New Mexico Administrative Code
Title 13 - INSURANCE
Chapter 18 - CREDIT INSURANCE
Part 2 - CREDIT LIFE AND CREDIT HEALTH INSURANCE
Section 13.18.2.26 - PRESUMPTIVELY ACCEPTABLE RELATION OF CREDIT ACCIDENT AND HEALTH BENEFITS TO PREMIUMS (PRIMA FACIE)

Universal Citation: 13 NM Admin Code 13.18.2.26

Current through Register Vol. 35, No. 6, March 26, 2024

A. The superintendent may presume (subject, however, to a rebuttal of the presumption) that the benefits of an accident and health insurance form are reasonable in relation to the premium charged if the premium rate schedule for such accident and health benefits, as filed, does not exceed an amount equal to, or actuarially consistent with the following rate:

CREDIT ACCIDENT AND HEALTH INSURANCE

SINGLE PREMIUM RATE PER $100 OF INITIAL INSURED INDEBTEDNESS

ORIGINAL NUMBER OF EQUAL MONTHLY INSTALLMENTS BENEFITS PAYABLE AFTER THE 14TH DAY OF DISABILITY BENEFITS PAYABLE AFTER THE 30TH DAY OF DISABILITY
RETROACTIVE TO THE FIRST DAY NON- RETROACTIVE RETROACTIVE TO THE FIRST DAY NON-RETROACTIVE
3 0.73 0.51
4 0.95 0.67
5 1.17 0.84
6 1.34 1.01 0.94 0.63
7 1.42 1.13 1.03 0.72
8 1.49 1.20 1.11 0.81
9 1.54 1.26 1.18 0.88
10 1.60 1.31 1.26 0.95
11 1.66 1.37 1.30 1.01
12 1.70 1.41 1.34 1.07
13 1.75 1.45 1.39 1.12
14 1.80 1.50 1.44 1.17
15 1.86 1.54 1.50 1.22
16 1.91 1.58 1.55 1.26
17 1.97 1.61 1.61 1.31
18 2.02 1.64 1.66 1.35
19 2.08 1.67 1.72 1.39
20 2.13 1.70 1.77 1.44
21 2.18 1.73 1.82 1.46
22 2.23 1.76 1.87 1.48
23 2.30 1.79 1.94 1.51
24 2.34 1.82 1.98 1.53
25 2.40 1.85 2.03 1.54
26 2.45 1.87 2.09 1.56
27 2.51 1.90 2.14 1.58
28 2.56 1.94 2.18 1.60
29 2.62 1.98 2.23 1.63
30 2.66 2.03 2.29 1.67
31 2.73 2.09 2.34 1.71
32 2.78 2.14 2.39 1.75
33 2.83 2.19 2.45 1.79
34 2.88 2.24 2.50 1.83
35 2.94 2.30 2.54 1.88
36 2.99 2.34 2.59 1.92
37 3.02 2.38 2.63 1.96
38 3.05 2.42 2.66 2.01
39 3.07 2.45 2.70 2.05
40 3.10 2.49 2.73 2.09
41 3.13 2.52 2.76 2.13
42 3.16 2.56 2.79 2.18
43 3.18 2.59 2.82 2.22
44 3.21 2.63 2.86 2.26
45 3.24 2.66 2.89 2.30
46 3.26 2.70 2.93 2.34
47 3.29 2.74 2.95 2.38
48 3.31 2.78 2.99 2.43
49 3.34 2.80 3.02 2.48
50 3.37 2.82 3.05 2.54
51 3.38 2.85 3.07 2.59
52 3.41 2.87 3.10 2.64
53 3.44 2.90 3.13 2.68
54 3.46 2.92 3.16 2.75
55 3.48 2.94 3.18 2.79
56 3.51 2.97 3.21 2.83
57 3.53 2.99 3.24 2.89
58 3.55 3.02 3.26 2.94
59 3.58 3.04 3.29 3.00
60 3.60 3.06 3.31 3.04
61 3.62 3.09 3.34 3.07
62 3.66 3.11 3.38 3.08
63 3.67 3.14 3.39 3.11
64 3.70 3.16 3.42 3.12
65 3.73 3.18 3.46 3.15
66 3.74 3.21 3.48 3.16
67 3.77 3.23 3.50 3.19
68 3.80 3.26 3.53 3.20
69 3.82 3.28 3.56 3.23
70 3.84 3.30 3.59 3.24
71 3.87 3.33 3.61 3.27
72 3.89 3.35 3.64 3.29
73 3.91 3.38 3.67 3.31
74 3.94 3.40 3.70 3.32
75 3.96 3.42 3.72 3.35
76 3.98 3.45 3.74 3.38
77 4.02 3.47 3.78 3.39
78 4.03 3.50 3.81 3.41
79 4.06 3.52 3.82 3.44
80 4.09 3.54 3.86 3.46
81 4.10 3.57 3.89 3.48
82 4.13 3.59 3.91 3.50
83 4.16 3.62 3.94 3.52
84 4.18 3.64 3.98 3.55
85 4.20 3.66 3.99 3.56
86 4.23 3.69 4.02 3.59
87 4.25 3.71 4.04 3.62
88 4.27 3.74 4.07 3.65
89 4.30 3.76 4.10 3.66
90 4.32 3.78 4.13 3.69
91 4.34 3.81 4.15 3.71
92 4.38 3.83 4.18 3.73
93 4.39 3.86 4.21 3.75
94 4.42 3.88 4.24 3.78
95 4.45 3.90 4.26 3.81
96 4.46 3.93 4.29 3.83
97 4.49 3.95 4.32 3.85
98 4.52 3.98 4.34 3.88
99 4.54 4.00 4.37 3.91
100 4.56 4.02 4.39 3.93
101 4.59 4.05 4.42 3.96
102 4.61 4.07 4.46 3.98
103 4.63 4.10 4.47 4.01
104 4.66 4.12 4.50 4.03
105 4.68 4.14 4.54 4.06
106 4.70 4.17 4.56 4.09
107 4.74 4.19 4.58 4.11
108 4.75 4.22 4.61 4.13
109 4.78 4.24 4.64 4.16
110 4.81 4.26 4.67 4.19
111 4.82 4.29 4.69 4.21
112 4.85 4.31 4.72 4.25
113 4.88 4.34 4.75 4.28
114 4.90 4.36 4.78 4.30
115 4.92 4.38 4.80 4.33
116 4.95 4.41 4.82 4.36
117 4.97 4.43 4.86 4.38
118 4.99 4.46 4.89 4.41
119 5.02 4.48 4.90 4.45
120 5.04 4.50 4.94 4.46

