reglab/statecodes huggingface dataset:
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20 - Life Insurance and Annuity Contracts › Section 59A-20-9 - Policy loans.

A. There shall be a provision that after three (3) full years' premiums have been paid, and after the policy has a cash surrender value and while no premium is in default beyond the grace period for payment, the insurer will advance, on proper assignment or pledge of the policy and on the sole security thereof, at a rate of interest not exceeding that allowable under Section 375 [59A-20-10 NMSA 1978] of this article, an amount equal to or, at the option of the party entitled thereto, less than the loan value of the policy. Before approving any policy language providing for a rate of interest in excess of eight percent, the superintendent shall require certification by the insurer that the holders of such policies will benefit through higher dividends or lower premiums, or both. The interest rate provided for by this section shall not impair the terms and conditions of any policy in force before the effective date of the Insurance Code. The loan value of the policy shall be at least equal to the cash surrender value at the end of the then current policy year, provided that the insurer may deduct, either from such loan value or from the proceeds of the loan, any existing indebtedness not already deducted in determining such cash surrender value including any interest then accrued but not due, any unpaid balance of the premium for the current policy year and interest on the loan to the end of the current policy year. The policy may also provide that if interest on any indebtedness is not paid when due it shall then be added to the existing indebtedness and shall bear interest at the same rate, and that if and when the total indebtedness on the policy, including interest due or accrued, equals or exceeds the amount of the loan value thereof, then the policy shall terminate and become void. The policy shall reserve to the insurer the right to defer the granting of a loan, other than for the payment of any premium to the insurer, for six (6) months after application therefor. The policy, at the insurer's option, may provide for automatic premium loan, subject to an election of the party entitled to elect.
B. This section shall not apply to term policies nor to term insurance benefits provided by rider or supplemental policy provisions, or to industrial life insurance policies.
History:
Laws 1984, ch. 127, § 374.
ANNOTATIONS
Effective dates.
— Laws 1984, ch. 127, § 999 made the Insurance Code effective January 1, 1985.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
Right of beneficiary as against estate of insured who borrowed on the policy, 31 A.L.R.2d 979.
Right of creditors of life insured as to options or other benefits available to him during his lifetime, 37 A.L.R.2d 268.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20 - Life Insurance and Annuity Contracts › Section 59A-20-11 - Table of installments.

If the policy provides that the proceeds may be payable in installments which are determinable at issue of the policy, there shall be a table showing the amount of the guaranteed installments.
History:
Laws 1984, ch. 127, § 376.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20 - Life Insurance and Annuity Contracts › Section 59A-20-12 - Reinstatement.

There shall be a provision that unless:
A. the policy has been surrendered for its cash surrender value; or
B. its cash surrender value has been exhausted; or
C. the paid-up term insurance, if any has expired;
the policy will be reinstated at any time within three (3) years (or two (2) years in the case of industrial life insurance policies) from the date of premium default upon written application therefor, the production of evidence of insurability satisfactory to the insurer, the payment of all premiums in arrears with interest at a rate not exceeding six percent per annum compounded annually and the payment or reinstatement of any other indebtedness to the insurer upon the policy with interest at the applicable policy loan interest rate.
History:
Laws 1984, ch. 127, § 377.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20 - Life Insurance and Annuity Contracts › Section 59A-20-14 - Payment of claims.

There shall be a provision that when a policy shall become a claim by the death of the insured, settlement shall be made upon receipt of due proof of death and, at the insurer's option, surrender of the policy or proof of the interest of the claimant. If an insurer shall specify a particular period prior to the expiration of which settlement shall be made, such period shall not exceed two months from the receipt of such proofs.
History:
Laws 1984, ch. 127, § 379.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
Policy provision limiting time within which action may be brought on the policy as applicable to tort action by insured against insurer, 66 A.L.R.4th 859.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20 - Life Insurance and Annuity Contracts › Section 59A-20-15 - Beneficiary, industrial policies.

