N.M. Admin. Code § 13.9.13.21

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

Section 13.9.13.21 - EXEMPTION FROM UNITARY RESERVES FOR CERTAIN N-YEAR RENEWABLE TERM LIFE INSURANCE POLICES

Unitary basic reserves and unitary deficiency reserves need not be calculated for a policy if the following conditions are met:

A. the policy consists of a series of n-year periods, including the first period and all renewal periods, where n is the same for each period, except that for the final renewal period, n may be truncated or extended to reach the expiry age, provided that this final renewal period is less than 10 years and less than twice the size of the earlier n-year periods, and for each period, the premium rates on both the initial current premium scale and the guaranteed maximum premium scale are level;

B. the guaranteed gross premiums in all n-year periods are not less than the corresponding net premiums based upon the 1980 CSO valuation tables with or without the ten-year select mortality factors; and

C. there are no cash surrender values in any policy year.

N.M. Admin. Code § 13.9.13.21

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