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New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Section 13.18.2.17 - FILING OF FORMS AND RATES

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Every insurance company, when submitting a schedule of rates for consideration
				by the superintendent of insurance, shall identify the rates to be used with
				the policy form submitted for approval. In the alternative, specific reference
				in the case of each submission shall be made to the particular schedule of
				rates, or portions thereof, which are applicable to the specific policy form.
				The face and face page of every form or schedule submitted to the
				superintendent of insurance for his consideration under Article 25, New Mexico
				Insurance Code, shall have added to its identifying number the additional
				identification (25). Such additional identification shall appear on issued
				copies of such forms.
B. Tests for
				reasonableness of premiums.
(1) The benefits
				of credit life insurance, individual or group, shall be considered to be
				reasonable in relation to the premium charged if it can reasonably be
				anticipated that a loss ratio of claims incurred to premiums earned of not less
				than 55 percent will be developed.
(2) The benefits of credit accident and
				health insurance, individual or group, shall be considered to be reasonable in
				relation to the premiums charged if it can reasonably be anticipated that a
				loss ratio of claims incurred to premiums earned of not less than 55 percent
				will be developed.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Section 13.18.2.18 - PRESUMPTIVELY ACCEPTABLE CREDIT LIFE INSURANCE PREMIUMS (PRIMA FACIE RATES)

Current through Register Vol. 35, No. 13, July 16, 2024
The superintendent of insurance may presume (subject,
				  however, to a rebuttal of the presumption) that the benefits of a credit life
				  insurance policy are reasonable in relation to the premium charged if the
				  premium rate for death benefits as filed does not exceed an amount equal, or
				  actuarially equivalent, to the following rates.
A. Coverage on a single life provided on the
				outstanding indebtedness basis: $0.84 per month per $1,000.00 of outstanding
				balance indebtedness.
B. Coverage
				on a single life on the single premium basis:
(1) $0.52 per year of coverage per $100.00 of
				initial insured indebtedness for all credit transactions when the insured
				indebtedness is payable in substantially equal monthly installments during the
				term of coverage; and
(2) $1.00 per
				year of coverage per $100.00 of level life insurance where the amount of
				insured indebtedness remains level during the term of coverage and is repayable
				in a single sum at the end of the term.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Section 13.18.2.19 - USE OF JOINT CREDIT LIFE INSURANCE

Current through Register Vol. 35, No. 13, July 16, 2024
Joint lives as used in Subsections C and D of
				  13.18.2.18
				  NMAC above means only spouses or business partners, and such person must be
				  jointly and severally liable for repayment of the single indebtedness and be
				  joint signers of the instrument of indebtedness. Endorsers and guarantors are
				  not eligible for credit insurance coverage. Joint life coverage shall not be
				  written covering more than two lives. Jointly indebted persons shall not both
				  be covered separately at single life rates.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Section 13.18.2.20 - COMPOSITE SINGLE JOINT OUTSTANDING BALANCE RATE (PRIMA FACIE)

Current through Register Vol. 35, No. 13, July 16, 2024
A. Joint life rates
				may not be charged for single life coverage, except that a composite single
				joint outstanding balance life rate may be used for open-end accounts where
				more than 50 percent of a creditor's open-end accounts are held jointly. Such
				rate shall be completed as follows: COB = .84 (PSA) - 1.26 (PJA), where:
(1) COB = composite outstanding balance life
				rate per $1,000 per month;
(2) PSA
				= percentage of open-end accounts held by a single person expressed as a
				decimal fraction (for the first year, use all accounts; for subsequent years,
				use insured accounts);
(3) PJA =
				percentage of revolving accounts held jointly expressed as a decimal fraction
				(for the first year, use all accounts; for subsequent years, use insured
				accounts).
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Section 13.18.2.21 - ACTUARIAL EQUIVALENT PREMIUM FOR UNEQUAL MONTHLY INSTALLMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
Premiums and premium rates for insurance concerning
				  obligations payable in other than substantially equal monthly installments
				  during the period of coverage, or for coverage which declines on other than a
				  straight line basis, shall be determined in a manner which produces a rate not
				  exceeding the actuarial equivalent of the foregoing rates.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Section 13.18.2.22 - INSURABILITY REQUIREMENTS PERMITTED