An industrial life insurance policy shall have the name of the beneficiary designated thereon with a reservation of the right to change the beneficiary after the issuance of the policy. The policy may also provide that no designation or change of beneficiary shall be binding on the insurer until endorsed on the policy by the insurer, and that the insurer may refuse to endorse the name of any proposed beneficiary who does not appear to the insurer to have an insurable interest in the life of the insured. The policy may also provide that if the beneficiary designated in the policy does not make a claim under the policy or does not surrender the policy with due proof of death within the period stated in the policy, which shall not be less than thirty (30) days after the death of the insured, or if the beneficiary is the estate of the insured, or is a minor, or dies before the insured, or is not legally competent to give a valid release, then the insurer may make any payment thereunder to the executor or administrator of the insured, or to any relative of the insured by blood or legal adoption or connection by marriage, or to any person appearing to the insurer to be equitably entitled thereto by reason of having been named beneficiary or by reason of having incurred expense for the maintenance, medical attention or burial of the insured. The policy may also include a similar provision applicable to any other payment due under the policy.
History:
Laws 1984, ch. 127, § 380.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
Property settlement agreement as affecting divorced spouse's right to recover as named beneficiary under former spouse's life insurance policy, 31 A.L.R.4th 59.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20 - Life Insurance and Annuity Contracts › Section 59A-20-16 - Incontestability; excluded or restricted coverage; after reinstatement.

A. A clause in any life insurance policy providing that the policy shall be incontestable after a specified period shall preclude only a contest of the validity of the policy, and shall not preclude the assertion at any time of defenses based upon provisions in the policy which exclude or restrict coverage, whether or not such exclusions or restrictions are excepted in such clause.
B. The reinstatement of a life insurance policy, whether heretofore or hereafter issued in this state, shall be incontestable after the same period following reinstatement and with the same conditions and exceptions, as provided in the policy with respect to incontestability thereof.
History:
Laws 1984, ch. 127, § 381.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance § 54; 44 Am. Jur. 2d Insurance, §§ 1155 to 1179.
What constitutes medical or surgical treatment, or the like, within exclusionary clause of accident policy or accidental-death feature of life policy, 56 A.L.R.5th 471.
46 C.J.S. Insurance § 996 et seq.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20 - Life Insurance and Annuity Contracts › Section 59A-20-17 - Standard provisions, annuity and pure endowment contracts.

A. No annuity or pure endowment contract, other than a reversionary annuity (also called survivorship annuities) or group annuities and except as stated in this section, shall be delivered or issued for delivery in this state unless it contains in substance each of the provisions as specified in Sections 383 through 388 [59A-20-18 to 59A-20-23 NMSA 1978] of this article. Any of such provisions not applicable to single-premium annuities or single-premium pure endowment contracts shall not, to that extent, be incorporated therein.
B. This section does not apply to contracts for deferred annuities included in, or upon the lives of beneficiaries under, life insurance policies.
History:
Laws 1984, ch. 127, § 382.
ANNOTATIONS
Cross references.
— For existing forms and filings,
see
notes following 59A-5-21 NMSA 1978.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance § 260.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20 - Life Insurance and Annuity Contracts › Section 59A-20-18 - Annuities, grace period.

In an annuity or pure endowment contract, other than a reversionary, survivorship or group annuity, there shall be a provision that there shall be a period of grace of one month, but not less than thirty (30) days, within which any stipulated payment to the insurer falling due after the first may be made, subject at the option of the insurer to an interest charge thereon at a rate to be specified in the contract but not exceeding six percent per annum for the number of days of grace elapsing before such payment, during which period of grace the contract shall continue in full force; but in case a claim arises under the contract on account of death prior to expiration of the period of grace before the overdue payment to the insurer or the deferred payments of the current contract year, if any, are made, the amount of such payments, with interest on any overdue payments, may be deducted from any amount payable under the contract in settlement.
History:
Laws 1984, ch. 127, § 383.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20 - Life Insurance and Annuity Contracts › Section 59A-20-19 - Annuities, incontestability.

If any statements other than those relating to age, sex and identity are required as a condition to issuing an annuity or pure endowment contract, other than a reversionary, survivorship or group annuity and subject to Section 386 [59A-20-21 NMSA 1978] of this article, there shall be a provision that the contract shall be incontestable after it has been in force during the lifetime of the person or of each of the persons as to whom such statements are required, for a period of two (2) years from its date of issue, except for nonpayment of stipulated payments to the insurer, and at the option of the insurer such contract may also except any provisions relative to benefits in the event of disability and any provisions which grant insurance specifically against death by accident or accidental means.
History:
Laws 1984, ch. 127, § 384.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20 - Life Insurance and Annuity Contracts › Section 59A-20-20 - Annuities, entire contract.

In an annuity or pure endowment contract, other than a reversionary, survivorship or group annuity, there shall be a provision that the contract shall constitute the entire contract between the parties or, if a copy of the application is endorsed upon or attached to the contract when issued, a provision that the contract and the application therefor shall constitute the entire contract between the parties.
History:
Laws 1984, ch. 127, § 385.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20 - Life Insurance and Annuity Contracts › Section 59A-20-21 - Annuities, misstatement of age or sex.

