reglab/statecodes huggingface dataset:
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 7 - UNIVERSAL LIFE INSURANCE › Section 13.9.7.15 - PERIODIC DISCLOSURE TO POLICYOWNER

Current through Register Vol. 35, No. 13, July 16, 2024
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 mailing
				  of the report. Such reports shall include the following:
A. the beginning and end of the current
				report period;
B. the policy value
				at the end of the previous report period and at the end of the current report
				period;
C. the total amounts which
				have been credited or debited to the policy value during the current report
				period, identifying each by type (e.g., interest, mortality, expense and
				riders);
D. the current death
				benefit at the end of the current report period on each life covered by the
				policy;
E. the net cash surrender
				value of the policy as of the end of the current report period;
F. the amount of outstanding loans, if any,
				as of the end of the current report period;
G. if fixed premium policies assuming
				guaranteed interest, mortality and expense loads and continued scheduled
				premium payments, the policy's net cash surrender value is such that it would
				not maintain insurance in force until the end of the next reporting period, a
				notice to this effect shall be included in the report; and
H. if flexible premium policies, assuming
				guaranteed interest, mortality and expense loads, the policy's net cash
				surrender value will not maintain insurance in force until the end of the next
				reporting period unless further premium payments are made, a notice to this
				effect shall be included in the report.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 7 - UNIVERSAL LIFE INSURANCE › Section 13.9.7.16 - INTEREST-INDEXED UNIVERSAL LIFE INSURANCE POLICIES

Current through Register Vol. 35, No. 13, July 16, 2024
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 interest credits
				are determined, including:
(1) a description
				of the index;
(2) the relationship
				between the value of the index and the actual interest rate to be
				credited;
(3) the frequency and
				timing of determining the interest rate; and
(4) the allocation of interest credits, if
				more than one rate of interest applies to different portions of the policy
				value.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
New Mexico State Corporation Commission [Public Regulation
				  Commission], Department of Insurance, Post Office Box 1269, Santa Fe, NM
				  87504-1269.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
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.
Compiler's note: The words or paragraph, above, are no
					 longer applicable. Later dates are now cited only at the end of sections, in
					 the history notes appearing in
					 brackets.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
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 policies.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.8 - LICENSING AND APPROVAL TO DO BUSINESS IN THIS STATE

Current through Register Vol. 35, No. 13, July 16, 2024
An insurer shall not deliver or issue for delivery in this
				  state any variable life insurance policy unless:
A. The insurer is licensed or organized to do
				a life insurance business in this state.
B. The insurer has obtained the written
				approval of the superintendent for the issuance of variable life insurance
				policies in this state. The superintendent shall grant such written approval
				only after he has found that:
(1) the plan of
				operation for the issuance of variable life insurance policies is not
				unsound;
(2) the general character,
				reputation, and experience of the management and those persons or firms
				proposed to supply consulting, investment, administrative, or custodial
				services to the insurer are such as to assure reasonably competent operation of
				the variable life insurance business of the insurer in this state;
				and
(3) the present and foreseeable
				future financial condition of the insurer and its method of operation in
				connection with the issuance of such policies is not likely to render its
				operation hazardous to the public or its policyholders in this state. The
				superintendent shall consider, among other things:
(a) the history of operation and financial
				condition of the insurer;
(b) the
				qualifications, fitness, character, responsibility, reputation, and experience
				of the officers and directors and other management of the insurer and those
				persons or firms proposed to supply consulting, investment, administrative, or
				custodial services to the insurer;
(c) the applicable law and regulations under
				which the insurer is authorized in its state of domicile to issue variable life
				insurance policies; the state of entry of an alien insurer shall be deemed its
				state of domicile for this purpose; and
(d) if the insurer is a subsidiary of, or is
				affiliated by common management or ownership with another company, its
				relationship to such other company and the degree to which the requesting
				insurer, as well as the other company, meet these standards.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.9 - FILING FOR PERMANENT APPROVAL TO DO BUSINESS IN THIS STATE

