New Mexico Administrative Code

This rule does not apply to the situations described in this section: A. Reinsurance of: (1) policies that satisfy the criteria for exemption set forth in 13.9.13.20 NMAC or 13.9.13.21 NMAC and which are issued before the effective date of this regulation; (2) portions of policie…

If any provision of this regulation is held invalid, the remainder shall not be affected.

This regulation shall apply to reinsurance treaties that cede liabilities pertaining to covered policies, as that term is defined in Subsection B of 13.9.21.7 NMAC, issued by any life insurance company domiciled in this state. This regulation and the credit for reinsurance regula…

Sections 59A-2-9 and 59A-12E-17 (2022) NMSA 1978.

Permanent.

November 1, 2023 unless a later date is cited at the end of a section.

The purpose of this rule is to conform with established, uniform, national standards governing reserve financing arrangements pertaining to life insurance policies containing guaranteed nonlevel gross premiums, guaranteed nonlevel benefits and universal life insurance policies wi…

A. "Actuarial method" means the methodology used to determine the required level of primary security, as described in 13.9.21.9 & 13.9.21.10 NMAC B. "Covered policies" means the following: Subject to the exemptions described in 13.9.21.13 NMAC, Covered policies are those policies…

If the national association of insurance commissioners amends the Valuation Manual by the means described in Paragraph (1) of Subsection F of Section 59A-8A-2 NMSA 1978 (2014), the superintendent shall issue a bulletin, pursuant to 13.1.2.8 NMAC, stating that the Valuation Manual…

The actuarial method to establish the required level of primary security for each reinsurance treaty subject to this regulation shall be VM-20, applied on a treaty-by-treaty basis, including all relevant definitions, from the Valuation Manual as then in effect, applied as follows…

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

A. Except as may be provided with respect to reserves for guaranteed benefits and funds referred to in 13 NMAC 9.3.10.2 [now Subsection B of 13.9.3.10 NMAC]: (1) amounts allocated to a separate account and its accumulations may be invested and reinvested without regard to any req…

A. Notwithstanding any other provisions of law, a company may: (1) with respect to a separate account registered with the securities and exchange commission as a unit investment trust, exercise voting rights in connection with securities of a regulated investment company register…

A. No sale, exchange or other transfer of assets may be made by a company between any of its separate accounts or between any other investment account and one or more of its separate accounts unless, in the case of a transfer into a separate account, the transfer is made solely t…

The filing requirements applicable to variable annuities shall be those filing requirements otherwise applicable under existing statutes and rules of this state with respect to individual and group life insurance and annuity contract form filings, to the extent appropriate.

A. A variable annuity providing benefits payable in variable amounts delivered or issued for delivery in this state shall contain a statement of the essential features of the procedures to be followed by the insurance company in determining the dollar amount of variable benefits.…

A. A variable annuity contact delivered or issued for delivery in this state shall stipulate the investment increment factors to be used in computing the dollar amount of variable benefits or other variable contractual payments or values thereunder, and may guarantee that expense…

The reserve liability for variable annuities shall be established pursuant to the requirements of Section 59A-8-5 NMSA 1978 in accordance with actuarial procedures that recognize the variable nature of the benefits provided and any mortality guarantees.

A. To the extent that a variable annuity contract provides benefits that do not vary in accordance with the investment performance of a separate account before the annuity commencement date, the contract shall contain provisions that satisfy the requirements of Section 59A-20-33 …

13 nmac 9.3.17 [now 13.9.3.17 NMAC] shall not apply to any: A. reinsurance; B. group annuity contract purchases in connection with one or more retirement plans or plans of deferred compensation established or maintained by or for one or more employers (including partnerships or s…

A. The minimum values as specified in this section of paid-up annuity, cash surrender or death benefits available under a variable annuity contract shall be based upon nonforfeiture amounts meeting the requirements of this subsection. B. The minimum nonforfeiture amount on any da…

This rule applies to insurance companies delivering or issuing for delivery in this state variable annuities.

