reglab/statecodes huggingface dataset:
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 13 - VALUATION OF LIFE INSURANCE POLICIES › Section 13.9.13.23 - CALCULATION OF MIMIMUM VALUATION STANDARD FOR FLEXIBLE PREMIUM AND FIXED PREMIUM UNIVERSAL LIFE INSURANCE POLICIES THAT CONTAIN PROVISIONS RESULTING IN THE ABILITY OF A POLICYOWNER TO KEEP A POLICY IN FORCE OVER A SECONDARY GUARANTEE PERIOD

Current through Register Vol. 35, No. 13, July 16, 2024
A. General:
(1) Policies with a secondary guarantee
				include:
(a) a policy with a guarantee that
				the policy will remain in force at the original schedule of benefits, subject
				only to the payment of specified premiums;
(b) a policy in which the minimum premium at
				any duration is less than the corresponding one year valuation premium,
				calculated using 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); or
(c) a policy with any combination of 13 NMAC
				9.13.23.1.1.1 and 9.13.23.1.1.2 [now Subparagraphs (a) and (b) of Paragraph (1)
				of Subsection A of 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 13.9.13.24 - SELECT MORTALITY TABLES

Current through Register Vol. 35, No. 13, July 16, 2024
A. 13
				nmac 9.13.25 through 9.13.30 [now 13.9.13.25 NMAC through 13.9.12.30 NMAC]
				contain tables of select mortality factors that are referenced in 13 NMAC
				9.13.12.2, 9.13.13.2, and 9.13.13.3 [now Subsection B of 13.9.13.12 NMAC and
				Subsections B and C of 13.9.13.13 NMAC].
B. The six tables of select mortality factors
				include: male aggregate, male nonsmoker, male smoker, female aggregate, female
				nonsmoker, and female smoker.
C. 13
				nmac 9.13.25 through 9.13.30 [now 13.9.13.25 NMAC through 13.9.13.30 NMAC]
				apply to both age last birthday and age nearest birthday mortality
				tables.
D. For sex-blended
				mortality tables, compute select mortality factors in the same proportion as
				the underlying mortality. For example, for the 1980 CSO-B table, the calculated
				select mortality factors are eighty percent (80%) of the appropriate male table
				plus twenty percent (20%) of the appropriate female table.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.1 - 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 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
A. This rule
				applies to all group and individual life insurance policies and certificates
				sold on or after October 1, 1998.
B. This rule does not apply to:
(1) variable life insurance;
(2) individual and group annuity
				contracts;
(3) credit life
				insurance; or
(4) life insurance
				policies with no illustrated death benefits on any individual exceeding
				$10,000.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.3 - 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 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
October 1, 1998, 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 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The purpose of this rule is to establish requirements for
				  life insurance policy illustrations that will protect consumers and foster
				  consumer education. The rule provides illustration formats, prescribes
				  standards to be followed when illustrations are used, and specifies the
				  disclosures that are required in connection with illustrations. The goals of
				  this rule are to ensure that illustrations do not mislead purchasers of life
				  insurance and to make illustrations more understandable. Insurers will, as far
				  as possible, eliminate the use of footnotes and caveats and define terms used
				  in the illustration in language that would be understood by a typical person
				  within the segment of the public to which the illustration is
				  directed.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
For the purposes of this rule:
A.
"Actuarial standards board"
means the board established by the American academy of actuaries to develop and
				promulgate standards of actuarial practice.
B.
"Basic illustration"
means a
				ledger or proposal used in the sale of a life insurance policy that shows both
				guaranteed and non-guaranteed elements.
C.
"Contract premium"
means the
				gross premium that is required to be paid under a fixed premium policy,
				including the premium for a rider for which benefits are shown in the
				illustration.
D.
"Currently
				payable scale"
means a scale of non-guaranteed elements in effect for a
				policy form as of the preparation date of the illustration or declared to
				become effective within the next ninety-five (95) days.
E.
"Disciplined current scale"
means a scale of non-guaranteed elements constituting a limit on illustrations
				currently being illustrated by an insurer that is reasonably based on actual
				recent historical experience, as certified annually by an illustration actuary
				designated by the insurer. Further guidance in determining the disciplined
				current scale as contained in standards established by the actuarial standards
				board may be relied upon if the standards:
(1) are consistent with all provisions of
				this rule;
(2) limit a disciplined
				current scale to reflect only actions that have already been taken or events
				that have already occurred;
(3) do
				not permit a disciplined current scale to include any projected trends of
				improvements in experience or any assumed improvements in experience beyond the
				illustration date; and
(4) do not
				permit assumed expenses to be less than minimum assumed expenses.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.8 - DETERMINING ASSUMED EXPENSES

