N.M. Admin. Code § 13.9.13.2

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

Section 13.9.13.2 - SCOPE

A. This rule applies to all life insurance policies, with or without nonforfeiture values, issued on or after the effective date of this rule.

B. This rule does not apply to:

(1) any individual life insurance policy issued on or after the effective date of this rule if the policy is issued in accordance with and as a result of the exercise of a reentry provision contained in the original life insurance policy of the same or greater face amount, issued before the effective date of this rule, that guarantees the premium rates of the new policy; this rule also shall not apply to subsequent policies issued as a result of the exercise of such a provision, or a derivation of the provision, in the new policy;

(2) any universal life policy that meets all of the following requirements:

(a) secondary guarantee period, if any, is five (5) years or less;

(b) specified premium for the secondary guarantee period is not less than the net level reserve premium for the secondary guarantee period based on the 1980 CSO valuation tables and the applicable valuation interest rate; and

(c) the initial surrender charge is not less than 100 percent of the first year annualized specified premium for the secondary guarantee period;

(3) any variable life insurance policy that provides for life insurance, the amount or duration of which varies according to the investment experience of any separate account;

(4) any variable universal life insurance policy that provides for life insurance, the amount or duration of which varies according to the investment experience of any separate account;

(5) a group life insurance certificate unless the certificate provides for a stated or implied schedule of maximum gross premiums required in order to continue coverage in force for a period in excess of one year.

N.M. Admin. Code § 13.9.13.2

1/1/00; Recompiled 11/30/01