New Mexico Administrative Code

The purpose of this rule is to establish requirements for life insurance policy illustrations that will protect consumers and foster consumer education. The rule provides illustration formats, prescribes standards to be followed when illustrations are used, and specifies the disc…

For the purposes of this rule: A. "Actuarial standards board" means the board established by the American academy of actuaries to develop and promulgate standards of actuarial practice. B. "Basic illustration" means a ledger or proposal used in the sale of a life insurance policy…

A. The insurer may choose to designate each year the method of determining assumed expenses for all policy forms from the following: (1) fully allocated expenses; (2) marginal expenses; and (3) a generally recognized expense table based on fully allocated expenses representing a …

A. Each insurer marketing policies to which this rule is applicable shall notify the superintendent whether a policy form is to be marketed with or without an illustration. For all policy forms being actively marketed on the effective date of this rule, the insurer shall identify…

Public Regulation Commission, Insurance Division.

A viatical settlement company or broker shall not enter into a viatical settlement that provides a payment to the viator that is unreasonable or unjust. In determining whether a payment is unreasonable or unjust, the Superintendent may consider, among other factors, the life expe…

on March 1of each calendar year, each viatical settlement provider licensed in this state shall report all viatical settlement transactions for which the viator is a resident of this state, and for all states in the aggregate, containing the following information for the previous…

A. A trustee or escrow agent shall pay the proceeds of a viatical settlement made pursuant to NMSA 1978 Section 59A-20A-9D by means of wire transfer to the account of the viator or by certified check or cashier's check made payable to the viator. B. A viatical settlement provider…

A. Advertising related to the viatical settlement shall be truthful and not misleading by fact or implication. B. If the advertising statesthe speed with which the viatication will occur, the advertising must disclose the average time frame from completed application to the date …

If a viatical settlement provider enters into a viatical settlement that allows the viator to retain an interest in the policy, the viatical settlement contract shall contain a provision that: A. the viatical settlement provider will effect the transfer of only the amount of the …

A. A viatical settlement provider or broker shall provide a disclosure document containing the disclosures required in NMSA 1978 Section 59A-20A-8 and this section before or concurrent with taking an application for a viatical settlement contract. B. The disclosure document shall…

A. A viatical settlement provider or broker shall obtain from a person that is provided with patient identifying information a signed affirmation that the person will not further divulge the information without procuring the express written consent of the insured for the disclosu…

A. Life insurance companies authorized to do business in this state shall respond to a request for verification of coverage from a viatical settlement provider or broker within thirty (30) calendar days of the date a request is received. The request shall be accompanied by: (1) a…

Selling Your Life Insurance Policy Today it's possible for you to sell your life insurance policy to someone else (a viatical settlement provider) for an immediate cash payment. This financial arrangement, known as a viatical settlement, is best suited for people who are living w…

Appendix B

This rule applies to all persons soliciting, negotiating, financing, or transacting viatical settlements in New Mexico.

Appendix C

NMSA 1978 Sections 59A-2-9 and 59A-20A-10.

Permanent.

July 1, 2000, unless a later date is cited at the end of a section.

The purpose of this rule is to implement the Viatical Settlements Act, NMSA 1978 Section 59A-20A-1 et seq.

In addition to the definitions in NMSA 1978 Section 59A-20A-2, as used in this rule: A. chronically ill means:(1) being unable to perform at least two (2) activities of daily living (i.e., eating, toileting, transferring, bathing, dressing or continence); (2) requiring substantia…

A. A viatical settlement provider or broker transacting business in this state may continue to do so pending issuance of the provider or broker's license as long as its application for a license is filed with the Superintendent by July 1, 2000. B. The Superintendent may ask for a…

A. A viatical settlement provider or broker may renew its license yearly by filing an application for renewal no less than thirty (30) days before the anniversary date of licensure. The Superintendent shall refuse to renew a license if the licensee fails to: (1) file a current co…

New Mexico Public Regulation Commission, Insurance Division.