Current through Register Vol. 35, No. 13, July 16, 2024
The superintendent may, at his discretion, require that an
				  insurer, before it delivers or issues for delivery any variable life insurance
				  policy in this state, file with this department the following information for
				  the consideration of the superintendent in making the determination required by
				  13 NMAC 9.8.8.2 [now Subsection B of
				  13.9.8.8
				  NMAC]:
A. copies of and a general
				description of the variable life insurance policies it intends to
				issue;
B. a general description of
				the methods of operation of the variable life insurance business of the
				insurer, including methods of distribution of policies and the names of those
				persons or firms proposed to supply consulting, investment, administrative,
				custodial or distribution services to the insurer;
C. with respect to any separate account
				maintained by an insurer for any variable life insurance policy, a statement of
				the investment policy the issuer intends to follow for the investment of the
				assets held in such separate account, and a statement of procedures for
				changing such investment policy; the statement of investment policy shall
				include a description of the investment objectives intended for the separate
				account;
D. a description of any
				investment advisory services contemplated;
E. a copy of the statutes and regulations of
				the state of domicile of the insurer under which it is authorized to issue
				variable life insurance policies;
F. biographical data with respect to officers
				and directors of the insurer on the national association of insurance
				commissioners uniform biographical data form; and
G. a statement of the insurer's actuary
				describing the mortality and expense risks which the insurer will bear under
				the policy.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.10 - STANDARDS OF SUITABILITY

Current through Register Vol. 35, No. 13, July 16, 2024
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 shall be
				  made to an applicant to purchase a variable life insurance policy and that no
				  variable life insurance policy shall be issued in the absence of reasonable
				  grounds to believe that the purchase of such policy is not unsuitable for such
				  applicant on the basis of information furnished after reasonable inquiry of
				  such applicant concerning the applicant's insurance and investment objectives,
				  financial situation and needs, and any other information known to the insurer
				  or to the agent making the recommendation.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.11 - USE OF SALES MATERIALS

Current through Register Vol. 35, No. 13, July 16, 2024
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, misleading,
				  deceptive, or inaccurate.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.12 - REQUIREMENTS APPLICABLE TO CONTRACTUAL SERVICES

Current through Register Vol. 35, No. 13, July 16, 2024
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 superintendent
				  with any information or reports in connection with such services which the
				  superintendent may request in order to ascertain whether the variable life
				  insurance operations of the insurer are being conducted in a manner consistent
				  with these regulations and any other applicable law or
				  regulations.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.13 - REQUIRED REPORTS

Current through Register Vol. 35, No. 13, July 16, 2024
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 business of
				its separate account or accounts in such form as may be prescribed by the
				national association of insurance commissioners;
(2) prior to the use in this state any
				information furnished to applicants as provided for in 13 NMAC 9.8.34 [now
				13.9.8.34 NMAC];
(3) prior to the
				use in this state the form of any of the reports to policyholders as provided
				for in 13 NMAC 9.8.36 [now 13.9.8.36 NMAC]; and
(4) such additional information concerning
				its variable life insurance operations or its separate accounts as the
				superintendent shall deem necessary.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.14 - AUTHORITY OF SUPERINTENDENT TO DISAPPROVE

Current through Register Vol. 35, No. 13, July 16, 2024
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.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.15 - POLICY QUALIFICATION

Current through Register Vol. 35, No. 13, July 16, 2024
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].
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.16 - FILING OF VARIABLE LIFE INSURANCE POLICIES

Current through Register Vol. 35, No. 13, July 16, 2024
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 to
				  delivery or issuance for delivery in this state.
A. The procedures and requirements for such
				filing and approval shall be, to the extent appropriate and not inconsistent
				with this article, the same as those otherwise applicable to other life
				insurance policies.
B. The
				superintendent may approve variable life insurance policies and related forms
				with provisions the superintendent deems to be not less favorable to the
				policyholder and the beneficiary than those required by 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].
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.18 - MANDATORY POLICY PROVISIONS

