N.M. Admin. Code § 13.10.14.13

Current through Register Vol. 35, No. 24, December 23, 2024

Section 13.10.14.13 - PREMIUM RESERVES

A. Unearned premium reserves are required for all contracts with respect to the period of coverage for which premiums, other than premiums paid in advance, have been paid beyond the date of valuation.

B. If premiums due and unpaid are carried as an asset, such premiums must be treated as premiums in force, subject to unearned premium reserve determination. The value of unpaid commissions, premium taxes, and the cost of collection associated with due and unpaid premiums must be carried as an offsetting liability.

C. The gross premiums paid in advance for a period of coverage commencing after the next premium due date which follows the date of valuation may be appropriately discounted to the valuation date and shall be held either as a separate liability or as an addition to the unearned premium reserve which would otherwise be required as a minimum.

N.M. Admin. Code § 13.10.14.13

13.10.14.13 NMAC - Rp 13 NMAC 10.14.13, 10-1-03