N.M. Admin. Code § 13.9.13.7 - DEFINITIONS
For purposes of this rule:
A.
"Basic reserves" means
reserves calculated in accordance with the principles of Section 59A-8-5E NMSA
1978.
B.
"Contract
segmentation method" means the method of dividing the period from issue
to mandatory expiration of a policy into successive segments, with the length
of each segment being defined as the period from the end of the prior segment
(from policy inception, for the first segment) to the end of the latest policy
year as determined in 13 nmac 9.13.8 [now
13.9.13.8 NMAC]. All calculations
are made using the 1980 CSO valuation tables, (or any other valuation mortality
table adopted by the NAIC after the effective date of this rule and promulgated
by rule by the superintendent for this purpose), and, if elected, the optional
minimum mortality standard for deficiency reserves stipulated in 13 nmac
9.13.13 [now
13.9.13.13 NMAC].
C.
"Deficiency reserves" means
the excess, if greater than zero, of minimum reserves, calculated in accordance
with the principles of Section 59A-8-5E(1)(e) NMSA 1978, over basic
reserves.
D.
"Guaranteed
gross premiums" means the premiums under a policy of life insurance that
are guaranteed and determined at issue.
E.
"Maximum valuation interest
rates" means the calendar year statutory valuation interest rates
defined in Section 59A-8-5B(4) NMSA 1978 that are to be used in determining the
minimum standard for valuation of life insurance policies.
F.
"NAIC" means the national
association of insurance commissioners.
G.
"1980 CSO valuation tables"
means the commissioners' 1980 standard ordinary mortality table (1980 CSO
table) without ten-year selection factors, incorporated into the 1980
amendments to the NAIC Standard Valuation Law, and variations of the 1980 CSO
table approved by the NAIC, such as the smoker and nonsmoker versions approved
in December 1983.
H.
"Scheduled gross premium" means the smallest illustrated gross
premium at issue for other than universal life insurance policies. For
universal life insurance policies, scheduled gross premium means the smallest
specified premium described in 13 NMAC 9.13.23.1.3 [now Paragraph (3) of
Subsection A of
13.9.13.23 NMAC], if any, or the
minimum premium described in 13 NMAC 9.13.23.1.4 [now Paragraph (4) of
Subsection A of 13.9.12.23 NMAC].
I.
"Segmented reserves" means
reserves, calculated using segments produced by the contract segmentation
method, equal to the present value of all future guaranteed benefits less the
present value of all future net premiums to the mandatory expiration of a
policy, where the net premiums within each segment are a uniform percentage of
the respective gross premiums within the segment.
J.
"Tabular cost of insurance"
means the net single premium at the beginning of a policy year for one-year
term insurance in the amount of the guaranteed death benefit in that policy
year.
K.
"Ten-year select
factors" means the select factors adopted with the 1980 amendments to
the NAIC Standard Valuation Law.
L.
"Unitary reserves" means the present value of all future
guaranteed benefits less the present value of all future modified net
premiums.
M.
"Universal life
insurance policy" means any individual life insurance policy under the
provisions of which separately identified interest credits (other than in
connection with dividend accumulations, premium deposit funds, or other
supplementary accounts) and mortality or expense charges are made to the
policy.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.