Current through Register Vol. 35, No. 13, July 16, 2024
Every variable life insurance policy filed for approval in
				  this state shall contain at least the following:
A. The cover page or pages corresponding to
				the cover pages of each such policy shall contain:
(1) a prominent statement in either
				contrasting color or in boldface type that the amount or duration of death
				benefit may be variable or fixed under specified conditions;
(2) a prominent statement in either
				contrasting color or in boldface type that cash values may increase or decrease
				in accordance with the experience of the separate account subject to any
				specified minimum guarantees;
(3) a
				statement describing any minimum death benefit required;
(4) the method, or a reference to the policy
				provision which describes the method, for determining the amount of insurance
				payable at death;
(5) to the extent
				permitted by state law, a captioned provision that the policy holder may return
				the variable life insurance policy within 10 days of receipt of the policy by
				the policyholder, and receive a refund equal to the sum of:
1) the difference between the premiums paid
				including any policy fees or other charges and the amounts allocated to any
				separate accounts under the policy; and
2) the value of the amounts allocated to any
				separate accounts under the policy, on the date the returned policy is received
				by the insurer or its agent. Until such time as state law authorizes the return
				of payments as calculated in the preceding sentence, the amount of the refund
				shall be the total of all premium payments for such policy; and
(6) such other items as are
				currently required for fixed benefit life insurance policies and which are not
				inconsistent with this regulation.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.19 - POLICY LOAN PROVISIONS

Current through Register Vol. 35, No. 13, July 16, 2024
Every variable life insurance policy, other than term
				  insurance policies and pure endowment policies, delivered or issued for
				  delivery in this state shall contain provisions which are not less favorable to
				  the policyholder than a provision for policy loans after the policy has been in
				  force for three (3) full years which provides the following:
A. at least 75% of the policy's cash
				surrender value may be borrowed at the end of the current policy
				year;
B. the amount borrowed shall
				bear interest at a rate not to exceed that permitted by state insurance
				law;
C. any indebtedness shall be
				deducted from the proceeds payable on death;
D. any indebtedness shall be deducted from
				the cash surrender value upon surrender or in determining any non-forfeiture
				benefit;
E. for scheduled premium
				policies, whenever the indebtedness exceeds the cash surrender value, the
				insurer shall give notice of any intent to cancel the policy if the excess
				indebtedness is not repaid within thirty-one days after the date of mailing of
				such notice; for flexible premium policies, whenever the total charges
				authorized by the policy that are necessary to keep the policy in force until
				the next following processing day exceed the amounts available under the policy
				to pay such charges, a report must be sent to the policy holder containing the
				information specified by 13 NMAC 9.8.18 or 13 NMAC 9.8.36 [now 13.9.8.18 NMAC
				or 13.9.8.36 NMAC];
F. the policy
				may provide that if, at any time, so long as premiums are duly paid, the
				variable death benefit is less than it would have been if no loan or withdrawal
				had ever been made, the policyholder may increase such variable death benefit
				up to what it would have been if there had been no loan or withdrawal by paying
				an amount not exceeding 110% of the corresponding increase in cash value and by
				furnishing such evidence of insurability as the insurer may request;
G. the policy may specify a reasonable
				minimum amount which may be borrowed at any time but such minimum shall not
				apply to any automatic premium loan provision;
H. no policy loan provision is required if
				the policy is under extended insurance non-forfeiture option;
I. the policy loan provisions shall be
				constructed so that variable life insurance policyholders who have not
				exercised such provisions are not disadvantaged by the exercise thereof;
				and
J. amounts paid to the
				policyholders upon the exercise of any policy loan provision shall be withdrawn
				from the separate account and shall be returned to the separate account upon
				repayment except that a stock insurer may provide the amounts for policy loans
				from the general account.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.20 - OTHER POLICY PROVISIONS

