New Mexico § 52-6-20 - Deficits and insolvencies

§ 52-6-20. Deficits and insolvencies

A. If the assets of a group are at any time insufficient to enable the group to discharge

its legal liabilities and other obligations and to maintain the reserves required

of it under the Group Self-Insurance Act, it shall forthwith make up the deficiency

or levy an assessment upon its members for the amount needed to make up the deficiency. B. In the event of a deficiency in any fund year, such deficiency shall be made up

immediately, either from: (1) surplus from a fund year other than the current fund year; (2) administrative funds; (3) assessment of the membership, if ordered by the group; or (4) such alternate method as the director may approve or direct. The director shall be notified prior to any transfer of surplus funds from one fund

year to another. C. If the group fails to assess its members or to otherwise make up such deficit within

thirty days, the director shall order it to do so. D. If the group fails to make the required assessment of its members within thirty

days after the director orders it to do so, or if the deficiency is not fully made

up within sixty days after the date on which such assessment is made, or within such

longer period of time as may be specified by the director, the group shall be deemed

to be insolvent. E. The director shall proceed against an insolvent group in the same manner as the

superintendent would proceed against an insolvent domestic insurer in this state as

prescribed by the Insurance Code. The director shall have the same powers and limitations in such proceedings as are

provided to the superintendent under that code, except as otherwise provided in the

Group Self-Insurance Act. F. In the event of the liquidation of a group, the director shall levy an assessment

upon its members for such an amount as the director determines to be necessary to

discharge all liabilities of the group, including the reasonable cost of liquidation.