Current through Register Vol. 35, No. 13, July 16, 2024
The presumptively reasonable premiums for credit life
				  insurance shall apply only to plans containing provisions consistent with the
				  following.
A. That the credit life
				insurance contract may require submission of the debtor's written and signed
				evidence of the debtor's insurability or that the debtor be in gainful
				employment at the time the insurance becomes effective, or both, on a form
				filed with and approved by the superintendent of insurance, and that such
				contract contains no conditions for validity of insurance more restrictive than
				contestability based on material misrepresentation and no exclusions other than
				for suicide, flight in nonscheduled aircraft, and war or military
				hazard.
B. The insurer must require
				and be responsible in its contract with the group policyholder and the creditor
				that proof be retained for three years following the offer by the creditor,
				group policyholder or the insurer and made available for examination by the
				superintendent that credit life insurance coverage is provided or offered to
				all debtors not older than the applicable age limit without age discrimination.
				The applicable age limit for credit life using presumptively acceptable credit
				life premiums shall not be less than the attained age of 70 years if such limit
				applies to the age when the insurance is issued, or not less than the attained
				age of 72 if such limit applies to the age on the scheduled maturity date of
				debt. Coverage issued in connection with open-end transactions may contain a
				provision for automatic termination of coverage upon attainment of a specified
				age, which shall not be less than 72. The use of any other age limits will
				require that premiums be filed under the deviation procedures in this
				rule.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Section 13.18.2.23 - PREMIUM RATE ADJUSTMENTS FOR AGE BRACKETS

Current through Register Vol. 35, No. 13, July 16, 2024
If the premiums are determined according to the age of the
				  insured debtor or by age brackets, appropriate adjustments in the rate and
				  premium may be made according to age if such adjustments are actuarially
				  consistent with the foregoing rates when applied regardless of actual age at
				  issue and if such adjustments produce an aggregate premium not greater than
				  that produced by the foregoing rates, and such rates and actuarially consistent
				  computations are filed with and approved by the superintendent of
				  insurance.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Section 13.18.2.24 - PREMIUM RATES FOR OTHER LAWFUL BENEFITS

Current through Register Vol. 35, No. 13, July 16, 2024
If a contract of insurance includes other lawful benefit or
				  benefits for which standards of reasonableness of benefits in relation to
				  premiums are not elsewhere in this rule determined or described, any premium
				  charged therefor shall be shown to the satisfaction of the superintendent of
				  insurance to be based upon credible data and shall meet the basic test of
				  reasonableness described in Subsection B of
				  13.18.2.17
				  NMAC of this rule.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Section 13.18.2.25 - INSURABILITY REQUIREMENTS PERMITTED FOR INCREASED OPEN-ENDED CREDIT LIFE INSURANCE

Current through Register Vol. 35, No. 13, July 16, 2024
If a debtor has credit life insurance under an open-end
				  outstanding balance policy, the policy may provide that an increase in the
				  amount of insurance because of an increase in the amount of indebtedness will
				  be subject to conditions of insurability. Any policy provision regarding
				  evidence of insurability for an increase will comply with the following.
A. No charge for or cost of any such
				additional coverage will be incurred by any debtor, except by voluntary
				acceptance of the coverage and submission of such lawful statement as is
				required by the insurer. Voluntary acceptance will not be deemed to have
				occurred except by a specific positive written response by the debtor to a
				notice of availability of the coverage; it may not be automatic subject to an
				act of rejection or notification by the debtor.
B. The effective date of any such increase in
				coverage may be either of the following:
(1)
				the date on which the indebtedness is increased. In this event, however, if
				specific positive written response is not received within 75 days of such
				increase, or if such response is not satisfactory to the insurer, then the
				additional insurance shall not be effective, and any premium which has been
				paid therefore shall be refunded or credited to the account of the debtor not
				more than 90 days after the increase in indebtedness; any claim which occurs
				when positive response has not been received, but before the date by which such
				response must be received, will be paid if the debtor was eligible for the
				insurance under the terms of the policy; if the premium has been paid, but not
				refunded or credited to the account of the debtor not more than 90 days after
				the increase in indebtedness, the insurance shall be effective regardless of
				the eligibility of the debtor; or
(2) the date on which specific positive
				written response satisfactory to the insurer is received by the
				insurer;
(3) nothing herein shall
				preclude a policy provision prohibiting any increases in the amount of
				insurance while the insured is disabled.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Section 13.18.2.27 - STANDARD OF BENEFITS FOR CREDIT ACCIDENT AND HEALTH INSURANCE

