reglab/statecodes huggingface dataset:
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 9 - UNISEX NONFORFEITURE STANDARDS › Section 13.9.9.9 - ALTERNATE RULE

Current through Register Vol. 35, No. 13, July 16, 2024
A. In
				determining minimum cash surrender values and amounts of paid-up nonforfeiture
				benefits for any policy of insurance on the life of either a male or female
				insured on a form of insurance with separate rates for smokers and nonsmokers
				delivered or issued for delivery in this state after the operative date of
				Section 59-16-8 F(10) NMSA 1978 (now codified at Section 59A-20-31K NMSA 1978)
				for that policy form, in addition to the mortality tables that may be used
				according to13 NMAC 9.9.8 [now 13.9.9.7 NMAC]:
(1) a mortality table which is a blend of the
				male and female rates of mortality according to the 1980 CSO smoker mortality
				table, in the case of lives classified as smokers, or the 1980 CSO nonsmokers
				mortality table, in the case of lives classified as nonsmokers, 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
(2) a mortality table
				which is of the same blend as used in (i) [
sic
] but applied to
				form a blend of the male and female rates or mortality according to the
				corresponding 1980 CET smoker mortality table or 1980 CET nonsmoker mortality
				table may at the option of the company be substituted for the 1980 CET
				table.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 9 - UNISEX NONFORFEITURE STANDARDS › Section 13.9.9.10 - UNFAIR DISCRIMINATION

Current through Register Vol. 35, No. 13, July 16, 2024
It shall not be a violation of Sections 59A-16-11 or
				  59A-16-13 NMSA 1978 for an insurer to issue the same kind of policy of life
				  insurance on both a sex distinct and sex neutral basis.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 10 - USE OF SMOKER/NONSMOKER MORTALITY TABLES › Section 13.9.10.1 - 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 10 - USE OF SMOKER/NONSMOKER MORTALITY TABLES › Section 13.9.10.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This rule applies to all life insurers issuing plans of
				  insurance with separate premium rates for smokers and
				  non-smokers.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 10 - USE OF SMOKER/NONSMOKER MORTALITY TABLES › Section 13.9.10.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Sections 59A-2-9 and 59A-20-31 NMSA 1978.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 10 - USE OF SMOKER/NONSMOKER MORTALITY TABLES › Section 13.9.10.5 - 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 10 - USE OF SMOKER/NONSMOKER MORTALITY TABLES › Section 13.9.10.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The purpose of these rules is to permit the use of mortality
				  tables that reflect differences in mortality between smokers and nonsmokers in
				  determining minimum reserve liabilities and minimum cash surrender values and
				  amount of paid-up nonforfeiture benefits for plans of insurance with separate
				  premium rates for smokers and nonsmokers.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 10 - USE OF SMOKER/NONSMOKER MORTALITY TABLES › Section 13.9.10.7 - 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. The same select factors will be used
				for both smokers and nonsmokers tables.
B.
"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 Nonforfeiture
				Law For Life Insurance, and referred to in those models as the commissioners
				1980 extended term insurance table.
C.
"1958 CSO table"
means that
				mortality table developed by the society of actuaries special committee on new
				mortality tables, incorporated in the NAIC Model Standard Nonforfeiture Law for
				Life Insurance, and referred to in that model of the commissioners 1958
				standard ordinary mortality table.
D.
"1958 CET table"
means that
				mortality table developed by the society of actuaries special committee on new
				mortality tables, incorporated in the NAIC Model Standard Nonforfeiture Law for
				Life Insurance, and referred to in that model as the commissioners 1958
				extended term insurance table.
E.
"Smoker and nonsmoker mortality tables"
refers to the mortality
				tables with separate rates of mortality for smokers and nonsmokers derived from
				the tables defined in 13 NMAC 9.10.7.1 through 9.10.7.4 [now Subsection A
				through D of 13.9.10.7 NMAC] which were developed by the society of actuaries
				task force on smoker/nonsmoker mortality and the California insurance
				department staff and recommended by the NAIC technical staff actuarial
				group.
F.
"Composite
				mortality"
tables refers to the mortality tables defined in 13 NMAC
				9.10.7.1 through 9.10.7.4 [now Subsections A through D of 13.9.10.7 NMAC] as
				they were originally published with rates of mortality that do not distinguish
				between smokers and nonsmokers.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 10 - USE OF SMOKER/NONSMOKER MORTALITY TABLES › Section 13.9.10.8 - ALTERNATE TABLES