B. A monthly premium of $0.15 per $100 of outstanding balance may be presumed reasonable for a disability benefit which consists of a lump sum payment of the amount of indebtedness covered at the beginning of disability, such payment to be made after disability has continued for 90 consecutive days. A daily benefit does not apply to this coverage.

C. Except for credit accident and health insurance sold in connection with open-end loans, the rates for premiums payable on other than a single premium basis shall be actuarially consistent with the rates set forth in Subsection A of 13.18.2.26 NMAC above. Such premium rates will be deemed actuarially consistent with the foregoing single premium rates if such rates produce a total premium for any duration and amount of insurance equal to the corresponding single premium for the same duration and amount of insurance. Rates computed according to the following formula are presumed to satisfy this requirement: Op = 20SPn/n+1, where:

(1) SPn = single premium rate per $100 of initial indebtedness repayable in "n" installments;

(2) Op = monthly outstanding balance premium rate per $1,000;

(3) n = original repayment period, in months.

D. In credit accident and health insurance sold in connection with open-end transactions or monthly closed-end transactions, the superintendent may presume (subject, however, to a rebuttal of the presumption) that the benefits are reasonable in relation to the premium charged if the premium rate schedule for such accident and health insurance transactions does not exceed an amount equal to, or actuarially consistent with, the following rates:

(1) benefits payable after the 14th day of disability:
(a) retroactive to first day: $0.19 per month per $100 of outstanding balance insured indebtedness;

(b) non-retroactive: $0.15 per month per $100 of outstanding balance insured indebtedness;

(2) benefits payable after the 30th day of disability:
(a) retroactive to first day: $0.16 per month per $100 of outstanding balance insured indebtedness;

(b) non-retroactive: $0.11 per month per $100 of outstanding balance insured indebtedness.

E. The premium in Paragraphs (1) and (2) of Subsection D of 13.18.2.26 NMAC above are based upon the assumption that benefits will be paid as long as there is an outstanding balance and the insured is disabled. If there is a provision that benefit payment may cease during the disability of the insured before the indebtedness outstanding on the date of disability, including interest on such indebtedness, is retired, then these premiums will be adjusted to reflect, in the opinion of the superintendent of insurance, the effect of such provision.

F. If a contract of insurance includes other lawful benefit or benefits for which standards of reasonableness of benefits in relation to premium are not elsewhere in this rule determined or described, any premium charged therefor shall be shown to the satisfaction of the superintendent to be based upon credible data and shall meet the basic tests of reasonableness described in Paragraphs (1) and (2) of Subsection B of 13.18.2.17 NMAC.

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