A. The 2001 CSO mortality table may be used in applying 13.9.13 NMAC in the following manner, subject to the transition dates for use of the 2001 CSO mortality table in Section 4 of this rule (unless otherwise noted, the references in this section are to 13.9.13 NMAC): (1) Subpar…

A. For any ordinary life insurance policy delivered or issued for delivery in this state on and after January 1, 2004, that utilizes the same premium rates and charges for male and female lives or is issued in circumstances where applicable law does not permit distinctions on the…

This rule applies to all life insurance companies issuing life insurance policies.

Sections 59A-2-9, 59A-8-5 and 59A-20-31 NMSA 1978.

Permanent.

January 1, 2004, unless a later date is cited at the end of a section.

The purpose of this rule is to recognize, permit and prescribe the use of the 2001 commissioners standard ordinary (CSO) mortality table in accordance with Section 59A-8-5 NMSA 1978, Standard Valuation Law, Life Insurance and Annuities, Section 59A-20-31 NMSA 1978, Standard Nonfo…

A. 2001 CSO Mortality Table means that mortality table, consisting of separate rates of mortality for male and female lives, developed by the American academy of actuaries CSO task force from the valuation basic mortality table developed by the society of actuaries individual lif…

A. For each plan of insurance with separate rates for smokers and nonsmokers an insurer may use: (1) composite mortality tables to determine minimum reserve liabilities and minimum cash surrender values and amounts of paid-up nonforfeiture benefits; (2) smoker and nonsmoker morta…

New Mexico Public Regulation Commission Insurance Division.

The following acts or practices by an insurer or insurance producer constitute corrupt practices, improper influences or inducements and are declared to be false, misleading, deceptive or unfair: A. submitting, processing or assisting in the submission or processing of any allotm…

A. The following acts or practices by an insurer or insurance producer lead to confusion regarding source, sponsorship, approval or affiliation and are declared to be false, misleading, deceptive or unfair: (1) making any representation, or using any device, title, descriptive na…

A. The following acts or practices by an insurer or insurance producer regarding SGLI or VGLI are declared to be false, misleading, deceptive or unfair: (1) making any representation regarding the availability, suitability, amount, cost, exclusions or limitations to coverage prov…

The following acts or practices by an insurer or insurance producer with respect to the sale of certain life insurance products are declared to be false, misleading, deceptive or unfair: A. excluding individually issued annuities, recommending the purchase of any life insurance p…

This rule shall apply to the solicitation or sale of any life insurance or annuity product by an insurer or insurance producer to an active duty service member of the United States armed forces.

Sections 59A-2-9, 59A-16-3, 59A-16-4, 59A-16-5 and 59A-16-15 NMSA 1978.

Permanent.

January 1, 2008 unless a later date is cited at the end of a section.

The objective of this rule is to set forth standards to protect active duty service members of the United States armed forces from dishonest and predatory insurance sales practices by declaring certain identified practices to be false, misleading, deceptive or unfair.

A. Active Duty means full-time duty in the active military service of the United States and includes members of the reserve component, national guard and reserve, while serving under published orders for active duty or full-time training. The term does not include members of the …

A. This rule shall not apply to solicitations or sales involving: (1) credit insurance; (2) group life insurance or group annuities where there is no in-person, face-to-face solicitation of individuals by an insurance producer or where the contract or certificate does not include…

A. The following acts or practices when committed on a military installation by an insurer or insurance producer with respect to the in-person, face-to-face solicitation of life insurance are declared to be false, misleading, deceptive or unfair: (1) knowingly soliciting the purc…

Office of Superintendent of Insurance (OSI), Post Office Box 1689, Santa Fe, NM 87504-1689.

If any provision of this rule or its application to any person or circumstance is for any reason held to be invalid, the remainder of the rule and the application of the provision to other persons or circumstances shall not be affected.

This rule applies to all insurers issuing life insurance policies.