Current through Register Vol. 35, No. 13, July 16, 2024
A. For any
				policy of insurance delivered or issued for delivery in this state after the
				operative date of Section 59-16-8 F(10) NMSA 1978 (now codified at Section
				59A-20-31K NMSA 1978) for that policy form and before January 1, 1989, at the
				option of the company and subject to the conditions stated in 13 nmac 9.10.9
				[now 13.9.10.9 NMAC]:
(1) the 1958 CSO smoker
				and nonsmoker mortality tables may be substituted for the 1980 CSO table, with
				or without ten-year select mortality factors; and
(2) the 1958 CET smoker and nonsmoker
				mortality tables may be substituted for the 1980 CET table for use in
				determining minimum reserve liabilities and minimum cash surrender values and
				amounts of paid-up nonforfeiture benefits.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 10 - USE OF SMOKER/NONSMOKER MORTALITY TABLES › Section 13.9.10.9 - CONDITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
For each plan of insurance with separate rates for smokers
				  and nonsmokers, an insurer may:
A. use
				composite mortality tables to determine minimum reserve liabilities and minimum
				cash surrender values and amounts of paid-up nonforfeiture benefits;
B. use smoker and nonsmoker mortality tables
				to determine the valuation net premiums and additional minimum reserves, if
				any, required by Section 7 of the NAIC Model Standard Valuation Law and use
				composite mortality tables to determine the basic minimum reserves, minimum
				cash surrender values and amounts of paid-up nonforfeiture benefits;
				or
C. use smoker and nonsmoker
				mortality to determine minimum reserve liabilities and minimum cash surrender
				values and amounts of paid-up nonforfeiture benefits.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 11 - USE OF 1983 ANNUITY MORTALITY TABLES › Section 13.9.11.1 - 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 11 - USE OF 1983 ANNUITY MORTALITY TABLES › Section 13.9.11.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This rule applies to all life insurance companies issuing
				  annuity contracts.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 11 - USE OF 1983 ANNUITY MORTALITY TABLES › Section 13.9.11.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Sections 59A-2-9 and 59A-8-6 NMSA 1978.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 11 - USE OF 1983 ANNUITY MORTALITY TABLES › Section 13.9.11.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
December 31, 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 11 - USE OF 1983 ANNUITY MORTALITY TABLES › Section 13.9.11.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The purpose of this rule is to recognize the following
				  mortality tables for use in determining the minimum standard of valuation for
				  annuity and pure endowment contracts: the 1983 table "a," the 1983 group
				  annuity mortality (1983 GAM) table, the annuity 2000 mortality table, and the
				  1994 group annuity reserving (1994 GAR) table.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 11 - USE OF 1983 ANNUITY MORTALITY TABLES › Section 13.9.11.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
As used in this rule:
A.
"1983 table a"
means the
				mortality table developed by the society of actuaries committee to recommend a
				new mortality basis for individual annuity valuation and adopted as a
				recognized mortality table for annuities in June, 1982 by the national
				association of insurance commissioners.
B.
"1983 GAM table"
means the
				mortality table developed by the society of actuaries committee on annuities
				and adopted as a recognized mortality table for annuities in December, 1983 by
				the national association of insurance commissioners.
C.
"1994 GAR table"
means that
				mortality table developed by the society of actuaries group annuity valuation
				table task force and shown on pages 865-919 of Volume XLVII of the Transactions
				of the Society of Actuaries (1995).
D.
"Annuity 2000 mortality
				table"
means that mortality table developed by the society of actuaries
				committee on life insurance research and shown on pages 211-249 of Volume XLVII
				of the Transactions of the Society of Actuaries (1995).
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 11 - USE OF 1983 ANNUITY MORTALITY TABLES › Section 13.9.11.8 - INDIVIDUAL ANNUITY OR PURE ENDOWMENT CONTRACTS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Except as provided in 13 NMAC 9.11.8.2 and
				9.11.8.3 [now Subsections B and C of 13.9.11.8 NMAC], the 1983 table "a" is
				recognized and approved as an individual annuity mortality table for valuation
				and, at the option of the company, may be used for purposes of determining the
				minimum standard of valuation for any individual annuity or pure endowment
				contract issued on or after July 1, 1977.
B. Except as provided in 13 NMAC 9.11.8.3
				[now Subsection C of 13.9.11.8 NMAC], either the 1983 table "a" or the annuity
				2000 mortality table shall be used for determining the minimum standard of
				valuation for any individual annuity or pure endowment contract issued on or
				after December 31, 1985.
C. Except
				as provided in 13 NMAC 9.11.8.4 [now Subsection D of 13.9.11.8 NMAC], the
				annuity 2000 mortality table shall be used for determining the minimum standard
				of valuation for any individual annuity or pure endowment contract issued on or
				after January 1, 1999.
D. The 1983
				table "a" without projection is to be used for determining the minimum
				standards of valuation for an individual annuity or pure endowment contract
				issued on or after January 1, 1999, solely when the contract is based on life
				contingencies and is issued to fund periodic benefits arising from:
(1) settlements of various forms of claims
				pertaining to court settlements or out of court settlements from tort
				actions;
(2) settlements involving
				similar actions such as workers' compensation claims; or
(3) settlements of long term disability
				claims where a temporary or life annuity has been used in lieu of continuing
				disability payments.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 11 - USE OF 1983 ANNUITY MORTALITY TABLES › Section 13.9.11.9 - GROUP ANNUITY OR PURE ENDOWMENT CONTRACTS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Except as provided in 13 NMAC 9.11.9.2 and
				9.11.9.3 [now Subsections B and C of 13.9.11.9 NMAC], the 1983 GAM table, the
				1983 table "a" and the 1994 GAR table are recognized and approved as group
				annuity mortality tables for valuation and, at the option of the company, any
				one of these tables may be used for purposes of valuation for an annuity or
				pure endowment purchased on or after July 1, 1977 under a group annuity or pure
				endowment contract.
B. Except as
				provided in 13 NMAC 9.11.9.3 [now Subsection C of 13.9.11.9 NMAC], either the
				1983 GAM table or the 1994 GAR table shall be used for determining the minimum
				standard of valuation for any annuity or pure endowment purchased on or after
				December 31, 1985 under a group annuity or pure endowment contract.
C. The 1994 GAR table shall be used for
				determining the minimum standard of valuation for any annuity or pure endowment
				purchased on or after January 1, 1999 under a group annuity or pure endowment
				contract.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 11 - USE OF 1983 ANNUITY MORTALITY TABLES › Section 13.9.11.10 - APPLICATION OF THE 1994 GAR TABLE