Current through Register Vol. 35, No. 13, July 16, 2024
A. The
				insurer may choose to designate each year the method of determining assumed
				expenses for all policy forms from the following:
(1) fully allocated expenses;
(2) marginal expenses; and
(3) a generally recognized expense table
				based on fully allocated expenses representing a significant portion of
				insurance companies and approved by the superintendent.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.9 - POLICIES TO BE ILLUSTRATED

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Each insurer marketing policies to which this rule is applicable shall notify
				the superintendent whether a policy form is to be marketed with or without an
				illustration. For all policy forms being actively marketed on the effective
				date of this rule, the insurer shall identify in writing those forms and
				whether or not an illustration will be used with them. For policy forms filed
				after the effective date of this rule, the identification shall be made at the
				time of filing. Any previous identification may be changed by notice to the
				superintendent.
B. If the insurer
				identifies a policy form as one to be marketed without an illustration, any use
				of an illustration for any policy using that form prior to the first policy
				anniversary is prohibited.
C. If a
				policy form is identified by the insurer as one to be marketed with an
				illustration, a basic illustration prepared and delivered in accordance with
				this rule is required, except that a basic illustration need not be provided to
				individual members of a group or to individuals insured under multiple lives
				coverage issued to a single applicant unless the coverage is marketed to these
				individuals. The illustration furnished an applicant for a group life insurance
				policy or policies issued to a single applicant on multiple lives may be either
				an individual or composite illustration representative of the coverage on the
				lives of members of the group or the multiple lives covered.
D. Potential enrollees of non-term group life
				subject to this rule shall be furnished a quotation with the enrollment
				materials. The quotation shall show potential policy values for sample ages and
				policy years on a guaranteed and non-guaranteed basis appropriate to the group
				and the coverage. This quotation shall not be considered an illustration for
				purposes of this rule, but all information provided shall be consistent with
				the illustrated scale. A basic illustration shall be provided at delivery of
				the certificate to enrollees for non-term group life who enroll for more than
				the minimum premium necessary to provide pure death benefit protection. In
				addition, the insurer shall make a basic illustration available to any non-term
				group life enrollee who requests it.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.10 - GENERAL REQUIREMENTS FOR ILLUSTRATIONS

Current through Register Vol. 35, No. 13, July 16, 2024
An illustration used in the sale of a life insurance policy
				  shall satisfy the applicable requirements of this rule, be clearly labeled
				  "life insurance illustration" and contain the following basic
				  information:
A. name of
				insurer;
B. name and business
				address of producer or insurer's authorized representative, if any;
C. name, age and sex of proposed insured,
				except where a composite illustration is permitted under this rule;
D. underwriting or rating classification upon
				which the illustration is based;
E.
				generic name of policy, the company product name, if different, and form
				number;
F. initial death benefit;
				and
G. dividend option election or
				application of non-guaranteed elements, if applicable.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.11 - PROHIBITED PRACTICES

Current through Register Vol. 35, No. 13, July 16, 2024
When using an illustration in the sale of a life insurance
				  policy, an insurer or its producers or other authorized representatives shall
				  not:
A. represent the policy as
				anything other than a life insurance policy;
B. use or describe non-guaranteed elements in
				a manner that is misleading or has the capacity or tendency to
				mislead;
C. state or imply that the
				payment or amount of non-guaranteed elements is guaranteed;
D. use an illustration that does not comply
				with the requirements of this rule;
E. use an illustration that at any policy
				duration depicts policy performance more favorable to the policy owner than
				that produced by the illustrated scale of the insurer whose policy is being
				illustrated;
F. provide an
				applicant with an incomplete illustration;
G. represent in any way that premium payments
				will not be required for each year of the policy in order to maintain the
				illustrated death benefits, unless that is the fact;
H. use the term "vanish" or "vanishing
				premium," or a similar term that implies the policy becomes paid up, to
				describe a plan for using non-guaranteed elements to pay a portion of future
				premiums;
I. except for policies
				that can never develop nonforfeiture values, use an illustration that is
				lapse-supported; or
J. use an
				illustration that is not self-supporting.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.12 - INTEREST RATE