In an annuity or pure endowment contract, other than a reversionary, survivorship or group annuity, there shall be a provision that if the age or sex of the person or persons upon whose life or lives the contract is made, or of any of them, has been misstated, the amount payable or benefits accruing under the contract shall be such as the stipulated payment or payments to the insurer would have purchased according to the correct age or sex and that if the insurer makes or has made any overpayment or overpayments on account of any such misstatement, the amount thereof, with interest at the rate to be specified in the contract but not exceeding six percent per annum, may be charged against the current or next succeeding payment or payments to be made by the insurer under the contract.
History:
Laws 1984, ch. 127, § 386.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20 - Life Insurance and Annuity Contracts › Section 59A-20-22 - Annuities, dividends.

If an annuity or pure endowment contract, other than a reversionary, survivorship or group annuity, is participating, there shall be a provision that the insurer shall annually ascertain and apportion any divisible surplus accruing on the contract.
History:
Laws 1984, ch. 127, § 387.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20 - Life Insurance and Annuity Contracts › Section 59A-20-23 - Annuities, reinstatement.

In any annuity or pure endowment contract, other than a reversionary or group annuity, there shall be a provision that the contract may be reinstated at any time within one year from the default in making stipulated payments to the insurer, unless the cash surrender value has been paid, but all overdue stipulated payments and any indebtedness to the insurer on the contract shall be paid or reinstated with interest thereon at a rate to be specified in the contract but not exceeding six percent per annum payable annually, and in cases where applicable the insurer may also include a requirement of evidence of insurability satisfactory to the insurer.
History:
Laws 1984, ch. 127, § 388.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20 - Life Insurance and Annuity Contracts › Section 59A-20-24 - Standard provisions; reversionary annuities.

A. Except as stated in this section, no contract for a reversionary annuity shall be delivered or issued for delivery in this state unless it contains in substance each of the following provisions:
(1) the provisions specified in Sections 383 through 387 [59A-20-18 to 59A-20-22 NMSA 1978] of this article, except that under Section 383 (grace period) the insurer may at its option provide for an equitable reduction of the amount of the annuity payments in settlement of an overdue payment in lieu of providing for deduction of such payments from an amount payable upon settlement under the contract; and
(2) there shall be a provision that the contract may be reinstated at any time within three (3) years from the date of default in making stipulated payments to the insurer, upon production of evidence of insurability satisfactory to the insurer, and upon condition that all overdue payments and any indebtedness to the insurer on account of the contract are paid, or, within the limits permitted by the then cash values of the contract, reinstated, with interest as to both payments and indebtedness at a rate to be specified in the contract but not exceeding six percent per annum compounded annually.
B. This section does not apply to group annuities or to annuities included in life insurance policies, and any of such provisions not applicable to single premium annuities shall not to that extent be incorporated therein.
History:
Laws 1984, ch. 127, § 389.
ANNOTATIONS
Cross references.
— For existing forms and filings,
see
notes following 59A-5-21 NMSA 1978.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20 - Life Insurance and Annuity Contracts › Section 59A-20-26 - Prohibited provisions.

A. No life insurance policy shall be delivered or issued for delivery in this state if it contains any of the following provisions:
(1) a provision by which the policy purports to be issued or to take effect more than one year before the original application for the insurance was made;
(2) a provision for any mode of settlement at maturity of the policy of less value than the amount insured under the policy, plus dividend additions, if any, less any indebtedness to the insurer on or secured by the policy and less any premium that may by the terms of the policy be deducted; or
(3) a provision to the effect that the agent soliciting the insurance is the agent of the person insured under the policy, or making the acts or representations of such agent binding upon the insured.
B. No policy of industrial life insurance shall contain any of the following provisions:
(1) a provision by which the insurer may deny liability under the policy for the reason that the insured has previously obtained other insurance from the same insurer;
(2) a provision giving the insurer the right to declare the policy void because the insured has had any disease or ailment, whether specified or not, or because the insured has received institutional, hospital, medical or surgical treatment or attention, except a provision which gives the insurer the right to declare the policy void if the insured has, within two (2) years prior to the issuance of the policy, received institutional, hospital, medical or surgical treatment or attention and if the insured or claimant under the policy fails to show that the condition occasioning such treatment or attention as revealed in the application was not of a serious nature or was not material to the risk; or
(3) a provision giving the insurer the right to declare the policy void because the insured has been rejected for insurance, unless such right be conditioned upon a showing by the insurer that knowledge of such rejection would have led to a refusal by the insurer to make such contract.
History:
Laws 1984, ch. 127, § 391.
ANNOTATIONS
Cross references.
— For existing forms and filings,
see
notes following 59A-5-21 NMSA 1978.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance § 818.
Validity, construction and effect of approval or disapproval by insurance commissioner or similar official of policy, 119 A.L.R. 877.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20 - Life Insurance and Annuity Contracts › Section 59A-20-27 - Provisions required by other jurisdictions.