Current through Register Vol. 35, No. 13, July 16, 2024
In using the 1994 GAR table, the mortality rate for a person
				  age x in year (1994 + n) is calculated as follows:
qx
									1994+n = qx
									1994 (1 - AAx )
				  
				  n
where the qx
									1994 and AAxs
				  are as specified in the 1994 GAR table.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 12 - ANNUITY AND DEPOSIT FUND DISCLOSURE › Section 13.9.12.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
New Mexico Public Regulation Commission, Insurance Division,
				  Post Office Box 1269, Santa Fe, NM 87504-1269.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 12 - ANNUITY AND DEPOSIT FUND DISCLOSURE › Section 13.9.12.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
A. This rule
				applies to all group and individual annuity contracts and certificates except:
(1) registered or non-registered variable
				annuities or other registered products;
(2) immediate and deferred annuities that
				contain no nonguaranteed elements;
(3) annuities used to fund:
(a) an employee pension plan which is covered
				by the Employee Retirement Income Security Act (ERISA);
(b) 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;
(c) a governmental or church plan defined in
				Section 414 or a deferred compensation plan of a state or local government or a
				tax exempt organization under Section 457 of the Internal Revenue Code;
				or
(d) a nonqualified deferred
				compensation arrangement established or maintained by an employer or plan
				sponsor; and
(4)
				structured settlement annuities.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 12 - ANNUITY AND DEPOSIT FUND DISCLOSURE › Section 13.9.12.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Sections 59A-16-4 and 59A-16-5 NMSA 1978.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 12 - ANNUITY AND DEPOSIT FUND DISCLOSURE › Section 13.9.12.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
July 1, 2000, unless a later date is shown at the end of a
				  section or paragraph.
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 12 - ANNUITY AND DEPOSIT FUND DISCLOSURE › Section 13.9.12.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The purpose of this rule is to provide standards for the
				  disclosure of certain minimum information about annuity contracts to protect
				  consumers and foster consumer education. The rule specifies the minimum
				  information which must be disclosed and the method for disclosing it in
				  connection with the sale of annuity contracts. The goal of this rule is to
				  ensure that purchasers of annuity contracts understand certain basic features
				  of annuity contracts.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 12 - ANNUITY AND DEPOSIT FUND DISCLOSURE › Section 13.9.12.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
For purposes of this rule:
A.
"Buyer's guide"
means:
(1) for insurers selling only fixed deferred
				annuities, the text provided in 13 nmac 9.12.12 [now 13.9.12.12 NMAC];
				and
(2) for insurers selling
				equity-indexed annuities, the text provided in 13 nmac 9.12.12 and 9.12.13 [now
				13.9.12.12 NMAC and 13.9.12.13 NMAC].
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 12 - ANNUITY AND DEPOSIT FUND DISCLOSURE › Section 13.9.12.8 - WHEN DISCLOSURE SHALL BE MADE

