New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 9 - LIFE INSURANCE AND ANNUITIES › Part 8 - VARIABLE LIFE INSURANCE › Section 13.9.8.33 - INVESTMENT ADVISORY SERVICES TO A SEPARATE ACCOUNT

Current through Register Vol. 35, No. 13, July 16, 2024
A. An insurer shall not enter into a contract
				under which any person undertakes, for a fee, to regularly furnish investment
				advice to such insurer with respect to its separate accounts maintained for
				variable life insurance policies unless:
(1)
				the person providing such advice is registered as an investment adviser under
				the Investment Advisers Act of 1940; or
(2) the person providing such advice is an
				investment manager under the Employee Retirement Income Security Act of 1974
				with respect to the assets of each employee benefit plan allocated to the
				separate account; or
(3) the
				insurer has filed with the superintendent and continues to file annually the
				following information and statements concerning the proposed adviser:
(a) the name and form of organization, state
				of organization, and its principal place of business;
(b) the names and addresses of its partners,
				officers, directors, and persons performing similar functions or, if such an
				investment advisor be an individual, of such individual;
(c) a written standard of conduct complying
				in substance with the requirements of 13 NMAC 9.8.31 [now 13.9.8.31 NMAC] of
				this rule which has been adopted by the investment adviser and is applicable to
				the investment adviser, its officers, directors, and affiliates;
(d) a statement provided by the proposed
				adviser as to whether the adviser or any person associated therewith:
(i) has been convicted within ten years of
				any felony or misdemeanor arising out of such person's conduct as an employee,
				salesman, officer or director or an insurance company, a banker, an insurance
				agent, a securities broker, or an investment adviser involving embezzlement,
				fraudulent conversion, or misappropriation of funds of securities, or involving
				the violation of Sections 1341, 1342, or 1343 of Title 18 of United States
				Code;
(ii) has been permanently or
				temporarily enjoined by order, judgment, or decree of any court of competent
				jurisdiction from acting as an investment adviser, underwriter, broker, or
				dealer, or as an affiliated person or as an employee of any investment company,
				bank, or insurance company, or from engaging in or continuing any conduct or
				practice in connection with any such activity;
(iii) has been found by federal or state
				regulatory authorities to have willfully violated or have acknowledged willful
				violation of any provision of federal or state securities laws or state
				insurance laws or of any rule or regulation under any such laws; or
(iv) has been censured, denied an investment
				adviser registration, had a registration as an investment adviser revoked or
				suspended, or been barred or suspended from being associated with an investment
				adviser by order of federal or state regulatory authorities; and
(v) such investment advisory contract shall
				be in writing and provide that it may be terminated by the insurer without
				penalty to the insurer or the separate account upon no more than sixty days'
				written notice to the investment adviser.