New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 6 - REPLACEMENT OF LIFE INSURANCE AND ANNUITIES › Section 13.9.6.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
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 direct solicitation of individuals by an
				insurance producer. Direct solicitation shall not include any group meeting
				held by an insurance producer solely for the purpose of educating or enrolling
				individuals or, when initiated by an individual member of the group, assisting
				with the selection of investment options offered by a single insurer in
				connection with enrolling that individual. Group life insurance or group
				annuity certificates marketed through direct response solicitation shall be
				subject to the provisions of 13.9.6.12 NMAC;
(3) group life insurance and annuities used
				to fund prearranged funeral contracts;
(4) an application to the existing insurer
				that issued the existing policy or contract when a contractual change or a
				conversion privilege is being exercised; or, when the existing policy or
				contract is being replaced by the same insurer pursuant to a program filed with
				and approved by the superintendent;
(5) proposed life insurance that is to
				replace life insurance under a binding or conditional receipt issued by the
				same company;
(6) the following:
(a) policies or contracts used to fund (i) an
				employee pension or welfare benefit plan that is covered by the Employee
				Retirement and Income Security Act (ERISA); (ii) a plan described by Sections
				401(a), 401(k) or 403(b) of the Internal Revenue Code, where the plan, for
				purposes of ERISA, is established or maintained by an employer; (iii) a
				governmental or church plan defined in Section 414, a governmental or church
				welfare benefit plan, or a deferred compensation plan of a state or local
				government or tax exempt organization under Section 457 of the Internal Revenue
				Code; or (iv) a nonqualified deferred compensation arrangement established or
				maintained by an employer or plan sponsor;
(b) notwithstanding Subparagraph (a) of this
				paragraph, this rule shall apply to policies or contracts used to fund any plan
				or arrangement that is funded solely by contributions an employee elects to
				make, whether on a pre-tax or after-tax basis, and where the insurer has been
				notified that plan participants may choose from among two (2) or more insurers
				and there is a direct solicitation of an individual employee by an insurance
				producer for the purchase of a contract or policy. As used in this subsection,
				direct solicitation shall not include any group meeting held by an insurance
				producer solely for the purpose of educating individuals about the plan or
				arrangement or enrolling individuals in the plan or arrangement or, when
				initiated by an individual employee, assisting with the selection of investment
				options offered by a single insurer in connection with enrolling that
				individual employee;
(7)
				where new coverage is provided under a life insurance policy or contract and
				the cost is borne wholly by the insured's employer or by an association of
				which the insured is a member;
(8)
				existing life insurance that is a non-convertible term life insurance policy
				that will expire in five (5) years or less and cannot be renewed;
(9) immediate annuities that are purchased
				with proceeds from an existing contract. Immediate annuities purchased with
				proceeds from an existing policy are not exempted from the requirements of this
				rule; or
(10) structured
				settlements.