The superintendent may at any time declare an eligible surplus lines insurer to be ineligible if the superintendent has reason to believe that the insurer:

A. is in unsound financial condition;

B. is subject to delinquency proceedings in this state or any other jurisdiction;

C. is no longer eligible under Section 59A-14-4 NMSA 1978;

D. has violated the laws of this state, including any violation of the Insurance Code or the superintendent's orders;

E. does not make reasonably prompt payment of loss claims or other obligations in this state or elsewhere;

F. has failed within sixty days to satisfy a final judgment rendered against it or against an insured for which it is legally liable under the terms of a contract of surplus lines insurance; or

G. has failed to satisfy the superintendent that it is fit to be allowed to continue to do business in this state.

The superintendent shall promptly mail notice of all such declarations to the insurer and to every surplus lines broker. Notice sent pursuant to this subsection to a licensed surplus lines broker may, at the option of the surplus lines broker, be sent by the superintendent via electronic mail.

History: 1978 Comp., § 59A-14-4.1, enacted by Laws 1991, ch. 125, § 15; 2017, ch. 130, § 9.

Cross references. — For the Insurance Code, see 59A-1-1 NMSA 1978 and notes thereto.

The 2017 amendment, effective July 1, 2017, authorized the superintendent of insurance to use electronic mail to notify surplus lines brokers of ineligible surplus lines insurers; in Subsection D, after "including", deleted "but not limited to"; and added the last sentence of Subsection G.