Current through Register Vol. 35, No. 13, July 16, 2024
The following provision may in substance be included in a
				  variable life insurance policy or related form delivered or issued for delivery
				  in this state:
A. an exclusion for
				suicide within two years of the issue date of the policy; provided, however,
				that to the extent of the increased death benefits only, the policy may provide
				an exclusion for suicide within two years of any increase in death benefits
				which results from an application of the owner subsequent to the policy issue
				date;
B. incidental insurance
				benefits may be offered on a fixed or variable basis;
C. policies issued on a participating basis
				shall offer to pay dividend amounts in cash; in addition, such policies may
				offer the following dividend options:
(1) the
				amount of the dividend may be credited against premium payments;
(2) the amount of the dividend may be applied
				to provide amounts of additional fixed or variable benefit life
				insurance;
(3) the amount of the
				dividend may be deposited in the general account at a specified minimum rate of
				interest;
(4) the amount of the
				dividend may be applied to provide paid-up amounts of fixed benefit one-year
				term insurance; and
(5) the amount
				of the dividend may be deposited as a variable deposit in a separate
				account.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.21 - RESERVE LIABILITIES UNDER STANDARD VALUATION LAW

Current through Register Vol. 35, No. 13, July 16, 2024
Reserve liabilities for variable life insurance policies
				  shall be established under the Standard Valuation Law in accordance with
				  actuarial procedures that recognize the variable nature of the benefits
				  provided and any mortality guarantees.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.23 - RESERVE LIABILITIES FOR GUARANTEED MINIMUM DEATH BENEFIT FOR FLEXIBLE PREMIUM POLICIES

Current through Register Vol. 35, No. 13, July 16, 2024
For flexible premium policies, reserve liabilities for any
				  guaranteed minimum death benefit shall be maintained in the general account of
				  the insurer and shall be not less than the aggregate total of the term costs,
				  if any, covering the period provided for in the guarantee not otherwise
				  provided for by the reserves held in the separate account assuming an immediate
				  one-third depreciation in the current value of the assets of the separate
				  account followed by a net investment return equal to the valuation interest
				  rate. The valuation interest rate and mortality table used in computing this
				  additional reserve, if any, shall conform to permissible standards for the
				  valuation of life insurance contracts. In determining such minimum reserve, the
				  company may employ suitable approximations and estimates, including but not
				  limited to groupings and averages.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.24 - INCIDENTAL INSURANCE BENEFIT

Current through Register Vol. 35, No. 13, July 16, 2024
Reserve liabilities for all fixed incidental insurance
				  benefits and any guarantees associated with variable incidental insurance
				  benefits shall be maintained in the general account and reserve liabilities for
				  all variable aspects of the variable incidental insurance benefits shall be
				  maintained in a separate account, in amounts determined in accordance with the
				  actuarial procedures appropriate to such benefit.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.25 - ESTABLISHMENT AND ADMINISTRATION OF SEPARATE ACCOUNTS

Current through Register Vol. 35, No. 13, July 16, 2024
Any domestic insurer issuing variable life insurance shall
				  establish one or more separate accounts pursuant to Section 59A-20-30 NMSA 1978
				  of the New Mexico Insurance Code.
A.
				If no law or other regulation provides for the custody of separate account
				assets and if such insurer is not the custodian of such separate account
				assets, all contracts for custody of such assets shall be in writing and the
				superintendent shall have authority to review and approve of both the terms of
				any such contract and the proposed custodian prior to the transfer of
				custody.
B. Such insurer shall not
				without the prior written approval of the superintendent employ in any material
				connection with the handling of separate account assets any person who:
(1) within the last ten years has been
				convicted of any felony or a misdemeanor arising out of such person's conduct
				involving embezzlement, fraudulent conversion, or misappropriation of funds or
				securities or involving violation of Sections 1341, 1342, or 1343 of Title 18,
				United States Code; or
(2) within
				the last ten years has been found by any state regulatory authorities to have
				violated or has acknowledged violation of any provision of federal or state
				securities laws involving fraud, deceit, or knowing misrepresentation;
				or
(3) within the last ten years
				has been found by federal or state regulatory authorities to have violated or
				has acknowledged violation of any provision of federal or state securities laws
				involving fraud, deceit, or knowing misrepresentation.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.26 - AMOUNTS IN THE SEPARATE ACCOUNT

Current through Register Vol. 35, No. 13, July 16, 2024
The insurer shall maintain in each separate account assets
				  with a value at least equal to the greater of the valuation reserves for the
				  variable portion of the variable life insurance policies on the benefit base
				  for such policies.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.27 - LIMITATIONS ON INVESTMENTS BY THE SEPARATE ACCOUNT

