New Mexico Administrative Code

A. The deficiency reserve at any duration shall be calculated: (1) on a unitary basis if the corresponding basic reserve determined by 13 nmac 9.13.15 [now 13.9.13.15 NMAC] is unitary; (2) on a segmented basis if the corresponding basic reserve determined by 13 nmac 9.13.15 [now …

Basic reserves may not be less than the tabular cost of insurance for the balance of the policy year, if mean reserves are used. Basic reserves may not be less than the tabular cost of insurance for the balance of the current modal period or to the paid-to date, if later, but not…

A. For any policy with an unusual pattern of guaranteed cash surrender values, the reserves actually held prior to the first unusual guaranteed cash surrender value shall not be less than the reserves calculated by treating the first unusual guaranteed cash surrender value as a p…

At the option of the company, the following approach for reserves on YRT reinsurance may be used: A. Calculate the valuation net premium for each future policy year as the tabular cost of insurance for that future year. B. Basic reserves shall never be less than the tabular cost …

A. This rule applies to all life insurance policies, with or without nonforfeiture values, issued on or after the effective date of this rule. B. This rule does not apply to: (1) any individual life insurance policy issued on or after the effective date of this rule if the policy…

At the option of the company, the following approach for reserves for attained-age-based YRT life insurance policies may be used: A. Calculate the valuation net premium for each future policy year as the tabular cost of insurance for that future year. B. Basic reserves shall neve…

Unitary basic reserves and unitary deficiency reserves need not be calculated for a policy if the following conditions are met: A. the policy consists of a series of n-year periods, including the first period and all renewal periods, where n is the same for each period, except th…

Unitary basic reserves and unitary deficiency reserves need not be calculated for a policy if the following conditions are met, based upon the initial current premium scale at issue: A. at issue, the insured is age twenty-four (24) or younger; B. until the insured reaches the end…

A. General: (1) Policies with a secondary guarantee include:(a) a policy with a guarantee that the policy will remain in force at the original schedule of benefits, subject only to the payment of specified premiums; (b) a policy in which the minimum premium at any duration is les…

A. 13 nmac 9.13.25 through 9.13.30 [now 13.9.13.25 NMAC through 13.9.12.30 NMAC] contain tables of select mortality factors that are referenced in 13 NMAC 9.13.12.2, 9.13.13.2, and 9.13.13.3 [now Subsection B of 13.9.13.12 NMAC and Subsections B and C of 13.9.13.13 NMAC]. B. The …

Issue Duration Age 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20+ 0-15 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 16 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 17 100 100 100 100 100 100 100 100 100 10…

Issue Duration Age 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20+ 0-15 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 16 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 17 100 100 100 100 100 100 100 100 100 10…

Issue Duration Age 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20+ 0-15 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 16 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 17 100 100 100 100 100 100 100 100 100 10…

Issue Duration Age 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20+ 0-15 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 16 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 17 99 100 100 100 100 100 100 100 93 95 9…

Issue Duration Age 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20+ 0-15 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 16 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 17 96 98 98 98 98 99 99 99 92 92 93 95 95…

Sections 59A-2-8, 59A-2-9, 59A-8-5 and 59A-8-6 NMSA 1978.

Issue Duration Age 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20+ 0-15 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 16 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 17 100 100 100 100 100 100 100 100 100 10…

Permanent.

January 1, 2000, unless a later date is specified at the end of a section or paragraph.

The purpose of this rule is to provide tables of select mortality factors and guidelines for their use, and to establish minimum standards for the valuation of plans with nonlevel premiums or benefits and plans with secondary guarantees. The method for calcaluating basic reserves…

For purposes of this rule: A. "Basic reserves" means reserves calculated in accordance with the principles of Section 59A-8-5E NMSA 1978. B. "Contract segmentation method" means the method of dividing the period from issue to mandatory expiration of a policy into successive segme…

The length of a particular contract segment shall be set equal to the minimum of the value t for which Gt is greater than Rt where Gt and Rt are defined as follows: Gt = GPx+k+t __________ GPx+k+t-1 where x = original issue age k = the number of years from the date of issue to th…

A. The uniform percentage for each segment is such that, at the beginning of the segment; the present value of the net premiums within the segment equals: (1) the present value of the death benefits within the segment, plus (2) the present value of any unusual guaranteed cash val…

New Mexico State Corporation Commission [Public Regulation Commission], Department of Insurance, Post Office Box 1269, Santa Fe, NM 87504-1269.