Current through Register Vol. 35, No. 13, July 16, 2024
A. Where the application for an annuity
				contract is taken in a face-to-face meeting, the applicant shall at or before
				the time of application be given both a disclosure document and a buyer's
				guide.
B. Where the application for
				an annuity contract is taken by means other than in a face-to-face meeting, the
				applicant shall be sent both a disclosure document and a buyer's guide no later
				than five (5) business days after the completed application is received by the
				insurer.
(1) With respect to an application
				received as a result of a direct solicitation through the mail:
(a) providing a buyer's guide in a mailing
				inviting prospective applicants to apply for an annuity contract shall be
				deemed to satisfy the requirement that a buyer's guide be provided no later
				than five (5) business days after receipt of the application.
(b) providing a disclosure document in a
				mailing inviting a prospective applicant to apply for an annuity contract shall
				be deemed to satisfy the requirement that a disclosure document be provided no
				later than five (5) business days after receipt of the application.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 12 - ANNUITY AND DEPOSIT FUND DISCLOSURE › Section 13.9.12.9 - CONTENTS OF DISCLOSURE DOCUMENT

Current through Register Vol. 35, No. 13, July 16, 2024
Insurers shall define terms used in the disclosure document
				  in language that facilitates the understanding by a typical person within the
				  segment of the public to which the disclosure document is directed. At a
				  minimum, the following information shall be included in the disclosure
				  document:
A. the generic name of the
				contract, the company product name, if different, and form number, and the fact
				that it is an annuity;
B. the
				insurer's name and address;
C. a
				description of the contract and its benefits, emphasizing its long-term nature,
				and including examples where appropriate:
(1)
				the guaranteed, non-guaranteed and determinable elements of the contract, and
				their limitations, if any, and an explanation of how they operate;
(2) an explanation of the initial crediting
				rate, specifying any bonus or introductory portion, the duration of the rate
				and the fact that rates may change from time to time and are not
				guaranteed;
(3) periodic income
				options both on a guaranteed and non-guaranteed basis;
(4) any value reductions caused by
				withdrawals from or surrender of the contract;
(5) how values in the contract can be
				accessed;
(6) the death benefit, if
				available and how it will be calculated;
(7) a summary of the federal tax status of
				the contract and any penalties applicable on withdrawal of values from the
				contract; and
(8) impact of any
				rider, such as a long-term care rider;
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 12 - ANNUITY AND DEPOSIT FUND DISCLOSURE › Section 13.9.12.10 - REPORT TO CONTRACT OWNERS

Current through Register Vol. 35, No. 13, July 16, 2024
For annuities in the payout period with changes in
				  non-guaranteed elements and for the accumulation period of a deferred annuity,
				  the insurer shall provide each contract owner with a report, at least annually,
				  on the status of the contract that contains at least the following
				  information:
A. the beginning and end
				date of the current report period;
B. the accumulation and cash surrender value,
				if any, at the end of the previous report period and at the end of the current
				report period;
C. the total
				amounts, if any, that have been credited, charged to the contract value or paid
				during the current report period; and
D. the amount of outstanding loans, if any,
				as of the end of the current report period.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 12 - ANNUITY AND DEPOSIT FUND DISCLOSURE › Section 13.9.12.11 - PENALTIES

Current through Register Vol. 35, No. 13, July 16, 2024
In addition to any other penalties provided by the laws of
				  this state, an insurer or producer that violates a requirement of this rule
				  shall be guilty of a violation of Chapter 59A, Article 16 NMSA
				  1978.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 13 - VALUATION OF LIFE INSURANCE POLICIES › Section 13.9.13.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
New Mexico Public Regulation Commission, Insurance Division,
				  Post Office Box 1269, Santa Fe, NM 87504-1269.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 13 - VALUATION OF LIFE INSURANCE POLICIES › Section 13.9.13.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
A. This rule
				applies to all life insurance policies, with or without nonforfeiture values,
				issued on or after the effective date of this rule.
B. This rule does not apply to:
(1) any individual life insurance policy
				issued on or after the effective date of this rule if the policy is issued in
				accordance with and as a result of the exercise of a reentry provision
				contained in the original life insurance policy of the same or greater face
				amount, issued before the effective date of this rule, that guarantees the
				premium rates of the new policy; this rule also shall not apply to subsequent
				policies issued as a result of the exercise of such a provision, or a
				derivation of the provision, in the new policy;
(2) any universal life policy that meets all
				of the following requirements:
(a) secondary
				guarantee period, if any, is five (5) years or less;
(b) specified premium for the secondary
				guarantee period is not less than the net level reserve premium for the
				secondary guarantee period based on the 1980 CSO valuation tables and the
				applicable valuation interest rate; and
(c) the initial surrender charge is not less
				than 100 percent of the first year annualized specified premium for the
				secondary guarantee period;
(3) any variable life insurance policy that
				provides for life insurance, the amount or duration of which varies according
				to the investment experience of any separate account;
(4) any variable universal life insurance
				policy that provides for life insurance, the amount or duration of which varies
				according to the investment experience of any separate account;
(5) a group life insurance certificate unless
				the certificate provides for a stated or implied schedule of maximum gross
				premiums required in order to continue coverage in force for a period in excess
				of one year.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 13 - VALUATION OF LIFE INSURANCE POLICIES › Section 13.9.13.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Sections 59A-2-8, 59A-2-9, 59A-8-5 and 59A-8-6 NMSA
				  1978.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 13 - VALUATION OF LIFE INSURANCE POLICIES › Section 13.9.13.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
January 1, 2000, unless a later date is specified at the end
				  of a section or paragraph.
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 13 - VALUATION OF LIFE INSURANCE POLICIES › Section 13.9.13.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The purpose of this rule is to provide tables of select
				  mortality factors and guidelines for their use, and to establish minimum
				  standards for the valuation of plans with nonlevel premiums or benefits and
				  plans with secondary guarantees. The method for calcaluating basic reserves
				  defined in this rule will constitute the commissioners' reserve valuation
				  method for policies to which this rule is applicable.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 13 - VALUATION OF LIFE INSURANCE POLICIES › Section 13.9.13.8 - DETERMINATION OF SEGMENT LENGTH