Current through Register Vol. 35, No. 13, July 16, 2024
A. No sale, exchange, or other transfer of
				assets may be made by an insurer or any of its affiliates between any of its
				separate accounts or between any other investment account and one or more of
				its separate accounts unless:
(1) in case of
				a transfer into a separate account, such transfer is made solely to establish
				the account or to support the operation of the policies with respect to the
				separate account to which the transfer is made; and
(2) such transfer, whether into or from a
				separate account, is made by a transfer of cash; but other assets may be
				transferred if approved by the superintendent in advance.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.28 - LIMITATIONS ON OWNERSHIP

Current through Register Vol. 35, No. 13, July 16, 2024
A. A
				separate account shall not purchase or otherwise acquire the securities of any
				issuer, other than securities issued or guaranteed as to principal and interest
				by the United States, if immediately after such purchase or acquisition the
				value of such investment, together with prior investments of such account in
				such security valued as required by these regulations, would exceed 10% of the
				value of the assets of the separate account. The superintendent may waive this
				limitation in writing if he believes such waiver will not render the operation
				of the separate account hazardous to the public or the policyholders in this
				state.
B. No separate account shall
				purchase or otherwise acquire the voting securities of any issuer if as a
				result of such acquisition the insurer and its separate accounts, in the
				aggregate, will own more than 10% of the total issued and outstanding voting
				securities of such issuer. The superintendent may waive this limitation in
				writing if he believes such waiver will not render the operation of the
				separate account hazardous to the public or the policyholders in this state or
				jeopardize the independent operation of the issuer of such
				securities.
C. The percentage
				limitation specified in 13 NMAC 9.8.28.1 [now Subsection A of 13.9.2.28 NMAC]
				shall not be construed to preclude the investment of the assets of separate
				accounts in shares of investment companies registered pursuant to the
				Investment Company Act of 1940 or other pools of investment assets if the
				investments and investment policies of such investment companies or asset pools
				comply substantially with the provisions of 13 NMAC 9.8.27 [now 13.9.8.27 NMAC]
				and other applicable portions of this rule.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.29 - SEPARATE ACCOUNT INVESTMENT POLICY

Current through Register Vol. 35, No. 13, July 16, 2024
The investment policy of a separate account operated by a
				  domestic insurer filed under 13 NMAC 9.8.27 [now
				  13.9.8.27
				  NMAC] shall not be changed without first filing such change with the
				  superintendent of insurance.
A. Any
				change filed pursuant to this section shall be effective sixty days after the
				date it was filed with the superintendent, unless the superintendent notifies
				the insurer before the end of such sixty-day period of his disapproval of the
				proposed change. At any time the superintendent may, after notice and public
				hearing, disapprove any change that has become effective pursuant to this
				section.
B. The superintendent may
				disapprove the change if he determines that the change would be detrimental to
				the interests of the policyholders participating in such separate
				account.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.30 - CHARGES AGAINST SEPARATE ACCOUNT

Current through Register Vol. 35, No. 13, July 16, 2024
The insurer must disclose in writing, prior to or
				  contemporaneously with delivery of the policy, all charges that may be made
				  against the separate account, including, but not limited to, the
				  following:
A. taxes or reserves for
				taxes attributable to investment gains and income of the separate
				account;
B. actual cost of
				reasonable brokerage fees and similar direct acquisition and sale costs
				incurred in the purchase or sale of separate account assets;
C. actuarially determined costs of insurance
				(tabular costs) and the release of separate account liabilities;
D. charges for administrative expenses and
				investment management expenses, including internal costs attributable to the
				investment management of assets of the separate account;
E. a charge, at a rate specified in the
				policy, for mortality and expense guarantees;
F. any amounts in excess of those required to
				be held in the separate accounts; and
G. charges for incidental insurance
				benefits.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.31 - STANDARDS OF CONDUCT