An illustration used in the sale of a life insurance policy shall satisfy the applicable requirements of this rule, be clearly labeled "life insurance illustration" and contain the following basic information: A. name of insurer; B. name and business address of producer or insure…

When using an illustration in the sale of a life insurance policy, an insurer or its producers or other authorized representatives shall not: A. represent the policy as anything other than a life insurance policy; B. use or describe non-guaranteed elements in a manner that is mis…

If an interest rate used to determine the illustrated non-guaranteed elements is shown, it shall not be greater than the earned interest rate underlying the disciplined current scale.

A. The illustration shall be labeled with the date on which it was prepared. B. Each page, including any explanatory notes or pages, shall be numbered and shall show its relationship to the total number of pages in the illustration (e.g., the fourth page of a seven-page illustrat…

A basic illustration shall include the following: A. a brief description of the policy being illustrated, including a statement that it is a life insurance policy; B. a brief description of the premium outlay or contract premium, as applicable, for the policy; for a policy that d…

A. Following the narrative summary, a basic illustration shall include a numeric summary of the death benefits and values and the premium outlay and contract premium, as applicable. For a policy that provides for a contract premium, the guaranteed death benefits and values shall …

Statements substantially similar to the following shall be included on the same page as the numeric summary and signed by the applicant, or the policy owner in the case of an illustration provided at time of delivery. A. A statement to be signed and dated by the applicant or poli…

A. A basic illustration shall include the following for at least each policy year from one (1) to ten (10) and for every fifth policy year thereafter ending at age 100, policy maturity or final expiration; and except for term insurance beyond the 20th year, for any year in which …

A. A supplemental illustration may be provided so long as: (1) it is appended to, accompanied by or preceded by a basic illustration that complies with this rule; (2) the non-guaranteed elements shown are not more favorable to the policy owner than the corresponding elements base…

A. If a basic illustration is used by an insurance producer or other authorized representative of the insurer in the sale of a life insurance policy and the policy is applied for as illustrated, a copy of that illustration, signed in accordance with this rule, shall be submitted …

A. This rule applies to all group and individual life insurance policies and certificates sold on or after October 1, 1998. B. This rule does not apply to: (1) variable life insurance; (2) individual and group annuity contracts; (3) credit life insurance; or (4) life insurance po…

A. If no illustration is used by an insurance producer or other authorized representative in the sale of a life insurance policy or if the policy is applied for other than as illustrated, the producer or representative shall certify to that effect in writing on a form provided by…

If the basic illustration or revised illustration is sent to the applicant or policy owner by mail from the insurer, it shall include instructions for the applicant or policy owner to sign the duplicate copy of the numeric summary page of the illustration for the policy issued an…

A copy of the basic illustration and a revised basic illustration, if any, signed as applicable, along with any certification that either no illustration was used or that the policy was applied for other than as illustrated, shall be retained by the insurer until three (3) years …

For universal life policies designated as ones for which illustrations will be used, the insurer shall provide each policy owner with an annual report on the status of the policy that shall contain at least the following information: A. the beginning and end date of the current r…

For all other policies designated as ones for which illustrations will be used, the insurer shall provide each policy owner with an annual report on the status of the policy that shall contain at least the following information, where applicable: A. current death benefit; B. annu…

Insurers writing life insurance policies that do not build nonforfeiture values shall only be required to provide an annual report with respect to these policies for those years in which the insurer has changed non-guaranteed policy elements.

A. If the annual report does not include an in force illustration, it shall contain the following notice displayed prominently: "IMPORTANT POLICY OWNER NOTICE: You should consider requesting more detailed information about your policy to understand how it may perform in the futur…

If an adverse change in non-guaranteed elements that could affect the policy has been made by the insurer since the last annual report, the annual report shall contain a notice of that fact and the nature of the change prominently displayed.

The board of directors of each insurer shall appoint one or more illustration actuaries, who shall meet the following standards: A. be a member in good standing of the American academy of actuaries; B. be familiar with the standard of practice regarding life insurance policy illu…

If an insurer changes the illustration actuary responsible for all or a portion of the company's policy forms, the insurer shall notify the superintendent of that fact promptly and disclose the reason for the change.

Sections 59A-2-8, 59A-2-9, 59A-16-4, and 59A-16-5 NMSA 1978.

The illustration actuary shall annually: A. certify that the disciplined current scale used in illustrations is in conformity with the Actuarial Standard of Practice for Compliance with the NAIC Model Rule on Life Insurance Illustrations promulgated by the Actuarial Standards Boa…

A responsible officer of the insurer, other than the illustration actuary, shall certify annually: A. that the illustration formats meet the requirements of this rule and that the scales used in insurer-authorized illustrations are those scales certified by the illustration actua…

Permanent.

October 1, 1998, unless a later date is cited at the end of a section or paragraph.