N.M. Code R. § 13.18.2.22

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

Section 13.18.2.22 - INSURABILITY REQUIREMENTS PERMITTED

The presumptively reasonable premiums for credit life insurance shall apply only to plans containing provisions consistent with the following.

A. That the credit life insurance contract may require submission of the debtor's written and signed evidence of the debtor's insurability or that the debtor be in gainful employment at the time the insurance becomes effective, or both, on a form filed with and approved by the superintendent of insurance, and that such contract contains no conditions for validity of insurance more restrictive than contestability based on material misrepresentation and no exclusions other than for suicide, flight in nonscheduled aircraft, and war or military hazard.

B. The insurer must require and be responsible in its contract with the group policyholder and the creditor that proof be retained for three years following the offer by the creditor, group policyholder or the insurer and made available for examination by the superintendent that credit life insurance coverage is provided or offered to all debtors not older than the applicable age limit without age discrimination. The applicable age limit for credit life using presumptively acceptable credit life premiums shall not be less than the attained age of 70 years if such limit applies to the age when the insurance is issued, or not less than the attained age of 72 if such limit applies to the age on the scheduled maturity date of debt. Coverage issued in connection with open-end transactions may contain a provision for automatic termination of coverage upon attainment of a specified age, which shall not be less than 72. The use of any other age limits will require that premiums be filed under the deviation procedures in this rule.

N.M. Code R. § 13.18.2.22

7/1/97, 3/1/98, 6/1/98, 9/1/98; 13.18.2.22 NMAC - Rn, 13 NMAC 18.2.22, 12/31/07