N.M. Code R. § 13.18.2.16

Current through Register Vol. 35, No. 11, June 11, 2024

Section 13.18.2.16 - OPEN END TRANSACTIONS

The following rules shall apply to open-end transaction forms.

A. The policy and certificate must be identified when used for open-end transactions by either a form number followed by the suffix (25-OE) or a check-off block and may be used for coverage of any other types of indebtedness if previously approved by the superintendent.

B. The premiums paid by the creditor and any insurance charges paid by the debtor for such insurance must be at the same mode.

C. If the insurer imposes conditions of insurability for an increase in coverage, then the policy must state such conditions. The conditions must be consistent with 13.18.2.25 NMAC and 13.18.2.28 NMAC of this rule.

D. If the disability benefit for an open-end indebtedness is based upon a minimum payment, then the method of determining the minimum payment must be stated in the policy.

N.M. Code R. § 13.18.2.16

7/1/97, 3/1/98, 6/1/98, 9/1/98; 13.18.2.16 NMAC - Rn, 13 NMAC 18.2.16, 12/31/07