N.M. Admin. Code § 13.9.3.21 - DEMONSTRATION OF COMPLIANCE
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:
(1) for contracts filed in 1980 or
earlier, the annual contract charge of $30 referred to in 13 nmac 9.3.19 and
9.3.20 [now
13.9.3.19 NMAC and
13.9.3.20 NMAC], the charge of $10
per transfer referred to in 13 nmac 9.3.19 [now
13.9.3.19 NMAC], the collection
charge of $1.25 per consideration referred to in 13 nmac 9.3.20 [now
13.9.3.20 NMAC], and the contract
charge of $75 referred to in 13 NMAC 9.3.20.2 [now Subsection B of
13.9.3.20 NMAC].
(2) for contracts filed in 1981 or later, the
contract charges in 13 NMAC 9.3.21.7.1 [now Paragraph (1) of Subsection G of
13.9.3.21 NMAC] multiplied by the
ratio of the consumer price index for June of the calendar year preceding the
date of filing, to the consumer price index for June 1979.
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.
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.