New Mexico Administrative Code

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

Permanent.

December 31, 2007 unless a later date is cited at the end of a section.

The purpose of this regulation is to recognize, permit and prescribe the use of mortality tables that reflect differences in mortality between preferred and standard lives in determining minimum reserve liabilities.

A. "2001 CSO Mortality Table" means that mortality table, consisting of separate rates of mortality for male and female lives, developed by the AAA CSO task force from the Valuation Basic Mortality Table developed by the SOA individual life insurance valuation mortality task forc…

At the election of the insurer, for each calendar year of issue, for any one or more specified plans of insurance and subject to satisfying the conditions stated in this rule, the 2001 CSO Preferred Class Structure Mortality Table may be substituted in place of the 2001 CSO Smoke…

A. For each plan of insurance with separate rates for preferred and standard nonsmoker lives, an insurer may use the Super Preferred Nonsmoker, Preferred Nonsmoker, and Residual Standard Nonsmoker Tables to substitute for the Nonsmoker Mortality Table found in the 2001 CSO Mortal…

New Mexico Public Regulation Commission Insurance Division.

A. The method used in determining the standard for the minimum valuation of reserves of preneed insurance shall be the method defined in Section 59A-8-5 NMSA 1978. B. The method used in determining the standard for the minimum nonforfeiture values for preneed insurance shall be t…

A. For preneed insurance policies issued on or after the effective date of this regulation and before January 1, 2012, the 2001 CSO may be used as the minimum standard for reserves and minimum standard for nonforfeiture benefits for both male and female insureds. B. If an insurer…

This rule applies to "funeral plans," as defined in Section 59A-49-4 NMSA 1978, to "preneed funeral contracts or prearrangements," as defined in 13.9.5.7 NMAC, and to similar policies and certificates. In case of any conflict with 13.9.16 NMAC or 13.9.18 NMAC, the provisions of 1…

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

Permanent.

January 1, 2009, unless a later date is cited at the end of a section.

The purpose of this regulation is to establish for preneed insurance minimum mortality standards for reserves and nonforfeiture values, and to require the use of the 1980 commissioners standard ordinary (CSO) life valuation mortality table for use in determining the minimum stand…

A. "2001 CSO mortality table" means the definition in 13.9.16 NMAC and 13.9.18 NMAC. B. "Ultimate 1980 CSO" means the commissioners' 1980 standard ordinary life valuation mortality tables (1980 CSO) without ten-year (10-year) selection factors, incorporated into the 1980 amendmen…

For preneed insurance, as defined in paragraph C of 13.9.19.7 NMAC, and similar policies and contracts, the minimum mortality standard for determining reserve liabilities and nonforfeiture values for both male and female insured shall be the Ultimate 1980 CSO.

A. The interest rates used in determining the minimum standard for valuation of preneed insurance shall be the calendar year statutory valuation interest rates as defined in Section 59A-8-5 NMSA 1978. B. The interest rates used in determining the minimum standard for nonforfeitur…

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

In any solicitation of an offer to buy, or in any sale of a life insurance policy, an endowment or an annuity contract, concurrently with the sale of shares of a mutual fund or other security, the prospect or policyholder must be furnished a copy of a clear and unambiguous writte…

Any proposal referred to in this rule must: A. be dated and signed by the insurance agent; B. state the name of the company in which the life insurance policy, or endowment or annuity contract is to be written; C. state that the purchaser has the right to purchase a life insuranc…

Any bill, statement, draft, or representation sent or delivered to any policyholder must show the premium charge for the life insurance policy, an endowment or an annuity contract separate from any other charges or values shown in the same billing, but nothing in this section sha…

A. File of advertising and other sales material: Each insurance company to whom this rule applies, shall maintain at its home or principal office a complete file containing every printed, published, or prepared advertisement, advertising material, sales literature and sales aid o…

The provisions of this rule shall not apply to any arrangement for the concurrent purchase of a life insurance policy, an endowment or an annuity contract and mutual fund shares or other securities which arrangement would be deemed a "security" as defined by the Sale of Insurance…