Current through Register Vol. 35, No. 13, July 16, 2024
The standards and principles for the application of the rates
				  set forth for credit accident and health insurance are as follows.
A. The initial amount of insured indebtedness
				to which the rate is applied shall not exceed the aggregate of the insured
				portion of the periodic scheduled unpaid installments of the
				indebtedness.
B. Except for
				open-end accounts, the indebtedness must be payable in substantially equal
				monthly or other periodic installments during the period of coverage.
C. The credit accident and health insurance
				contract may require written and signed evidence of insurability and, where
				offered, shall be offered to all eligible debtors and shall contain:
(1) no provision for validity of insurance
				more restrictive than contestability based on material misrepresentation; an
				insurer may not rely on material misrepresentation as a defense against the
				payment of a claim unless the insurer required the insured to sign a written
				statement in which the alleged misrepresentation was made;
(2) no provision which excludes or restricts
				liability in the event of disability caused in a specific manner or under
				specific condition, except that it may contain provisions excluding or
				restricting coverage in the event of:
(a)
				elective abortion;
(b) normal
				pregnancy, except complications of pregnancy;
(c) intentionally self-inflicted
				injuries;
(d) flight in
				nonscheduled aircraft;
(e) loss
				resulting from war or military service;
(3) provision for a daily benefit equal in
				amount to one-thirtieth (or other applicable fraction) of the scheduled monthly
				(or other specified mode of installment) payment or indebtedness;
(4) for the purpose of total disability
				insurance, a definition of total disability which provides coverage during the
				first 12 months of such disability even though the insured is able to perform
				an occupation other than the one he held at the time such disability occurred;
				during the first 12 months of each disability, the definition of total
				disability must relate such disability to the occupation of the debtor at the
				time the disability commenced; after disability continues for more than 12
				months, the definition of total disability may relate such continuing
				disability to the inability to perform any occupation for which the debtor is
				reasonably fitted by education, training or experience.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Section 13.18.2.28 - INCREASES IN OUTSTANDING BALANCE OPEN-END COVERAGE

Current through Register Vol. 35, No. 13, July 16, 2024
A. If a debtor has credit accident and health
				insurance under an open-end outstanding balance policy, the policy may provide
				that an increase in the insurance benefits because of an increase in the
				indebtedness will be subject to conditions of insurability. Any policy
				provision regarding evidence of insurability for an increase will comply with
				the following.
(1) No charge for or cost of
				any such additional coverage will be incurred by a debtor except by voluntary
				acceptance of the coverage and submission of such lawful statement as is
				required by the insurer. Voluntary acceptance will not be deemed to have
				occurred except by a specific positive written response by the debtor to a
				notice of availability of the coverage; it may not be made automatic subject to
				an act of a rejection or notification by the debtor.
(2) The effective date of any such increase
				in coverage may be either of the following:
(a) the date on which the indebtedness is
				increased: In this event, however, if specific positive response is not
				received within 75 days of such increase, or if such response is not
				satisfactory to the insurer, then the additional insurance shall not be
				effective, and any premium which has been paid therefore shall be refunded or
				credited to the account of the debtor not more than 90 days after the increase
				in indebtedness; any claim which occurs when specific positive written response
				has not been received, but before the date by which such response must be
				received, will be paid if the debtor was eligible for the insurance under the
				terms of the policy; if the premium has been paid but not refunded or credited
				to the account of the debtor within 90 days after the increase in indebtedness
				the insurance shall be effective regardless of the eligibility of the debtor;
				or
(b) the date on which specific
				positive written response satisfactory to the insurer is received by the
				insurer.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Section 13.18.2.29 - DEVIATION PROCEDURES

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Notwithstanding the determination of presumptively acceptable maximum rates
				which are reasonable in relation to the benefits of a policy providing the
				coverage to which the rates are applicable:
(1) an insurer who has experienced excessive
				loss ratios for a case consisting of a single account or combination of
				accounts, as account is defined herein, will be permitted, at its own request,
				to adjust the premium rate or premium rate schedule for such case in accordance
				with the deviation procedures set out in the following; and
(2) an insurer who fails, on upward deviated
				accounts, or downward deviated accounts that modify the age limits downward as
				allowed in this rule to develop the minimum loss ratios as defined in
				Subsection B of 13.18.2.17 NMAC, for a case consisting of a single account or
				combination of accounts, as accounts is defined in this rule, will be required
				by the superintendent to adjust the premium rate or premium rate schedule for
				such case in accordance with the deviation procedures in this rule.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Section 13.18.2.30 - DEVIATION CREDIBILITY TABLE

