reglab/statecodes huggingface dataset:
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 3 - VARIABLE ANNUITY CONTRACTS › Section 13.9.3.25 - QUALIFICATIONS OF AGENTS FOR THE SALE OF VARIABLE ANNUITIES

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Required licensing:
(1) A person may not sell or offer for sale
				in this state any variable annuity contract unless the person is an agent and
				has filed with the superintendent, in a form satisfactory to the
				superintendent, evidence that the person holds any license or authorization
				that may be required by any federal or state securities law for the
				solicitation or sale of variable annuity contracts.
(2) Any examination administered by the
				department for the purpose of determining the eligibility of any person for
				licensing as an agent shall, after the effective date of this rule, include
				such questions concerning the history, purpose, regulation and sale of variable
				annuity contracts as the superintendent deems appropriate.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 4 - CORPORATE AND PARTNERSHIP LIFE INSURANCE › Section 13.9.4.1 - 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 4 - CORPORATE AND PARTNERSHIP LIFE INSURANCE › Section 13.9.4.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This rule applies to corporations and partnerships that
				  insure the life of any director, partner, officer, agent or employee where the
				  corporation or partnership is named as a beneficiary in or assignee of the life
				  insurance policy.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 4 - CORPORATE AND PARTNERSHIP LIFE INSURANCE › Section 13.9.4.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
July 1, 1997, unless a later date is cited 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Compiler's note: The words or paragraph, above, are no
					 longer applicable.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 4 - CORPORATE AND PARTNERSHIP LIFE INSURANCE › Section 13.9.4.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The purpose of this rule is to establish requirements for
				  evidence of authority when a corporation or partnership insures the life of any
				  director, partner, officer, agent or employee and the corporation or
				  partnership is named as a beneficiary in or assignee of the life insurance
				  policy.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 4 - CORPORATE AND PARTNERSHIP LIFE INSURANCE › Section 13.9.4.8 - LIFE INSURANCE ON DIRECTORS, OFFICERS, AGENTS AND EMPLOYEES OF CORPORATIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Evidence of authority:
Whenever 1) a corporation organized under
				the laws of this state causes to be insured the life of any director, officer,
				agent or employee; and 2) the corporation is named as a beneficiary in or
				assignee of the life insurance policy, the corporation's authority to effect,
				assign, release, relinquish, convert, surrender, change the beneficiary, or to
				take any other or different action with reference to the insurance shall be
				demonstrated by a written statement to that effect that is signed by the
				president and the secretary or other corresponding officer of the corporation.
				The statement shall be binding upon the corporation and shall serve as
				sufficient evidence of corporate authority for purposes of the insurance
				company. The statement shall protect the insurance company in any act done or
				suffered by it in good faith reliance on the statement without the need for
				further inquiry into the validity of the corporate authority or the regularity
				of the corporate proceedings.
B.
Actions of directors:
No person shall be disqualified, by reason
				of interest in the subject matter, from acting as a director or as a member of
				the executive committee of a corporation on any corporate act relating to this
				type of insurance.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 4 - CORPORATE AND PARTNERSHIP LIFE INSURANCE › Section 13.9.4.9 - LIFE INSURANCE ON A PARTNER OR PARTNERS, OFFICERS, AGENTS AND EMPLOYEES OF PARTNERSHIPS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Evidence of authority:
Whenever 1) a partnership organized under
				the laws of this state causes to be insured the life of one or all of the
				partners or a partnership officer, agent, or employee; and 2) the partnership
				is named as a beneficiary in or assignee of the life insurance policy, the
				partnership's authority to effect, assign, release, relinquish, convert,
				surrender, change the beneficiary, or to take any other or different action
				with reference to the insurance shall be demonstrated by a written statement to
				that effect that is signed by any partner. The statement shall be binding upon
				the partnership and shall serve as sufficient evidence of partnership authority
				for purposes of the insurance company. The statement shall protect the
				insurance company in any action done or suffered by it in good faith reliance
				on the statement without the need for further inquiry into the validity of the
				partnership authority or the regularity of the partnership
				proceedings.
B.
Actions of
				partners:
No person shall be disqualified, by reason of interest in the
				subject matter, from acting as a partner of the partnership on any partnership
				action relating to this type of insurance.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 5 - LIFE INSURANCE DISCLOSURE › Section 13.9.5.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
A. This rule
				applies to:
(1) any solicitation, negotiation
				or procurement of life insurance occurring within this state;
(2) any issuer of life insurance contracts
				including fraternal benefit societies.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 5 - LIFE INSURANCE DISCLOSURE › Section 13.9.5.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Sections 59A-2-8, 59A-2-9, 59A-16-4, and 59A-16-5 NMSA
				  1978.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 5 - LIFE INSURANCE DISCLOSURE › Section 13.9.5.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The objective of this rule is to require insurers to deliver
				  to purchasers of life insurance information which will improve the buyer's
				  ability to select the most appropriate plan of life insurance for the buyer's
				  needs, improve the buyer's understanding of the basic features of the policy
				  which has been purchased or which is under consideration and improve the
				  ability of the buyer to evaluate the relative costs of similar plans of
				  insurance. This rule does not prohibit the use of additional material which is
				  not a violation of this rule or any other statute or rule.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 5 - LIFE INSURANCE DISCLOSURE › Section 13.9.5.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
For the purposes of this rule, the following definitions
				  apply:
A. "
buyer's guide"
means the Life Insurance Buyer's Guide contained in 13.9.5.14 NMAC or other
				language approved by the superintendent;
B.
"current scale of nonguaranteed
				elements"
means a formula or other mechanism that produces values for an
				illustration as if there is no change in the basis of those values after the
				time of illustration;
C.
"generic name"
means a short title that is descriptive of the premium
				and benefit patterns of a policy or a rider;
D.
"nonguaranteed elements"
means the premiums, credited interest rates (including any bonus), benefits,
				values, non-interest based credits, charges or elements of formulas used to
				determine any of these, that are subject to company discretion and are not
				guaranteed at issue. An element is considered non-guaranteed if any of the
				underlying non-guaranteed elements are used in its calculation;
E.
"policy data"
means a
				display or schedule of numerical values, both guaranteed and nonguaranteed, for
				each policy year or a series of designated policy years of the following
				information: illustrated annual, other periodic, and terminal dividends;
				premiums; death benefits; cash surrender values and endowment
				benefits;
F.
"policy
				summary"
means a written statement describing the elements of the policy
				and meeting the requirements of 13.9.5.8 NMAC; and
G.
"preneed funeral contract or
				prearrangement"
means an agreement by or for an individual before that
				individual's death relating to the purchase or provision of specific funeral or
				cemetery merchandise or services.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 5 - LIFE INSURANCE DISCLOSURE › Section 13.9.5.8 - CONTENTS OF POLICY SUMMARY

