N.M. Admin. Code § 13.9.3.17 - NONFORFEITURE BENEFITS
A. To
the extent that a variable annuity contract provides benefits that do not vary
in accordance with the investment performance of a separate account before the
annuity commencement date, the contract shall contain provisions that satisfy
the requirements of Section
59A-20-33 NMSA 1978 and shall not
otherwise be subject to this section.
B. In the case of a contract issued on or
after January 1, 1999, no variable annuity contract, except as stated in 13
nmac 9.3.18 and 9.3.17.1 [now
13.9.3.18 NMAC and Subsection A of
13.9.3.17 NMAC], shall be
delivered or issued for delivery in this state unless it contains in substance
the following provisions, or provisions which in the opinion of the
superintendent are at least as favorable to the contractholder, upon cessation
of payment of considerations under the contract:
(1) That upon cessation of payment of
considerations under a contract, the company will grant a paid-up annuity
benefit on a plan described in the contract that complies with 13 NMAC 9.3.22.1
[now Subsection A of
13.9.3.22 NMAC]. The description
will include a statement of the mortality table, if any, and guaranteed or
assumed interest rates used in calculating annuity payments.
(2) If a contract provides for a lump sum
settlement at maturity or at any other time, that upon surrender of the
contract at or prior to the commencement of annuity payments, the company will
pay in lieu of a paid-up annuity benefit a cash surrender benefit described in
the contract that complies with 13 NMAC 9.3.22.2 [now Subsection B of
13.9.3.22 NMAC]. The contract may
provide that the company reserves the right, at its option, to defer the
determination and payment of a cash surrender benefit for any period during
which the New York stock exchange is closed for trading (except for normal
holiday closing) or when the securities and exchange commission has determined
that a state of emergency exists that may make determination and payment
impractical.
(3) A statement that a
paid-up annuity, cash surrender or death benefits that may be available under
the contract are not less than the minimum benefits required by any statute of
the state in which the contract is delivered and an explanation of the manner
in which benefits are altered by the existence of any additional amounts
credited by the company to the contract, any indebtedness to the company on the
contract or any prior withdrawals from or partial surrenders of the
contract.
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.