Current through Register Vol. 35, No. 13, July 16, 2024
AVERAGE NUMBER OF LIFE YEARS
CREDIT LIFE
CREDIT ACCIDENT AND HEALTH PLANS RETROACTIVE
						  AND NON-RETROACTIVE
INCURRED CLAIM COUNT
CREDIBILITY FACTOR
14 DAY
30 Day
1
1
1
1
.00
1,800
141
209
9
.25
2,400
188
279
12
.30
3,000
234
349
15
.35
3,600
281
419
18
.40
4,600
359
535
23
.45
5,600
438
651
28
.50
6,600
516
767
33
.55
7,600
394
884
38
.60
9,600
750
1,116
48
.65
11,600
906
1,349
58
.70
14,600
1,141
1,698
73
.75
17,600
1,375
2,047
88
.80
20,600
1,609
2,395
105
.85
25,600
2,000
2,977
123
.90
30,600
2,391
3,558
153
.95
40,000
3,125
4,651
200
1.00
A. For credit
				life insurance, the currently charged premium rates will be considered the case
				rates if the single premium (or its equivalent) case rate per $100 of initial
				amount of insured indebtedness repayable in 12 equal monthly installments as
				determined by the method described herein is within 5 percent of the
				corresponding premium under the currently charged premium rates for the
				case.
B. For credit accident and
				health insurance, the currently charged premium rates will be considered the
				case rate if the case rate as determined by the method described herein is
				within 5 percent of the currently charged premium rates for the case.
C. The effective date for any rate deviation
				shall be no earlier than 90 days or later than 180 days after the date of
				approval in writing by the superintendent.
D. An upward or downward deviated single
				account case rate remains with the case, regardless of any change of insurers,
				and shall continue for a period equal to the experience period on which it was
				based, not to exceed three (3) years.
E. For cases which are not of credible size,
				or have no experience, no deviation shall be made in the presumptive rates
				under these deviation procedures; except that nothing herein shall be construed
				as preventing any insurer from filing its rate schedules as otherwise provided
				in Article 25 of the New Mexico Insurance Code.
F. For purpose of this rule, if the coverage
				for a single creditor which qualifies as a case has been in force with the
				insurer for less than the experience period;
(1) the claim experience of the creditor
				while covered by any prior insurer shall be included to the extent necessary in
				determining the appropriate case ratios; and
(2) the experience considered in the
				determination of multiple state case rates shall be New Mexico experience
				unless the insurer makes the one-time election to use nationwide experience;
				the election to use only nationwide experience must be accompanied by a
				certification that the insurer uses the same nationwide basis in determining
				the case ratios in each state in which the case has experience; a grouping of
				states may be used subject to the same requirements of consistency and
				certification.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Section 13.18.2.31 - FORM CI-DRF: PART A - GENERAL INFORMATION

Current through Register Vol. 35, No. 13, July 16, 2024
Company
				  Code___________________________________________________________
Company
				  Name___________________________________________________________
Creditor
				  Name___________________________________________________________
This deviation request form must be completed separately for
				  each plan of credit life or credit disability insurance written by the creditor
				  or group of creditors requesting the deviation. Experience of accounts may be
				  combined only within the same plan of benefits and class of business. If
				  experience of accounts is combined, attach a list of those included.
Based on the Experience Period commencing
				  _____________________ and ending ___________________.
(month/day/year) (month/day/year)
Class of Business:
(1) ( ) Credit Unions
(2) ( ) Commercial Banks and Savings and Loan
				Associations
(3) ( ) Finance
				Companies
(4) ( ) Motor Vehicle
				Dealers
(5) ( ) Other Sales
				Finance
(6) ( ) Production Credit
				Association Bank Agricultural Loans
(7) ( ) All Others
Plan of Benefits: ( ) Credit Life, Death Benefits Only
( ) Credit Disability
_____ days
_____ RETRO _____ NON RETRO
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Section 13.18.2.32 - FORM CI-DRF: PART B - CASE EXPERIENCE

Current through Register Vol. 35, No. 13, July 16, 2024
19___ 19___ 19___ 19___
1. Actual Earned Premiums
a. Net Written Premiums* _____ _____ _____
				_____
b. Premium Reserve Beginning
				of Period _____ _____ _____ _____
c. Premium Reserve End of Period _____ _____
				_____ _____
d. Earned Premiums
				(a+b-c) _____ _____ _____ _____
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Section 13.18.2.33 - FORM CI-DRF: PART C - DETERMINATION OF DEVIATED PRESUMPTIVE CASE RATE