Current through Register Vol. 35, No. 13, July 16, 2024
If an interest rate used to determine the illustrated
				  non-guaranteed elements is shown, it shall not be greater than the earned
				  interest rate underlying the disciplined current scale.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.13 - FORMAT FOR BASIC ILLUSTRATIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				The illustration shall be labeled with the date on which it was
				prepared.
B. Each page, including
				any explanatory notes or pages, shall be numbered and shall show its
				relationship to the total number of pages in the illustration (e.g., the fourth
				page of a seven-page illustration shall be labeled "page 4 of 7
				pages").
C. The assumed dates of
				payment receipt and benefit pay-out within a policy year shall be clearly
				identified.
D. If the age of the
				proposed insured is shown as a component of the tabular detail, it shall be
				issue age plus the numbers of years the policy is assumed to have been in
				force.
E. The assumed payments on
				which the illustrated benefits and values are based shall be identified as
				premium outlay or contract premium, as applicable. For policies that do not
				require a specific contract premium, the illustrated payments shall be
				identified as premium outlay.
F.
				Guaranteed death benefits and values available upon surrender, if any, for the
				illustrated premium outlay or contract premium shall be shown and clearly
				labeled guaranteed.
G. If the
				illustration shows any non-guaranteed elements, they cannot be based on a scale
				more favorable to the policy owner than the insurer's illustrated scale at any
				duration. These elements shall be clearly labeled non-guaranteed.
H. The guaranteed elements, if any, shall be
				shown before corresponding non-guaranteed elements and shall be specifically
				referred to on any page of an illustration that shows or describes only the
				non-guaranteed elements (e.g., "see page one for guaranteed
				elements.")
I. The account or
				accumulation value of a policy, if shown, shall be identified by the name this
				value is given in the policy being illustrated and shown in close proximity to
				the corresponding value available upon surrender.
J. The value available upon surrender shall
				be identified by the name this value is given in the policy being illustrated
				and shall be the amount available to the policy owner in a lump sum after
				deduction of surrender charges, policy loans and policy loan interest, as
				applicable.
K. Illustrations may
				show policy benefits and values in graphic or chart form in addition to the
				tabular form.
L. Any illustration
				of non-guaranteed elements shall be accompanied by a statement indicating that:
(1) the benefits and values are not
				guaranteed;
(2) the assumptions on
				which they are based are subject to change by the insurer; and
(3) actual results may be more or less
				favorable.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.14 - NARRATIVE SUMMARY OF BASIC ILLUSTRATIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A basic illustration shall include the following:
A. a brief description of the policy being
				illustrated, including a statement that it is a life insurance
				policy;
B. a brief description of
				the premium outlay or contract premium, as applicable, for the policy; for a
				policy that does not require payment of a specific contract premium, the
				illustration shall show the premium outlay that must be paid to guarantee
				coverage for the term of the contract, subject to maximum premiums allowable to
				qualify as a life insurance policy under the applicable provisions of the
				Internal Revenue Code;
C. a brief
				description of any policy features, riders or options, guaranteed or
				non-guaranteed, shown in the basic illustration and the impact they may have on
				the benefits and values of the policy;
D. identification and a brief definition of
				column headings and key terms used in the illustration; and
E. a statement containing in substance the
				following: "This illustration assumes that the currently illustrated
				non-guaranteed elements will continue unchanged for all years shown. This is
				not likely to occur, and actual results may be more or less favorable than
				those shown."
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.15 - NUMERIC SUMMARY OF BASIC ILLUSTRATIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Following the narrative summary, a basic
				illustration shall include a numeric summary of the death benefits and values
				and the premium outlay and contract premium, as applicable. For a policy that
				provides for a contract premium, the guaranteed death benefits and values shall
				be based on the contract premium. This summary shall be shown for at least
				policy years five (5), ten (10) and twenty (20) and at age 70, if applicable,
				on the three bases shown below. For multiple life policies the summary shall
				show policy years five (5), ten (10), twenty (20) and thirty (30).
(1) policy guarantees;
(2) insurer's illustrated scale;
(3) insurer's illustrated scale used but with
				the non-guaranteed elements reduced as follows:
(a) dividends at fifty percent (50%) of the
				dividends contained in the illustrated scale used;
(b) non-guaranteed credited interest at rates
				that are the average of the guaranteed rates and the rates contained in the
				illustrated scale used; and
(c) all
				non-guaranteed charges, including but not limited to, term insurance charges,
				mortality and expense charges, at rates that are the average of the guaranteed
				rates and the rates contained in the illustrated scale used.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.16 - STATEMENTS IN BASIC ILLUSTRATIONS

