New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 6 - REPLACEMENT OF LIFE INSURANCE AND ANNUITIES › Section 13.9.6.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
"Direct-response solicitation"
means a solicitation through a sponsoring
				or endorsing entity or individually solely through mails, telephone, the
				Internet or other mass communication media.
B.
"Existing insurer"
means the
				insurance company whose policy or contract is or will be changed or affected in
				a manner described within the definition of "replacement."
C.
"Existing policy or
				contract"
means an individual life insurance policy (policy) or annuity
				contract (contract) in force, including a policy under a binding or conditional
				receipt or a policy or contract that is within an unconditional refund
				period.
D.
"Financed
				purchase"
means the purchase of a new policy involving the actual or
				intended use of funds obtained by the withdrawal or surrender of, or by
				borrowing from values of an existing policy to pay all or part of any premium
				due on the new policy. For purposes of a regulatory review of an individual
				transaction only, if a withdrawal, surrender or borrowing involving the policy
				values of an existing policy is used to pay premiums on a new policy owned by
				the same policyholder and issued by the same company within four (4) months
				before or thirteen (13) months after the effective date of the new policy, it
				will be deemed
prima facie
evidence of the policyholder's
				intent to finance the purchase of the new policy with existing policy values.
				This
prima facie
standard is not intended to increase or
				decrease the monitoring obligations contained in Paragraph (5) of Subsection A
				of 13.9.6.9 NMAC.
E.
"Illustration"
means a presentation or depiction that includes
				non-guaranteed elements of a policy of life insurance over a period of years as
				defined in 13.9.14 NMAC.
F.
"Policy summary,"
for the purposes of this rule;
(1) for policies or contracts other than
				universal life policies, means a written statement regarding a policy or
				contract which shall contain to the extent applicable, but need not be limited
				to, the following information: current death benefit; annual contract premium;
				current cash surrender value; current dividend; application of current
				dividend; and amount of outstanding loan;
(2) for universal life policies, means a
				written statement that shall contain at least the following information: the
				beginning and end date of the current report period; the policy value at the
				end of the previous report period and at the end of the current report period;
				the total amounts that have been credited or debited to the policy value during
				the current report period, identifying each by type (e.g., interest, mortality,
				expense and riders); the current death benefit at the end of the current report
				period on each life covered by the policy; the net cash surrender value of the
				policy as of the end of the current report period; and the amount of
				outstanding loans, if any, as of the end of the current report
				period.