New Mexico Administrative Code

A. This rule applies to: (1) any solicitation, negotiation or procurement of life insurance occurring within this state; (2) any issuer of life insurance contracts including fraternal benefit societies. B. Unless specifically included, this rule shall not apply to: (1) annuities;…

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

Permanent.

1-1-04, unless a later date is cited at the end of a section.

The objective of this rule is to require insurers to deliver to purchasers of life insurance information which will improve the buyer's ability to select the most appropriate plan of life insurance for the buyer's needs, improve the buyer's understanding of the basic features of …

For the purposes of this rule, the following definitions apply: A. "buyer's guide" means the Life Insurance Buyer's Guide contained in 13.9.5.14 NMAC or other language approved by the superintendent; B. "current scale of nonguaranteed elements" means a formula or other mechanism …

Every policy summary shall include at least the following information: A. The prominently placed title "Statement Of Policy Cost And Benefit Information." B. The name and address of the insurance agent or, if no agent is involved, a statement of the procedure to be followed in or…

A. The insurer shall provide a buyer's guide to all prospective purchasers, prior to accepting the applicant's initial premium or premium deposit. However, if the policy for which the application is made contains an unconditional refund provision for at least ten (10) days, the b…

New Mexico Public Regulation Commission, Insurance Division.

A. Where a replacement is involved in the transaction, the replacing insurer shall: (1) verify that the required forms are received and are in compliance with this rule; (2) notify any other existing insurer that may be affected by the proposed replacement within five (5) busines…

Where a replacement is involved in the transaction, the existing insurer shall: A. retain and be able to produce all replacement notifications received, indexed by replacing insurer, for at least five (5) years or until the conclusion of the next regular examination conducted by …

A. In the case of an application that is initiated as a result of a direct response solicitation, the insurer shall require, with or as part of each completed application for a policy or contract, a statement asking whether the applicant, by applying for the proposed policy or co…

A. Any failure to comply with this rule shall be considered a violation of Section 59A-16-6 NMSA 1978. Examples of violations include: (1) any deceptive or misleading information set forth in sales material; (2) failing to ask the applicant in completing the application the perti…

Important Notice: Replacement of Life Insurance or Annuities IMPORTANT NOTICE: REPLACEMENT OF LIFE INSURANCE OR ANNUITIES This document must be signed by the applicant and the producer, if there is one, and a copy left with the applicant. You are contemplating the purchase of a l…

Notice Regarding Replacement NOTICE REGARDING REPLACEMENT REPLACING YOUR LIFE INSURANCE POLICY OR ANNUITY? Are you thinking about buying a new life insurance policy or annuity and discontinuing or changing an existing one? If you are, your decision could be a good one-or a mistak…

Important Notice: Replacement of Life Insurance or Annuities. IMPORTANT NOTICE: REPLACEMENT OF LIFE INSURANCE OR ANNUITIES You are contemplating the purchase of a life insurance policy or annuity contract. In some cases this purchase may involve discontinuing or changing an exist…

This rule applies to the replacement of life insurance and annuities as defined in this rule. A. Unless otherwise specifically included, this rule shall not apply to transactions involving: (1) credit life insurance; (2) group life insurance or group annuities where there is no d…

Sections 59A-2-8, 59A-2-9, and 59A-16-7 NMSA 1978.

Permanent.

1-1-04, unless a later date is cited at the end of a section.

The purpose of this rule is: A. to regulate the activities of insurers and producers with respect to the replacement of existing life insurance and annuities; B. to protect the interests of life insurance and annuity purchasers by establishing minimum standards of conduct to be o…

A. "Direct-response solicitation" means a solicitation through a sponsoring or endorsing entity or individually solely through mails, telephone, the Internet or other mass communication media. B. "Existing insurer" means the insurance company whose policy or contract is or will b…

A. A producer who initiates an application shall submit to the insurer, with or as part of the application, a statement signed by both the applicant and the producer as to whether the applicant has existing policies or contracts. If the answer is "no," the producer's duties with …

Each insurer that use producers shall: A. maintain a system of supervision and control to insure compliance with the requirements of this rule that shall include at least the following: (1) inform its producers of the requirements of this rule and incorporate the requirements of …