Current through Register Vol. 35, No. 13, July 16, 2024
Statements substantially similar to the following shall be
				  included on the same page as the numeric summary and signed by the applicant,
				  or the policy owner in the case of an illustration provided at time of
				  delivery.
A. A statement to be signed
				and dated by the applicant or policy owner reading as follows: "I have received
				a copy of this illustration and understand that any non-guaranteed elements
				illustrated are subject to change and could be either higher or lower. The
				agent has told me they are not guaranteed."
B. A statement to be signed and dated by the
				insurance producer or other authorized representative of the insurer reading as
				follows: "I certify that this illustration has been presented to the applicant
				and that I have explained that any non-guaranteed elements illustrated are
				subject to change. I have made no statements that are inconsistent with the
				illustration."
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.17 - TABULAR DETAIL IN BASIC ILLUSTRATIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A. A basic illustration shall include the
				following for at least each policy year from one (1) to ten (10) and for every
				fifth policy year thereafter ending at age 100, policy maturity or final
				expiration; and except for term insurance beyond the 20th year, for any year in
				which the premium outlay and contract premium, if applicable, is to change:
(1) the premium outlay and mode the applicant
				plans to pay and the contract premium, as applicable;
(2) the corresponding guaranteed death
				benefit, as provided in the policy; and
(3) the corresponding guaranteed value
				available upon surrender, as provided in the policy.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.18 - STANDARDS FOR SUPPLEMENTAL ILLUSTRATIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A. A supplemental illustration may be
				provided so long as:
(1) it is appended to,
				accompanied by or preceded by a basic illustration that complies with this
				rule;
(2) the non-guaranteed
				elements shown are not more favorable to the policy owner than the
				corresponding elements based on the scale used in the basic
				illustration;
(3) it contains the
				same statement required of a basic illustration that non-guaranteed elements
				are not guaranteed;
(4) for a
				policy that has a contract premium, the contract premium underlying the
				supplemental illustration is equal to the contract premium shown in the basic
				illustration. For policies that do not require a contract premium, the premium
				outlay underlying the supplemental illustration shall be equal to the premium
				outlay shown in the basic illustration.; and
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.19 - DELIVERY WHEN BASIC ILLUSTRATION USED

Current through Register Vol. 35, No. 13, July 16, 2024
A. If a basic illustration is used by an
				insurance producer or other authorized representative of the insurer in the
				sale of a life insurance policy and the policy is applied for as illustrated, a
				copy of that illustration, signed in accordance with this rule, shall be
				submitted to the insurer at the time of policy application. A copy also shall
				be provided to the applicant.
B. If
				the policy is issued other than as applied for, a revised basic illustration
				conforming to the policy as issued shall be sent with the policy. The revised
				illustration shall conform to the requirements of this rule, shall be labeled
				"revised illustration" and shall be signed and dated by the applicant or policy
				owner and producer or other authorized representative of the insurer no later
				than the time the policy is delivered. A copy shall be provided to the insurer
				and the policy owner.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.20 - DELIVERY WHEN BASIC ILLUSTRATION NOT USED

Current through Register Vol. 35, No. 13, July 16, 2024
A. If no illustration is used by an insurance
				producer or other authorized representative in the sale of a life insurance
				policy or if the policy is applied for other than as illustrated, the producer
				or representative shall certify to that effect in writing on a form provided by
				the insurer. On the same form the applicant shall acknowledge that no
				illustration conforming to the policy applied for was provided and shall
				further acknowledge an understanding that an illustration conforming to the
				policy as issued will be provided no later than at the time of policy delivery.
				This form shall be submitted to the insurer at the time of policy
				application.
B. If the policy is
				issued, a basic illustration conforming to the policy as issued shall be sent
				with the policy and signed no later than the time the policy is delivered. A
				copy shall be provided to the insurer and the policy owner.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.21 - DELIVERY BY MAIL