Current through Register Vol. 35, No. 13, July 16, 2024
Every insurer seeking approval to enter into the variable
				  life insurance business in this state shall adopt by formal action of its board
				  of directors a written statement specifying the standards of conduct of the
				  insurer, its officers, directors, employees, and affiliates with respect to the
				  purchase or sale of investments of separate accounts. Such standards of conduct
				  shall be binding on the insurer and those to whom it refers. A code or codes of
				  ethics meeting the requirements of Section 17j under the Investment Company Act
				  of 1940 and applicable rules and regulations thereunder shall satisfy the
				  provisions of this section.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.32 - CONFLICTS OF INTEREST

Current through Register Vol. 35, No. 13, July 16, 2024
Rules under any provision of the Insurance Code of this state
				  or any regulation applicable to the officers and directors of insurance
				  companies with respect to conflicts of interest shall also apply to members of
				  any separate account's committee or other similar body.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.34 - INFORMATION FURNISHED TO APPLICANTS

Current through Register Vol. 35, No. 13, July 16, 2024
An insurer delivering or issuing for delivery in this state
				  any variable life insurance policies shall deliver to the applicant for the
				  policy, and obtain a written acknowledgment of receipt from such applicant
				  coincident with or prior to the execution of the application, the following
				  information. The requirements of this section shall be deemed to have been
				  satisfied to the extent that a disclosure containing information required by
				  this section is delivered, either in the form of:
1) a prospectus included in the requirements
				of the Securities Act of 1933 and which was declared effective by the
				Securities and Exchange Commission; or
2) all information and reports required by
				the Employee Retirement Income Security Act of 1974 if the policies are
				exempted from the registration requirements of the Securities Act of 1933
				pursuant to Section 3(a)(2) thereof.
A. A
				summary explanation, in non-technical terms, or the principal features of the
				policy, including a description of the manner in which the variable benefits
				will reflect the investment experience of the separate account and the factors
				which affect such variation. Such explanation must include notices of the
				provisions required by 13 NMAC 9.8.18.1.5 and 13 NMAC 9.8.18.6 [now Paragraph
				(5) of Subsection A of 13.9.8.18 NMAC and Subsection F of 13.9.8.18
				NMAC];
B. A statement of the
				investment policy of the separate account, including:
(1) a description for the investment
				objectives intended for the separate account and the principal types of
				investments intended to be made; and
(2) any restriction or limitations on the
				manner in which the operations of the separate account are intended to be
				conducted.
C. A
				statement of the net investment return of the separate account for each of the
				last ten years of such lesser period as the separate account has been in
				existence.
D. A statement of the
				charges levied against the separate account during the previous year.
E. A summary of the method to be used in
				valuing assets held by the separate account.
F. A summary of the federal income tax
				aspects of the policy applicable to the insured, the policyholder and the
				beneficiary.
G. Illustrations of
				benefits payable under the variable life insurance contract. Such illustrations
				shall be prepared by the insurer and shall not include projections of past
				investment experience into the future or attempted predictions of future
				investment experience, provided that nothing contained herein prohibits use of
				hypothetical assumed rates of return to illustrate possible levels of benefits
				if it is made clear that such assumed rates are hypothetical only.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.35 - APPLICATIONS

Current through Register Vol. 35, No. 13, July 16, 2024
The application for a variable life insurance policy shall
				  contain:
A. a prominent statement that
				the death benefit may be variable or fixed under specified
				conditions;
B. a prominent
				statement that cash values may increase or decrease in accordance with the
				experience of the separate account (subject to any specified minimum
				guarantees); and
C. questions
				designed to elicit information which enables the insurer to determine the
				suitability of variable life insurance for the applicant.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.36 - REPORTS TO POLICYHOLDERS