A. The policies of a foreign life insurer may contain any provision which the law of the insurer's state or country of domicile prescribes shall be in such policies when issued in this state; and the policies of a domestic life insurer when issued or delivered in any other state or country may contain any provisions required by the law of such other state or country, anything in this article notwithstanding.
B. If any policy or contract subject to this article is issued by a domestic insurer for delivery to a person residing in another state, and if the administrator of the insurance laws of the other state informs the superintendent that such policy or contract is not subject to approval by him, the superintendent may by ruling require that such policy or contract contain the applicable standard provisions set forth in this article.
History:
Laws 1984, ch. 127, § 392.
ANNOTATIONS
Cross references.
— For existing forms and filings,
see
notes following 59A-5-21 NMSA 1978.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20 - Life Insurance and Annuity Contracts › Section 59A-20-28 - Special requirements as to participating policies.

Beginning as of January 1, 1964:
A. no life insurer shall issue both participating and nonparticipating policies unless at least eighty percent of the gains from the participating policies innure [inure] to the benefit of the holders of the participating policies;
B. any insurer having both participating and nonparticipating policies in force shall keep a separate accounting for each such class of business and make and include in its annual statement filed with the superintendent a separate statement showing the gains, losses and expenses attributable to participating and nonparticipating business respectively, and showing how any general expense of the insurer has been apportioned to each such class; and
C. this section shall not apply to any insurer whose life insurance in force consists of ninety percent or more in either participating or nonparticipating business, as measured by premiums received; nor shall it apply as to business in force in other states or jurisdictions, nor to paid-up, temporary insurance, or pure endowment benefits issued or granted pursuant to the provisions of the Standard Nonforfeiture Law as set out in Section 396 [59A-20-31 NMSA 1978] of this article, nor as to reinsurance or annuity contracts.
History:
Laws 1984, ch. 127, § 393.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20 - Life Insurance and Annuity Contracts › Section 59A-20-32 - Nonforfeiture benefits, cash surrender values; life policies issued prior to operative date of 1943 Standard Nonforfeiture Law.

A. This section shall apply only to those life insurance policies issued prior to the operative date of the Standard Nonforfeiture Law as first enacted by Laws of 1943, Chapter 109.
B. A nonforfeiture benefit shall be available to the owner of the policy in event of default in premium payments, after a premium shall have been paid for three (3) years and shall be a stipulated form of insurance effective from the due date of the premium, the net value of which shall be at least equal to the reserve at the date of default on the policy and on any dividend additions thereto, less a sum of not more than two and one-half percent of the amount insured by the policy and of any existing dividend additions thereto, and less any existing indebtedness to the insurer on or secured by the policy. The policy shall specify the mortality table and rate of interest adopted from computing such reserves and shall stipulate that it may be surrendered to the insurer at its home office within one (1) month from date of default, for a specified cash value at least equal to the sum which would otherwise be available for the purchase of insurance as above stated.
History:
Laws 1984, ch. 127, § 397.
ANNOTATIONS
Compiler's notes.
— The phrase "operative date of the Standard Nonforfeiture Law", referred to in Subsection A, means July 11, 1943, the effective date of Laws 1943, Chapter 109, which enacted the original 1943 Standard Nonforfeiture Law.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance §§ 432, 582 to 584, 645, 654 to 686.
44 C.J.S. Insurance § 300; 45 C.J.S. Insurance § 847 et seq.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20 - Life Insurance and Annuity Contracts › Section 59A-20-34 to 59A-20-36 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1999, ch. 246, § 12 repealed 59A-20-34 to 59A-20-36 NMSA 1978, as enacted by Laws 1989, ch. 376, §§ 1 to 3, relating to living benefits contracts, effective July 1, 2000. For provisions of former sections,
see
the 1998 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20A - Viatical Settlements › Section 59A-20A-1 - Short title.

This act [59A-20A-1 to 59A-20A-11 NMSA 1978] may be cited as the "Viatical Settlements Act".
History:
Laws 1999, ch. 246, § 1.
ANNOTATIONS
Effective dates.
— Laws 1999, ch. 246, § 13, made the Viatical Settlements Act effective July 1, 2000.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20A - Viatical Settlements › Section 59A-20A-2 - Definitions.

