N.M. Admin. Code § 13.10.14.13 - PREMIUM RESERVES
A.
Unearned premium reserves are required for all contracts with respect to the
period of coverage for which premiums, other than premiums paid in advance,
have been paid beyond the date of valuation.
B. If premiums due and unpaid are carried as
an asset, such premiums must be treated as premiums in force, subject to
unearned premium reserve determination. The value of unpaid commissions,
premium taxes, and the cost of collection associated with due and unpaid
premiums must be carried as an offsetting liability.
C. The gross premiums paid in advance for a
period of coverage commencing after the next premium due date which follows the
date of valuation may be appropriately discounted to the valuation date and
shall be held either as a separate liability or as an addition to the unearned
premium reserve which would otherwise be required as a minimum.
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