Current through Register Vol. 35, No. 13, July 16, 2024
Every policy summary shall include at least the following
				  information:
A. The prominently placed
				title "Statement Of Policy Cost And Benefit Information."
B. The name and address of the insurance
				agent or, if no agent is involved, a statement of the procedure to be followed
				in order to receive responses to inquiries regarding the policy
				summary.
C. The full name and home
				office or administrative office address of the company in which the life
				insurance policy is to be or has been written.
D. The generic name of the basic policy and
				each rider.
E. The following
				amounts, where applicable, for the first five (5) policy years and
				representative policy years thereafter sufficient to clearly illustrate the
				premium and benefit patterns; including, but not necessarily limited to, the
				years for which cost comparison indexes are displayed and the earlier of at
				least one age from sixty (60) through sixty-five (65) and policy maturity:
(1) the annual premium for the basic
				policy;
(2) the annual premium for
				each optional rider;
(3) the amount
				payable upon death at the beginning of the policy year regardless of the cause
				of death, other than suicide or other specifically enumerated exclusions, which
				is provided by the basic policy and each optional rider; with benefits provided
				under the basic policy and each rider shown separately;
(4) the total guaranteed cash surrender
				values at the end of the year with values shown separately for the basic policy
				and each rider; and
(5) any
				endowment amounts payable under the policy which are not included under cash
				surrender values above.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 5 - LIFE INSURANCE DISCLOSURE › Section 13.9.5.9 - DUTIES OF INSURERS