As used in the Viatical Settlements Act:
A. "broker" means a person or his authorized representative who on behalf of a viator and for a fee, commission or other valuable consideration offers or attempts to negotiate viatical settlements between a viator and one or more providers. "Broker" does not include an attorney, accountant or financial planner retained by the viator to represent him;
B. "financing entity" means an underwriter, placement agent, lender, purchaser of securities, credit enhancer, purchaser of a policy or certificate from a provider or any other person who may be a party to a contract and who has a direct ownership in a policy or certificate that is the subject of a contract but whose sole activity related to the transaction is providing funds to effect the viatical settlement and who has an agreement in writing with a provider to act as a participant in a financing transaction;
C. "financing transaction" means a transaction in which a provider or a financing entity obtains financing for contracts or viaticated policies or interests in such contracts or policies, including any secured or unsecured financing, any securitization transaction or any securities offering either registered or exempt from registration under federal and state securities law, or any direct purchase of interests in a policy or certificate;
D. "provider" means a person or his authorized representative who obtains financing from a financing entity for the purchase, acquisition, transfer or other assignment of one or more viatical settlement contracts or viaticated policies or interests in such contracts or policies, or otherwise sells, assigns, transfers, pledges, hypothecates or otherwise disposes of one or more viatical settlement contracts or viaticated policies or interests in such contracts or policies. Provider does not include:
(1) a bank, savings bank, savings and loan association, credit union or other lending institution that takes an assignment of a life insurance policy as collateral for a loan;
(2) the issuer of a life insurance policy providing accelerated benefits under and pursuant to the contract; or
(3) a natural person who enters into no more than one agreement in a calendar year for the transfer of life insurance policies for any value less than the expected death benefit;
E. "viatical settlement contract" means a written agreement entered into between a provider and a viator;
F. "viaticated policy" means a life insurance policy or certificate that has been acquired by a provider pursuant to a viatical settlement contract; and
G. "viator" means the owner of a life insurance policy or a certificate holder under a group policy insuring the life of a person with a catastrophic, life-threatening or chronic illness or condition who enters or seeks to enter into a viatical settlement contract.
History:
Laws 1999, ch. 246, § 2.
ANNOTATIONS
Effective dates.
— Laws 1999, ch. 246, § 13, made the Viatical Settlements Act effective July 1, 2000.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20A - Viatical Settlements › Section 59A-20A-3 - License requirements; fees.

A. A person shall not operate as a provider or broker without a license from the superintendent.
B. Application for a provider or broker license shall be made to the superintendent by the applicant on a form prescribed by the superintendent.
C. An application or renewal shall be accompanied by the applicable fee as specified in Section 59A-6-1 NMSA 1978.
D. Licenses may be renewed from year to year on the anniversary date of licensure upon payment of the annual renewal fee. Failure to pay the fee by the renewal date shall result in revocation of the license.
E. The applicant shall provide information on forms required by the superintendent. The superintendent may require the applicant to fully disclose the identity of all stockholders, partners, officers, members and employees and representatives, and the superintendent may refuse to issue a license if not satisfied that a stockholder, partner, officer, member, employee or representative who may materially influence the applicant's conduct meets the standards of the Viatical Settlements Act.
F. A license issued to an applicant authorizes all members, officers, representatives and designated employees to act as providers or brokers, as applicable, under the license, and all those persons shall be named in the application and any supplements to the application.
G. Upon the filing of an application and the payment of the license fee, the superintendent may make an investigation of each applicant and issue a license if the superintendent finds that the applicant:
(1) has provided a detailed plan of operation;
(2) is competent and trustworthy and intends to act in good faith in the capacity provided by the license applied for;
(3) has a good business reputation and has had experience, training or education so as to be qualified in the business for which licensure is sought; and
(4) if not a natural person, provides a certificate of good standing from the state of its domicile.
H. The superintendent shall not issue a license to an applicant unless a written designation of an agent for service of process is filed and maintained with the superintendent or the applicant has filed with the superintendent the applicant's written irrevocable consent that any action against the applicant may be commenced by service of process on the superintendent.
History:
Laws 1999, ch. 246, § 3; 2011, ch. 127, § 15.
ANNOTATIONS
The 2011 amendment,
effective July 1, 2011, imposed the license fees specified in Section 59A-6-1 NMSA 1978.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20A - Viatical Settlements › Section 59A-20A-4 - License denial, suspension, revocation or refusal to renew.