Current through Register Vol. 35, No. 13, July 16, 2024
If the basic illustration or revised illustration is sent to
				  the applicant or policy owner by mail from the insurer, it shall include
				  instructions for the applicant or policy owner to sign the duplicate copy of
				  the numeric summary page of the illustration for the policy issued and return
				  the signed copy to the insurer. The insurer's obligation under this subsection
				  shall be satisfied if it can demonstrate that it has made a diligent effort to
				  secure a signed copy of the numeric summary page. 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 numeric summary page.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.22 - RECORD RETENTION

Current through Register Vol. 35, No. 13, July 16, 2024
A copy of the basic illustration and a revised basic
				  illustration, if any, signed as applicable, along with any certification that
				  either no illustration was used or that the policy was applied for other than
				  as illustrated, shall be retained by the insurer until three (3) years after
				  the policy is no longer in force. A copy need not be retained if no policy is
				  issued.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.23 - ANNUAL REPORT FOR ILLUSTRATED UNIVERSAL LIFE POLICIES

Current through Register Vol. 35, No. 13, July 16, 2024
For universal life policies designated as ones for which
				  illustrations will be used, the insurer shall provide each policy owner with an
				  annual report on the status of the policy that shall contain at least the
				  following information:
A. the
				beginning and end date of the current report period;
B. the policy value at the end of the
				previous report period and at the end of the current report period;
C. the total amounts 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);
D. the current death benefit at the end of
				the current report period on each life covered by the policy;
E. the net cash surrender value of the policy
				as of the end of the current report period;
F. the amount of outstanding loans, if any,
				as of the end of the current report period; and
G. for fixed premium policies: if, assuming
				guaranteed interest, mortality and expense loads and continued scheduled
				premium payments, the policy's net cash surrender value is such that it would
				not maintain insurance in force until the end of the next reporting period, a
				notice to this effect shall be included in the report; or
H. for flexible premium policies: if,
				assuming guaranteed interest, mortality and expense loads, the policy's net
				cash surrender value will not maintain insurance in force until the end of the
				next reporting period unless further premium payments are made, a notice to
				this effect shall be included in the report.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.24 - ANNUAL REPORT FOR ALL OTHER ILLUSTRATED POLICIES

Current through Register Vol. 35, No. 13, July 16, 2024
For all other policies designated as ones for which
				  illustrations will be used, the insurer shall provide each policy owner with an
				  annual report on the status of the policy that shall contain at least the
				  following information, where applicable:
A. current death benefit;
B. annual contract premium;
C. current cash surrender value;
D. current dividend;
E. application of current dividend;
				and
F. amount of outstanding
				loan.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.25 - ANNUAL REPORT FOR POLICIES THAT DO NOT BUILD NON-FORFEITURE VALUES

Current through Register Vol. 35, No. 13, July 16, 2024
Insurers writing life insurance policies that do not build
				  nonforfeiture values shall only be required to provide an annual report with
				  respect to these policies for those years in which the insurer has changed
				  non-guaranteed policy elements.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.26 - ANNUAL REPORT WITHOUT IN-FORCE ILLUSTRATIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A. If the annual report does not include an
				in force illustration, it shall contain the following notice displayed
				prominently:
"IMPORTANT POLICY OWNER NOTICE:
You should consider
				requesting more detailed information about your policy to understand how it may
				perform in the future. You should not consider replacement of your policy or
				make changes in your coverage without requesting a current illustration. You
				may annually request, without charge, such an illustration by calling
				[insurer's phone number], writing to [insurer's name] at [insurer's address] or
				contacting your agent. If you do not receive a current illustration of your
				policy within 30 days from your request, you should contact your state
				insurance department." The insurer may vary the sequential order of the methods
				for obtaining an in force illustration.
B. Upon the request of the policy owner, the
				insurer shall furnish an in force illustration of current and future benefits
				and values based on the insurer's present illustrated scale. This illustration
				shall comply with the requirements of 13 nmac 9.14.10, 9.14.11, 9.14.13 and
				9.14.17 [now 13.9.14.10 NMAC, 13.9.14.11 NMAC, 13.9.14.13 NMAC and 13.9.14.17
				NMAC]. No signature or other acknowledgment of receipt of this illustration
				shall be required.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.27 - NOTICE OF CHANGE IN NON-GUARANTEED ELEMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
If an adverse change in non-guaranteed elements that could
				  affect the policy has been made by the insurer since the last annual report,
				  the annual report shall contain a notice of that fact and the nature of the
				  change prominently displayed.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.28 - APPOINTMENT OF ILLUSTRATION ACTUARY