Current through Register Vol. 35, No. 13, July 16, 2024
A. The
				insurer shall provide a buyer's guide to all prospective purchasers, prior to
				accepting the applicant's initial premium or premium deposit. However, if the
				policy for which the application is made contains an unconditional refund
				provision for at least ten (10) days, the buyer's guide may be delivered with
				the policy or prior to delivery of the policy.
B. The insurer shall provide a policy summary
				to prospective purchasers where the insurer has identified the policy form as
				one that will not be marketed with an illustration. The policy summary shall
				show guarantees only. It shall consist of a separate document with all the
				required infoormation set out in a manner that does not minimize or reender any
				portion of the summary obscure. Any amounts that remain level for two (20 or
				more years of the policy may be represented by a single number if it is clearly
				indicated what amounts are applicable for each policy year. Amounts in
				Subsection E of 13.9.5.8 NMAC shall be listed in total, not on a per thousand
				or per unit basis. If more than one insured is covered under one policy or
				rider, death benefits shall be displayed seperately for each insured or for
				each class of insured if death benefits do not differ within class. Zero
				amounts shall be displayed as a blank space. Delivery of the policy summary
				shall be consistent with the time for delivery of the buyer's guide as
				specified in Subsection A of this section.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 5 - LIFE INSURANCE DISCLOSURE › Section 13.9.5.10 - REQUIREMENTS APPLICABLE TO EXISTING POLICIES

Current through Register Vol. 35, No. 13, July 16, 2024
A. Upon request of the policyowner, the
				insurer shall furnish either policy data or an in force illustration as
				follows:
(1) For policies issued prior to the
				effective date of 13.9.14 NMAC, the insurer shall furnish policy data, or, at
				its option, an in force illustrations meeting the requirements of 13.9.14
				NMAC.
(2) For policies issued after
				the effective date of the illustration rule that were declared not to be used
				with an illustration, the insurer shall furnish policy data, limited to
				guaranteed values, if it has chosen not to furnish an in force illustration
				meeting the requirements of the rule.
(3) If the policy was issued after the
				effective date of the illustration rule and declared to be used with an
				illustration, an in force illustration shall be provided.
(4) Unless otherwise requested, the policy
				data shall be provided for twenty consecutive years beginning with the previous
				policy anniversary. The statement of policy data shall include nonguaranteed
				elements according to the current scale, the amount of outstanding policy
				loans, and the current policy loan interest rate. Policy values shown shall be
				based on the current application of nonguaranteed elements in effect at the
				time of the request. The insurer may charge a reasonable fee, not to exceed
				$20.00, for the preparation of the statement.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 5 - LIFE INSURANCE DISCLOSURE › Section 13.9.5.11 - PRENEED FUNERAL CONTRACTS OR PREARRANGEMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
The following information shall be adequately disclosed at
				  the time an application is made, prior to accepting the applicant's initial
				  premium or deposit, for a preneed funeral contract or prearrangement that is
				  funded or to be funded by a life insurance policy:
A. the fact that a life insurance policy is
				involved or being used to fund a prearrangement;
B. the nature of the relationship among the
				soliciting agent or agents, the provider of the funeral or cemetery merchandise
				or services, the administrator and any other person;
C. the relationship of the life insurance
				policy to the funding of the prearrangement and the nature and existence of any
				guarantees relating to the prearrangement;
D. the impact on the prearrangement:
(1) of any changes in the life insurance
				policy including but not limited to, changes in the assignment, beneficiary
				designation or use of the proceeds;
(2) of any penalties to be incurred by the
				policyholder as a result of failure to make premium payments;
(3) of any penalties to be incurred or monies
				to be received as a result of cancellation or surrender of the life insurance
				policy;
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 5 - LIFE INSURANCE DISCLOSURE › Section 13.9.5.12 - GENERAL RULES

Current through Register Vol. 35, No. 13, July 16, 2024
A. Each insurer
				shall maintain, at its home office or principal office, a complete file
				containing one copy of each document authorized and used by the insurer
				pursuant to this rule. Such file shall contain one copy of each authorized form
				for a period of three (3) years following the date of its last authorized use
				unless otherwise provided by this rule.
B. An agent shall inform the prospective
				purchaser, prior to commencing a life insurance sales presentation, that he or
				she is acting as a life insurance agent and inform the prospective purchaser of
				the full name of the insurance company which the agent is representing to the
				buyer. In sales situations in which an agent is not involved, the insurer shall
				identify its full name.
C. An
				insurance agent, broker or producer shall not use terms such as "financial
				planner", "investment advisor", "financial consultant", or "financial
				counseling" in such a way as to imply that he or she is primarily engaged in an
				advisory business in which compensation is unrelated to sales unless such is
				actually the case. This provision is not intended to preclude persons who hold
				some form of formal recognized financial planning or consultant designation
				from using this designation even when they are only selling insurance. This
				provision also is not intended to preclude persons who are members of a
				recognized trade or professional association having such terms as part of its
				name from citing membership, providing that aperson citing membership, if
				authorized only to sell insurance products discloses that fact. This provision
				does not permit persons to charge an additional fee for services that are
				customarily associated with solicitation, negotiation or sevicing of
				policies.
D. Any reference to
				nonguaranteed elements shall include a statement that such item is not
				guaranteed and is based on the company's current scale of nonguaranteed
				elements (use appropriate term such as 'current dividend" or "current rate"
				scale). If a nonguaranteed element would be reduced by the existence of a
				policy loan, a statement to this effect must be included in any reference to
				nonguaranteed elements. A presentation or depiction of a policy issued after
				the effective date of 13.9.14 NMAC that includes nonguaranteed elements over a
				period of years shall be governed by that rule.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 5 - LIFE INSURANCE DISCLOSURE › Section 13.9.5.13 - FAILURE TO COMPLY