A. The superintendent may deny, suspend, revoke or refuse to renew the license of a provider or broker if the superintendent finds that:
(1) there was any material misrepresentation in the application for the license;
(2) the licensee, including any officer, partner, member, key management personnel or representative of the licensee, has been convicted of fraudulent or dishonest practices, is subject to a final administrative action or is otherwise shown to be untrustworthy or incompetent;
(3) the licensee has pleaded guilty or nolo contendere, or been found guilty of, any felony or a misdemeanor involving fraud or moral turpitude, regardless of whether a judgment of conviction has been entered by the court;
(4) the licensee no longer meets the requirements for initial licensure;
(5) the licensee has performed any act prohibited by the Viatical Settlements Act;
(6) the provider demonstrates a pattern of unreasonable payments to viators;
(7) the provider has entered into a viatical settlement contract that has not been approved in accordance with the Viatical Settlements Act;
(8) the provider has failed to honor contractual obligations set out in a viatical settlement contract; or
(9) the provider has assigned, transferred or pledged a viaticated policy to a person other than another provider licensed in New Mexico or a financing entity.
B. Before the superintendent suspends, revokes or refuses to renew the license of a provider or broker, the superintendent shall conduct a hearing in accordance with Chapter 59A, Article 4 NMSA 1978.
C. Any person aggrieved by denial of an application may request a hearing before the superintendent in accordance with the provisions of Chapter 59A, Article 4 NMSA 1978.
History:
Laws 1999, ch. 246, § 4.
ANNOTATIONS
Effective dates.
— Laws 1999, ch. 246, § 13, made the Viatical Settlements Act effective July 1, 2000.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20A - Viatical Settlements › Section 59A-20A-5 - Approval of viatical settlement contracts and disclosure statements; contract terms.

A. A person shall not use a viatical settlement contract or provide a disclosure statement form to a viator in New Mexico unless filed with and approved by the superintendent. The superintendent shall disapprove a viatical settlement contract or disclosure statement form if, in the superintendent's opinion, it is unreasonable, contrary to the interests of the public or otherwise misleading or unfair to the viator.
B. The viatical settlement contract shall establish the terms under which the provider will pay compensation or anything of value, which compensation or value is less than the expected death benefit of the insurance policy or certificate, in return for the viator's assignment, transfer, sale, devise or bequest to the provider of the death benefit or ownership of all or a portion of the insurance policy or certificate. A viatical settlement contract also includes a contract for a loan or other financial transaction secured primarily by an individual or group life insurance policy, other than a loan by a life insurance company pursuant to the terms of the life insurance contract, or a loan secured by the cash value of a policy.
History:
Laws 1999, ch. 246, § 5.
ANNOTATIONS
Effective dates.
— Laws 1999, ch. 246, § 13, made the Viatical Settlements Act effective July 1, 2000.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20A - Viatical Settlements › Section 59A-20A-6 - Reporting requirements and confidentiality.

A. Each licensee shall file with the superintendent on or before March 1 of each year an annual statement containing such information as the superintendent by rule may prescribe.
B. Except as otherwise allowed, a provider, broker, insurance company, insurance agent, insurance broker, information bureau, rating agency or company or any other person with actual knowledge of a viator's or insured's identity shall not disclose that identity to any other person unless the disclosure is:
(1) necessary to effect a viatical settlement between the viator and a provider and the viator has given written consent and, if the insured's identity is being disclosed and the insured is competent, the insured has given written consent to the disclosure;
(2) provided in response to an investigation by the superintendent or any other governmental officer or agency; or
(3) a term of or condition to the transfer of a viaticated policy by one provider to another provider.
History:
Laws 1999, ch. 246, § 6.
ANNOTATIONS
Effective dates.
— Laws 1999, ch. 246, § 13, made the Viatical Settlements Act effective July 1, 2000.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20A - Viatical Settlements › Section 59A-20A-7 - Examination.

A. The superintendent may examine the business and affairs of a licensee or applicant. The superintendent shall have the authority to order a licensee or applicant to produce any records, books, files or other information reasonably necessary to ascertain whether the licensee or applicant is acting or has acted in violation of the law or otherwise contrary to the interests of the public. The expenses incurred in conducting an examination shall be paid by the licensee or applicant.
B. Names and identification data for all viators or insureds shall be considered confidential information and shall not be disclosed by the superintendent unless required by law.
C. Records of all transactions of viatical settlement contracts shall be maintained by the provider and shall be available to the superintendent for inspection during reasonable business hours. A provider shall maintain records of each viatical settlement until five years after the death of the viator.
History:
Laws 1999, ch. 246, § 7.
ANNOTATIONS
Effective dates.
— Laws 1999, ch. 246, § 13, made the Viatical Settlements Act effective July 1, 2000.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20A - Viatical Settlements › Section 59A-20A-8 - Disclosure.

