N.M. Code R. § 13.18.2.18

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

Section 13.18.2.18 - PRESUMPTIVELY ACCEPTABLE CREDIT LIFE INSURANCE PREMIUMS (PRIMA FACIE RATES)

The superintendent of insurance may presume (subject, however, to a rebuttal of the presumption) that the benefits of a credit life insurance policy are reasonable in relation to the premium charged if the premium rate for death benefits as filed does not exceed an amount equal, or actuarially equivalent, to the following rates.

A. Coverage on a single life provided on the outstanding indebtedness basis: $0.84 per month per $1,000.00 of outstanding balance indebtedness.

B. Coverage on a single life on the single premium basis:

(1) $0.52 per year of coverage per $100.00 of initial insured indebtedness for all credit transactions when the insured indebtedness is payable in substantially equal monthly installments during the term of coverage; and

(2) $1.00 per year of coverage per $100.00 of level life insurance where the amount of insured indebtedness remains level during the term of coverage and is repayable in a single sum at the end of the term.

C. Coverage on joint lives on the outstanding indebtedness basis: $1.26 per month per $1,000.00 of outstanding balance indebtedness.

D. Coverage for joint lives on the single premium basis:

(1) $0.78 per year of coverage per $100.00 of initial insured indebtedness for all credit transactions when the insured indebtedness is repayable in substantially equal monthly installments during the term of coverage; and

(2) $1.50 per year of coverage per $100.00 of level life insurance where the amount of insured indebtedness remains level during the term of coverage and is repayable in a single sum at the end of the term.

N.M. Code R. § 13.18.2.18

7/1/97, 3/1/98, 6/1/98, 9/1/98; 13.18.2.18 NMAC - Rn, 13 NMAC 18.2.18, 12/31/07