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Single
				account cases:
If the account is 100 percent credible or if it is within
				the definition of single account case as filed by the insurer, the deviated
				presumptive case rate for the account will be determined by the appropriate
				formula set forth in Subsection C of 13.18.2.33 NMAC below.
B.
Multiple account cases:
If
				the account is in a multiple account case, the deviated presumptive case rate
				for the account will be the case rate for that multiple account case determined
				by the appropriate formula set forth in Subsection C of 13.18.2.33 NMAC
				below.
C.
Calculation of
				deviated presumptive case rates.
(1)
				Symbols and definitions:
(a) NCR = new case
				rate;
(b) PFR = presumptive
				rate;
(c) ALR = actual loss ratio
				for case at presumptive rate basis;
(d) ELR = expected loss ratio at presumptive
				rate basis;
(e) Z = credibility
				factor for case;
(f) CLR =
				credibility adjusted case loss ratio at presumptive basis = Z(ALR) =
				(1-Z)(ELR).
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Section 13.18.2.34 - STATISTICAL DATA

Current through Register Vol. 35, No. 13, July 16, 2024
Insurers writing credit life insurance and/or credit accident
				  and health insurance in New Mexico shall keep statistical data in such form and
				  manner as necessary to enable the superintendent to determine if rates are
				  reasonable in relation to the benefits afforded by the various policy
				  contracts. Every company shall file with the superintendent and the national
				  association of insurance commissioner (NAIC) support and service offices, on or
				  before the first of April of each year, statistics on these kinds of insurance
				  for the year ending December 31 immediately preceding. Such statistics shall be
				  filed on forms designated as the credit insurance supplement - annual statement
				  blank approved by the NAIC unless modified by the
				  superintendent.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Section 13.18.2.35 - PREMIUM REFUNDS

Current through Register Vol. 35, No. 13, July 16, 2024
A. With respect
				to the policies issued and certificates delivered after the effective date of
				these rules.
(1) The refund of an unearned
				amount paid by or charged to a debtor for reducing term credit life insurance,
				or for credit accident and health insurance, on which charges to the debtor are
				payable by other than a single sum, and for level term credit life insurance,
				must be not less than the pro rata gross unearned amount charged.
(2) The refund of an unearned amount paid by
				or charged to a debtor for uniformly reducing term credit life insurance on
				which the insurance charges to the debtor are paid in single sum must not be
				less than the single premium for the scheduled remaining insured amount and the
				remaining term of coverage using the premium rate schedule applicable at the
				time the original premium was determined.
(3) The refund of an unearned amount paid by
				or charged to a debtor for credit life insurance which is neither level nor
				uniformly reducing, on which the insurance charges to the debtor are paid in a
				single sum, must be based upon a formula approved by the superintendent of
				insurance.
(4) The refund of an
				unearned amount paid by or charged to a debtor for credit accident and health
				insurance on which the insurance charges to the debtor are paid in a single sum
				must be not less than the mean of the pro rata gross unearned amount charged
				and the amount of unearned premium computed by the Rule of 78.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Section 13.18.2.36 - RESPONSIBILITIES AND OBLIGATIONS OF INSURANCE COMPANIES

Current through Register Vol. 35, No. 13, July 16, 2024
Each insurer transacting credit insurance business in this
				  state shall in compliance with the laws of this state and this rule promulgated
				  thereunder, be responsible for:
A. the
				approval, production, reproduction, amendment, and modification of its
				policies, certificates of insurance, and other insurance forms, including rate
				schedules, and for the issuance, cancellation, or termination of such policies,
				certificates, or forms;
B. the
				election and appointment of its agents and representatives;
C. the proper charge, collection, remittance,
				and refund of credit insurance premiums;
D. the receipt of copies of all certificates
				of insurance and other insurance forms issued in its name by its agents and
				representatives or the receipt of electronic or other data therefore which can
				be substantiated by certificates of insurance or other insurance
				forms;
E. the computation and
				maintenance of policy and claim liabilities in accordance with 13.18.2.42 NMAC;
				and
F. the investigation of claims
				or written complaints filed against the insurer and the payment, adjustment,
				settlement, or denial of such claims;
G. none of the foregoing responsibilities of
				the insurer may be delegated, nor may the performance of such responsibilities
				be assigned to any creditor or to any agent or representative selected and
				appointed by the insurer, except as provided in these rules.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Section 13.18.2.37 - RESPONSIBILITIES AND OBLIGATIONS THAT MAY BE DELEGATED TO THE GROUP POLICY CREDITOR OR AGENT