Current through Register Vol. 35, No. 13, July 16, 2024
The board of directors of each insurer shall appoint one or
				  more illustration actuaries, who shall meet the following standards:
A. be a member in good standing of the
				American academy of actuaries;
B.
				be familiar with the standard of practice regarding life insurance policy
				illustrations;
C. not have been
				found by the sperintendent, following appropriate notice and hearing to have:
(1) violated any provision of, or any
				obligation imposed by, the insurance law or other law in the course of his or
				her dealings as an illustration actuary;
(2) been found guilty of fraudulent or
				dishonest practices;
(3)
				demonstrated his or her incompetence, lack of cooperation, or untrustworthiness
				to act as an illustration actuary; or
(4) resigned or been removed as an
				illustration actuary within the past five (5) years as a result of acts or
				omissions indicated in any adverse report on examination or as a result of a
				failure to adhere to generally acceptable actuarial standards;
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.29 - CHANGE OF ILLUSTRATION ACTUARY

Current through Register Vol. 35, No. 13, July 16, 2024
If an insurer changes the illustration actuary responsible
				  for all or a portion of the company's policy forms, the insurer shall notify
				  the superintendent of that fact promptly and disclose the reason for the
				  change.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.30 - ANNUAL CERTIFICATION BY ILLUSTRATION ACTUARY

Current through Register Vol. 35, No. 13, July 16, 2024
The illustration actuary shall annually:
A. certify that the disciplined current scale
				used in illustrations is in conformity with the Actuarial Standard of Practice
				for Compliance with the NAIC Model Rule on Life Insurance Illustrations
				promulgated by the Actuarial Standards Board, and that the illustrated scales
				used in insurer-authorized illustrations meet the requirements of this
				rule;
B. disclose in the annual
				certification whether, since the last certification, a currently payable scale
				applicable for business issued within the previous five (5) years and within
				the scope of the certification has been reduced for reasons other than changes
				in the experience factors underlying the disciplined current scale. If
				non-guaranteed elements illustrated for new policies are not consistent with
				those illustrated for similar in force policies, this must be disclosed in the
				annual certification. If non-guaranteed elements illustrated for both new and
				in force policies are not consistent with the non-guaranteed elements actually
				being paid, charged or credited to the same or similar forms, this must be
				disclosed in the annual certification;
C. disclose in the annual certification the
				method used to allocate overhead expenses for all illustrations:
(1) fully allocated expenses;
(2) marginal expenses; or
(3) a generally recognized expense table
				based on fully allocated expenses representing a significant portion of
				insurance companies and approved by the superintendent.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 14 - LIFE INSURANCE ILLUSTRATIONS › Section 13.9.14.31 - CERTIFICATION BY INSURER

Current through Register Vol. 35, No. 13, July 16, 2024
A responsible officer of the insurer, other than the
				  illustration actuary, shall certify annually:
A. that the illustration formats meet the
				requirements of this rule and that the scales used in insurer-authorized
				illustrations are those scales certified by the illustration actuary;
				and
B. that the company has
				provided its agents with information about the expense allocation method used
				by the company in its illustrations and disclosed as required in 13 NMAC
				9.14.30.3 [now Subsection C of 13.9.14.30 NMAC].
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 15 - VIATICAL SETTLEMENTS › Section 13.9.15.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This rule applies to all persons soliciting, negotiating,
				  financing, or transacting viatical settlements in New Mexico.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 15 - VIATICAL SETTLEMENTS › Section 13.9.15.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
NMSA 1978 Sections 59A-2-9 and 59A-20A-10.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 15 - VIATICAL SETTLEMENTS › Section 13.9.15.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The purpose of this rule is to implement the Viatical
				  Settlements Act, NMSA 1978 Section 59A-20A-1 et seq.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 15 - VIATICAL SETTLEMENTS › Section 13.9.15.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
In addition to the definitions in NMSA 1978 Section
				  59A-20A-2, as used in this rule:
A.
chronically ill
means:
(1) being
				unable to perform at least two (2) activities of daily living (i.e., eating,
				toileting, transferring, bathing, dressing or continence);
(2) requiring substantial supervision to
				protect the individual from threats to health and safety due to severe
				cognitive impairment; or
(3) having
				a level of disability similar to that described in paragraph (1) of subsection
				A of 13.9.15.7 NMAC as determined by the Secretary of Health and Human
				Services;
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 15 - VIATICAL SETTLEMENTS › Section 13.9.15.8 - LICENSE REQUIREMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
A. A
				viatical settlement provider or broker transacting business in this state may
				continue to do so pending issuance of the provider or broker's license as long
				as its application for a license is filed with the Superintendent by July 1,
				2000.
B. The Superintendent may ask
				for all information necessary to determine whether the applicant for a license
				as a viatical settlement provider or broker complies with the requirements of
				NMSA 1978 Section 59A-20A-3.
C. The
				license issued to a viatical settlement provider or broker shall be a limited
				license that allows the viatical settlement provider or broker to operate only
				within the scope of its license.
D.
				A viatical settlement provider or broker shall file with the Superintendent
				within thirty (30) days a supplement to its application showing any changes to
				the members, officers, representatives and designated employees authorized to
				act under its license.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 15 - VIATICAL SETTLEMENTS › Section 13.9.15.9 - RENEWAL OF LICENSE

