Current through Register Vol. 35, No. 24, December 23, 2024
Section 13.10.14.10 - MINIMUM STANDARDS FOR CLAIM RESERVES FOR DISABILITY INCOMEA. Interest. The maximum interest rate for claim reserves is specified in 13.10.14.24 NMAC.B. Morbidity. Minimum standards with respect to morbidity are those specified in 13.10.14.22 and 13.10.14.23 NMAC, except that, at the option of the insurer: (1) For claims with a duration from date of disablement of less than two years, reserves may be based on the insurer's experience, if such experience is considered credible, or upon other assumptions designed to place a sound value on the liabilities.(2) For group disability income claims with a duration from date of disablement of more than two years but less than five years, reserves may, with the approval of the superintendent, be based on the insurer's experience for which the insurer maintains underwriting and claim administration control. The request for such approval of a plan of modification to the reserve basis must include:(a) an analysis of the credibility of the experience;(b) a description of how all of the insurer's experience is proposed to be used in setting reserves;(c) a description and qualification of the margins to be included;(d) a summary of the financial impact that the proposed plan of modification would have had on the insurer's last filed annual statement;(e) a copy of the approval of the proposed plan of modification by the superintendent of the state of domicile; and(f) any other information deemed necessary by the superintendent.C. Duration of Disablement. For contracts with an elimination period, the duration of disablement should be measured as dating from the time that benefits would have begun to accrue had there been no elimination period.N.M. Admin. Code § 13.10.14.10
13.10.14.10 NMAC - Rp 13 NMAC 10.14.10, 10-1-03