Current through Register Vol. 35, No. 13, July 16, 2024
The length of a particular contract segment shall be set
				  equal to the minimum of the value
t
for which
				  Gt is greater than Rt where
				  Gt and Rt are defined as
				  follows:
Gt =
				  GPx+k+t
__________
GPx+k+t-1 where x = original issue
				  age
k = the number of years from the date of issue to the
				  beginning of the segment;
t = 1, 2, . . .; t is reset to 1 at the beginning of each
				  segment;
GPx+k+t-1 = guaranteed gross premium
				  per thousand of face amount for year
t
of the segment,
ignoring policy fees only if level for the premium paying
				  period of the policy.
If GPx+k+t is greater than 0 and
				  GPx+k+t-1 is equal to 0, Gt shall
				  be deemed to be 1000. If GPx+k+t and
				  GPx+k+t-1 are both equal to 0, Gt
				  shall be deemed to be 0.
Rt = qx+k+ t
__________
qx+t+k-1 where x, k and t are as
				  defined above, and
qx+t+k-1 = valuation mortality rate
				  for deficiency reserves in policy year k+t but
using the mortality of 13 NMAC 9.13.13.2 [now Subsection B
				  of
13.9.13.13 NMAC] if 13 NMAC 9.13.13.3 [now Subsection C
				  of
13.9.13.13 NMAC] is elected for deficiency reserves.
If Gt never exceeds
				  Rt the segment length is deemed to be the number of
				  years from the beginning of the segment to the mandatory expiration date of the
				  policy. However, Rt may be increased or decreased by one
				  percent in any policy year, at the company's option, but Rt
				  shall not be less than one.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 13 - VALUATION OF LIFE INSURANCE POLICIES › Section 13.9.13.9 - COMPUTATION OF SEGMENTED RESERVES

Current through Register Vol. 35, No. 13, July 16, 2024
A. The uniform percentage for each segment is
				such that, at the beginning of the segment; the present value of the net
				premiums within the segment equals:
(1) the
				present value of the death benefits within the segment, plus
(2) the present value of any unusual
				guaranteed cash value (see 13 nmac 9.13.18 [now 13.9.13.18 NMAC] occurring at
				the end of the segment; less
(3)
				any unusual guaranteed cash value occurring at the start of the segment,
				plus
(4) for the first segment
				only, the excess of item A over item B, as follows:
(a)
Item A:
A net level annual
				premium equal to the present value, at the date of issue, of the benefits
				provided for in the first segment after the first policy year, divided by the
				present value, at the date of issue, of an annuity of one per year payable on
				the first and each subsequent anniversary within the first segment on which a
				premium falls due. However, the net level annual premium shall not exceed the
				net level annual premium on the nineteen-year premium whole life plan of
				insurance of the same renewal year equivalent level amount at an age one year
				higher than the age at issue of the policy.
(b)
Item B:
A net one year term
				premium for the benefits provided for in the first policy year.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 13 - VALUATION OF LIFE INSURANCE POLICIES › Section 13.9.13.10 - COMPUTATION OF UNITARY RESERVES