Current through Register Vol. 35, No. 13, July 16, 2024
Failure of an insurer to provide or deliver a buyer's guide,
				  a policy summary or policy data as provided in
				  13.9.5.9
				  through
				  13.9.5.10
				  NMAC shall constitute an omission which misrepresents the benefits, advantages,
				  conditions or terms of an insurance policy.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 6 - REPLACEMENT OF LIFE INSURANCE AND ANNUITIES › Section 13.9.6.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Sections 59A-2-8, 59A-2-9, and 59A-16-7 NMSA
				  1978.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 6 - REPLACEMENT OF LIFE INSURANCE AND ANNUITIES › Section 13.9.6.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
1-1-04, unless a later date is cited at the end of a
				  section.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 6 - REPLACEMENT OF LIFE INSURANCE AND ANNUITIES › Section 13.9.6.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The purpose of this rule is:
A. to regulate the activities of insurers and
				producers with respect to the replacement of existing life insurance and
				annuities;
B. to protect the
				interests of life insurance and annuity purchasers by establishing minimum
				standards of conduct to be observed in replacement or financed purchase
				transactions, it will;
(1) assure that
				purchasers receive information with which a decision can be made in his or her
				own best interest;
(2) reduce the
				opportunity for misrepresentation and incomplete disclosure; and
(3) establish penalties for failure to comply
				with requirements of this rule.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 6 - REPLACEMENT OF LIFE INSURANCE AND ANNUITIES › Section 13.9.6.8 - DUTIES OF PRODUCERS

Current through Register Vol. 35, No. 13, July 16, 2024
A. A
				producer who initiates an application shall submit to the insurer, with or as
				part of the application, a statement signed by both the applicant and the
				producer as to whether the applicant has existing policies or contracts. If the
				answer is "no," the producer's duties with respect to replacement are
				complete.
B. If the applicant
				answered "yes" to the question regarding existing coverage referred to in
				Subsection A of this section, the producer shall present and read to the
				applicant, not later than at the time of taking the application, a notice
				regarding replacements in the form as described in 13.9.6.14 NMAC or other
				substantially similar form approved by the superintendent. However, no approval
				shall be required when amendments to the notice are limited to the omission of
				references not applicable to the product being sold or replaced. The notice
				shall be signed by both the applicant and the producer attesting that the
				notice has been read aloud by the producer or that the applicant did not wish
				the notice to be read aloud (in which case the producer need not have read the
				notice aloud) and left with the applicant.
C. The notice shall list all life insurance
				policies or annuities proposed to be replaced, properly identified by name of
				insurer, the insured or annuitant, and policy or contract number if available;
				and shall include a statement as to whether each policy or contract will be
				replaced or whether a policy will be used as a source of financing for the new
				policy or contract. If a policy or contract number has not been issued by the
				existing insurer, alternative identification, such as an application or receipt
				number, shall be listed.
D. In
				connection with a replacement transaction the producer shall leave with the
				applicant at the time an application for a new policy or contract is completed
				the original or a copy of all sales material. With respect to electronically
				presented sales material, it shall be provided to the policy or contract owner
				in printed form no later than at the time of policy or contract
				delivery.
E. Except as provided in
				Subsection C of 13.9.6.10 NMAC, in connection with a replacement transaction
				the producer shall submit to the insurer to which an application for a policy
				or contract is presented, a copy of each document required by this section, a
				statement identifying any preprinted or electronically presented company
				approved sales materials used, and copies of any individualized sales
				materials, including any illustrations related to the specific policy or
				contract purchased.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 6 - REPLACEMENT OF LIFE INSURANCE AND ANNUITIES › Section 13.9.6.9 - DUTIES OF INSURERS THAT USE PRODUCERS

