Bill > HB398

This bill updates several aspects of New Mexico's insurance regulations, focusing on insurance holding companies and health maintenance organizations (HMOs). The bill adds new definitions and requirements for insurance holding companies, including mandating annual enterprise risk reports that outline potential material risks within an insurance holding company system. It establishes a framework for supervisory colleges that allow regulators to collaborate and assess the business strategies, financial positions, and risk management of insurers with international operations. The bill introduces requirements for group capital calculation reports for insurance holding companies, with specific exemptions for certain types of systems, and mandates liquidity stress tests for large life insurance companies. Additionally, the bill modifies the examination timeline for health maintenance organizations, requiring the superintendent to conduct examinations of HMOs and their contract providers at least once every five years, which is intended to better protect the interests of state residents by ensuring more regular oversight of these organizations. The bill aligns with national insurance regulatory standards and provides more comprehensive mechanisms for monitoring and assessing the financial health and risks of insurance entities operating in New Mexico.

Budget and Finance, Government Affairs

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=398&year=25