N.M. Admin. Code § 13.9.14.30

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

Section 13.9.14.30 - ANNUAL CERTIFICATION BY ILLUSTRATION ACTUARY

The illustration actuary shall annually:

A. certify that the disciplined current scale used in illustrations is in conformity with the Actuarial Standard of Practice for Compliance with the NAIC Model Rule on Life Insurance Illustrations promulgated by the Actuarial Standards Board, and that the illustrated scales used in insurer-authorized illustrations meet the requirements of this rule;

B. disclose in the annual certification whether, since the last certification, a currently payable scale applicable for business issued within the previous five (5) years and within the scope of the certification has been reduced for reasons other than changes in the experience factors underlying the disciplined current scale. If non-guaranteed elements illustrated for new policies are not consistent with those illustrated for similar in force policies, this must be disclosed in the annual certification. If non-guaranteed elements illustrated for both new and in force policies are not consistent with the non-guaranteed elements actually being paid, charged or credited to the same or similar forms, this must be disclosed in the annual certification;

C. disclose in the annual certification the method used to allocate overhead expenses for all illustrations:

(1) fully allocated expenses;

(2) marginal expenses; or

(3) a generally recognized expense table based on fully allocated expenses representing a significant portion of insurance companies and approved by the superintendent.

D. file a certification with the board and with the superintendent:

(1) annually for all policy forms for which illustrations are used; and

(2) before a new policy form is illustrated.

E. notify the board of directors of the insurer and the superintendent promptly if:

(1) an error in a previous certification is discovered;

(2) he or she is unable to certify the scale for any policy form illustration the insurer intends to use.

N.M. Admin. Code § 13.9.14.30

10/1/98; Recompiled 11/30/01