Western Investors Life Insurance v. New Mexico Life Insurance Guaranty

I respectfully dissent. NMSA 1978, Section 59-22-13(F) provides that “[t]he Life Insurance Guaranty Act shall not apply to any insurer which is insolvent or unable to fulfill its contractual obligations on the effective date of the act.” An insolvent insurer is defined by Section 59-22-4(F)(2) as an insurer “determined to be insolvent by a court of competent jurisdiction.” Neither Western American nor Western Investors was statutorily insolvent on the effective date of the Life Insurance Guaranty Act (Act). The parties stipulated that Western American was unable to fulfill its contractual…