New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
"Affiliate"
of an insurer means any person, directly or
				indirectly, controlling, controlled by, or under common control with such
				insurer; any person who regularly furnishes investment advice to such insurer
				with respect to its separate accounts for which a specific fee or commission is
				charged; or any director, officer, partner, or employee of any such insurer,
				controlling or controlled person, or person providing investment advice or any
				member of the immediate family of such person.
B.
"Agent"
means any person,
				corporation, partnership, or other legal entity which is licensed by this state
				as a life insurance agent and is authorized to sell variable life
				policies.
C.
"Assumed
				investment rate"
means the rate of investment return which would be
				required to be credited to a variable life insurance policy, after deduction of
				charges for taxes, investment expenses, and mortality and expense guarantees to
				maintain the variable death benefit equal at all times to the amount of death
				benefit, other than incidental insurance benefits, which would be payable under
				the plan of insurance if the death benefit did not vary according to the
				investment experience of the separate account.
D.
"Benefit base"
means the
				amount to which the net investment return is applied.
E.
"Control"
(including the
				terms "controlling," "controlled by" and "under common control with") means the
				possession, direct or indirect, of the power to direct or cause the direction
				of the management and policies of a person, whether through the ownership of
				voting securities, by contract other than a commercial contract for goods or
				non-management services, or otherwise, unless the power is the result of an
				official position with or corporate office held by the person. Control shall be
				presumed to exist if any person, directly or indirectly, owns, controls, holds
				with the power to vote, or holds proxies representing more than ten (10)
				percent of the voting securities of any other person. This presumption may be
				rebutted by a showing made to the satisfaction of the superintendent that
				control does not exist in fact. The superintendent may determine, after
				furnishing all persons in interest notice and opportunity to be heard and
				making specific findings of fact to support such determination, that control
				exists in fact, notwithstanding the absence of a presumption to that
				effect.
F.
"Flexible premium
				policy"
means any variable life insurance policy other than a scheduled
				premium policy.
G.
"General
				account"
means all assets of the insurer other than assets in separate
				accounts established pursuant to Section 59A-5-16 NMSA 1978 or pursuant to the
				corresponding insurance laws of the state of domicile of a foreign or alien
				insurer, whether or not for variable life insurance.
H.
"Incidental insurance
				benefit"
means all insurance benefits in a variable life insurance
				policy, other than the variable death benefit and the minimum death benefit,
				including but not limited to accidental death and dismemberment benefits,
				disability benefits, guaranteed insurability options, family income, or term
				rider.
I.
"Minimum death
				benefit"
means the amount of the guaranteed death benefit, other than
				incidental insurance benefits, payable under a variable life insurance policy
				regardless of the investment performance of the separate account.
J.
"Net investment return"
means
				the rate of investment return in a separate account to be applied to the
				benefit base.
K.
"Policy
				processing day"
means the day on which charges authorized in the policy
				are deducted from the policy's cash value.
L.
"Scheduled premium policy"
means any variable life insurance policy under which both the amount and timing
				of premium payments are fixed by the insurer.
M.
"Separate account"
means a
				separate account established pursuant to 59A-20-30 NMSA 1978 Section or
				pursuant to the corresponding insurance laws of the state of domicile of a
				foreign or alien insurer.
N.
"Variable death benefit"
means the amount of the death benefit,
				other than incidental insurance benefits, payable under a variable life
				insurance policy dependent on the investment performance of the separate
				account, which the insurer would have to pay in the absence of any minimum
				death benefit.
O.
"Variable
				life insurance policy"
means any individual policy which provides for
				life insurance the amount or duration of which varies according to the
				investment experience of any separate account or accounts established and
				maintained by the insurer as to such policy, pursuant to Section 59A-20-30 NMSA
				1978 of the nsurance laws of this state or pursuant to the corresponding
				section of the insurance laws of the state of domicile of a foreign or alien
				insurer.