A. A provider or broker shall provide a written disclosure statement form containing the following information to the viator no later than the time of application:
(1) possible alternatives to viatical settlement contracts for persons with catastrophic, life-threatening or chronic illnesses, including any accelerated death benefits offered under the viator's life insurance policy;
(2) that some or all of the proceeds of the viatical settlement may be free from federal income tax and from state franchise and income taxes, and that assistance should be sought from a professional tax adviser;
(3) that the viator has a right to rescind a viatical settlement contract within fifteen calendar days after receipt of the viatical settlement proceeds;
(4) that money will be sent to the viator within two business days after the provider has received the insurer or group administrator's acknowledgment that ownership of the policy or interest in the certificate has been transferred and the beneficiary has been designated pursuant to the viatical settlement contract;
(5) that proceeds of the viatical settlement could be subject to the claims of creditors;
(6) that receipt of the proceeds of a viatical settlement may adversely affect the viator's eligibility for medicaid or other government benefits or entitlements, and that advice should be obtained from the appropriate government agencies; and
(7) that entering into a viatical settlement contract may cause other rights or benefits, including conversion rights and waiver of premium benefits that may exist under the policy or certificate, to be forfeited by the viator and that assistance should be sought from a financial adviser.
B. A provider shall disclose in writing the following information to the viator prior to the date the viatical settlement contract is signed by all parties:
(1) the affiliation, if any, between the provider and the issuer of an insurance policy to be viaticated;
(2) if an insurance policy to be viaticated has been issued as a joint policy or involves family riders or any coverage of a life other than the viator, the possible loss of coverage on the other lives and the advisability of consulting with the insurance producer or the company issuing the policy for advice on the proposed viatication; and
(3) the dollar amount of the current death benefit payable to the provider under the policy or certificate and the availability of any additional guaranteed insurance benefits and the dollar amount of any accidental death and dismemberment benefits under the policy or certificate and the provider's interest in those benefits.
History:
Laws 1999, ch. 246, § 8.
ANNOTATIONS
Effective dates.
— Laws 1999, ch. 246, § 13, made the Viatical Settlements Act effective July 1, 2000.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20A - Viatical Settlements › Section 59A-20A-10 - Rules and standards.

The superintendent may:
A. promulgate rules to implement the provisions of the Viatical Settlements Act;
B. establish standards for evaluating reasonableness of payments under viatical settlement contracts, including regulation of discount rates used to determine the amount paid in exchange for assignment, transfer, sale, devise or bequest of a benefit under a life insurance policy;
C. establish appropriate licensing requirements and standards for continued licensure for providers and brokers;
D. require a bond or other mechanism for financial accountability for viatical settlement providers; and
E. adopt rules governing the relationship and responsibilities of both insurers and providers and brokers during the viatication of a life insurance policy or certificate.
History:
Laws 1999, ch. 246, § 10.
ANNOTATIONS
Effective dates.
— Laws 1999, ch. 246, § 13, made the Viatical Settlements Act effective July 1, 2000.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 20A - Viatical Settlements › Section 59A-20A-11 - Relationship to other laws.

The provisions of the Insurance Code other than the Viatical Settlements Act shall not apply to viatical settlements unless expressly provided. The following articles and provisions of the Insurance Code shall also apply to viatical settlements and providers and their promoters, sponsors, directors, officers, employees, agents, solicitors, brokers and other representatives. For the purposes of such applicability, a provider may be referred to as an insurer in:
A. Chapter 59A, Article 1 NMSA 1978;
B. Chapter 59A, Article 2 NMSA 1978;
C. Chapter 59A, Article 4 NMSA 1978; and
D. Chapter 59A, Article 16 NMSA 1978.
History:
Laws 1999, ch. 246, § 11.
ANNOTATIONS
Effective dates.
— Laws 1999, ch. 246, § 13, made the Viatical Settlements Act effective July 1, 2000.
Cross references.
— For the Insurance Code,
see
59A-1-1 NMSA 1978 and notes thereto.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 21 - Group Life Insurance › Section 59A-21-1 - Short title; purpose.

A. This article [Chapter 59A, Article 21 NMSA 1978] may be cited as the "Group Life Insurance Law".
B. The purpose of this article is to define group life insurance and to prescribe standard provisions required in policies of group life insurance, in order to promote the peace, health and safety of the inhabitants of this state by providing reasonable standards for issuance, delivery and terms of any policy of group life insurance, and exercise of certain rights relative thereto.
History:
Laws 1984, ch. 127, § 399.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
44 Am. Jur. 2d Insurance §§ 1842 to 1870.
44 C.J.S. Insurance § 8 et seq.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 21 - Group Life Insurance › Section 59A-21-2 - Group contracts must meet requirements.