Current through Register Vol. 35, No. 13, July 16, 2024
The insurer, by its group policy, may authorize the group
				  policy creditor to issue certificates of group insurance or may authorize a
				  legally appointed insurance agent of the insurer to issue certificates of
				  insurance or policies of insurance, and respectively, to collect the insurance
				  charge under the group policy, or premium therefore under an individual policy,
				  provided that the master group insurance policy with the creditor or agent's
				  agreement with the agent under which such authority is granted shall require
				  that:
A. the creditor issue such group
				certificate, or the agent issue such certificate of insurance or insurance
				policy in the name of the insurer, and payment of the respective policy premium
				shall be by a check payable to the insurer or by a deposit to an account of the
				insurer under the sole control of the insurer;
B. a copy of each certificate or policy so
				issued, or electronic or other data therefore which can be substantiated by
				such certificate or policy, together with the premium therefore, shall be
				delivered to the insurer within thirty (30) days after the close of the
				calendar month in which the certificate or policy is issued;
C. refunds of unearned premiums shall be made
				in accordance with 13.18.2.35 NMAC of this rule;
D. no insurer may authorize, and no insurance
				agent or group policyholder, within their respective capacities, may issue any
				policy or certificate of insurance or collect any premium or insurance charge
				therefore or make any refund of premium except only pursuant to and in
				accordance with either a master group insurance policy or an agents' agreement
				in compliance with this rule;
E.
				any changes in the amount of coverage, premium or term of coverage after
				issuance of the original group certificate, a certificate of insurance or the
				insurance policy issued on a single premium basis shall cause the insurer to
				issue a new certificate or individual policy, a copy of which must be provided
				to the insured(s), along with a statement of additional charges or any credits
				or refunds in premiums; this includes any coverage changes in 13.18.2.12
				NMAC;
F. copies of all records
				pertaining to each risk shall be provided to the insurer or be maintained for
				examination by the superintendent though the next examination period.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Section 13.18.2.38 - CREDITOR MUST BE FIRST BENEFICIARY

Current through Register Vol. 35, No. 13, July 16, 2024
No group policy may be issued to other than a creditor. No
				  first beneficiary may be designated except a creditor. No creditor may be
				  designated as owner of the individual policy nor have any rights thereunder
				  other than that of first beneficiary as specifically authorized by
				  law.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Section 13.18.2.39 - AUTHORIZED REPRESENTATIVES OF THE INSURER

Current through Register Vol. 35, No. 13, July 16, 2024
The insurer may designate or engage one or more
				  representatives for the purpose of investigating or settling claims and
				  complaints, processing production reports, calculating reserves, printing of
				  approved forms, and providing other administrative services authorized by law,
				  provided:
A. such services are
				performed under the supervision and direction of the insurer, and the insurer
				shall remain responsible for their proper performance;
B. the work product of representatives of the
				insurer are the property of the insurer and shall be available for examination
				by the superintendent, together with the supporting data used in their
				preparation;
C. all claims shall be
				promptly reported to the insurance company, or its designated claim
				representative, and all claims shall be settled as soon as reasonably possible
				and in accordance with the terms of the insurance contract.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Section 13.18.2.40 - REQUIREMENTS FOR HANDLING CLAIMS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				The insurance company shall establish an adequate claims register and claim
				files, which may be reviewed and examined by the superintendent of
				insurance.
B. Adequate proofs of
				loss must be in the possession of the insurance company at the time its funds
				are disbursed in payment of claims, except as provided in Subsection D of
				13.18.2.40 NMAC below. Such proofs of loss shall include data sufficient for
				the insurer to determine proper amounts of any excess benefits payable to a
				beneficiary other than the creditor.
C. All claims shall be paid either by draft
				drawn on the insurer, electronic funds transfer, or check of the insurer to the
				specific beneficiary to whom payment of the claim is due.
D. No plan or arrangement shall be used
				whereby any person, firm, or corporation other than the insurer or its
				designated claim representatives shall be authorized to settle or adjust
				claims. The creditor shall not be designated as a claim representative for the
				insurer in settling or adjusting claims; however, a group policyholder may, by
				arrangement with the group insurer, draw drafts or checks or use electronic
				funds transfer for payment of claims due only to the group policyholder or
				other beneficiary, subject to audit and review by the insurer. Nothing in this
				section may be construed to relieve the insurance company of the responsibility
				for the proper settlement, adjustment and payment of all claims to proper
				beneficiaries in accordance with the terms of the insurance contract.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Section 13.18.2.41 - CLAIM RESERVES