Current through Register Vol. 35, No. 13, July 16, 2024
Each insurer that use producers shall:
A. maintain a system of supervision and
				control to insure compliance with the requirements of this rule that shall
				include at least the following:
(1) inform
				its producers of the requirements of this rule and incorporate the requirements
				of this rule into all relevant producer training manuals prepared by the
				insurer;
(2) provide to each
				producer a written statement of the company's position with respect to the
				acceptability of replacements providing guidance to its producer as to the
				appropriateness of these transactions;
(3) a system to review the appropriateness of
				each replacement transaction that the producer does not indicate is in accord
				with Paragraph (2) above;
(4)
				procedures to confirm that the requirements of this rule have been met;
				and
(5) procedures to detect
				transactions that are replacements of existing policies or contracts by the
				existing insurer, but that have not been reported as such by the applicant or
				producer. Compliance with this rule may include, but shall not be limited to,
				systematic customer surveys, interviews, confirmation letters, or programs of
				internal monitoring;
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 6 - REPLACEMENT OF LIFE INSURANCE AND ANNUITIES › Section 13.9.6.10 - DUTIES OF REPLACING INSURERS THAT USE PRODUCERS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Where a replacement is involved in the
				transaction, the replacing insurer shall:
(1)
				verify that the required forms are received and are in compliance with this
				rule;
(2) notify any other existing
				insurer that may be affected by the proposed replacement within five (5)
				business days of receipt of a completed application indicating replacement or
				when the replacement is identified if not indicated on the application, and
				mail a copy of the available illustration or policy summary for the proposed
				policy or available disclosure document for the proposed contract within five
				(5) business days of a request from an existing insurer;
(3) be able to produce copies of the
				notification regarding replacement required in Subsection B of 13.9.6.8 NMAC,
				indexed by producer, for at least five (5) years or until the next regular
				examination by the insurance department of a company's state of domicile,
				whichever is later; and
(4) provide
				to the policy or contract owner notice of the right to return the policy or
				contract within thirty (30) days of the delivery of the contract and receive an
				unconditional full refund of all premiums or considerations paid on it,
				including any policy fees or charges or, in the case of a variable or market
				value adjustment policy or contract, a payment of the cash surrender value
				provided under the policy or contract plus the fees and other charges deducted
				from the gross premiums or considerations or imposed under such policy or
				contract; such notice may be included in 13.9.6.14 or 13.9.6.16 NMAC.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 6 - REPLACEMENT OF LIFE INSURANCE AND ANNUITIES › Section 13.9.6.11 - DUTIES OF EXISTING INSURERS

Current through Register Vol. 35, No. 13, July 16, 2024
Where a replacement is involved in the transaction, the
				  existing insurer shall:
A. retain and
				be able to produce all replacement notifications received, indexed by replacing
				insurer, for at least five (5) years or until the conclusion of the next
				regular examination conducted by the Insurance Department of its state of
				domicile, whichever is later.
B.
				send a letter to the policy or contract owner of the right to receive
				information regarding the existing policy or contract values including, if
				available, an in force illustration or policy summary if an in force
				illustration cannot be produced within five (5) business days of receipt of a
				notice that an existing policy or contract is being replaced. The information
				shall be provided within five (5) business days of receipt of the request from
				the policy or contract owner.
C.
				upon receipt of a request to borrow, surrender or withdraw any policy values,
				send a notice, advising the policy owner that the release of policy values may
				affect the guaranteed elements, non-guaranteed elements, face amount or
				surrender value of the policy from which the values are released. The notice
				shall be sent separate from the check if the check is sent to anyone other than
				the policy owner. In the case of consecutive automatic premium loans, the
				insurer is only required to send the notice at the time of the first
				loan.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 6 - REPLACEMENT OF LIFE INSURANCE AND ANNUITIES › Section 13.9.6.12 - DUTIES OF INSURERS WITH RESPECT TO DIRECT RESPONSE SOLICITATION