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Guaranteed benefits and modified net premiums are considered to the mandatory
				expiration of the policy. and
B.
				Modified net premiums are a uniform percentage of the respective guaranteed
				gross premiums, where the uniform percentage is such that, at issue, the
				present value of the net premiums equals the present value of all death
				benefits and pure endowments, plus the excess of item C over item D, as
				follows:
(1)
Item C:
A net level
				annual premium equal to the present value, at the date of issue, of the
				benefits provided for after the first policy year, divided by the present
				value, at the date of issue, of an annuity of one per year payable on the first
				and each subsequent anniversary of the policy on which a premium falls due.
				However, the net level annual premium shall not exceed the net level annual
				premium on the nineteen-year premium whole life plan of insurance of the same
				renewal year equivalent level amount at an age one year higher than the age at
				issue of the policy.
(2)
Item
				D:
A net one year term premium for the benefits provided for in the
				first policy year.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 13 - VALUATION OF LIFE INSURANCE POLICIES › Section 13.9.13.11 - GENERAL CALCULATION REQUIREMENTS APPLICABLE TO BASIC RESERVES AND DEFICIENCY RESERVES

Current through Register Vol. 35, No. 13, July 16, 2024
A. Any
				set of base select mortality factors may be used only for the first segment.
				However, if the first segment is less than ten (10) years, the appropriate
				ten-year select mortality factors may be used thereafter through the tenth
				policy year from the date of issue.
B. In determining basic reserves or
				deficiency reserves, guaranteed gross premiums without policy fees may be used
				where the calculation involves the guaranteed gross premium but only if the
				policy fee is a level dollar amount after the first policy year. In determining
				deficiency reserves, policy fees may be included in guaranteed gross premiums,
				even if not included in the actual calculation of basic reserves.
C. Reserves for policies that have changes to
				guaranteed gross premiums, guaranteed benefits, guaranteed charges, or
				guaranteed credits that are unilaterally made by the insurer after issue and
				that are effective for more than one year after the date of the change shall be
				the greatest of the following:
(1) reserves
				calculated ignoring the guarantee;
(2) reserves assuming the guarantee was made
				at issue; and
(3) reserves assuming
				that the policy was issued on the date of the guarantee.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 13 - VALUATION OF LIFE INSURANCE POLICIES › Section 13.9.13.12 - GENERAL CALCULATION REQUIREMENTS FOR BASIC RESERVES

Current through Register Vol. 35, No. 13, July 16, 2024
At the election of the company for any one or more specified
				  plans of life insurance, the minimum mortality standard for basic reserves may
				  be calculated using the 1980 CSO valuation tables with select mortality factors
				  (or any other valuation mortality table adopted by the NAIC after the effective
				  date of this rule and promulgated by rule by the superintendent for this
				  purpose). If select mortality factors are elected, they may be:
A. the ten-year select mortality factors
				incorporated into the 1980 amendments to the NAIC Standard Valuation
				Law;
B. the select mortality
				factors in 13 nmac 9.13.25 through 9.13.30 [now 13.9.13.25 through 13.9.13.30
				NMAC]; or
C. any other table of
				select mortality factors adopted by the NAIC after the effective date of this
				rule and promulgated by rule by the superintendent for the purpose of
				calculating basic reserves.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 13 - VALUATION OF LIFE INSURANCE POLICIES › Section 13.9.13.14 - CALCULATION OF MINIMUM VALUATION STANDARDS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Calculation of the minimum valuation
				standard for policies with guaranteed nonlevel gross premiums or guaranteed
				nonlevel benefits (other than universal life policies), or both, shall be in
				accordance with the provisions of 13 nmac 9.13.15 through 9.13.22 [now
				13.9.13.15 through 13.9.13.22 NMAC].
B. Calculation of the minimum valuation
				standard for flexible premium and fixed premium universal life insurance
				policies that contain provisions resulting in the ability of a policyholder to
				keep a policy in force over a secondary guarantee period shall be in accordance
				with the provisions of 13 nmac 9.13.23 [now 13.9.13.23 NMAC].
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 13 - VALUATION OF LIFE INSURANCE POLICIES › Section 13.9.13.15 - BASIC RESERVES FOR POLICIES WITH GUARANTEED NONLEVEL GROSS PREMIUMS OR GUARANTEED NONLEVEL BENEFITS (OTHER THAN UNIVERSAL LIFE POLICIES)

