New Mexico Administrative Code
Title 13 - INSURANCE
Chapter 9 - LIFE INSURANCE AND ANNUITIES
Part 3 - VARIABLE ANNUITY CONTRACTS
Section 13.9.3.21 - DEMONSTRATION OF COMPLIANCE
Current through Register Vol. 35, No. 6, March 26, 2024
Demonstration that a contract's nonforfeiture amounts comply with this section shall be based on the following assumptions:
A. values should be tested at the end of each of the first twenty (20) contract years;
B. a net investment return of seven percent (7%) per year should be used;
C. if the contract provides for transfers to another separate account or to another investment division within the same separate account, one transfer per contract year should be assumed;
D. in determining the state premium tax applicable to the contract, the state of residence should be assumed to equal the state of delivery;
E. with respect to contracts providing for periodic considerations, monthly considerations of $100 should be assumed for each of the first 240 months;
F. with respect to contracts providing for a single consideration, a $10,000 single consideration should be assumed; and
G. the following contract charges should be used:
H. If the contract provides for allocation of considerations to both fixed and variable accounts, one hundred percent (100%) of the considerations should be assumed to be allocated to the variable account.
I. As used herein, the consumer price index means the index for all urban consumers for all items published by the bureau of labor statistics of the United States department of labor or its successor. If publication of the consumer price index ceases, or if the index otherwise becomes unavailable or is altered in such a way as to be unusable, the superintendent will substitute an index deemed suitable by the superintendent.