Current through Register Vol. 35, No. 13, July 16, 2024
A. In the case of
				an application that is initiated as a result of a direct response solicitation,
				the insurer shall require, with or as part of each completed application for a
				policy or contract, a statement asking whether the applicant, by applying for
				the proposed policy or contract, intends to replace, discontinue or change an
				existing policy or contract. If the applicant indicates a replacement or change
				is not intended or if the applicant fails to respond to the statement, the
				insurer shall send the applicant, with the policy or contract, a notice
				regarding replacement in 13.9.6.15 NMAC, or other substantially similar form
				approved by the superintendent.
B.
				If the insurer has proposed the replacement or if the applicant indicates a
				replacement is intended and the insurer continues with the replacement, the
				insurer shall:
(1) provide to applicants or
				prospective applicants with the policy or contract a notice, as described in
				13.9.6.16 NMAC, or other substantially similar form approved by the
				superintendent. In these instances the insurer may delete the references to the
				producer, including the producer's signature, and references not applicable to
				the product being sold or replaced, without having to obtain approval of the
				form from the superintendent. The insurer's obligation to obtain the
				applicant's signature shall be satisfied if it can demonstrate that it has made
				a diligent effort to secure a signed copy of the notice referred to in this
				paragraph. The requirement to make a diligent effort shall be deemed satisfied
				if the insurer includes in the mailing a self-addressed postage prepaid
				envelope with instructions for the return of the signed notice referred to in
				this section; and
(2) comply with
				the requirements of Paragraph (2) of Subsection A of 13.9.6.10 NMAC, if the
				applicant furnishes the names of the existing insurers, and the requirements of
				Paragraphs (3) and (4) of Subsection A and Subsection B of 13.9.6.10
				NMAC.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 6 - REPLACEMENT OF LIFE INSURANCE AND ANNUITIES › Section 13.9.6.13 - VIOLATIONS AND PENALTIES

Current through Register Vol. 35, No. 13, July 16, 2024
A. Any
				failure to comply with this rule shall be considered a violation of Section
				59A-16-6 NMSA 1978. Examples of violations include:
(1) any deceptive or misleading information
				set forth in sales material;
(2)
				failing to ask the applicant in completing the application the pertinent
				questions regarding the possibility of financing or replacement;
(3) the intentional incorrect recording of an
				answer;
(4) advising an applicant
				to respond negatively to any question regarding replacement in order to prevent
				notice to the existing insurer; or
(5) advising a policy or contract owner to
				write directly to the company in such a way as to attempt to obscure the
				identity of the replacing producer or company.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 6 - REPLACEMENT OF LIFE INSURANCE AND ANNUITIES › Section 13.9.6.15 - APPENDIX B

Current through Register Vol. 35, No. 13, July 16, 2024
Notice Regarding Replacement
NOTICE REGARDING REPLACEMENT
REPLACING YOUR LIFE INSURANCE POLICY OR
				  ANNUITY?
Are you thinking about buying a new life insurance policy or
				  annuity and discontinuing or changing an existing one? If you are, your
				  decision could be a good one-or a mistake. You will not know for sure unless
				  you make a careful comparison of your existing benefits and the proposed policy
				  or contract's benefits.
Make sure you understand the facts. You should ask the
				  company or agent that sold you your existing policy or contract to give you
				  information about it.
Hear both sides before you decide. This way you can be sure
				  you are making a decision that is in your best
				  interest.
________
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 7 - UNIVERSAL LIFE INSURANCE › Section 13.9.7.1 - 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 7 - UNIVERSAL LIFE INSURANCE › Section 13.9.7.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This rule applies to all individual universal life insurance
				  policies except variable life insurance policies covered by 13 NMAC 9.8 [now
				  13.9.8 NMAC].
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 7 - UNIVERSAL LIFE INSURANCE › Section 13.9.7.5 - 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 7 - UNIVERSAL LIFE INSURANCE › Section 13.9.7.6 - 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 plans.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 7 - UNIVERSAL LIFE INSURANCE › Section 13.9.7.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
"Cash
				surrender value"
means the net cash surrender value plus any amounts
				outstanding as policy loans.
B.
"Fixed premium universal life insurance policy"
means a universal
				life insurance policy other than a flexible premium universal life insurance
				policy.
C.
"Flexible premium
				universal life insurance policy"
means a universal life insurance policy
				which permits the policyowner to vary, independently of each other, the amount
				or timing of one or more premium payments or the amount of insurance.
D.
"Interest-indexed universal life
				insurance policy"
means any universal life insurance policy where the
				interest credits are linked to an external referent.
E.
"Net cash surrender value"
means the maximum amount payable to the policyowner upon surrender.
F.
"Policy value"
means the
				amount to which separately identified interest credits and mortality, expense,
				or other charges are made under a universal life insurance policy.
G.
"Universal life insurance
				policy"
means any individual life insurance policy under the provisions
				of which separately identified interest credits (other than in connection with
				dividend accumulations, premium deposit funds, or other supplementary accounts)
				and mortality and expense charges are made to the policy. A universal life
				insurance policy may provide for other credits and charges, such as charges for
				the cost of benefits provided by rider.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 7 - UNIVERSAL LIFE INSURANCE › Section 13.9.7.8 - RESERVE VALUATION

