. The association may take any appropriate form of legal entity available under the laws of this state and approved by the superintendent. The association shall perform its functions under the plan of operation established and approved pursuant to Section 59A-42-9 NMSA 1978 and shall exercise its powers through the board. For purposes of assessment and administration, the association shall maintain two accounts:

   1. (1) the life insurance and annuity account, which includes the following subaccounts:

      1. (a) a life insurance account;
      2. (b) an annuity account, which includes annuity contracts owned by a governmental retirement benefit plan, or its trustee, established pursuant to Section 401, 403(b) or 457 of the federal Internal Revenue Code of 1986, but otherwise excludes unallocated annuities; and
      3. (c) an unallocated annuity account, which excludes contracts owned by a governmental retirement benefit plan, or its trustee, established pursuant to Section 401, 403(b) or 457 of the federal Internal Revenue Code of 1986; and
   2. (2) the health account.
2. B. The association shall be supervised by the superintendent and shall be subject to the applicable provisions of the insurance laws of New Mexico. Meetings or records of the association may be opened to the public upon majority vote of the board of the association.

History: Laws 1984, ch. 127, § 754; 2012, ch. 9, § 8; 2024, ch. 36, § 3.

ANNOTATIONS

Cross references. — For Sections 401, 403(b) and 457 of the federal Internal Revenue Code of 1986, see 26 U.S.C.§§ 401, 403(b) and 457, respectively.

The 2024 amendment, effective January 1, 2025, included health maintenance organizations as members of the life and health insurance guaranty association; and in Subsection A, after "transact insurance" added "or a health maintenance organization".

Applicability. – Laws 2024, ch. 36, § 12 provided that Laws 2024, ch. 36 shall not apply to any member insurer that was insolvent or unable to fulfill the member insurer's contractual obligations prior to January 1, 2025.

The 2012 amendment, effective July 1, 2012, created the accounts of the association; provided for the supervision of the association; provided for the opening of meetings and records to the public; in Subsection A, in the third sentence, after "approved pursuant to", deleted "this article" and added "Section 59A-42-9 NMSA 1978"; and in the fourth sentence, after "shall maintain", deleted "three (3)" and added "two"; after "accounts", deleted "A. the health insurance account", "B. the life insurance account; and", and "C. the annuity account" and added Paragraph (1), including Subparagraphs (a) through (c), and Paragraph (2); and added Subsection B.