Current through Register Vol. 35, No. 13, July 16, 2024
Basic reserves shall be calculated as the greater of the
				  segmented reserves and the unitary reserves. Both the segmented reserves and
				  the unitary reserves for any policy shall use the same valuation mortality
				  table and selection factors. At the option of the insurer, either of the
				  adjustments described below may be made in calculating segmented reserves and
				  net premiums:
A. Treat the unitary
				reserve, if greater than zero, applicable at the end of each segment as a pure
				endowment; and subtract the unitary reserve, if greater than zero, applicable
				at the beginning of each segment from the present value of guaranteed life
				insurance and endowment benefits for each segment.
B. Treat the guaranteed cash surrender value,
				if greater than zero, applicable at the end of each segment as a pure
				endowment; and subtract the guaranteed cash surrender value, if greater than
				zero, applicable at the beginning of each segment from the present value of
				guaranteed life insurance and endowment benefits for each segment.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 13 - VALUATION OF LIFE INSURANCE POLICIES › Section 13.9.13.16 - DEFICIENCY RESERVES FOR POLICIES WITH GUARANTEED NONLEVEL GROSS PREMIUMS OR GUARANTEED NONLEVEL BENEFITS (OTHER THAN UNIVERSAL LIFE POLICIES)

Current through Register Vol. 35, No. 13, July 16, 2024
A. The deficiency
				reserve at any duration shall be calculated:
(1) on a unitary basis if the corresponding
				basic reserve determined by 13 nmac 9.13.15 [now 13.9.13.15 NMAC] is
				unitary;
(2) on a segmented basis
				if the corresponding basic reserve determined by 13 nmac 9.13.15 [now
				13.9.13.15 NMAC] is segmented; or
(3) on a segmented basis if the corresponding
				basic reserve determined by 13 nmac 9.13.15 [now 13.9.13.15 NMAC] is equal to
				both the segmented reserve and the unitary reserve.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 13 - VALUATION OF LIFE INSURANCE POLICIES › Section 13.9.13.17 - MINIMUM VALUE FOR POLICIES WITH GUARANTEED NONLEVEL GROSS PREMIUMS OR GUARANTEED NONLEVEL BENEFITS (OTHER THAN UNIVERSAL LIFE POLICIES)

Current through Register Vol. 35, No. 13, July 16, 2024
Basic reserves may not be less than the tabular cost of
				  insurance for the balance of the policy year, if mean reserves are used. Basic
				  reserves may not be less than the tabular cost of insurance for the balance of
				  the current modal period or to the paid-to date, if later, but not beyond the
				  next policy anniversary, if mid-terminal reserves are used. The tabular cost of
				  insurance shall use the same valuation mortality table and interest rates as
				  that used for the calculation of the segmented reserves. However, if select
				  mortality factors are used, they shall be the ten-year select factors
				  incorporated into the 1980 amendments of the NAIC Standard Valuation Law. In no
				  case may total reserves (including basic reserves, deficiency reserves and any
				  reserves held for supplemental benefits that would expire upon contract
				  termination) be less than the amount that the policyowner would receive
				  (including the cash surrender value of the supplemental benefits, if any,
				  referred to above), exclusive of any deduction for policy loans, upon
				  termination of the policy.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 13 - VALUATION OF LIFE INSURANCE POLICIES › Section 13.9.13.18 - UNUSUAL PATTERN OF GUARANTEED CASH SURRENDER VALUES

Current through Register Vol. 35, No. 13, July 16, 2024
A. For any policy with an unusual pattern of
				guaranteed cash surrender values, the reserves actually held prior to the first
				unusual guaranteed cash surrender value shall not be less than the reserves
				calculated by treating the first unusual guaranteed cash surrender value as a
				pure endowment and treating the policy as an n-year policy providing term
				insurance plus a pure endowment equal to the unusual cash surrender value,
				where n is the number of years from the date of issue to the date the unusual
				cash surrender value is scheduled.
B. The reserves actually held subsequent to
				any unusual guaranteed cash surrender value shall not be less than the reserves
				calculated by treating the policy as an n-year policy providing term insurance
				plus a pure endowment equal to the next unusual guaranteed cash surrender
				value, and treating any unusual guaranteed cash surrender value at the end of
				the prior segment as a net single premium, where:
(1) n is the number of years from the date of
				the last unusual guaranteed cash surrender value prior to the valuation date to
				the earlier of:
(a) the date of the next
				unusual guaranteed cash surrender value, if any, that is scheduled after the
				valuation date; or
(b) the
				mandatory expiration date of the policy; and
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 13 - VALUATION OF LIFE INSURANCE POLICIES › Section 13.9.13.19 - OPTIONAL EXEMPTION FOR YEARLY RENEWABLE TERM REINSURANCE