The percentages of net considerations used to define the minimum nonforfeiture amount in 13 nmac 9.3.19 [now 13.9.3.19 NMAC] shall meet the requirements of this section. A. With respect to contracts providing for periodic considerations, the net considerations for a given contrac…

Demonstration that a contract's nonforfeiture amounts comply with this section shall be based on the following assumptions: A. values should be tested at the end of each of the first twenty (20) contract years; B. a net investment return of seven percent (7%) per year should be u…

A. Any paid-up annuity benefit available under a variable annuity contract shall be such that its present value on the annuity commencement date is at least equal to the minimum nonforfeiture amount on that date. The present value shall be computed using the mortality table, if a…

A. A company issuing individual variable annuities shall mail to the contractholder at least once in each contract year after the first at his or her last address known to the company, a statement or statements reporting the investments held in the separate account. The company s…

If the law or rules in the place of domicile of a foreign company provides a degree of protection to the policyholders and the public substantially equal to that provided by this rule, the superintendent, to the extent deemed appropriate by the superintendent, may consider compli…

A. Required licensing: (1) A person may not sell or offer for sale in this state any variable annuity contract unless the person is an agent and has filed with the superintendent, in a form satisfactory to the superintendent, evidence that the person holds any license or authoriz…

Sections 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 requirements for issuance or delivery of variable annuities.

For the purpose of this rule: A. "Agent" means a person, corporation, partnership or other legal entity that under the laws of this state is licensed as a life insurance agent, solicitor, general agent or life insurance broker. B. "Net investment return" means that the rate of in…

A. A company shall not deliver or issue for delivery variable annuities within this state unless it is licensed or organized to do a life insurance or annuity business in this state and the superintendent is satisfied that its condition or method of operation in connection with t…

A domestic company issuing variable annuities shall establish one or more separate accounts pursuant to Section 59A-20-30 NMSA 1978 and subject to the provisions in this section and in 13 nmac 9.3.10, 13 nmac 9.3.11 and 13 nmac 9.3.12 [now 13.9.3.10 NMAC, 13.9.3.11 NMAC and 13.9.…

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

This rule applies to corporations and partnerships that insure the life of any director, partner, officer, agent or employee where the corporation or partnership is named as a beneficiary in or assignee of the life insurance policy.

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 requirements for evidence of authority when a corporation or partnership insures the life of any director, partner, officer, agent or employee and the corporation or partnership is named as a beneficiary in or assignee of the life insuranc…

[RESERVED]

A. Evidence of authority: Whenever 1) a corporation organized under the laws of this state causes to be insured the life of any director, officer, agent or employee; and 2) the corporation is named as a beneficiary in or assignee of the life insurance policy, the corporation's au…

A. Evidence of authority: Whenever 1) a partnership organized under the laws of this state causes to be insured the life of one or all of the partners or a partnership officer, agent, or employee; and 2) the partnership is named as a beneficiary in or assignee of the life insuran…

New Mexico Public Regulation Commission, Insurance Division.

A. Upon request of the policyowner, the insurer shall furnish either policy data or an in force illustration as follows: (1) For policies issued prior to the effective date of 13.9.14 NMAC, the insurer shall furnish policy data, or, at its option, an in force illustrations meetin…

The following information shall be adequately disclosed at the time an application is made, prior to accepting the applicant's initial premium or deposit, for a preneed funeral contract or prearrangement that is funded or to be funded by a life insurance policy: A. the fact that …

A. Each insurer shall maintain, at its home office or principal office, a complete file containing one copy of each document authorized and used by the insurer pursuant to this rule. Such file shall contain one copy of each authorized form for a period of three (3) years followin…

Failure of an insurer to provide or deliver a buyer's guide, a policy summary or policy data as provided in 13.9.5.9 through 13.9.5.10 NMAC shall constitute an omission which misrepresents the benefits, advantages, conditions or terms of an insurance policy.

[The face page of the buyer's guide shall read as follows:] Life Insurance Buyer's Guide This guide can help you when you shop for life insurance. It discusses how to: * Find a Policy That Meets Your Needs and Fits Your Budget * Decide How Much Insurance You Need * Make Informed …