Current through Register Vol. 35, No. 13, July 16, 2024
A. The
				insurer shall set up adequate liabilities for claims for credit life and credit
				accident and health insurance, in addition to the policy reserves already
				described. Such liabilities shall be based upon appropriate consideration for
				each of the following categories:
(1) the
				liability for claims which are known to be due and payable, but which have not
				yet been paid;
(2) the reserve for
				continuing disability benefits which have been reported and on which future
				payments will be due during the continuance of this disability;
(3) the liability for claims which have been
				insured but not yet reported, with benefits now due;
(4) the reserve for disability benefits which
				are incurred but not yet reported, and on which future payments will be due
				during the continuance of this disability.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Section 13.18.2.42 - APPROVAL AND RE-FILING OF FORMS

Current through Register Vol. 35, No. 13, July 16, 2024
Pursuant to Section 59A-25-8 NMSA 1978, all forms to be used
				  in connection with credit life and/or credit accident and health insurance
				  shall be filed by the insurer with the superintendent of insurance. Any such
				  forms which were approved by the superintendent prior to the effective date of
				  this rule shall be made to conform with the requirements of this rule and
				  re-filed with the superintendent for approval within 180 days after the
				  effective date of this rule. If an insurer fails to re-file within the
				  prescribed period of time, the superintendent shall initiate actions to propose
				  a withdrawal of that insurer's forms under Section 59A-25-8 D NMSA 1978 and may
				  take any other appropriate actions under the penalty provisions of the New
				  Mexico Insurance Code to respond to the insurer's failure to comply with the
				  lawful rule of the superintendent.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Section 13.18.2.43 - PREEXISTING CONDITIONS ON CREDIT LIFE INSURANCE ON OPEN-ENDED CREDIT

Current through Register Vol. 35, No. 13, July 16, 2024
There shall be no provisions excluding or denying a claim for
				  death from pre-existing conditions, except that on insurance written in
				  connection with open-end outstanding balance accounts, a provision will be
				  permitted that excludes or denies a claim resulting from a medical condition
				  for which the debtor received medical diagnosis or treatment within six months
				  immediately preceding the effective date of coverage and which caused or
				  substantially contributed to the death of the insured debtor within 6 months
				  following the effective date of coverage. The effective date of coverage for
				  each part of the insurance attributable to a different advance or charge to the
				  account is the date on which the advance or charge is posted to the
				  account.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Section 13.18.2.44 - ADJUSTMENT OF PRESUMPTIVELY ACCEPTABLE CREDIT LIFE INSURANCE PREMIUMS

Current through Register Vol. 35, No. 13, July 16, 2024
If for the calendar year 2000 as filed in the statistical
				  statement, or following any even calendar year thereafter, the combined loss
				  ratios of all insurers writing credit life insurance, individual or group, does
				  not equal or exceed ninety percent of the loss ratio stated in Paragraph (1) of
				  Subsection B of
				  13.18.2.17
				  NMAC then the credit life insurance premiums stated in Subsections A through D
				  of
				  13.18.2.18
				  NMAC and Subsection A of
				  13.18.2.20
				  NMAC or as subsequently adjusted by this section shall be reduced by ten
				  percent with the results rounded to the higher whole cent and shall be
				  effective at the beginning of the next calendar year as the prima facie
				  rate.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Section 13.18.2.45 - ADJUSTMENT OF PRESUMPTIVELY ACCEPTABLE CREDIT ACCIDENT AND HEALTH INSURANCE PREMIUMS

Current through Register Vol. 35, No. 13, July 16, 2024
If for the calendar year 2000 as filed in the statistical
				  statement, or following any even calendar year thereafter, the combined loss
				  ratios of all insurers writing credit accident and health insurance, individual
				  or group, does not equal or exceed ninety percent of the loss ratio stated in
				  Paragraph (2) of Subsection B of
				  13.18.2.17
				  NMAC then the credit accident and health insurance premiums as stated in
				  Subsections A and B of
				  13.18.2.26
				  NMAC, Subparagraphs (a) and (b) of Paragraph (1) Subsection D of
				  13.18.2.26
				  NMAC and Subparagraphs (a) and (b) of Paragraph (2) of Subsection D of
				  13.18.2.26
				  NMAC or as subsequently adjusted by this section shall be reduced by ten
				  percent with the results rounded to the higher whole cent and shall be
				  effective at the beginning of the next calendar year as the prima facie
				  rate.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 3 - CREDITOR-PLACED INSURANCE › Section 13.18.3.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
New Mexico Office of Superintendent of Insurance, P.O. Box
				  1689, Santa Fe, NM 87504-1689.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 3 - CREDITOR-PLACED INSURANCE › Section 13.18.3.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
A. This rule
				applies to any person transacting creditor-placed insurance on property located
				in New Mexico.
B. This rule does
				not apply to:
(1) creditor-placed insurance
				first issued on property located in another state but subsequently moved to
				this state;
(2) insurance for which
				no specific charge is made to the debtor or the debtor's account; or
(3) blanket insurance, whether paid for by
				the debtor or the creditor.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 3 - CREDITOR-PLACED INSURANCE › Section 13.18.3.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Sections
				  59A-2-9,
				  59A-12-10,
				  59A-16-14,
				  59A-16-18,
				  59A-17-6,
				  59A-17-16,
				  59A-17-28
				  and
				  59A-18-12
				  NMSA 1978.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 3 - CREDITOR-PLACED INSURANCE › Section 13.18.3.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
July 24, 2018, 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 18 - CREDIT INSURANCE › Part 3 - CREDITOR-PLACED INSURANCE › Section 13.18.3.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The purpose of this rule is to establish guidelines within
				  which creditor-placed insurance may be written in this state, to regulate
				  rates, and to prohibit unfair practices in the transaction of creditor-placed
				  insurance.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 3 - CREDITOR-PLACED INSURANCE › Section 13.18.3.8 - LIMITED AUTHORIZATION TO TRANSACT

