New Mexico Administrative Code
Title 13 - INSURANCE
Chapter 9 - LIFE INSURANCE AND ANNUITIES
Part 13 - VALUATION OF LIFE INSURANCE POLICIES
Section 13.9.13.9 - COMPUTATION OF SEGMENTED RESERVES
Current through Register Vol. 35, No. 6, March 26, 2024
A. The uniform percentage for each segment is such that, at the beginning of the segment; the present value of the net premiums within the segment equals:
B. The length of each segment is determined in accordance with 13 NMAC 9.13.7.2 and 9.13.8 [now Subsection B of 13.9.13.7 NMAC and 13.9.13.8 NMAC].
C. The interest rates used in the present value calculations for any policy may not exceed the maximum valuation interest rate, determined with a guarantee duration equal to the sum of the lengths of all segments of the policy.
D. For both basic reserves and deficiency reserves computed by the segmented method, present values shall include future benefits and net premiums in the current segment and in all subsequent segments.