No person shall solicit an offer to buy or solicit the sale of life insurance, endowments or annuity contracts concurrent with a sale of shares of a mutual fund or other security unless the person is licensed as a life insurance agent in accordance with the provisions of Section …

A. Any insurance company or agent who willfully violates any of the provisions of this rule shall, after a hearing, be subject to have its insurance suspended or revoked by the superintendent of insurance. B. Nothing in this section shall be construed as limiting the power of the…

This rule shall apply, but is not limited, as follows: A. to acts and practices in the advertising, promotion, offering, solicitation, negotiation of or effecting the sale of: (1) life insurance policies, endowments and annuity contracts being offered for sale or purchase concurr…

Section 59A-2-9 NMSA 1978.

Permanent.

July 1, 1997, unless a later date is cited at the end of a section or paragraph.

The purpose of this rule is to establish the minimum standards for disclosure of information in the sales of life insurance policies, endowments or annuity contracts, concurrently with the sale of mutual fund shares or other securities.

[RESERVED]

No insurance company, agent, or person to whom this rule applies shall make, concurrent with the sales of life insurance policies, endowments and annuity contracts and mutual fund shares or other securities, a proposal or billing other than in accordance with the requirements of …

The insurance agent or solicitor at the commencement of and throughout the sales presentation, must fully disclose to the purchaser that he has the right to purchase a life insurance policy, an endowment or an annuity contract only; mutual fund shares or other securities only, or…

The New Mexico Office of Superintendent of Insurance ("OSI").

An insurance producer shall not solicit the sale of an annuity product unless the insurance producer has adequate knowledge of the product to recommend the annuity and the insurance producer is in compliance with the insurer's standards for product training. An insurance producer…

A. An insurer, general agent, independent agency or insurance producer shall maintain and make available to OSI, upon request, records of the information collected from the consumer, disclosures made to the consumer, including summaries of oral disclosures, and other information …

A. An insurer is responsible for compliance with this rule. If a violation occurs, either because of the action or inaction of the insurer or its insurance producer, the superintendent may order: (1) an insurer to take reasonably appropriate corrective action for any consumer har…

This rule applies to any sale or recommendation of an annuity in New Mexico or to a resident of New Mexico, regardless of an insurance producer's state of domicile.

Chapter 59A, Article 16 NMSA 1978 and Section 59A-2-9 NMSA 1978.

Permanent.

October 1, 2022, unless a later date is cited at the end of a section.

A. This rule requires an insurance producer as defined in Section 59A-12-2E NMSA 1978 to act in the best interest of a consumer when making a recommendation of an annuity and require an insurer to establish and maintain a system to supervise recommendations so that the insurance …

For the purposes of this rule: A. "Annuity" means an annuity that is an insurance product under state law that is individually solicited, whether the product is classified as an individual or group annuity. B. "Cash compensation" means any discount, concession, fee, service fee, …

Unless otherwise specifically stated, this rule shall not apply to transactions involving: A. a direct response solicitation when there is no recommendation based on information collected from the consumer pursuant to this rule; B. a contract used to fund: (1) an employee pension…

A. Best interest obligations. An insurance producer, when making a recommendation of an annuity, shall act in the best interest of the consumer under the circumstances known at the time the recommendation is made, without placing the insurance producer's or the insurer's financia…

Office of Superintendent of Insurance ("OSI").

For the purposes of both calculating the required level of primary security pursuant to the actuarial method, as described in 13.9.21.9 NMAC, and determining the amount of primary security and other security, as applicable, held by or on behalf of the ceding insurer, the followin…

A. Requirements: Subject to the exemptions described in 13.9.21.13 NMAC and the provisions of Subsection B of 13.9.21.11 NMAC, credit for reinsurance shall be allowed with respect to ceded liabilities pertaining to covered policies pursuant to Sections 59A-12E-3 through -15 NMSA …

No insurer that has covered policies as to which this regulation applies (as set forth in 13.9.21.2 NMAC) shall take any action or series of actions, or enter into any transaction or arrangement or series of transactions or arrangements if the purpose of such action, transaction …