Current through Register Vol. 35, No. 13, July 16, 2024
A. A viatical
				settlement provider or broker may renew its license yearly by filing an
				application for renewal no less than thirty (30) days before the anniversary
				date of licensure. The Superintendent shall refuse to renew a license if the
				licensee fails to:
(1) file a current copy of
				a letter of good standing obtained from the filing officer of the applicant's
				state of domicile;
(2) pay the
				renewal fee; and
(3) submit the
				reports required in NMSA 1978 Section 59A-20A-6.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 15 - VIATICAL SETTLEMENTS › Section 13.9.15.10 - STANDARDS FOR EVALUATION OF REASONABLE PAYMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
A viatical settlement company or broker shall not enter into
				  a viatical settlement that provides a payment to the viator that is
				  unreasonable or unjust. In determining whether a payment is unreasonable or
				  unjust, the Superintendent may consider, among other factors, the life
				  expectancy of the viator, the applicable rating of the insurance company that
				  issued the subject policy by a rating service generally recognized by the
				  insurance industry, regulators and consumer groups, and the prevailing discount
				  rates in the viatical settlement market in New Mexico, or if insufficient data
				  is available for New Mexico, the prevailing rates nationally or in other states
				  that maintain this data.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 15 - VIATICAL SETTLEMENTS › Section 13.9.15.11 - REPORTING REQUIREMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
on March 1of each calendar year, each viatical settlement
				  provider licensed in this state shall report all viatical settlement
				  transactions for which the viator is a resident of this state, and for all
				  states in the aggregate, containing the following information for the previous
				  calendar year
A. For viatical
				settlements contracted during the reporting period:
(1) date of viatical settlement
				contract;
(2) viator's state of
				residence at the time of the contract;
(3) mean life expectancy of the insured at
				time of contract, in months;
(4)
				face amount of policy viaticated;
(5) net death benefit viaticated;
(6) estimated total premiums to keep policy
				in force for mean life expectancy;
(7) net amount paid to viator;
(8) source of policy (B-Broker; D-Direct
				Purchase; SM-Secondary Market);
(9)
				type of coverage (I-Individual or G-Group);
(10) whether or not viatical settlement was
				within the contestable or suicide period, or both;
(11) primary international classification of
				diseases (ICD) Diagnosis Code, in numeric format, as published by the U.S.
				Department of Health and Human Services; and
(12) type of funding (I-Institutional;
				P-Private).
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 15 - VIATICAL SETTLEMENTS › Section 13.9.15.12 - PAYMENT OF PROCEEDS