A. No life insurance policy shall be delivered or issued for delivery in this state insuring the lives of more than one individual unless to a group defined in this article and otherwise in compliance with this article.
B. Subsection A hereof does not apply to life insurance policies insuring only individuals:
(1) related by blood, marriage or legal adoption; or
(2) having a common interest through ownership of a business enterprise, or a substantial legal interest or equity therein, and who are actively engaged in management thereof; or
(3) otherwise having an insurable interest in each other's lives.
History:
Laws 1984, ch. 127, § 400.
ANNOTATIONS
Cross references.
— For existing forms and filings,
see
notes following 59A-5-21 NMSA 1978.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
43 Am. Jur. 2d Insurance § 336; 44 Am. Jur. 2d Insurance §§ 1874 to 1878, 2027.
Group life insurance policy for benefit of union members, 17 A.L.R.2d 927.
Time of disability or death with regard to termination of coverage under group policy, 68 A.L.R.2d 150.
Persons eligible to receive proceeds of federal employee's group life insurance, where insured does not designate beneficiary, 10 A.L.R.3d 803.
Effective date of group life insurance as to individual policies of employees, 66 A.L.R.3d 1175.
Group insurance: binding effects of limitations on or exclusions of coverage contained in master group policy but not in literature given individual insureds, 6 A.L.R.4th 835.
38A C.J.S. Gifts § 54; 44 C.J.S. Insurance § 8 et seq.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 21 - Group Life Insurance › Section 59A-21-3 - "Group policy" defined.

For the purposes of the Insurance Code "policy of group life insurance" or "group life policy" mean the contract of group life insurance delivered to the policyholder and not the certificate of insurance delivered to individuals insured under such contract.
History:
Laws 1984, ch. 127, § 401.
ANNOTATIONS
Cross references.
— For the Insurance Code,
see
59A-1-1 NMSA 1978 and notes thereto.
2023 New Mexico Statutes › Chapter 59A - Insurance Code › Article 21 - Group Life Insurance › Section 59A-21-4 - Employee groups.

A policy of group life insurance may be issued to an employer, or to the trustees of a fund established by an employer, which employer or trustees shall be deemed the policyholder, to insure employees of the employer for the benefit of persons other than the employer, subject to the following requirements:
A. the employees eligible for insurance under the policy shall be all of the employees of the employer, or all of any class or classes thereof. The policy may provide that the term "employees" shall include the employees of one or more subsidiary corporations, and the employees, individual proprietors, and partners of one or more affiliated corporations, proprietorships or partnerships if the business of the employer and of such affiliated corporations, proprietorships or partnerships is under common control. The policy may provide that the term "employees" shall include the individual proprietor or partners if the employer is an individual proprietorship or a partnership. The policy may provide that the term "employees" shall include retired employees and directors of a corporate employer. A policy issued to insure the employees of a public body may provide that the term "employees" shall include elected or appointed officials;
B. the premium for the policy shall be paid either from the employer's funds or from funds contributed to by the insured employees, or from both. Except as provided in Subsection C, below, a policy on which no part of the premium is to be derived from funds contributed by the insured employees must insure all eligible employees, except those who reject such coverage in writing; and
C. the insurer may exclude or limit the coverage on any person as to whom evidence of individual insurability is not satisfactory to the insurer.
History:
Laws 1982, ch. 127, § 402.
ANNOTATIONS
Trust created for purposes violating this section is illegal
and unenforceable.
Bauer v. Bates Lumber Co.
, 1972-NMCA-149, 84 N.M. 391, 503 P.2d 1169, cert. denied, 84 N.M. 390, 503 P.2d 1168.
Beneficiary must be one other than employer.
— Where under a group life insurance policy, which employer purchased covering its employees, any proceeds from which were used to assist it in paying compensation benefits for which it might become liable to its employees, and a trust never existed except as a bookkeeping entry in the business records of the employer, neither the employer nor the trust is a permitted beneficiary.
Bauer v. Bates Lumber Co.
, 1972-NMCA-149, 84 N.M. 391, 503 P.2d 1169, cert. denied, 84 N.M. 390, 503 P.2d 1168.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
Effective date of group life insurance as to individual policies of employees, 66 A.L.R.3d 1175.
Liability of employer to employee in connection with selection or retention of group insurer, 10 A.L.R.4th 1267.
Termination of employee's individual coverage under group policy for nonpayment of premiums, 22 A.L.R.4th 321.