Current through Register Vol. 35, No. 13, July 16, 2024
Any insurer delivering or issuing for delivery in this state
				  any variable life insurance policies shall mail to each variable life insurance
				  policyholder at his or her last known address the following reports:
A.
Anniversary reports:
(1) Within thirty days after each anniversary
				of the policy, a statement or statements of the cash surrender value, death
				benefit, any partial withdrawal or policy loan, any interest charge, any
				optional payments allowed pursuant to 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 and 20 of 13.9.8 NMAC]
				under the policy computed as of the policy anniversary date; provided, however,
				that such statement may be furnished within thirty days after a specified date
				in each policy year so long as the information contained therein is computed as
				of a date not more than sixty days prior to the mailing of such
				notice.
(2) This statement shall
				state that, in accordance with the investment experience of the separate
				account, the cash values and the variable death benefit may increase or
				decrease, and shall prominently identify any value described therein which may
				be recomputed prior to the next statement required by this rule.
(3) If the policy guarantees that the
				variable death benefit on the next policy anniversary date will not be less
				than the variable death benefit specified in such statement, the statement
				shall be modified to so indicate. For flexible premium policies, the report
				must contain a reconciliation of the change since the previous report in cash
				value and cash surrender value, if different, because of payments made (less
				deductions for expense charges), withdrawals, investment experience, insurance
				charges and any other charges made against the cash value.
(4) In addition, the report must show the
				projected cash value and cash surrender value, if different, as of one year
				from the end of the period covered by the report assuming that:
1) planned periodic premiums, if any, are
				paid as scheduled;
2) guaranteed
				costs of insurance are deducted; and
3) the net investment return is equal to the
				guaranteed rate or, in the absence of a guaranteed rate, is not greater than
				zero. If the projected value is less than zero, a warning message must be
				included that states that the policy may be in danger of terminating without
				value in the next 12 months unless additional premium is paid.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.37 - FOREIGN COMPANIES

Current through Register Vol. 35, No. 13, July 16, 2024
If the law or regulation in the place of domicile of a
				  foreign company provides a degree of protection to the policyholders and the
				  public which is substantially similar to that provided by these rules, the
				  superintendent to the extent deemed appropriate by him in his discretion, may
				  consider compliance with such law or regulation as compliance with these
				  rules.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.38 - QUALIFICATIONS TO SELL VARIABLE LIFE INSURANCE

Current through Register Vol. 35, No. 13, July 16, 2024
A. No person may sell or offer for sale in
				this state any variable life insurance policy unless such person is an agent
				and has filed with the superintendent, in a form satisfactory to the
				superintendent, evidence that such person holds any license or authorization
				which may be required for the solicitation or sale of variable life
				insurance.
B. Any examination
				administered by the department for the purpose of determining the eligibility
				for any person for licensing as an agent shall, after the effective date of
				these rules, include such questions concerning the history, purpose,
				regulation, and sale of variable life insurance as the superintendent deems
				appropriate.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.39 - REPORTS OF DISCIPLINARY ACTIONS

Current through Register Vol. 35, No. 13, July 16, 2024
Any person qualified in this state under these rules to sell
				  or offer to sell variable life insurance shall immediately report to the
				  superintendent:
A. any suspension or
				revocation of his agent's license in any other state or territory of the United
				States;
B. the imposition of any
				disciplinary sanction, including suspension or expulsion from membership,
				suspension, or revocation of or denial of registration, imposed upon him by any
				national securities exchange, or national securities association, or any
				federal, state, or territorial agency with jurisdiction over securities or
				variable life insurance; and
C. any
				judgment or injunction entered against him on the basis of conduct deemed to
				have involved fraud, deceit, misrepresentation, or violation of any insurance
				or securities law or regulation.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.40 - REFUSAL TO QUALIFY AGENT TO SELL VARIABLE LIFE INSURANCE