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

Minimum cash surrender values for flexible premium universal life insurance policies shall be determined separately for the basic policy and any benefits and riders for which premiums are paid separately. The following requirements pertain to a basic policy and any benefits and r…

For fixed premium universal life insurance policies, the minimum cash surrender values shall be determined separately for the basic policy and any benefits and riders for which premiums are paid separately. The following requirements pertain to a basic policy and any benefits and…

If a universal life insurance policy provides for the optional election of a paid-up nonforfeiture benefit, it shall be such that its present value shall be at least equal to the cash surrender value provided for by the policy on the effective date of the election. The present va…

A. The policy shall provide that the policyowner will be sent, without charge, at least annually, a report which will serve to keep such policyowner advised as to the status of the policy. The end of the current report period must be not more than three months previous to the dat…

In connection with any advertising solicitation, negotiation, or procurement of a universal life insurance policy: A. Any statement of policy cost factors or benefits shall contain: (1) the corresponding guaranteed policy cost factors or benefits, clearly identified; (2) a statem…

The policy shall provide that the policyowner will be sent, without charge, at least annually, a report which will serve to keep such policyowner advised of the status of the policy. The end of the current report period shall be not more than three months previous to the date of …

The following information shall be submitted in connection with any filing of interest-indexed universal life insurance policies (interest-indexed policies). All such information received shall be treated confidentially to the extent permitted by law. A. A description of how the …

A. Annually, every insurer shall submit a statement of actuarial opinion by the insurer's actuary similar to the example contained in 13 NMAC 9.7.17.4 [now Subsection D of 13.9.7.17 NMAC]. B. Annually, every insurer shall submit a description of the amount and type of assets curr…

This rule applies to all individual universal life insurance policies except variable life insurance policies covered by 13 NMAC 9.8 [now 13.9.8 NMAC].

Section 59A-2-9 NMSA 1978.

Permanent.

December 1, 1985, unless a later date is cited at the end of a section or paragraph. Repromulgated in NMAC format effective July 1, 1997.

The purpose of this rule is to supplement other rules on life insurance policies in order to accommodate the development and issuance of universal life insurance plans.

A. "Cash surrender value" means the net cash surrender value plus any amounts outstanding as policy loans. B. "Fixed premium universal life insurance policy" means a universal life insurance policy other than a flexible premium universal life insurance policy. C. "Flexible premiu…

The minimum valuation standard for universal life insurance policies shall be the commissioners reserve valuation methods and the tables and interest rates specified in this section. A. Terminal reserve: The terminal reserve for the basic policy and any benefits and/or riders for…

A. If, in any policy year, the guaranteed maturity premium on any universal life insurance policy is less than the valuation net premium for such policy, calculated by the valuation method actually used in calculating the reserve thereon but using the minimum valuation standards …

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

Every insurer seeking approval to enter into the variable life insurance business in this state shall establish and maintain a written statement specifying the standards of suitability to be used by the insurer. Such standards of suitability shall specify that no recommendations …

An insurer authorized to transact variable life insurance business in this state shall not use any sales material, advertising material, or descriptive literature or other materials of any kind in connection with its variable life insurance business in this state which is false, …

Any material contract between an insurer and suppliers of consulting, investment, administrative, sales, marketing, custodial, or other services with respect to variable life insurance operations shall be in writing and provide that the supplier of such services shall furnish the…

A. Any insurer authorized to transact the business of variable life insurance in this state shall submit to the superintendent, in addition to any other materials which may be required by this rule or any other applicable laws or regulations: (1) an annual statement of the busine…

Any material required to be filed with and approved by the superintendent shall be subject to disapproval at any time it is found by him not to comply with the standards established by this rule.

The superintendent shall not approve any variable life insurance form filed unless it conforms to the requirements of 13 NMAC 9.8.15, 9.8.16, 9.8.17, 9.8.18, 9.8.19 and 9.8.20 [now Sections 15, 16, 17, 18, 19 and 20 of 13.9.8 NMAC].

All variable life insurance policies, and all riders, endorsements, applications and other documents which are to be attached to and made a part of the policy and which relate to the variable nature of the policy, shall be filed with the superintendent and approved by him prior t…

Variable life insurance policies delivered or issued for delivery in this state shall comply with the following minimum requirements: A. Mortality and expense risks shall be borne by the insurer. The mortality and expense charges shall be subject to the maximums stated in the con…