Current through Register Vol. 35, No. 13, July 16, 2024
A. An insurer shall not issue creditor-placed
				insurance to a creditor unless the creditor has an insurable interest in the
				collateral.
B. No insurer shall
				transact creditor-placed insurance without first having obtained from the
				superintendent a license to transact general casualty insurance or vehicle
				insurance in the case of motor vehicles or property insurance in the case of
				all other kinds of property.
C.
				Creditor-placed insurance shall be either single interest insurance or limited
				dual interest insurance.
D.
				Creditor-placed insurance shall not be transacted as inland marine
				insurance.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 3 - CREDITOR-PLACED INSURANCE › Section 13.18.3.9 - POLICY TERM

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Effective date:
Creditor-placed insurance shall become effective
				on the latest of the following dates:
(1) the
				date of the credit transaction;
(2)
				the date prior coverage, including prior creditor-placed insurance coverage,
				lapsed;
(3) for personal property,
				one year before the date on which the charge for creditor-placed insurance is
				made to the debtor's account; or
(4) a later date provided for in the
				agreement between the creditor and insurer.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 3 - CREDITOR-PLACED INSURANCE › Section 13.18.3.10 - CALCULATION OF PREMIUMS

Current through Register Vol. 35, No. 13, July 16, 2024
This section is not intended to limit the amount of
				  coverage.
A. For credit transactions
				collateralized by property that does not include land, the premium for
				creditor-placed insurance shall be calculated on the net debt, even though the
				coverage may limit the insurer's liability to the least of the net debt, actual
				cash value or cost of repair.
B.
				When calculating premiums for creditor-placed insurance on credit transactions
				collateralized by property that includes land, the exposure base shall not
				include the value of the land. For this purpose, the value of the land shall be
				its appraised value as determined by a licensed appraiser or the value assigned
				by the appropriate taxing authority.
C. Other premium calculation methods that
				more closely reflect the exposure of each insured item may be employed with the
				approval of the superintendent.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 3 - CREDITOR-PLACED INSURANCE › Section 13.18.3.11 - PROHIBITED COVERAGES

Current through Register Vol. 35, No. 13, July 16, 2024
Nothing in this section shall be construed to prohibit the
				  issuance of a separate policy providing the coverages listed below to the
				  creditor. Creditor-placed insurance may not include:
A. coverage for the cost of repossession or
				the cost of storing repossessed collateral;
B. skip, confiscation and conversion
				coverage;
C. coverage that pays the
				credit transaction deficiency or insurance premium deficiency;
D. coverage for payment of mechanics' or
				other liens that do not arise from a covered loss or occurrence;
E. coverage that indemnifies creditors for
				losses caused by their failure to record instruments which provide evidence of
				collateral security;
F. for motor
				vehicles, coverage other than collision and comprehensive; or
G. for mobile homes, coverage that is broader
				than a basic fire and extended coverage policy such as ISO Form DP001 06
				96.
New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 18 - CREDIT INSURANCE › Part 3 - CREDITOR-PLACED INSURANCE › Section 13.18.3.12 - EVIDENCE OF COVERAGE

Current through Register Vol. 35, No. 13, July 16, 2024
Creditor-placed insurance shall be set forth in an individual
				  policy or certificate of insurance. A copy of the individual policy,
				  certificate of insurance coverage, or other evidence of insurance coverage
				  shall be mailed, first class mail, or delivered in person to the last known
				  address of the debtor.