Current through Register Vol. 35, No. 13, July 16, 2024
A. A
				trustee or escrow agent shall pay the proceeds of a viatical settlement made
				pursuant to NMSA 1978 Section 59A-20A-9D by means of wire transfer to the
				account of the viator or by certified check or cashier's check made payable to
				the viator.
B. A viatical
				settlement provider shall pay the proceeds of a viatical settlement to the
				viator in a lump sum except where the viatical settlement provider has
				purchased an annuity or similar financial instrument issued by a licensed
				insurance company or bank, or an affiliate of either. Neither the viatical
				settlement provider nor the escrow agent may retain a portion of the
				proceeds.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 15 - VIATICAL SETTLEMENTS › Section 13.9.15.13 - ADVERTISING STANDARDS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Advertising related to the viatical settlement shall be truthful and not
				misleading by fact or implication.
B. If the advertising statesthe speed with
				which the viatication will occur, the advertising must disclose the average
				time frame from completed application to the date of offer and from acceptance
				of the offer to receipt of the funds by the viator.
C. If the advertising states the dollar
				amounts available to viators, the advertising shall disclose the average
				purchase price as a percent of face value obtained by viators contracting with
				the advertiser during the past six (6) months.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 15 - VIATICAL SETTLEMENTS › Section 13.9.15.14 - VIATOR RETENTION PROVISIONS

Current through Register Vol. 35, No. 13, July 16, 2024
If a viatical settlement provider enters into a viatical
				  settlement that allows the viator to retain an interest in the policy, the
				  viatical settlement contract shall contain a provision that:
A. the viatical settlement provider will
				effect the transfer of only the amount of the death benefit viaticated.
				Benefits in excess of the amount viaticated shall be paid directly to the
				viator's beneficiary by the insurance company;
B. the viatical settlement provider will,
				upon acknowledgment of the perfection of the transfer, either:
(1) advise the insured, in writing, that the
				insurance company has confirmed the viator's interest in the policy;
				or
(2) send a copy of the
				instrument sent from the insurance company to the viatical settlement company
				that acknowledges the viator's interest in the policy; and
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 15 - VIATICAL SETTLEMENTS › Section 13.9.15.15 - DISCLOSURE DOCUMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
A. A
				viatical settlement provider or broker shall provide a disclosure document
				containing the disclosures required in NMSA 1978 Section 59A-20A-8 and this
				section before or concurrent with taking an application for a viatical
				settlement contract.
B. The
				disclosure document shall contain the following language: "All medical,
				financial, personal, or patient identifying information solicited or obtained
				by a viatical settlement company or viatical settlement broker about a viator
				and insured, including the viator and insured's identity or the identity of
				family members, a spouse or a significant other, is confidential." The
				disclosure document shall advise the viator and the insured that such
				information may be provided to financing entities, including individual and
				institutional purchasers.
C. A
				viatical settlement provider or broker shall provide a copy of Appendix A, set
				forth in 13.9.15.18 NMAC, before or concurrent with taking an application for a
				viatical settlement contract.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 15 - VIATICAL SETTLEMENTS › Section 13.9.15.16 - PROHIBITED PRACTICES

Current through Register Vol. 35, No. 13, July 16, 2024
A. A
				viatical settlement provider or broker shall obtain from a person that is
				provided with patient identifying information a signed affirmation that the
				person will not further divulge the information without procuring the express
				written consent of the insured for the disclosure, except that if a viatical
				settlement provider or broker is served with a subpoena and therefore compelled
				to produce records containing patient identifying information, it shall notify
				the viator and the insured in writing at their last known addresses within five
				(5) business days after receiving notice of the subpoena.
B. A viatical settlement provider shall not
				also act as a viatical settlement broker, whether entitled to collect a fee
				directly or indirectly, in the same viatical settlement.
C. A viatical settlement broker shall not,
				without the written agreement of the viator obtained prior to performing any
				services in connection with a viatical settlement, seek or obtain any
				compensation from the viator.
D. A
				viatical settlement provider shall not use a longer life expectancy than is
				realistic in order to reduce the payout to which the viator is
				entitled.
E. A viatical settlement
				provider or broker shall not discriminate in the making or solicitation of
				viatical settlements on the basis of race, age, sex, national origin, creed,
				religion, occupation, marital or family status or sexual orientation, or
				discriminate between viators with dependents and without.
F. A viatical settlement provider or broker
				shall not pay or offer to pay any finder's fee, commission or other
				compensation to any insured's physician, or to an attorney, accountant or other
				person providing medical, legal or financial planning services to the viator,
				or to any other person acting as an agent of the viator with respect to the
				viatical settlement.
G. A viatical
				settlement provider shall not knowingly solicit investors who have treated or
				have been asked to treat the illness of the insured whose coverage would be the
				subject of the investment.