Current through Register Vol. 35, No. 13, July 16, 2024
The minimum valuation standard for universal life insurance
				  policies shall be the commissioners reserve valuation methods and the tables
				  and interest rates specified in this section.
A.
Terminal reserve:
The
				terminal reserve for the basic policy and any benefits and/or riders for which
				premiums are not paid separately as of any policy anniversary shall be equal to
				the net level premium reserves less C and less D, where:
(1) net level premium reserves shall be equal
				to r(A-B) where:
(a) r is equal to one, unless
				the policy is a flexible premium policy and the policy value is less than the
				guaranteed maturity fund, in which case r is the ratio of the policy value to
				the guaranteed maturity fund.
(b)
A
is the present value of all future guaranteed benefits at
				the date of valuation.
(c)
B
is the quantity PVFB. ax+t divided by
				ax where:
(i) PVFB is
				the present value of all benefits guaranteed at issue assuming future
				guaranteed maturity premiums are paid by the policyowner and taking into
				account all guarantees contained in the policy or declared by the
				insurer;
(ii)
				ax and ax+t are present values of
				an annuity of one per year payable on policy anniversaries beginning at ages x
				and x+t, respectively, and continuing until the highest attained age at which a
				premium may be paid under the policy;
(iii) x is the issue age; and
(iv) t is the duration of the
				policy.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 7 - UNIVERSAL LIFE INSURANCE › Section 13.9.7.9 - ALTERNATIVE MINIMUM RESERVES

Current through Register Vol. 35, No. 13, July 16, 2024
A. If,
				in any policy year, the guaranteed maturity premium on any universal life
				insurance policy is less than the valuation net premium for such policy,
				calculated by the valuation method actually used in calculating the reserve
				thereon but using the minimum valuation standards of mortality and rate of
				interest, the minimum reserve required for such contract shall be the greater
				of 13 NMAC 9.7.9.1.1 or 9.7.9.1.2 [now Paragraphs (1) or (2) of Subsection A of
				13.9.7.9 NMAC].
(1) The reserve calculated
				according to the method, the mortality table, and the rate of interest actually
				used.
(2) The reserve calculated
				according to the method actually used but using the minimum valuation standards
				of mortality and rate of interest and replacing the valuation net premium by
				the guaranteed maturity premium in each policy year for which the valuation net
				premium exceeds the guaranteed maturity premium.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 7 - UNIVERSAL LIFE INSURANCE › Section 13.9.7.10 - MINIMUM CASH SURRENDER VALUES FOR FLEXIBLE PREMIUM POLICIES

Current through Register Vol. 35, No. 13, July 16, 2024
Minimum cash surrender values for flexible premium universal
				  life insurance policies shall be determined separately for the basic policy and
				  any benefits and riders for which premiums are paid separately. The following
				  requirements pertain to a basic policy and any benefits and riders for which
				  premiums are not paid separately. The following requirements pertain to a basic
				  policy and any benefits and riders for which premiums are not paid
				  separately.
A. The minimum cash
				surrender value (before adjustment for indebtedness and dividend credits)
				available on a date as of which interest is credited to the policy shall be
				equal to the accumulation to that date of the premiums paid minus the
				accumulations to that date of:
(1) the
				benefit charges;
(2) the averaged
				administrative expense charges for the first policy year and any
				insurance-increase years;
(3)
				actual administrative expense charges for other years;
(4) initial and additional acquisition
				expense charges not exceeding the initial or additional expense allowances,
				respectively;
(5) any service
				charges actually made (excluding charges for cash surrender or election of a
				paid-up nonforfeiture benefit); and
(6) any deductions made for partial
				withdrawals; all accumulations being at the actual rate or rates of interest at
				which interest credits have been made unconditionally to the policy (or have
				been made conditionally, but for which the conditions have since been met), and
				minus any unamortized unused initial and additional expense
				allowances.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 7 - UNIVERSAL LIFE INSURANCE › Section 13.9.7.11 - MINIMUM CASH SURRENDER VALUES FOR FIXED PREMIUM POLICIES

