New Mexico Administrative Code
Title 13 - INSURANCE
Chapter 9 - LIFE INSURANCE AND ANNUITIES
Part 21 - TERM AND UNIVERSAL LIFE INSURANCE RESERVE FINANCING
Section 13.9.21.7 - DEFINITIONS
Current through Register Vol. 35, No. 6, March 26, 2024
A. "Actuarial method" means the methodology used to determine the required level of primary security, as described in 13.9.21.9 & 13.9.21.10 NMAC
B. "Covered policies" means the following: Subject to the exemptions described in 13.9.21.13 NMAC, Covered policies are those policies, other than grandfathered policies, of the following policy types:
C. "Grandfathered policies" means policies of the types described in Paragraphs (1) and (2) of Subsection B of 13.9.21.7 NMAC that were:
D. "Non-Covered policies" means any policy that does not meet the definition of covered policies, including grandfathered policies.
E. "Required level of primary security" means the dollar amount determined by applying the actuarial method to the risks ceded with respect to covered policies, but not more than the total reserve ceded.
F. "Primary security" means the following forms of security:
G. "Other security" means any security acceptable to the superintendent other than security meeting the definition of primary security.
H. "Valuation manual" means the valuation manual adopted by the national association of insurance commissioners ("NAIC"), by the process specified in Paragraph (1) of Subsection F of Section 59A-8A-2 NMSA 1978 (2014), with all amendments adopted by the NAIC that are effective for the financial statement date on which credit for reinsurance is claimed. As of the effective date of this regulation, the current edition of the Valuation Manual is that effective as of January 1, 2023. Future editions of the Valuation Manual shall be adopted by means of the process described in 13.9.21.8 NMAC
I. "VM-20" means "Requirements for Principle-Based Reserves for Life Products," including all relevant definitions, from the Valuation Manual.