Current through Register Vol. 35, No. 13, July 16, 2024
At the option of the company, the following approach for
				  reserves on YRT reinsurance may be used:
A. Calculate the valuation net premium for
				each future policy year as the tabular cost of insurance for that future
				year.
B. Basic reserves shall never
				be less than the tabular cost of insurance for the appropriate period, as
				defined in 13 nmac 9.13.17 [now 13.9.13.17 NMAC].
C. For each policy year, calculate the
				excess, if greater than zero, of the valuation net premium over the respective
				maximum guaranteed gross premium.
D. Deficiency reserves shall never be less
				than the sum of the present values, at the date of valuation, of the excesses
				determined in accordance with 13 NMAC 9.13.19.3.1 [now Paragraph (1) of
				Subsection C of 13.9.13.19 NMAC].
E. For purposes of this section, calculations
				shall be based on the maximum valuation interest rate and the 1980 CSO
				valuation tables with or without ten-year select mortality factors, (or any
				other table adopted after the effective date of this rule by the NAIC and
				promulgated by rule by the superintendent for this purpose).
F. A reinsurance agreement shall be
				considered YRT reinsurance for purposes of this section if only the mortality
				risk is insured.
G. If the assuming
				company chooses this optional exemption, the ceding company's reinsurance
				reserve credit shall be limited to the amount of reserve held by the assuming
				company for the affected policies.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 13 - VALUATION OF LIFE INSURANCE POLICIES › Section 13.9.13.20 - OPTIONAL EXEMPTION FOR ATTAINED-AGE-BASED YEARLY RENEWABLE TERM LIFE INSURANCE POLICIES

Current through Register Vol. 35, No. 13, July 16, 2024
At the option of the company, the following approach for
				  reserves for attained-age-based YRT life insurance policies may be used:
A. Calculate the valuation net premium for
				each future policy year as the tabular cost of insurance for that future
				year.
B. Basic reserves shall never
				be less than the tabular cost of insurance for the appropriate period, as
				defined in 13 nmac 9.13.17 [now 13.9.13.17 NMAC].
C. For each policy year, calculate the
				excess, if greater than zero, of the valuation net premium over the respective
				maximum guaranteed gross premium.
D. Deficiency reserves shall never be less
				than the sum of the present values, at the date of valuation, of the excesses
				determined in accordance with 13 NMAC 9.13.20.3.1 [now Paragraph (1) Subsection
				C of 13.9.13.20 NMAC].
E. For
				purposes of this section, calculations shall be based on the maximum valuation
				interest rate and the 1980 CSO valuation tables with or without ten-year select
				mortality factors, (or any other table adopted after the effective date of this
				rule by the NAIC and promulgated by rule by the superintendent for this
				purpose).
F. A policy shall be
				considered an attained-age-based YRT life insurance policy for purposes of this
				section if:
(1) the premium rates (on both the
				initial current premium scale and the guaranteed maximum premium scale) are
				based upon the attained age of the insured such that the rate for any given
				policy at a given attained age of the insured is independent of the year the
				policy was issued; and
(2) the
				premium rates (on both the initial current premium scale and the guaranteed
				maximum premium scale) are the same as the premium rates for policies covering
				all insureds of the same sex, risk class, plan of insurance and attained
				age.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 13 - VALUATION OF LIFE INSURANCE POLICIES › Section 13.9.13.21 - EXEMPTION FROM UNITARY RESERVES FOR CERTAIN N-YEAR RENEWABLE TERM LIFE INSURANCE POLICES

Current through Register Vol. 35, No. 13, July 16, 2024
Unitary basic reserves and unitary deficiency reserves need
				  not be calculated for a policy if the following conditions are met:
A. the policy consists of a series of n-year
				periods, including the first period and all renewal periods, where n is the
				same for each period, except that for the final renewal period, n may be
				truncated or extended to reach the expiry age, provided that this final renewal
				period is less than 10 years and less than twice the size of the earlier n-year
				periods, and for each period, the premium rates on both the initial current
				premium scale and the guaranteed maximum premium scale are level;
B. the guaranteed gross premiums in all
				n-year periods are not less than the corresponding net premiums based upon the
				1980 CSO valuation tables with or without the ten-year select mortality
				factors; and
C. there are no cash
				surrender values in any policy year.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 13 - VALUATION OF LIFE INSURANCE POLICIES › Section 13.9.13.22 - EXEMPTION FROM UNITARY RESERVES FOR CERTAIN JUVENILE POLICIES

Current through Register Vol. 35, No. 13, July 16, 2024
Unitary basic reserves and unitary deficiency reserves need
				  not be calculated for a policy if the following conditions are met, based upon
				  the initial current premium scale at issue:
A. at issue, the insured is age twenty-four
				(24) or younger;
B. until the
				insured reaches the end of the juvenile period, which shall occur at or before
				age twenty-five (25), the gross premiums and death benefits are level, and
				there are no cash surrender values; and
C. after the end of the juvenile period,
				gross premiums are level for the remainder of the premium paying period, and
				death benefits are level for the remainder of the life of the policy.