On Apr. 8, 2025, NM LEG reported governor approved HB 398, assigned as Ch. 108.
On Mar. 21, NM LEG passed bill to amend timeline for provider exams.
NM LEG passed HB 398 to amend the New Mexico statutes annotated, Health Maintenance Organization (HMO) Law as well as the Insurance holding company law.
Amendments modify the timelines for HMO and contract provider examinations, addresses group capital calculations, and reporting, as well as the liquidity stress tests.
Incorporates relevant definitions, including that of an internationally active insurance group, large life insurance company, as well as the liquidity stress test framework.
Requires ultimate controlling person of every insurer subject to registration to file an enterprise risk report each year, with the lead State insurance supervisory official.
Superintendent may act as group-wide supervisor for internationally active insurance group or may designate group-wide supervisory in the US under certain conditions.
Superintendent may acknowledge that commissioner from another jurisdiction is group wide supervisor based on group's written premiums, domicile, location of Executives.
An insurance holding company system that does not qualify as an internationally active insurance group may request superintendent to determine a group-wide supervisor.
Adds obligation to file annual group capital calculation report, and exempted entities.
An insurance holding company system that is required to perform a group capital calculation can request the calculation from the United States federal reserve board.
Lead State regulator will require a group capital calculation for US operation of any non-US-based insurance holding company system if it is deemed appropriate.
Large life insurance company subject to registration will file results of a specific year's liquidity stress, changes effective on Jan. 1 of the year after year of adopted change.
Superintendent will comply with association's liquidity stress test framework instruction, reporting templates and file the results of a specific year's determinations.
Legislative History
On Feb. 12, 2025, bill introduced in House; on Mar. 20, 2025, bill was passed in House.
On Mar. 21, 2025, bill delivered to Senate; on Mar. 21, 2025, bill passed in Senate.
Effectiveness
Bills without effective dates specified in bill text or emergency clauses become effective 90 days after adjournment of the Legislature, so effective on Jun. 20, 2025.
Apr. 2025 NM LEG Governor Approval
On Apr. 8, 2025, NM LEG reported governor approved HB 398, assigned as Ch. 108.
