N.M. Admin. Code § 13.9.7.17

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

Section 13.9.7.17 - ADDITIONAL FILING REQUIREMENTS FOR INTEREST-INDEXED UNIVERSAL LIFE INSURANCE POLICIES

A. Annually, every insurer shall submit a statement of actuarial opinion by the insurer's actuary similar to the example contained in 13 NMAC 9.7.17.4 [now Subsection D of 13.9.7.17 NMAC].

B. Annually, every insurer shall submit a description of the amount and type of assets currently held by the insurer with respect to its interest-indexed policies.

C. Prior to implementation, every domestic insurer shall submit a description of any material change in the insurer's investment strategy or method of determining the interest credits. A change is considered to be material if it would affect the form of definition of the index (i.e. any change in the information supplied pursuant to 13 nmac 9.7.16 [now 13.9.7.16 NMAC] or if it would significantly change the amount or type of assets held for interest-indexed policies).

D. The following is a sample of the statement required by 13 NMAC 9.7.17.1 [now Subsection A of 13.9.7.17 NMAC].

I,___________________, am __________________________________

(name) (position of relationship to insurer)

____________________________ for the XYZ life insurance company

(the insurer) in the state of ____________________________________

(state of domicile of insurer)

I am a member of the American academy of actuaries (or if not, state other qualifications to sign annual statement actuarial opinions).

I have examined the interest-indexed universal life insurance policies of the insurer in force as of December 31, 19__, encompassing ________ number of policies and $ ________ of insurance in force.

I have considered the provisions of the policies, I have considered any reinsurance agreements pertaining to such policies, the characteristics of the identified assets and the investment policy adopted by the insurer as they affect future insurance and investment cash flows under such policies and related assets. My examination included such tests and calculations as I considered necessary to form an opinion concerning the insurance and investment cash flows arising from the policies and related assets.

I relied on the investment policy of the insurer and on projected investment cash flows as provided by ________, chief investment officer of the insurer.

The tests were conducted under various assumptions as to future interest rates, and particular attention was given to those provisions and characteristics that might cause future insurance and investment cash flows to vary with changes in the level of prevailing interest rates.

In my opinion, the anticipated insurance and investment cash flows referred to above make good and sufficient provision for the contractual obligations of the insurer under these insurance policies.

_______________________________

signature of actuary

N.M. Admin. Code § 13.9.7.17

12-1-85; Recompiled 11/30/01