Current through Register Vol. 35, No. 13, July 16, 2024
The superintendent may reject any application or suspend or
				  revoke or refuse to renew any agent's qualification under these regulations to
				  sell or offer to sell variable life insurance upon any ground that would bar
				  such applicant or such agent from being licensed to sell other life insurance
				  contracts in this state. The rules governing any proceeding relating to the
				  suspension or revocation of an agent's license shall also govern any proceeding
				  for suspension or revocation of an agent's qualification of sell or offer to
				  sell variable life insurance.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 9 - UNISEX NONFORFEITURE STANDARDS › Section 13.9.9.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
New Mexico State Corporation Commission [Public Regulation
				  Commission], Department of Insurance, Post Office Box 1269, Santa Fe, NM
				  87504-1269.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 9 - UNISEX NONFORFEITURE STANDARDS › Section 13.9.9.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This rule applies to all life insurers providing
				  non-forfeiture benefits on a sex-neutral basis.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 9 - UNISEX NONFORFEITURE STANDARDS › Section 13.9.9.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
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.
Compiler's note: The words or paragraph, above, are no
					 longer applicable. Later dates are now cited only at the end of sections, in
					 the history notes appearing in
					 brackets.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 9 - UNISEX NONFORFEITURE STANDARDS › Section 13.9.9.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The purpose of these rules is to permit individual life
				  insurance policies to provide the same cash surrender values and paid-up
				  nonforfeiture benefits to both men and women. No change in minimum valuation
				  standards is implied by this rule.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 9 - UNISEX NONFORFEITURE STANDARDS › Section 13.9.9.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
"1980 CSO
				table, with or without ten year select mortality factors"
means that
				mortality table, consisting of separate rates of mortality for male and female
				lives developed by the society of actuaries committee to recommend new
				mortality tables for valuation of standard individual ordinary life insurance,
				incorporated in the 1980 NAIC Amendments to the Model Standard Valuation Law
				and Standard Nonforfeiture Law for Life Insurance, and referred to in those
				models as the commissioners 1980 standard ordinary mortality table, with or
				without ten-year select mortality factors.
B.
"1980 CSO table (M), with or without
				ten-year select mortality factors"
means that mortality table consisting
				of the rates of mortality for males lives from the 1980 CSO tables, with or
				without ten-year select mortality factors.
C.
"1980 CSO table (F), with or without
				ten-year select mortality factors"
means that mortality table consisting
				of the rates of mortality for female lives from the 1980 CSO table, with or
				without ten-years select mortality factors.
D.
"1980 CET table"
means that
				mortality table consisting of separate rates of mortality for male and female
				lives, developed by the society of actuaries committee to recommend new
				mortality tables for valuation of standard individual ordinary life insurance,
				incorporated in the 1980 NAIC Amendments to the Model Standard Valuation Law
				and Standard Nonforfeiture Law for Life Insurance, and referred to in those
				models as the commissioners 1980 extended term insurance table.
E.
"1980 CET table (M)"
means
				that mortality table consisting of the rates of mortality for male lives from
				the 1980 CET Table.
F.
"1980
				CET table (F)"
means that mortality table consisting of the rates of
				mortality for female lives from the 1980 CET Table.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 9 - UNISEX NONFORFEITURE STANDARDS › Section 13.9.9.8 - MORTALITY TABLES

Current through Register Vol. 35, No. 13, July 16, 2024
For any policy of insurance on the life of either a male or
				  female insured delivered or issued for delivery in this state after the
				  operative date of Section 59-16-8 F(10) (now codified at Section 59A-20-31 K)
				  NMSA 1978 for that policy form:
A. a
				mortality table which is a blend of the 1980 CSO table (M) and the 1980 CSO
				table (F) with or without ten-year select mortality factors may at the option
				of the company be substituted for the 1980 CSO table, with or without ten-year
				select mortality factors; and
B. a
				mortality table which is of the same blend as used in (I) but applied to form a
				blend of the 1980 CET Table (M) and the 1980 CET table (F) may at the option of
				the company be substituted for the 1980 CET table for use in determining
				minimum cash surrender values and amount of paid-up nonforfeiture
				benefits.
C. The following table
				will be considered as the basis for acceptable tables:
(1) 100% male 0% female for tables to be
				designated as the 1980 CSO-A and 1980 CET-A tables;
(2) 80% male 20% female for tables to be
				designated as the 1980 CSO-B and 1980 CET-B tables;
(3) 60% male 40% female for tables to be
				designated as the 1980 CSO-C and 1980 CET-C tables;
(4) 50% male 50% female for tables to be
				designated as the 1980 CSO-D and 1980 CET-D tables;
(5) 40% male 60% female for tables to be
				designated as the 1980 CSO-E and 1980 CET-E tables;
(6) 20% male 80% female for tables to be
				designated as the 1980 CSO-F and 1980 CET-F tables; and
(7) 0% male 100% female for tables to be
				designated as the 1980 CSO-G and 1980 CET-G tables.