Current through Register Vol. 35, No. 13, July 16, 2024
For fixed premium universal life insurance policies, the
				  minimum cash surrender values shall be determined separately for the basic
				  policy and any benefits and riders for which premiums are paid separately. The
				  following requirements pertain to a basic policy and any benefits and riders
				  for which premiums are not paid separately.
A. The minimum cash surrender value (before
				adjustment for indebtedness and dividend credits) available on a date as of
				which interest is credited to the policy shall be equal to
A
minus
B
minus
C
minus
D
, where:
(1)
A
is the present value of all future guaranteed
				benefits.
(2)
B
is
				the present value of future adjusted premiums. The adjusted premiums are
				calculated as described in Section 59A-2-31D and 59A-20-31F NMSA 1978, as
				applicable. If Section 59A-20-31F NMSA 1978 is applicable, the nonforfeiture
				net level premium is equal to the quantity PVFB divided by
				ax, where PVFB is the present value of all benefits
				guaranteed at issue assuming future premiums are paid by the policyowner and
				all guarantees contained in the policy or declared by the insurer and
				ax is the present value of an annuity of one per year
				payable on policy anniversaries beginning at age x and continuing until the
				highest attained age at which a premium may be paid under the policy.
(3)
C
is the present value
				of any quantities analogous to the nonforfeiture net level premium which arise
				because of guarantees declared by the insurer after the issue date of the
				policy. ax shall be replaced by an annuity beginning on
				the date as of which the declaration became effective and payable until the end
				of the period covered by the declaration.
(4)
D
is the sum of any
				quantities analogous to
B
which arise because of structural
				changes in the policy.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 7 - UNIVERSAL LIFE INSURANCE › Section 13.9.7.12 - MINIMUM PAID-UP NONFORFEITURE BENEFITS

Current through Register Vol. 35, No. 13, July 16, 2024
If a universal life insurance policy provides for the
				  optional election of a paid-up nonforfeiture benefit, it shall be such that its
				  present value shall be at least equal to the cash surrender value provided for
				  by the policy on the effective date of the election. The present value shall be
				  based on mortality and interest standards at least as favorable to the
				  policyowner as:
A. in the case of a
				flexible premium universal life insurance policy, the mortality and interest
				basis guaranteed in the policy for determining the policy value; or
B. in the case of a fixed premium policy the
				mortality and interest standards permitted for paid-up nonforfeiture benefits
				by Section 59A-20-31 NMSA 1978. In lieu of the paid-up nonforfeiture benefit,
				the insurer may substitute, upon proper request not later than sixty days after
				the due date of the premium in default, an actuarially equivalent alternative
				paid-up nonforfeiture benefit which provides a greater amount of longer period
				of death benefits, or, if applicable, a greater amount or earlier payment of
				endowment benefits.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 7 - UNIVERSAL LIFE INSURANCE › Section 13.9.7.13 - MANDATORY POLICY PROVISIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				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 as
				to the status of the policy. The end of the current report period must be not
				more than three months previous to the date of the mailing of the report.
				Specific requirements of this report are detailed in 13 nmac 9.7.15 [now
				13.9.7.15 NMAC].
B. The policy
				shall provide for an illustrative report which will be sent to the policyowner
				upon request. Minimum requirements of such report are the same as those set
				forth in 13 nmac 9.7.14 [now 13.9.7.14 NMAC]. The insurer may charge the
				policyowner a reasonable fee for providing the report.
C. The policy shall provide guarantees of
				minimum interest credits and maximum mortality and expense charges. All values
				and data shown in the policy shall be based on guarantees. No figures based on
				nonguarantees shall be included in the policy.
D. The policy shall contain at least a
				general description of the calculation of cash surrender values including the
				following information:
(1) the guaranteed
				maximum expense charges and loads;
(2) any limitation on the crediting of
				additional interest; interest credits shall not remain conditional for a period
				longer than twelve months;
(3) the
				guaranteed minimum rate or rates of interest;
(4) the guaranteed maximum mortality
				charges;
(5) any other guaranteed
				charges;
(6) any surrender or
				partial withdrawal charges.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 7 - UNIVERSAL LIFE INSURANCE › Section 13.9.7.14 - DISCLOSURE REQUIREMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
In connection with any advertising solicitation, negotiation,
				  or procurement of a universal life insurance policy:
A. Any statement of policy cost factors or
				benefits shall contain:
(1) the corresponding
				guaranteed policy cost factors or benefits, clearly identified;
(2) a statement explaining the nonguaranteed
				nature of any current interest rates, charges, or other fees applied to the
				policy, including the insurer's rights to alter any of these factors;
				and
(3) any limitations on the
				crediting of interest, including identification of those portions of the policy
				to which a specified interest rate shall be credited.